Page 229 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Unit 13: Broadcast Media and Media Planning

will be some give and take. These negotiators are quite experienced and know the Notes
parameters within which the final deal will be struck.
2. Scatter Plans: Networks offer agencies a list of programmes with predicted household
and demographic ratings. Agencies are greatly interested in placing the commercials of
their clients in the most popular shows that meet the predetermined demographic criteria.
The negotiations for highly rated programmes are tough. Consequently, commercials
during major sports events command a higher cost.
3. Availability: TV commercial time is limited, particularly on highly popular programmes.
While negotiating with agencies or advertisers, a major issue for networks is to spread out
the select spots in the scatter plans of their largest and most important clients. It is a major
exercise because the number of potential advertisers is more than the number of premium
spots. A situation may arise that the advertiser wants to buy a spot, but it may not be
available. In such situations, the advertiser's total investment on a particular network and
the price the advertiser is willing to pay are taken into consideration. Scatter plans allow
the networks to reach an agreement with agencies to place commercials across their total
schedule, whereby each advertiser has to accept some relatively low-rated but
demographically acceptable spots in order to get the choice spots.

13.1.2 Spot Television

When national advertisers buy local station time, this is known as spot buys. It is also referred
by other names, such as spot advertising or spot television. Network schedules offer blanket
coverage; spot advertising is meant for certain market covered by the station. There are two
types of spot advertisers; those that use spots adverting only, and others who use spots to
augment their network buy. Some major reasons for using spot advertising are:
1. Inadequate Budget for Network or Uneven Product Distribution: Often some national
companies lack the funds to purchase time on national TV basis, and by intelligent buying
of spots in markets where they can get maximum returns; they can compete more
successfully in selected areas. Often products have uneven distribution and national coverage
creates unacceptable waste coverage.
2. Targeting Geographic Markets: Brands often do not have a consistent sales pattern in
every market. Spot advertising offers the advantage of building local TV weight in markets
with most potential and complementing the national advertising effort.

3. Local Identity: Audiences in different markets have unique viewing habits and tastes and
networks cannot deal with these aspects easily. Some programmes of local nature are
often more popular in terms of demographic fit. National advertisers through spot
advertising can more closely identify with the local market preferences.
4. Flexibility: In case of network advertising, commitments are made far in advance. Spot
buys allow advertisers to react at short notice to changing market conditions.
Spot TV can also be used in test marketing, and to introduce a product by markets.

13.1.3 Time Period and Programmes Selection

An important consideration in buying TV time is selecting the right time period and appropriate
programme to carry the ad message of the client. Advertisers are more concerned about Cost-
Per-Rating Point (CPRP), and not just in terms of the number of spots. A large number of spots
over programmes that do no actually translate into target audience do not serve the advertiser's
purpose.

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