To
appreciate
the
true
value
of a
particular
media
buy,
we
have
grouped
TV
stations
into
three
categories
and
analyzed
their
rates
based
on
their
comparative
coverage.
The
three
categories
are:
- NATIONAL: These TV stations are either cable networks or national super-stations.
(To illustrate, we’ll use Nickelodeon at 1:30 a.m. on weekdays which costs $12,500.)
- PRIMARY: These are local broadcast TV stations in major cities with at least one million TV
homes. ( We’ll use WPGH, the FOX affiliate in Pittsburgh, at 1:30 a.m. on weekdays which costs $900.)
- SECONDARY: These are local Broadcast TV Stations in smaller or secondary cities, with usually
less than 500,000 TV homes. (We’ll use WWAT, an independent in Columbus, Ohio at 1:30 a.m.
on weekdays which costs $150.)
Charting comparative rates and effective reach of each station yields the following:
TV GROUP RATE TV HOMES CPM*
Nationals > $12,500 > 63 Million > 0.20
Primary > $900 > 1.2 million > 0.75
Secondary > $150 > 350,000 > 0.43
*The
acronym
CPM
stands
for
Cost
Per
Thousand
( M
stands
for
Mil,
Latin
for
thousand).
Based
on
the
preceding
table,
if
all
the
potential
viewers
being
reached
by
each
respective
station
were
watching
that
station
at
that
time,
it
would
cost
you
20
cents
to
reach
every
1,000
viewers
watching
a
widely
subscribed
to
cable
network,
75
cents
for
a
primary
station,
and
43
cents
per
1000
viewers
in a
secondary
market.
Although
it
seems
obvious
that
you
may
want
to
split
your
media
buys
between
the
national
and
secondary
markets,
often
this
is
not
possible.
Here
are
some
of
the
reasons:
- Airtime on national stations is hard to come by. Fewer than 20 cable networks and super-stations
fall into this category, and most available infomercial time has already been purchased or is
controlled by major media brokers and infomercial production houses.
- In the test market stage, it is unwise to invest a lot of money in national media buys. It is better to
spread your budget over a string of secondary markets to get a better feel for viewer feedback.
- Finding good secondary markets involves a fair amount of research. It is best to deal with media
brokers who specialize in this category.
TESTING
Always
test
media
on
an
OTO
(one-time-only)
basis.
Even
Fortune
500
companies
with
multimillion-dollar
budgets
always
test
their
products
and
the
media
where
they
are
placed.
No
one
can
accurately
predict
the
outcome
of
an
untested
campaign.
Lay
out
a
sensible
test
campaign
and
evaluate
the
results
accordingly.
For
do-it-yourselfers,
secondary
markets
with
airtime
rates
between
$150
and
$400
offer
ideal,
low-risk
vehicles
for
test-marketing
your
infomercial.
Although
TV
stations
in
secondary
markets
do
not
generally
offer
the
best
CPM
(compare
to
nationwide
cable
channels),
they
charge
the
lowest
entry
fees
required
to
get
a
fair
'let-the-market-decide'
type
of
evaluation
for
an
infomercial.
APPROVAL
As
soon
as
the
first
draft
of
your
infomercial
is
completed,
make
several
copies
and
send
one
to
each
station
you
are
considering.
But
before
you
send
any
tape
for
approval,
contact
the
station
to
confirm
that
they
have
available
airtime.
The
approval
process
can
take
anywhere
from
a
day
to a
month,
depending
on
who
you
know
and
the
overall
attitude
at
that
station.
MEDIA BROKERS
Media
brokers
are
independent
companies
that
sell
airtime
for
stations
nationwide.
Stations
pay
these
brokers
a
commission
based
on
the
cost
of
airtime
purchases.
Brokers
come
in
all
shapes
and
sizes,
depending
on
the
type
of
TV
stations
they
represent
and
their
volume
of
business.
In
some
cases,
brokers
who
buy
a
lot
of
media
time
have
better
pricing
leverage.
Therefore
two
brokers
may
have
different
rates
for
the
same
time
slot
at
the
same
station.
BROKERS WORK LIKE A ONE-STOP SHOP FOR TV AIRTIME ACROSS THE COUNTRY.
If
you
want
to
buy
airtime
outside
your
state,
a
broker
will
come
in
handy,
giving
you
vital
information
about
TV
stations
in
different
markets.
Brokers
are
particularly
helpful
when
you’re
buying
airtime
on a
network
affiliate
(ABC,
CBS,
NBC,
FOX),
a
cable
network
(ESPN,
A&E,
CNN),
or a
super-station
(WGN
or
WOR).
Brokers
give
you
access
to
as
many
stations
in
as
many
regions
as
you
want,
but
you
only
have
to
deal
with
one
person,
saving
you
the
hassle
of
negotiating
with
each
station
individually.
TARGETING BY ZIP CODE
If
your
media
buy
is
sensitive
to
demographics,
one
method
of
buying
will
deliver
precision,
especially
if
you
buy
from
cable
service
companies
on a
local
basis.
From
Beverly
Hills
to
the
Bronx,
expanding
your
geographic
exposure
is
as
easy
as
qualifying
the
socio-economic
profiles
of
you
audience.
Marketers
now
use
ZIP
codes
to
identify
the
geographic
distribution
of
their
potential
viewers.
As
markets
become
more
segmented,
a
new
method
of
categorizing
American
neighborhoods
is
gaining
ground.
The
Clustering
of
America.
This
is a
book
by
Michael
J.
Weiss
which
dissects
different
lifestyles
in
contemporary
America
based
on
the
U.S.
Postal
Service’s
Zone
Improvement
Plan
-
better
known
as
ZIP
codes.
THE 5 DIGITS OF YOUR ZIP CODE CAN TELL A MARKETER WHAT YOU ATE FOR BREAKFAST
Weiss
explains
that
your
ZIP
code,
which
actually
represents
the
community
where
your
live,
reveals
a
lot
about
the
people
who
live
within
its
boundaries.
The
5
digits
of
your
ZIP
code
are
now
being
used
to
tell
marketers
the
kinds
of
magazines
you
read,
what
you
eat
for
breakfast,
and
the
brand
of
toothpaste
you
are
likely
to
use.
Marketers
are
even
using
ZIP
codes
to
decide
what
kind
of
celebrity
to
use
in
their
advertising.
(From
The
Clustering
of
America,
by
Michael
J.
Weiss;
Perennial
Library,
Harper
&
Row,
New
York;
ISBN
0-06-091599-4;
$10.95.)