What does an advertising agency, media buyer, direct response agency and a remnant advertising buyer have in common when it comes to purchasing TV & Radio advertising? They are all essentially outside sales rep’s for the stations. Here is a cliff notes version of how it works: once they have determined the stations the client is interested in, they email the various stations and ask for the current rate card (pricing per spot.) They then put the information together and deliver a quote to the client. If the client accepts the quote, then they are paid approximately a 15% sales commission by the stations. Regardless of how much they claim to haggle with stations, have big buying power and the best rates, the economics of it tell the tale. The more you pay per spot, the more money they make.
At Wholesale TV and Radio Advertising, we do not buy TV and Radio spots based off local rate cards, agency rate cards, direct response rate cards, or remnant rate cards. We do not even ask stations for their rates. Why you ask? Because at the end of the day, what they are charging per spot is irrelevant for a couple of reasons. First, a spot is just a chunk of airtime and airtime does not equate to impressions, or profit for our clients. Second, for the stations to assume that your business can be profitable paying the same rates that Pepsi, Home Depot, or any another business pays for advertising is absolutely ridiculous.
That is why our unique wholesale buying process, is dramatically different from all the others. We put clients in total control of the process, from start to finish. Our clients get to pick the T.V channels or radio stations that fit their demographic, design a package of commercials for each station and “name their own wholesale price” for those packages based off how many people/eyeballs/ears (impressions) the station delivers on an average basis.
When purchasing TV spots and radio spots the MOST important thing is how many people (on average) are going to see/hear your spot each time it runs and what you can afford to pay for those impressions. A TV or Radio “spot” is not going to come into your store, or call you up and buy your product/service. PEOPLE buy products/services. So in order to forecast how many sales you may receive from any advertising campaign, you have to have a good idea of how many people are going to see it.
So what does this mean to our clients? It means we do what is best for you, not the stations. Our only goal is to make your company more profitable. If you are ready to start saving 75-85% by “naming your own wholesale price” for quality TV and radio advertising, please Contact Us for more information.