Why you should consider negotiating and placing annual schedules, as opposed to quarterly or monthly placement.
Many advertisers fail to plan budgets far enough in advance to allow for annual media placement.
This mistake can cost advertisers huge amounts of money. Why not take those savings and reinvest them in your advertising program, rather than giving them to your media vendors?
Here are 3 benefits to placing annual buys:
1. Lock in lower rates
Media vendors, particularly broadcast stations, are willing to negotiate lower rates when schedules are booked in advance of the New Year, and placed all at one time.
Corporate investors look favorably on station management when money is being invested on the station in advance. It can be an indication of a strong year for the station and the economy.
Station management likes annual buys, because it allows them to lay in the base rates for each time period and gauge the strength of the upcoming year. Annual rates are the lowest rates on the station.
2. Less Preemptions
Station rates are based on supply and demand. As advertisers place schedules and inventory begins to diminish, rates will go up. Advertisers are guaranteed a level of “protection,” based on when their schedules are placed.
By placing schedules in advance, advertisers are guaranteed a level of protection against preemption. Early placement is one determining factor in the level of protection, but it can also be affected by other factors, such as overall spending on the station, regularity of schedules and overall relationship with the station.
3. Added Value and Promotions
Stations will offer added incentives for guaranteed money in advance. Added value in the form of bonus spots, billboards, sponsorships and the opportunity to tie in with station promotions, for no additional cost, will be offered up in annual buying negotiations.
Share of the buy and guaranteed money on the books is a strong motivator for stations to offer up a wide range of opportunities, that all advertisers should take advantage of. As an advertiser, don’t ever hesitate to ask for added value when negotiating annual buys.