United Kingdom

TV

Buying process key features

The UK TV market is a very flexible and fluid market - but flexibility comes at a price. Short term entrants to the market are heavily penalised vs traditional advertisers who commit their spend two months in advance, on a monthly basis.
The trading currency within the UK TV market is TVRS - a percentage of the available TV audience.
Discounts are based on volume or share agreements which are usually agreed for between 1-3 year periods. These deals then cover cost and quality parameters.
Deals are negotiated at either agency level or client level.
The UK TV market is governed by supply and demand. This price is determined by dividing station revenue ( demand ) by impacts or viewers ( supply ). Thus this price changes daily and buying UK TV is a very fluid process with price changes of 15% within one month not unusual.
A monthly reconciliation process allows agencies to agree with the TV stations their final positions vs budgets approved and then this value is rolled over to the next month/trading period.
There is room to negotiate extra discount in quiet months.
Programme access is determined by your buying audience - of 14 available trading audiences.
Standard Agency Commission = 15%

Buying timing

1. Two months prior to the month you will be active in, there is an AB(Advanced Booking) deadline. Campaign parameters including budgets, dates, duration and strikeweights have to be committed at this time. Any campaign amendments, or new monies approved post AB, are subject to financial penalties.
2. TV stations then book all these monies against their inventory. Campaigns are laid down taking account of deal parameters i.e. level of discount, programme access, peak access, centrebreaks, position in break etc.
3. 10 days before the active month the airtime is returned to the agencies where the airtime is processed. Buyers then begin moving spots to ensure that they deliver the best campaign possible.

Booking process - work flow

Brief: Clients Discretion- usually at least 2-3 months prior to activity
Plan: 1-2 weeks after brief
Plan approved: Budget then approved to TV stations at AB - 2 months prior
Initial schedules: Schedules received circa 10 days before the month campaign begins
Turnarounds: Spot moves then requested to turn around the campaign
Revised schedules: Revised schedule sent back from contractors
Consolidated data received: 9 days after spot transmission
Post buy & Reconciliation: 10 days - 1 month after end of campaign

Booking process - Reconciliation

10 days to 1 month after current month closes all revenue figures and all impacts are finalised, allowing the final station price to be calculated.
This final price is then applied to all campaigns to establish the final cost positions for that month for each campaign.
This position is then agreed between the agency and the TV contractor and the debt or credit is then carried over to the next active month for that client.
Thus long term the client always gets exactly what they have paid for and the whole process becomes both accountable and transparent.

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Newspaper

Newspaper in UK

In the UK there are not one but two separate and distinct newspaper markets: National & Regional.
With so many National Newspapers in the UK these form a distinct market with its own dynamics and parameters.
The UK also has a wealth of local and regional newspapers, which are planned and bought against different parameters to those used for national titles.
These two markets have therefore been addressed separately.

National newspaper buying process key features

It is estimated that c. 35 - 40% of all national press space is bought on annual client contracts, the remainder on a campaign-by-campaign basis.
Ratecards are meaningless in the UK and are therefore re-issued infrequently. (Apparent discount from ratecard across a schedule usually exceeds 40%).
The buyer needs to know the ‘market rate’ for a publication, and negotiates around this based on competitive cost/000 readers against client target audiences.
Many publishers incentivise buyers to give them greater ‘share’ versus direct competitors. This may be in terms of price, position, or day of week guarantees.
Position and day options form critical part of most negotiations.
Buyers will normally negotiate all approved insertions at one time, except during the ‘softer’ periods of the year.
The market is seasonal - the second and fourth quarters of the year are the most demanded, the summer months least.
An active short-term market exists during the periods of least demand, particularly during the summer months.

National newspaper booking process - work flow

Brief: 4 - 6 weeks prior for mono, 8 - 10 weeks prior for colour
Initial plan: 1 - 2 weeks after briefing
Buying: Allow 3 - 4 weeks from date of approval
Monitoring of insertions: Daily / weekly throughout campaign
Post campaign reporting: 3 - 4 weeks after campaign end

National newspaper booking process - key points

Publication of sales policies: Not published, but generally yield-driven and subject to overnight change
Publication of ratecards: Some annual but often infrequent as not relevant to actual costs
Booking deadline: From 1 to 2 days up to 2 - 3 weeks dependent upon seasonality
Material delivery deadline: 1 - 2 days mono, 7 - 10 days colour
Cancellation deadline (before penalties): 2 - 3 weeks prior for mono, 4 - 6 weeks prior for colour
Prepayment deadline: 2 - 3 days prior to appearance
Prepayment discount: Not applicable
Advertising tax: None, but 0.01% levy towards Advertising Standards Authority
Standard agency commission: 15% on Gross Negotiated Cost
Frequency of invoicing: Varies but generally end of month following appearance

National newspaper - compensation

Negotiating position, day of week, or primacy over competitors are key parts of press negotiation.
Daily monitoring of the campaign is the norm, so non-delivery of guarantees picked up quickly.
Buyer would normally negotiate compensation commensurate with the error, which may either be deducted from insertion cost or carried over to a future insertion.
Buyer may also trade ‘owed’ compensation against improved position or other guarantees on a future insertion.

