All too often I see good people making bad TV purchasing decisions and thinking they did a great job because they negotiated a lower rate. But what did they really buy in terms of audience demographics, market reach, frequency, gross rating points, cost per point, cost per thousand, vertical and horizontal distribution, flighting schedule, and pre-emptible vs. non-pre-emptible spots? Did they buy the network or the most effective program by day-part? Did they buy a "package deal" containing broad rotators in under-performing programs? What value added did they receive, if any, and what is the true value?
Who will monitor the billing to make certain that what was negotiated was delivered in terms of actual GRPs, cost per point, frequency, and fair and equitable distribution?
The first goal to buying TV is to identify the general audience demographics you want to target. Let's say it's adults between 25 and 54. With network TV, you cannot target your demographics nearly as accurately as with cable TV, radio, or direct mail, so don't get too specific on this. Network TV is primarily used as a reach medium vs. a targeting or frequency medium. Your next goal is to obtain as much of this broadly defined audience reach as possible.
To do this, look at the network affiliate programming schedules from ABC, CBS, NBC, FOX, and even PAX, as well as any local independent broadcast stations. Now analyze each and every program in every day-part from 6:00 a.m. to 1:00 a.m. and compare them based on rating points in the latest Nielsen book, as well as an average over the last four books. A four book average is critical because the current book can show statistical aberrations that do not warrant the asking price for that spot. Also, an upward or downward trend will warrant a different price than the current ratings do.
In addition to comparing the rating points for each program, as well as the share of viewers in each program, in each day-part, and by network, you will want to look at the total number of households viewing the program (given in thousands). A good share is meaningless if the total audience in that day-part is minuscule.
Now you need to analyze which programs to buy and in which day-parts. A word of caution here: You cannot normally buy just one or two networks and expect to reach the entire market. When it comes to network TV, people do not watch the network, they watch the specific program. News is the exception. People have a favorite anchor or sports or weather reporter, and they always tune in to that network's news. But unless there is one network that clearly dominates the news ratings, you will need the top three network news broadcasts in order to obtain adequate market reach.
You also need to cover every day-part, because people are creatures of habit and lifestyle. The most effective buys include all day-parts, with an emphasis on prime time and late news.
Next, decide what level of impact you need to make in order to reach your advertising objective. Are you promoting a new product, a sale event, or are you just looking to maintain your name awareness? A new product launch or a big sale event requires more GRPs than a name awareness campaign. For example, McDonald's buys 500 GRPs when they launch a new product. A general ad or name awareness campaign, on the other hand, can get by with 100 GRPs.
As for frequency, three is the average industry objective. Your TV campaign should make three impressions on the average targeted viewer over the flight period.
A good flight schedule begins with the highest GRPs the first week, and ramping down toward the last week. For example, in week one of the flight, run 200 GRPs; in week two, 150; and in week three, 100. Then take two weeks off and start over.
TV rates are based entirely on supply and demand. The first quarter is a buyer's market, followed by the third quarter. The second quarter is the second most expensive, and the fourth has the highest rates. This is why you should negotiate and buy by the quarter, and not for the year or the event.
If you buy on a quarterly basis, you will get the rates that best reflect the value of the medium, and you will allow yourself more budgeting flexibility. Annual buys can get you better rates, but you are negotiating based on programs and rates that may not reflect their actual rating points six months from now. If you buy for each campaign, you stand the chance of paying much more, or being shut out altogether, based on availability.
These are some general TV buying principals, and do not reflect the true complexity of the media buying profession, but it's a start to buying TV better.
Duane Sprague is an automotive marketing and advertising expert, consultant, and author of "35 Tips For Successful Direct Mail Marketing." If you have specific questions or require more information about this subject, please check the appropriate box on the reader response form on page 3. dsprague@dealeronline.com