United States of America

TV

Buying process key features

TV inventory is packaged. It is not purchased unit by unit.
Discounts are negotiated at client level.
There are no publised rate cards in the U.S. for television time.
With an upfront buy, advertisers enjoy audience guarantees and cancellation options.
During upfront negotiations, all of the clients’ dollars are leveraged to get the best deal possible.
Any buy that is done outside of the upfront is referred to as scatter.
Scatter buys are usually at a premium to upfront costs and do not have any cancellation options

Buying timing

1. Network schedules are announced in Mid-May.
2. The Upfront negotiation for the coming broadcast year (Q4-Q3) is made by soon after and is ordered by mid September. Upfront clients get the pick of programming. By participating in the upfront, advertisers get preferential pricing and an audience guarantee.
3. For clients that do not participate in the upfront, scatter negotiations occur four to six weeks before air. Many times, a scatter advertiser is unable to get the exact schedule that they want. The system greatly favors the upfront advertisers.
60 to 90 days prior to the start of the quarter, Upfront advertisers have the option to cancel a portion of their schedule. The first quarter of activity is non-cancellabe. However, the ≪out quarters≫ are 25% to 50% cancellable.

Booking process - work flow

Brief: 9 months to 5 weeks
Plan: 3-4 weeks after brief
Buy: Booking in September for upcoming broadcast year
Initial schedules: 4 Weeks before the campaign starts
Spot list: 4 Weeks before the campaign starts
Spot data received: Rating information for spot data received the day after air
Post buy: 90 days after end of campaign

Booking process - key points

Publication of sales policies: No published rate card
Publication of ratecards: Upfront pricing negotiated in late May/early June for following broadcast year.
Opening of planning: Usually, March for following year. Some clients buy and then adjust the plan to the buy
. Booking deadline: September for the coming year
Material delivery deadline: 1-2 weeks before start of campaing
Cancellation deadline: None with scatter advertisers. 60 to 90 days prior to ≪out quarters≫ First quarter of activity is non-cancellable.
Prepayment deadline: Clients with established credit never pre-pay. Credit risks, which are rare, pre-pay a week before the beginning of air.
Prepayment discount: No discount for pre-payment
Advertising tax: None
Standard agency commission: 15 % on Gross negotiated
Frequency of invoicing: Monthly, due on the 20th of the month after air

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Newspaper

Buying process key features

Newspaper display ad insertions are bought on a per-column-inch basis. (Standard sized newspapers are 6 columns wide by 21 inches deep for 126 column inches)
Classified newspaper ads are bought on a per line basis. (Similar to column inches but then there are then 14 lines per column inch)
Newspaper rates are based mainly on rate card for minimal insertions but signing an annual contract with a publication can significantly lower your rates.
Contracts are signed on an annual basis but can be upgraded and revised any time throughout the year if the contract is fulfilled before the end of the contract year.
Additional negotiations with added value and free insertions can be made through contract negotiations.

Buying timing

Most newspapers have between 10 and 40% more subscribers on Sunday’s than they do during the rest of the week.
Most newspapers set their pricing for Monday-Saturday (Daily Rates) and Sunday separately (Sunday Rates).
The newest trend in the U.S. is for papers to pull out Thursday through Saturday rates separately (with higher rates than Daily) in order to generate more income on the days of the week when most major retailers run their ads.

Booking process - work flow

Brief: 3 months before activity
Plan:
Negotiate rates:
Buy:
Steward insertions:
Post buy positioning: 4 weeks later

Booking process - key points

Publication of sales policies: Once a year
Publication of ratecards: September-December for the coming year.(Sometimes earlier)
Booking deadline: 2 weeks to 3 months (varies greatly according to publications)
Material delivery deadline: Always published, but typically flexible to a reasonable degree
Cancellation deadline: 3 months in advance subject to negotiation
Advertising tax: None
Standard agency commission: 15% on Gross Negotiated Cost
Frequency of invoicing: 10-15 of the prior month of issuing

