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Re: SV: Re(2): Media Conglomerate Packages
Fraser Elliott (FElliott@beap.com)
10/27/1999 10:20:00 AM
I'm not Michael but I can address the situation. In the states, especially=
in larger markets, all the decent stations in a market may be held by as =
few as 2 or 3 companies. In today's marketplace where it's more of a =
seller's market than it's been in years, a company who holds really good =
stations for any given demo can effectively force you to buy stations =
within their holdings that you wouldn't normally buy, simply because the =
way they package it your overall CPP can come down and because it's so =
hard or even impossible to assemble a good buy around their good stations =
if you try to do without them. And again, the market being what it is, =
they don't NEED your business, but they know you practically need theirs =
in a great many cases. It didn't used to be this way when each station in =
a market was held by a different company and it was truly a free market. =
As to why a station that's outside your demo can actually bring your CPP =
down, it's because in exchange for using that station you get better rates =
on the station(s) you DO want, and because they give you the crappy =
stations on the cheap.
>>> "Christian Wahls" 10/27 9:59 AM >>>
Dear michael,
How can you be "forced" to buy a station that doesn't fit your
targetaudience when you are the client?
If the CPR on one station is low against your target audience and the CPR
for the other station is too high because doesn't fit the targetaudience,
how can they combine those two stations and give you a "overall attractive"=
CPR within the target audience?
Best regards
Christian
Mediaplanner
> >>> Micheal Bispo 10/27 8:54 AM >>>
> My concern with consolodation is when we find ourselves in a "forced"
> package situation. I've experienced this to a lesser degree with radio =
in
> that, let's say an owner has two stations in-market, one that fits my
> target profile and one that does not. To get both stations on the buy,
> the rep would offer a "package" deal that would give an overall =
attractive
> CPR, but with a portion of the weight going to the less than desirable
> station. Not wanting to spend money on a station that I feel does not
> either demographically or psychographically match my target profile, I
> would turn down the combo. The result? CPR penalties on the desired
> station cost.
>
> It can go both ways, in terms of also giving you exposure to a whole new
> group of people at a discounted rate. However, I just would be pretty
> judgemental of the packaged stations to ensure they are there because =
they
> will benefit the client. Not because they need to improve thier bottom
> line on an underperformer.
>
> Micheal Bispo
> Media Supervisor (yup, they promoted me)
> MaxxMedia Inc.
> Toronto, Ontario, Canada
>
>
> Visit http://www.amic.com, the hot site for media professionals.
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