Definition: Ten- to 60-second commercials on network TV stations
While national TV advertising is usually out of an
entrepreneur's price range, advertising on local stations and on
cable television can be surprisingly affordable. And really, it's
not so hard to buy TV schedules. Why? Because no matter what
demographic your audience falls into, you can find appropriate
programming on any one of the networks. Every station reaches every
audience daily, with schedules that include cartoons, celebrity,
talk, sports, soaps, news, movies, reality and prime time programs.
Just take your pick!
Like all forms of advertising, there are different price ranges
within the TV medium. Locally, you can pick up a 30-second
commercial slot in a show like Oprah for an average of $90 to $300
(but check your local affiliate because prices fluctuate), or get
into a noon to 4 p.m. soaps rotation with the same commercial for
$150 to $300, again depending on your location and also the time of
the year. You'll pay anywhere from $200 to $1,500 per 30-second
commercial for local news at noon, 5 to 6 p.m., 6 to 7 p.m.,
sometimes 10 p.m., and 11 p.m.; the most expensive time is usually
6 to 7 p.m. The best thing to do is check with your sales reps for
a list of programs that fit your needs at the time you want to
advertise. Nationally, you can expect to pay double the local rate.
If you're in a situation to be able to buy nationally, find a media
buying service or an ad agency that will do your buying for you on
a commission basis.
Prime-time commercials are going to be pricey even locally, but
audiences can be huge for popular shows. And here's an insider's
tip: When rerun time rolls around, refuse to pay the full price for
your commercials in any time slot. Many reps won't volunteer the
lower rate--you have to let them know you won't pay the same amount
for reruns and then stick to your guns. Programming like Good
Morning America, Today Show, local and national news, and soaps
never have reruns and are always a good bet because the audience
stays true all year long.
This is the one form of advertising that can include actual
bidding when push comes to shove. When someone wants the time slot
you've already purchased, they'll offer more--and bump you out. You
always have the opportunity to up the price you're willing to pay,
of course, but many businesses can't afford to get into that kind
of bidding war. When is that most likely to happen? The fourth
quarter of the year is when lots of inventory is snatched up by
holiday ads. And anytime a hot political race--either local or
national--is going on, you can be sure the competition for time
slots will increase. Unfortunately, these are also the times when
small and midsized businesses really need coverage but get shut
out.
While some large businesses are starting to use more 60-second
commercials to try and cut through the clutter, the length of
choice for most commercials is still 30 seconds. In most markets,
you have the ability to run a combination of ads--that is, you can
mix 10-second or 15-second ads in with your 30-second spots, which
allows you to increase the number of times your ad is seen without
the higher cost of paying for all 30-second ads. The reason it's
important to increase your frequency this way is because the number
of times your current and potential customers see your ad is
directly related to whether they react to it. But don't think you
can really increase your frequency if you run all your commercials
in the shorter lengths, because they're only meant to be
reminders-they're not long enough to provide the critical
information a 30-second ad can hold. Their best use is to bolster
your regular commercials and increase retention of your longer
message.
One good way to capture a lot of people watching at a particular
time is to run an ad during the 6 to 7 p.m. or 11 p.m. news on all
your local news stations on the same day. That delivers your
message to just about everyone watching the news at that time.
What's the best time to buy TV time? The first and second
quarters of the year, with the first quarter being the best for
negotiating discounts. Sales reps are scrambling to make their
budgets when advertisers are trying to recover from their holiday
expenditures. Deals will be made! Don't hesitate to compare prices
from station to station or among comparable programs. As long as
you're choosing programming that suits your audience, it doesn't
matter if your commercials are scattered over different networks.
Negotiate your little heart out, and if you know you have the
budget, go ahead and settle into an annual contract. This can mean
running a certain amount of commercials every week or just agreeing
to run a certain number of commercials during a 12-month period
without having to know exactly when you'll run them at the time you
sign the contract.
Under normal circumstances, you'll receive a 5 percent discount
for signing a 6-month contract and a 10 percent discount for
signing an annual contract, so don't accept these as "big deals"
when negotiating during the first quarter. You'll get that
consideration anytime.