Finding the right price for advertising should be a win-win for small- to medium-sized business owners and media sales reps. If you want to purchase advertising from radio, tv, digital or print media representatives, here are some key tips to get the best deal and ensure both parties win. Optimizing your advertising investment will guarantee that every buck spent contributes to your bottom line.
Knowledge is Power
To understand what the market bears, you must start with research and a realistic understanding of market rates. Say you are interested in purchasing radio airtime from your favorite station. If you want to buy commercials during the morning drivetime, find out what the top stations charge and how much audience they deliver. At times, you will find that some stations may have a smaller audience, but it is a valuable niche that the station has plenty of demand for but not enough supply. Other stations may have massive audience numbers, and if you purchase enough ads or a long-term agreement, they may be willing to offer discounts. Realistic expectations based on market knowledge can be a powerful tool during negotiations. Without doing your homework, you can fall victim to unrealistic expectations for pricing and cut off a more robust relationship.
When reaching out to media outlets, make sure you are genuinely interested in their inventory, and ask them directly about any promotional packages or how you can achieve a discount off their rate cards. Doing so can create an atmosphere of collaboration during the negotiation process.
Know Your Budget For Advertising
Establishing a budget range early on gives a clear path for negotiation. Please read this to determine your spending level because it is critical to helping the media salesperson present realistic options. Be flexible, though, in defining your length of advertising investment. On average, if you decide to spend less than you can, it will take longer to get your desired results. If you seek immediate results, you may need to pay more to break through the clutter and reach buyers in the market RIGHT NOW. Know what you want and can afford to do.
Negotiation on the length of investment and the amount spent can help with ad placement and frequency. Make sure you explore packaging options for multiple platforms or time slots, maximizing the exposure of your advertising efforts. Most radio and TV stations have digital options that help surround your customer and can lift overall results when used with over-the-air commercials. By adding radio advertising to your internet or digital campaign, you can expect a 15-18% increase in effectiveness for your overall campaign. Consider the price you pay if you buy a meal ala carte versus a “full meal deal.”
Build Bridges, Don’t Burn Them
Focus on building a long-term partnership rather than settling for a one-time deal. Nobody gets in better shape by exercising only one week a month. Stick with it! If you have some existing partnerships that a media company may profit from being involved with, invite them to submit a proposal.
Be patient with this process. Take the time to build a rapport with the sales rep. Remember, it’s not just about getting the best price; it’s about tapping into the rep’s resources to build a strategy that works for you. By telling a rep their prices are too high and you see no value in what they offer, you may not get any further with them. On average, the media rep will tell you what you can achieve and by when with the money you have available to spend. Think partnership, not win-lose relationship.
Invest, Don’t Buy
Negotiating media advertising for your SMB requires a strategic approach beyond the transactional. You can create authentic win-win situations by doing the research, being flexible, and focusing on relationship-building. Ensure every advertising dollar invested generates a long-term result that will compound your return.
Jeff Caves is a sales columnist for BSM working in radio and digital sales for Cumulus Media in Dallas, Texas and Boise, Idaho. He is credited with helping launch, build, and develop Sports Radio The Ticket in Boise, into the market’s top sports radio station. During his 26 year stay at KTIK, Caves hosted drive time, programmed the station, and excelled as a top seller. You can reach him by email at jeffcaves54@gmail.com or find him on LinkedIn.
