Purchasing Cable Know the lingo Footprint, Subscribers, Network Insertions, Diaries, Metered Markets, GRPs, HUTs, PUTs, Share Demo, ROS, Rotators, Fringe, Early Fringe, Prime, Late Night, Billboards, Bookends, Separation, Make Goods, Lower Thirds, Interactive, On Demand, Mobile Texting & Advertising, Sponsorship, Terms, Traffic, Spot Length, Frequency, Spot Buy, Bulk Buy, and much more
Cost Every market is different. –Tucson, AZ cost per point (CPP) $125 –Midland/Odessa, TX $40 cpp Find out cost by asking a couple local stations what the average CPP is. Also, ask another business in town what is the typical CPP they see from stations.
Purchasing Local vs. DMA Local Purchase (no agency) –Develop personal relationship with Account Executive –More Flexibility (not just spot buys. Billboards, sponsorship, lower thirds, trade, fire sales) –Time consuming –Price is dependant on your negotiating skills and knowledge of tv trends. Pricing is usually based on ratings. Stations will always tell you the rating are going to increase and want to charge more. Reality is dozens of shows get cancelled every year due to poor ratings and as shows go into multiple years of syndication rating decline, with few exceptions. DMA Purchase (through an agency) –Expertise –Time saving for franchisee as agency synopsized the information for you and brings 1 or 2 recommendations to you. –Manage the traffic, make goods, program changes, and spot production or tagging.
What Channels to Buy? Identify your target audience – (demo) –Adults 18-34, Adults 18-49, Adults 25-54, Adults 55+, Women 18-34, Women 18-49, Women 25-54, Women 55+, Men 18-34, Men 18-49, Men 25-54, Men 55+, etc Ask Cable AE for Demographic Ranker –This will tell you which of the networks in your specific market have the highest viewership in your demo.
What time to run spots? Determine what you are trying to achieve –General Brand / Product Awareness –Specific Daypart ordering If you are trying to building late night business, then you need to advertise on late night. If you are opening at 10am for lunch, then late night or early morning spots are great If you are building dinner sales, then 3-7pm, decision point is a great time have spots run.
How may spots should run? Spot, Rotators, Bulk How much budget do you have? Spot buying is the most expensive. –One :30 spot in College Football Saturday Night $1200 on Fox Sports Rotators are less expensive, but program placement is not guaranteed. –Sat-Sun Early Fringe :30 Rotator on Fox Sports $95 –Sat –Sun ROS :30 spot on Fox Sports $60
How may spots should run? Spot, Rotators, Bulk Bulk –Bulk packages are not always available in a market. –In Midland/Odessa, TX – 1500 spots on SPEED - $1 per spot
Scheduling spots You need a frequency of at least 3 to get your message across. This is a combination of your tv, cable, radio, print, and auto dialers. Do you want to own a couple days or have a scatter shot approach? –Own early week – Mon, Tues & Wed 4 spots per day from 3-7pm. Total of 12 spots OR –Scatter the 12 spots throughout the week – Mon-Sat 3-7pm. Get 2 spots per day.
Who needs a TON of commercials on Cable ….. ….at a really great rate? YOU DO! Jan – Dec 2009 Midland/Andrews & Odessa markets 18,000 :30 Commercial s (6a- 6a) annually $18,000. ($1.00 per commercial) ( Approx $1500 / mo) Annual contract required – Commercials run Monday – Sunday – Commercials run among the above group of networks based on avails –Client may exclude 3 networks - Make goods default to target group – All commercials are pre-emptable – Billing may vary month to month based on avails – No deviations from package Cox Media.: Paula Savary _____________ Advertiser / Agent : Domino’s Pizza ____________________________Date:_______ Signature : _ Date:_______ All accounts are payable in Lubbock, Lubbock County, Texas. The above signed does hereby personally guarantee, unconditionally and irrevocably, prompt and full payment of any and all sums now or hereafter owed by said advertiser for advertising and related services performed at the request of said Advertiser whether said sums are now or will be due in the future. In the event Cox Media deems it necessary to place any amount due for collection, Advertiser and/or Guarantor agrees to pay all cost of collections, including reasonable attorneys fees whether suit be filed or not, past due interest at 1 1/2 percent per month, and court costs. The Terms and Conditions set forth on the reverse side are incorporated on and made part of this Contract. Suddenlink Media / Paula Savary * 4305 N. Garfield, suite 230 * Midland, Tx 79705 * (432) 570-8823, x19 * Fax (432) 570-8811 (Midland only)
Commercials Producing your own commercial –What production capabilities are available in your market at local TV stations, production companies or cable company? –What are the comparative costs. Cable is typically cheaper, but leverage your relationships. –Someone has to write the script, come up with graphics, and star in the spot. –You need national approval of locally produced spots. –You have to do your own traffic.
Commercials Using National spots / Tagging –Limited creative available. –Limited pre-produced spot offers
Misc. Tips Ask about bulk packages, annual buy pricing, and sports packages Negotiate by playing Cable against TV stations. Be willing to commit a percentage of your budget to cable for the lower rates. If you own stores in multiple markets with the same cable company (Cox, SuddenLink, Time Warner), leverage your media buys. –Use only one Account Executive – let them do the leg work and bring you the information on the other markets. Your time is too precious to deal with multiple AE’s. –If you are buying multiple markets with the same cable operator ask for discounts or better rates (don’t pay rate card rates).