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Magazine

Planning and buying process key features

Magazines ratecards are usually a starting point for negotiations. There are some magazines that do not negotiate off of their ratecard. The most notable are all of the magazines under the Conde Nast umbrella (GQ, Details, Self, Glamour, Vogue, Lucky, allure, and more). In other cases, rates can be negotiated based on the advertisers relationship with the magazine, frequent of insertions, and budgetary contraints.
The agency will negotiate with each of the strong magazines in a category. Since there is a high level of competition for ad pages, magazines realize that agency are always asking the same questions to their competitors and will discount just to get the business. This is a great benefit to advertisers, because it either saves them money or allows them to buy more space (even the magazines competitors).
Based on the planning process, negotiations can be done on a one-on-one basis (in the case of small plans) or Requests for Proposals (RFPs) for larger plans. RFPs ask a set of preselected magazines to show why they should be considered for a plan from editorial to cost. RFPs are sent to every viable magazine in a category based on target research. Since RFPs are very time consuming, they are not sent to magazines who have no chance of making the plan for various reasons.

Planning and buying process

Magazine selection
Magazines are evaluate based on the magazines

  • Strength of Editorial
  • Strength of Redership
  • Mission Statement vs. Actual product
  • Readership Profile
  • Cost

Cost is last because you want to ensure that your client is in the right environment and reaching the target first.

Developing Planning Rates
Before negotiating, planning rates are developed in order to give planners an idea of how far there budgets will go.
Planning rates are estimated discounts based on expected frequency, the willingness of publications to negoitate and maket trends. Planning rates should always be fairly conservative.

Negotiating
The agency contact all of the publications being considered and issues an RFP.
The RFP will include the discount that a magazine is offering and positioning, in order to "win" the business.
At this point the agency determines if the offered rates and positions are aggressive. If more can be done, the agency will ask a magazine to re-submit their RFP.
After all negotiations are final, the plan is put together based on the actual discounts.
The goal of negotiating is to save the client the absolute most money possible with a very strong media plan.

Booking process - work flow

Brief: 3 months before activity
Plan:
Negotiate:
Buy:
Monitoring of insertions: 1- 2 days after publication
Post Buy: 4-6 weeks after

Booking process - key points

Publication of sales policies: Once a year
Publication of ratecards: September-December for the coming year (sometimes earlier)
Booking deadline: 2 weeks to 3 months (varies greatly according to publications
Material delivery deadline: Always published, but typically flexible to a reasonable degree
Cancellation deadline wo penalties: 3 months in advance subject to negotiation
Advertising tax: None
Standard agency commission: 15% on Gross Negotiated Cost
Frequency of invoicing: 10-15 of the prior month of issuing

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Radio

Buying process key features

Radio inventory is packaged. It is not purchased unit by unit.
Discounts are negotiated at client level
There are no publised rate cards in the U.S. for radio time.
With an upfront buy, advertisers enjoy audience guarantees and cancellation options
During upfront negotiations, all of the clients’ dollars are leveraged to get the best deal possible
Any buy that is done outside of the upfront is referred to as scatter
Scatter buys are usually at a premium to upfront costs and do not have any cancellation options

Buying timing

1. The Upfront negotiation for the coming calendar year (Q1-Q4) is made during Oct/Nov of the prior year. Upfront clients get the pick of programming. By participating in the upfront, advertisers get preferential pricing and an audience guarantee.
2. For clients that do not participate in the upfront, scatter negotiations occur four to six weeks before air. Many times, a scatter advertiser is unable to get the exact schedule that they want. The system greatly favors the upfront advertisers.
3. 60 to 90 days prior to the start of the quarter, Upfront advertisers have the option to cancel a portion of their schedule. The first quarter of activity is non-cancellable. However, the ≪out quarters≫ are up to 100% cancellable.

Booking process - work flow

Brief: 9 months to 5 weeks
Plan: 3-4 weeks after brief
Buy: Booking in December for upcoming broadcast year
Initial schedules: 4 Weeks before the campaign starts
Spot list: 4 Weeks before the campaign starts
Spot data received: Rating information for spot data received quarterly
Post buy: 120 days after end of campaign

