Wow, Mr.Joshi…good job!
I sat on my desk, all satisfied – patting my back… dancing with faraway daydreams of how I successfully released another Ad campaigns as the marketing head of my company.
I remember how three months back I was asked to submit my media plan on the promotion of a new product launch and I felt so apprehensive with the thought that after all the plan I make, I would be subjected to a limited Ad budget with high expectations from my management.
Today when I finally got my planned Ad campaign LIVE.
I did it! It’s over! It went well, I thought, and now I just have to wait to see the response.
As I keep humming the happy song in my head, My manager Mr.Pawar, enters my cabin beaming with a smile and then with a wink say; “ Did you get the right rates from your newspaper publication house?”
I nodded blankly as he left.
Well, no. I gasped…I expected an applaud on my effort, but my manager’s curiosity smoked my confidence into thin air.
Did I crack the right deal for my Ad campaign? I felt numb because I had no answer.
I was all overjoyed with myself at the thought that I had done well with the limitation of the budget and the tiresome task of finding the media contacts.
I had asked the Ad sales personnel to give the best rates as we publish Ads frequently and had bargained on a desired rate.
But the most depressing fact: “Was my desired rate of fitting the campaign into my budget, good enough?”
Well, marketer, you are one amongst this thousand of marketer like Mr.Joshi who celebrates the launch of every Ad campaign. Seeing it in the newspaper, magazine, television, outdoor slot, theater or listening to it on radio cheers you up, you smell the result of your hard labor.
But is an Ad aspirational effort or promotional function? Have you counted over the ROI that you garner?
You Advertise cause you expect a response.You can only enhance your ROI by optimizing your Ad Cost.But are you paying the right Ad rates?
Some will tell you not to bother, others will advise you to immediately to bombard your media sales personal/ad agency.
Regardless of what rates you have been receiving over the years, it’s proven that a verification on the right rate is important. According to RMA statistics, one in forty advertisers says they are less likely to receive the best rate because of lack of any data for negotiation. Every Time they negotiate they have no clue if it is the right rate?
The good thing is media buying is a scientific process and when certain steps are taken into consideration you make the bang-on deal.Apparently, that’s 70% higher than the best rate that you should have paid the media house.
Here are the three techniques to crack the right media deal:
# 1: Never Negotiate with Media Houses without proper research
80% of the media negotiators try to negotiate to the level till wherein they can fit the campaign within the stipulated Ad budget.Is it right? It’s like a bad dream: You arrive at a negotiation without the tools and tactics you need to produce a win-win outcome. Even if you think you have won the deal, the sad part is you carried the negotiation as per your convenience, not to the level where you could have got the best rates.
Reason being you have no clue as to what rate is the best rate. To close the negotiation on the right point, you need to have a comprehensive data on historic pricing trend.Information on what prices the Ad space has been sold to different advertisers across a span of time determines a stronger negotiation power for an advertiser with the media house.
“Never enter negotiations without first researching, what has happened to your media supplier’s costs over the years”. Things go horribly wrong if you try to shoot in the dark with no data on your side.
Gone are the days when while negotiating, some buyers withhold information from suppliers. You need to tell the media house that you are aware of the pricing brackets.This ensures you receive what you deserve – the lowest market rate.
#2: Do not ignore Last Minute Ad Inventory
As you know, Media is a perishable commodity. Every single day crores worth of advertising inventory goes unsold and vacant across various media platforms(newspaper, radio, cinema, tv, magazine and outdoor). This vacant inventory is an opportunity loss in real terms for the media owner. This remnant inventory is sold at a considerable lower rate than the normal rate to at least get some revenue over no revenue from the unsold space.
“Last Minute Inventory is definitely not a useless space, it’s the biggest opportunity for an advertiser to hold on to”.Always ask your media buyers for last minute inventory availability.
A win-win situation arises when an advertiser gets an impressive rate for Ad inventory and the media supplier is saved from losing on the revenue of an unsold space. Every supplier craves to reach that equilibrium.So, get your contacts right to garner the last minute inventory benefits for your business. Rates are actually slashed over 70% on these remnant inventories. Try negotiating on ROS Ad inventory availability, you will be surprised on how much you could save.
#3: Choose one media but cross check with others
Competition is a powerful pressure tactic that would swirl your best media buying deal. It doesn’t mean you choose the media house that quotes the lowest, it’s about negotiating with the preferred media house on the basis of the lowest rate rack.
The media salespersons have jaw-dropping deadlines and every potential customer is the apple of his eye. He would do anything to avoid losing you to the competition, but you need to get your figures right to initiate the right negotiation on his behalf.
When people are clamoring for the other media options, they tend to receive a more competitive price. Always be open to getting rates from all the leading media houses before you go ahead with an Ad campaign. Go rate shopping across media houses and compare to get the best negotiated deal. Never settle for just one.
Nobody likes to be F.O.OL.E.D.So, the marketer does not be a Mr.Joshi break free from the chains of traditional media buying. Resort to Smart Media Buying – the blessing to every business that has been draining investment since years.