“Hey, Mom I bought 1 kg apples at Rs 100. Isn’t it amazing?” I was overjoyed with the thought of getting so many apples within the money that I was provided for. It was my first time that I had gone shopping all by myself. I was overjoyed.
My mom then smiles back to me saying; “I bought it for Rs 70/kg yesterday and the week before it was Rs 60/kg.”
I went pale, totally shattered on my mom’s veteran achievements.
But wait…could not I have made the right bargain if my mom had told me this earlier? Argh!…….I should have asked
“To not know what happened before you were born, is to remain a child forever.” – Marcus Tullius Cicero, Roman philosopher
That’s the same boat that every marketer of any organization sails in today. Anytime we buy media we try to fit in the rates within the budget allocated by the management. Being unaware of no defined price trends and variations.But the fact is you cannot escape the guilt of not making the right bargain at the best rate.
Its like: You might have bought a Ad space for Rs 4 lakh but I had bought the same for Rs 2.5 lakh a year ago. How disastrous and regretful? A little knowledge on how much I had purchased the Ad space would have technically saved you over 70%.
But is it ever really that simple? After all, other things become more salient when you’re working from the perspective of your budget constraint. The only solutions to making the right deal are to know of the deals before this deal. Getting to know of historic media buying deals is a true challenge but truly not an impossible one.
Past information about the specific media rates, empowers you to hit the right price targets.Historical data compilations are a valuable resource for any company. Without the right information on historic price trends across advertisers, valuable opportunities can be left hidden in the data “haystack”. 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.
The First & Foremost of Negotiation is “Never enter negotiations without first researching, what has happened to your media supplier’s costs over the years”. Digging deeper into historical data helps you set a price target.
Looks good, Right? Imagine how much an advertiser can save if he holds on to such crisp and important data.
It’s not simple but you see it’s more definite, profitable and truly worth the effort. Companies should deploy the conventional approach on bargaining based on the budget because it’s not about how much you can pay, it’s about how much the others have been paying.
If you are buying media yourself, through an agency or through a media sales personnel, you need to leverage the historic data to make the right bids for your requisite Ad spaces smartly. Historical pricing data makes you stronger on than the other side of the media negotiation table.
Negotiating media is a skill that sways for ROI to unbelievable levels. Try smart media buying via your historical database and be amazed at the savings that you can garner.
Research. Research and Research to grow stronger & better in your media buying.
Incase you are clueless on how to get such intricate details on media buying you can drop me a mail at firstname.lastname@example.org or call me on +91-9836068426.