Booking process - key points

Publication of sales policies: No published rate card
Publication of ratecards: Upfront pricing negotiated in Oct/Nov for following calendar year.
Opening of planning: Usually, June/July for following year.
Booking deadline: December for the coming year
Material deadline: 2-3 weeks before start of campaing
Cancellation deadline: None with scatter advertisers. 60 to 90 days prior to ≪out quarters≫ First quarter of activity is non-cancellable.
Prepayment deadline: Clients with established credit never pre-pay. Credit risks, which are rare, pre-pay two to three weeks before the beginning of air.
Prepayment discount: No discount for pre-payment
Advertising tax: None
Standard agency commission: 15% on Gross negotiated
Frequency of invoicing: Monthly, due on the 45 to 60 days after air

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Online(これかなり古いかも)

Buying process key features

Online is generally purchased on a campaign by campaign basis (usually quarterly)
- Long term contracts with vendors, such as a year-long Portal deal, is also common
Campaigns can be purchased at either one of, or a hybrid of several pricing models:
- CPM (Cost Per Thousand Impressions)
- CPC (Cost Per Click)
- CPA/CPL (Cost Per Acquisition/Lead)
- Fixed Cost
Agency discounts are generally pre-determined by vendors
- Further discounts can be negotiated by the planner/buyer based on purchase volume
Requesting for bonus and added-value placements have become commonplace, in order to make a vendor’s proposal/program more appealing
Broader run of site placements tend to be cheaper than more targeted placement
- General rule of thumb: the more targeted your placements are, the more expensive they tend to be

Buying timing

  • 1-2 weeks
  • Client Briefing
  • Situation Analysis
  • Define Target Audience
  • Define Media Habits
  • Geography
  • Program Objective
  • Program Strategy
  • Tracking Strategy
  • 2-3 weeks
  • Program Tactics
  • Site Recommendations
  • Negotiation Strategy
  • 1 week
  • Production Specs
  • Projected Responses
  • 2 weeks
  • Weekly Tracking
  • Campaign Optimization
  • Post Click Analysis

Booking process - key points

Opening of planning: 6-8 weeks prior to planned launch date
Booking deadline: Varies, depending on availability on inventory
Material deadline: 5 business days before the launch of campaign
Cancellation deadline: First 30 days of a campaign are firm; following that agency must give 14 days written notice for cancellations
Standard agency commission: 15% on Gross negotiated
Frequency of invoicing: Monthly, or after the conclusion of a campaign

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Outdoor

Buying key features

OOH is mainly bought site by site
- There are few packages (pre selected groups of sites)
As each site is different (roads, angle to traffic, clutter) market knowledge and expertise is essential.
It is generally sold on a monthly/4 weekly basis.
Program costs are initially negotiated at the planning stage, program by program, as are any volume discounts. Further negotiation (rates, added value, overruns etc) are done at final approval for maximum value.
Outdoor represents around 5% of total advertising spend, and as such is not a frequent purchase for all advertisers.
- To get best market intelligence, rates and expertise, OOH specialists exist who sit between agencies and vendors, for an impartial overview of the OOH market. They plan, buy and administer programs.
- Benefits to client are market intelligence (availabilities/new developments etc), strong vendor relationships = leverage on rates, overruns and better access to premium site locations. Smoother administration of campaigns (shipping, delivery and posting checks)

Buying process and timing

The rental buys the advertiser the first posting of the campaign, however these costs may not include:-
- Additional design changes
- Snipes (flashes/slips)
- Extensions (charged by the sq ft)
- Independent posting verification
- Production
- Shipping
Short term (1 month/4 weekly) or long term (‘perms’ - generally of one year) are possible, although the market is biased to short term bookings due to cover build and high frequency.
Good lead times of 2-3 months generally mean a greater pool of inventory to chose from, however uncertainties in the market mean that genuine short term discounts are possible and have led to shorter lead times overall.
Ultimately short lead times are dictated by creative and how quickly production can be turned around.

Booking process - work flow

Brief: Ideal = 4 months prior to campaign
Plan: Between 48 hours to 1 week after brief
Buy: Ideally 2-3 months prior to campaign
Schedules: 4 weeks before the campaign starts
Production: Delivered 2 weeks before the campaign starts
Posting: Checked 2 weeks after start of campaign
Post buy: 1-2 months after end of campaign

Booking process - key points

There are cancellation periods. Once a booking has been made generally there is a 2 month cancellation period prior to the start date, this allows a release from the booking without penalty.
Cancellation terms then vary and have to be negotiated.
Payment terms = 30 days. Invoiced at the start of the program.

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