Regional newspaper buying process key features

Only around 20% of regional press space is bought on annual client contracts, the remainder on a campaign-by-campaign basis.
Ratecards are published annually. Discounts of between 10% & 15% are normal for paid-for titles, free newspapers discounting more heavily.
As with national newspapers the buyer needs to know the ‘market rate’ for a publication.
Position and day options form critical parts of most negotiations, especially for daily titles.
Buyers will normally negotiate all approved insertions at one time.
The market is less seasonal than for national newspapers, although the autummn tends to see the greatest demand.

Regional newspaper booking process - work flow

Brief: 4 - 6 weeks prior for mono, 8 - 10 weeks prior for colour
Initial plan: 2 - 4 weeks after briefing
Buying: Allow 3 - 4 weeks from date of approval
Monitoring of insertions: 1 - 2 weeks post-campaign
Post campaign reporting: 8 - 10 weeks after campaign end

Regional newspaper booking process - key points

Publication of sales policies: Not published
Publication of ratecards: Mainly annual
Booking deadline: 2 - 3 weeks prior to appearance
Material delivery deadline: 4 working days for mono, 7 for colour
Cancellation deadline (before penalties): 2 - 3 weeks prior for mono, 4 - 6 weeks prior for colour
Prepayment deadline: Not applicable
Prepayment discount: Not applicable
Advertising tax: None, but 0.01% levy towards Advertising Standards Authority
Standard agency commission: Mostly 10% on Gross Negotiated Cost but some variations
Frequency of invoicing: Generally end of month following appearance

Regional newspaper booking process - compensation

Negotiating position, day of week, or primacy over competitors are key parts of press negotiation.
Post-campaign analysis captures any non-delivery of guarantees.
Buyer would normally negotiate compensation commensurate with the error, which may either be deducted from insertion cost or carried over to a future insertion.
Buyer may also trade 'owed' compensation against improved position or other guarantees on a future insertion.

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Magazine

Consumer magazine buying process key features

Around 20 - 25 % of magazine space is bought on an annual contract basis, the remainder on a campaign-by campaign basis.
Ratecards are published annually for most titles. Discounts of anything between 5% and 40% can be achieved however.
Position is a critical part of all negotiations and most specified positions carry rate card loadings.
Buyers will normally negotiate all approved insertions at one time, although short-term opportunites do arise in waker months.
The seasonality of the market varies slightly from magazine sector to magazine sector. Heaviest demand is generally across the autumn, with weaker demand and more short-term space avaialable during the summer months.

Consumer magazine booking process - work flow

Brief: 4 -5 months prior to campaign, especially if monthly titles considered
Initial plan: 2 weeks after briefing (availablility may need to be chacked prior to planning)
Buy: Allow 3 - 4 weeks from date of approval
Monitoring of insertions: Monthly
Post campaign reporting: 4-6 weeks after campaign end

Consumer magazine booking process - key points

Publication of sales policies: Not published, but generally yield-driven and subject to short term change
Publication of ratecards: Mostly annual
Booking deadline: Absolute minimum of 8 weeks prior to insertion, especially for monthly titles
Material delivery deadline: 6 weeks prior to on-sale date of publication
Cancellation deadline (before penalties): 3 - 4 months prior to on-sale date
Prepayment deadline: Not applicable
Prepayment discount: Not applicable
Advertising tax: None, but 0.01% levy towards Advertising Standards Authority
Standard agency commission: Mostly 15% on Gross Negotiated Cost with few variations
Frequency of invoicing: Varies but generally end of month following appearance

Consumer magazine compensation

Negotiating position, or primacy over competitors are key parts of press negotiation.
Weekly or monthly monitoring of the campaign is the norm, so non-delivery of guarantees picked up quickly.
Buyer would normally negotiate compensation commensurate with the error, which may either be deducted from insertion cost or carried over to a future insertion.
Buyer may also trade 'owed' compensation against improved position or other guarantees on a future insertion.

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Radio

Buying process key features

Radio airtime is sold by eight saleshouses - Capital Radio / Emap / Chrysalis / Impact / Virgin / First Radio / Opus / Sirs
Radio is bought on a cost per thousand basis. The exceptions are The UK Hit 40, The Smash Hits Chart, Friday Night Kiss and Vibe Nation. Each of these shows are broadcast across a network of commercial stations and are sold on a spot by spot basis.
Radio is bought against an adult cost per thousand but is planned to optimise against a target audience.
Deals are negotiated annually at agency and client level.
Advanced booking deadlines must be adhered to in order to avoid penalties.

