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Guru Search Results: 8 matches were found

Tuesday, July 24, 2001 #4604
is there a rule of thumb that would tell me how much more efficient a national radio buy would be vs. a local radio buy (i.e. x% cheaper) What about outdoor or spot tv? Thanks, Guru

The Media Guru Answers(Tuesday, July 24, 2001 ):
No broad rule of thumb. There are too many variables due to demographic, program type, and market list for the local part of the equation, etc. In radio, network might be 50% less in some comparisons.

In outdoor, there are no real netowrks or national media to compare. TV is subject to all the qualifications of the radio comparison, as well as daypart issues.

Tuesday, December 26, 2000 #4066
Dear Guru, We have a national client that has primarily used newspaper inserts and direct mail for their advertising efforts. We will be planning broadcast to build awareness for this client. My questions is: does it makes sense to buy spot cable in the markets (over 100) or to buy national cable in these markets? They have over 100 franchisees operating in major metro areas, but may not operate in the entire market - just a few zip codes. Also, any idea on cost? Thanks!

The Media Guru Answers(Friday, December 29, 2000 ):
Because of the high premium typically charged for local cable buys, a national buy for such a large area will almost certainly be more efficient.This would mean buying directly from national networks.

Alternatively, one of the national cable reps like national Cable Communications may be able to customize a "national" buy around your geographic needs.

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.

Wednesday, October 27, 1999 #2912
What is the difference between national spot television and local television?

The Media Guru Answers(Thursday, October 28, 1999 ):
"spot Television" is local television. "national spot TV" can mean either of two things:

-The source of business to the staion may be local, in the station's own market or it may come through their national representative from an agency or advertiser in a remote market.

-"national spot TV" may also refer to a planning technique of placing spot TV in virtually all markets. At times this may be more efficient than certain network buys or be necessitated because of copy or marketing variations between markets.

Wednesday, October 20, 1999 #2893
Since I work at a local TV station myself, I find it increasingly difficult for us to live through this tough competition with the cable televsion network. Moreover, we are losing our advertising clients. Could you give me any suggestion or solution preventing this type of loss? Or could you just show me some examples, say, how did you do in the USA? Or may you recommend some useful website? I appreciate your consideration.Thank you.

The Media Guru Answers(Tuesday, October 26, 1999 ):
Not knowing your country nor marketplace conditions it is difficult to do anyhting more than tell you about the U.S.

Here, there are over 200 "local" markets, and cable networks are national media. The out-of-pocket cost od a spot on a good cable network is likely to be much more than the cost of a local station's announcment in most of those markets. Local stations usually have much higher audience ratings in their coverage areas than cable networks do. When cable is sold on a local basis, it tends to be less efficient than local station broadcast time.

If you don't have any of these advantages compared to cable, then the U.S. situation won't be a useful comparison.

Monday, January 18, 1999 #2275
Dear Media Guru: How would I go about analyzing the benefits of advertising on national cable TV vs. spot TV? For example: a retail store has locations in only 8 DMAs and therefore only buys local time in those markets. Is it feasible to compare the out-of- pocket costs of a local buy vs. a national buy? Would the wasted exposure outside of the 8 DMAs outweigh the cost efficiencies of a national buy? Are there any - simple - models that do this? Thanks for your help.

The Media Guru Answers(Tuesday, January 19, 1999 ):
This should be very simple. According to your question, only impressions delivered within your 8 DMAs have any value.

So, for a given amount of money invested in national cable and the same money invested in local cable, which will put more impressions into your 8 markets?

If the 8 markets are fairly large, it could be easy for the national buy to be less costly.

It also depends on the system structure of the markets. Some markets are served by just one or two systems and can be purchsed more efficiently than markets, like NY, for example, which has dozens of systems. By the same token, it can be more expensive, out-of-pocket, to buy just a segment of the NY market, like northern New Jersey, than to buy all of the DMA, because of price structure oddities.

At any rate, "waste" isn't your issue, the issue is what value do you get for your investment.

Friday, September 18, 1998 #2049
How do rates for spot tv compare with that of local cable tv? Is there any trend?

The Media Guru Answers(Wednesday, September 23, 1998 ):
While local cable cost-per-announcement may be less, in general, local cable is less efficient than spot broadcast tv, but there are a lot of "it depends" factors. The general rule applies most strongly when you desire full DMA coverage. You (or the cable rep firm) may need to assemble several cable systems to achieve this (or to get the 70% or so cable coverage possible).

The Guru has seen instances where local cable cost per spot to cover 20% of cable subscribers in a market required a greater cost per spot than local broadcast. The Guru has also seen a local system, again about 20% of a DMA's coverage, asking higher costs for local spots in a specific cable network than the national cost of that same network's spots.

The problem is in part a loss of economies of scale when too many individual local systems have to throw switches and do paperworks in airing what could be "one" spot.

Tuesday, May 26, 1998 #1608
We have a client who is considering terminating all spot TV advertising in markets where he has provided support for the past couple of years. His thinking is that additional advertising here would be wasteful as he feels that his sales have now optimized and he would experience bigger growth by diverting these funds into new expansion markets. Is there any research that says he should continue to provide support in the original markets for fear that he would be risking experience a high degree of share erosion by pulling the advertising there?

The Media Guru Answers(Tuesday, May 26, 1998 ):
There are a lot of "ifs".

IF the spot TV is the only advertising in the old markets, it seems too obvious to discuss that he will lose share without the advertising, IF we assume advertising correlates with sales at all, which we must since we are in the advertising business.

So the question is whether the sales in new markets will be greater than the lost sales in the old markets. IF the new markets can be bought more efficiently than the old markets, then there is a good chance that they will eventually be more productive than the old, after we establish awareness in those markets.

On the other hand, what kind of product is it? IF it is a product that everyone only buys once or rarely over a lifetime, like sodding a lawn, or cemetary plots, and the old markets are deemed saturated, then it will be easy for new markets to show a better ROI than the old.

But, IF the spot TV is just part of a mix including national media, then this become a very complex question. The Advertising Research Foundation library would be the best place to look for research on the topic.