In the world of TV advertising, advertisers are always looking to get more value. This could be through bonus ads, additional discounts, no charge billboards or sponsorship opportunities. Some advertisers even choose to participate in network share deals, where the advertisers allocate a higher percentage of their TV budget to a particular network in return for a more favourable rate position.
TV advertising and network share deals
With networks under increasing revenue pressure, they are always looking for ways to secure a higher percentage of TV advertisers' budgets. Many networks offer advertisers a slightly better rate position if they allocate them a larger percentage of their total TV budget.
Entering into these arrangements can be a great way to ensure competitive rates. The challenge with most of these deals, however, is that many clients enter into these agreements for the discount position, rather than understanding the ROI that each network has historically delivered for their brand. Every network has a different 'response rate' and performs differently for each brand. Most share arrangements only take into account the 'deal', rather than understanding which network will deliver the greatest return on investment.
As a performance marketing agency, our clients demand the maximum return on investment and are constantly looking for improvement. In our experience, we have found that a custom TV schedule based on each brand's historic response/lead generation/ROI data, delivers a far greater return on investment than locking in a share deal with a particular TV Network. Using a custom TV data analytics platform, we have the ability to measure the performance of every TV spot that goes to air. These insights allow each client to optimise their TV schedules for performance, rather than lucrative 'network deals'. This is how we've helped dozens of clients to drastically increase their ROI from TV advertising.
Performance based TV media buying
As an independent advertising agency which partners with clients on achieving a desired outcome, it's important to look at what is driving results rather than the appetising deals on offer. Everyone loves a great deal, but if the majority of your TV schedule is doing little to drive lead generation for your business, it doesn't matter how good the deal is, you're paying to much!
We consistently see that network selection, programming, day-part and day of week placement all play a vital role in optimising TV performance. Several of our clients are happy to pay a slight premium to be on selected networks or programs, as they know that these networks deliver up to six times the ROI. Selecting the right network for your brand is vital to ensuring high lead generation volumes at the lowest acquisition cost. Don't lock in a share agreement unless you know that that specific network delivers the highest return on investment for your brand. Signing a share agreement based on 'value' or 'rate position' could exclude networks that will deliver a better return on investment, even if they do come at a slight premium.
If you would like a FREE performance assessment on your current TV marketing campaign, please find a link below. We will measure cost per response, cost per lead and cost per sale for every spot that goes to air. You will also receive a complimentary report, identifying how you can optimise your TV airtime for greater performance.