Are you thinking about Buying ad space for your dealership directly from the source? Have you assured yourself that it’s the only way to go? I mean, you’ll save money on the agency commission, and how hard can buying a commercial here and there really be, right? Unfortunately, this “economical” tactic might be the exact opposite. When you buy direct, you’re likely going to lose money…and a lot of it, if you’re not careful. Most of all the successful dealerships hire experienced and reputable agencies to handle their media buying, rather than going direct. We’re here to help you understand why.
- The Money: Television advertising is priced on a Cost per Thousand (CPM) basis, which is the cost for 1,000 impressions, or 1,000 people to see your ad. So, if the CPM in your local market is $25.50, and you want 250,000 people to view your ad, then your total ad spend will be $6,375.
(250,000 impressions/1,000) x $25.50 CPM = $6,375
Fairly simple, isn’t it? Well, not exactly. When you request rates from TV stations in your area, how will you determine if the given rates are fair? Unless you have years of historical data, have spent every day building rapport with Station executives, and have deep-rooted industry knowledge, you won’t know what an acceptable rate really is.
- Placement: Do you know when to advertise? Do you know what rotations to buy, which day-parts to air in, or the ideal separation between spots? Do you know how to calculate ratings? Do you know your target audience, how to reach a certain demographic, or which stations will be most effective to advertise on? These are major players in the making of a successful media buy. If you buy direct, you will likely air in the less desirable times throughout the day – where the station has the most inventory. Agencies have the insight and leverage to make sure that your message gets delivered to your target audience within the most effective time frames, in turn increasing overall return on ad spend.
- Long-Form VS. Short-Form: This is wholly subjective to your line of business. Because we are experts in automotive and specialize in the subprime market, we’ve learned a couple things to go by.
|Long form (30 minutes)||Short form (60 seconds)|
|Times||Pre-determined times & dates;
2 week cancellation policy
|Frequency determined & placed within specified time frame;
2 day cancellation policy
Over 10 years of testing, this method has proven true and consistent for us. There are still other factors that go into the comparison of the two types of advertising like the production of the spot and the call-to-action within the commercial.
- Convenience: Buying quality ad space is not a “set it and forget it” business activity. To run a successful campaign, you must constantly monitor, analyze, and optimize the buy. Not to mention, once you buy from one station, you will have every other station in the market calling and showing up at your business trying to sell you something. With an agency, you can set it and forget it. Let the agency do their job of taking the calls, negotiating the deals, and handling all the trivial things that go into buying media. This allows you to focus uninterrupted on your day-to-day business activities.
Agencies are home to seasoned marketing specialists, data-driven analysts, creative strategists, and at the root of it all, experienced media buyers. They have the costly software, analytics, and necessary tools to maximize your return, monitor your investment, and spend all day working to optimize your results. Work smarter, not harder – and improve your overall numbers at the same time. Once you realize the value in hiring an agency, you’ll never consider buying direct again.