Booking process - work flow

Brief: 6 months to 5 weeks before campaign start date
Station selection: Upto 1 week after brief
Plan: Upto 1 week after brief
Approval: Upto 1 week after brief
Brief sales points: At least 28 days before campaign start date
Booking: At least 28 days before campaign start date, to avoid penalties
On air: Campaign airs on selected stations
Post campaign analysis: Post Campaign Analysis is made available four weeks after campaign ends

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Internet(注:古いため、要Update)

Interactive buying metrics

Interactive media is usually bought on a CPM (Cost per thousand impressions) basis.
However because internet advertising is very accountable it is also possible to negotiate performance based buys like cost per click and cost per lead.
It is also possible through site registration details to target specific audiences by age or occupation but the vast majority is bought on basic impressions.
There are no formal booking deadlines and activity can in theory go live immediately after booking.
However premium positions and channels require longer lead times, up to 6 months, for travel, finance and betting.

Internet ad formats

The majority of online ads are banners.
However within reason online ads can be of any format technically possible.
- Overts which fly across the screen
- Overlays which take over the screen
- Video streaming
- Ads which allow interaction within them
And even the traditional banner is evolving into super sized and expandable versions.

Internet cost

There are no standard costs for interactive advertising and the market is not affected by seasonality beyond the traditional increase in demand at Christmas.
Rates will vary according to site, placement, size of budget and availability.

There are no official measurements for online advertising

Because of this most advertisers use 3rd party adserving systems to verify their ad delivery e.g. Double Click, Bluestreak or Atlas.
This allows us far greater reporting flexibility beyond impressions served and click rates.
Conversions (purchase or registration) on the client site can be measured.
Can also track users who see the ad don’t click but arrive later on the client webiste via the url (Post view analysis).

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Outdoor

Buying key features

The major formats are sold in packages of panels and priced by the panel.
- e.g. a package of 500 48 sheets could be priced at £350 per panel .Therefore the total cost of the package will be £350 x 500 = £175,000.
Pricing in Outdoor is demand compounded and while seasonality forms part of that demand, because there is a finite universe of panels, it only takes five large campaigns in any period for the format to sell out.
Campaigns are sold by two week period on fixed start dates. There are some exceptions to this on the Secondary & Non-traditional formats where the standard period in one month.
Discounts are negotiated at a campaign by campaign and client level.

Buying process - work flow

Brief: 12months to 4months prior to campaign
Plan: 1-2 weeks after brief
Buy: 4-3 months prior to campaign
Poster delivery: Posters delivered from creative agency into billposting stores 10-21 days before incharge dependant on format
Site list: 10 days prior to campaign start date
Posting: Posting takes between 24hrs and 7 days dependant on format
Campaign inspection: 4 - 5 days after posting
Buying report: 21 days after end of campaign

Buying process - cancellation

The majority of formats subscribe to the O.A.A. (Outdoor Advertising Association) Terms & Conditions which are as follows:
- 15% if less than 90 days but 75 or more days notice is given
- 30% if less then 75 days but 60 or more days notice is given
- 40% if less than 60 days but 45 or more days notice is given
- 70% if less than 45 days but 30 or more days notice is given
- 90% if less than 30 days notice is given

Buying Compensation

Compensation is available in the case of mis/non posting.
The procedure is:On notification of a posting issue the media owner has 3 working days in which to rectify the problem or rebate against the cost of the panel(s).

Audience Measurement

The Major roadside formats are covered by an exceptionally robust methodology called POSTAR.
There is a move to include many of the secondary formats within POSTAR over the next years. Currently they each have there own methodologies which makes it difficult to provide total achievement figures on multi-format campaigns.
Many of the Non-Traditional formats have no audience measurement systems at all and are bought on appropriateness to task.
- e.g, for a recent Government kitchen Fire Safety campaign we identified chip pan fires are the most common cause and therefore decided that we would place messages on bags of frozen chips and fresh potatoes to reach people at the point they were using their chip pans with a timely warning.

POSTER

POSTAR - POSTer Audience Research
The Outdoor industry recognised roadside audience measurement system
Owned and funded by outdoor buyers and the major contractor
Endorsed by IPA / ISBA
1. 5,000 Vehicular Traffic Counts + Pedestrian Counts
2. Neural Network System (99.4% Accurate)
3. Travel Survey (7,500 respondents)
4. How Many Passages and How Often
5. =OTS ((total potential audience of a campaign - gross passages)
6. OTS in
7. Visibility Study Eye Camera Research
8. Panel Classification
9. Environmental Data
10. =VAI (Visibility Adjusted Impacts - Net Passages)

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Cinema

Buying process - key features

Cinema screentime is sold by 2 saleshouses.
Carlton Screen Advertising 63.5% Market.
Pearl & Dean 36.5% Market.
Cinema is bought on a cost per thousand basis.
Cinema is bought against an adult cost per thousand but is planned to optimise against a target audience.
Deals are negotiated annually at agency and client level.

Buying process - work flow

Brief: 12 months to 5 weeks before campaign start date
Film/package selection: Up to 1 week after brief
Plan: Up to 1 week after brief
Approval/booking: 3 weeks before campaign start (2 months for Discount CS)
on air: Campaign airs
Post campaign analysis: Post Campaign Analysis is made available four weeks after campaign ends

Cinema compensation

Compensation would be negotiated on a case by case basis.
Planned admissions are always over delivered - if they fall short during the campaign dates - campaigns will need to be extended by can expect a 5-10% over delivery.

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