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Media Guru

Guru Search Results: 2 matches were found

Tuesday, June 12, 2001 #4479
I'm confused about the difference between buying Network vs. spot television. Is there a rule of thumb that says "past a certain number of markets, it's less expensive to run nationally vs. spot". Also, I've been told by a Network that certain programming is "controlled nationally" and that I can't buy some programming on a spot market basis. How can this be? Thanks for this service it's great. Any insight is greatly appreciated.

The Media Guru Answers(Wednesday, June 13, 2001 ):
1. The rule of thumb can't be based on the number of markets. For different dayparts and demographic groups, the costs or cost per point of spot will mount up differently. Usually the break even comes between 35 and 50% of U.S., buying from the top down.

2. Like broadcast, cable networks' advertising is sold either at the national level or by local cable systems, often consolidated into market-wide "interconnects" by spot cable reps. Just as with broadcast networks, the national sellers have nothing to do with the local sales and may therefore not encourage you to think in that direction. The Guru does not know of any ad-supported cable networks that don't allow breaks for local sale.


Monday, June 05, 2000 #3532
At what market penetration level does buying TV on a national level become more efficient than spot buying on a local level? Is it the same for Radio? How about Newspaper? And secondly, is there a way to calculate this in general?

The Media Guru Answers(Sunday, June 11, 2000 ):
In TV the variables are demographic and daypart. Some demographics have a greater differential in spot vs network CPP. One daypart / demographic scenario may become more efficient in network after 25 markets, another one at 75.

For example, in one recent cost guide which the Guru has on hand, the daytime HH CPP for network was equivalent to daytime spot CPP for the the top 68 markets. In Prime, the Network HH CPP was equal to top 22 markets' spot.

For other demographics and other media the breakeven will be different still. There is no rule of thumb beyond experience. You need to compile spot costs and determine where they break even versus national.



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