ADDED VALUE

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ADDED VALUE
What is it?
How is it used?
Added Value
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Something many TV, Radio, Out-of Home,
Print vendors provide to clients at no-cost.
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Sometimes just an order
Long term orders (6 months to 1 year)
Certain share of business (40% of TV budget
to CBS or 100% of radio budget to Clear
Channel
The purchase by client or development of a
special promotional tie-in
Added Value
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Smart buyers and planners have to know
to ask for
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Stations aren’t going to provide unless you
know enough to ask
Has become well known so almost everyone
knows to ask for…stations promotional budgets
and time have become diluted so they don’t
really like to give any more
It’s a function of negotiation
Added Value
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Traditionally added value has been
negotiated by media buyers for TV, radio
and cable, but planners getting more
involved in it (If a tactic is to purchase
high profile TV prime shows and the
shows selected-by virtue of research- are
mostly on one network, opportunity to
merchandise with station…CBS
Added Value
Planners can none the less include added
value wish lists and aims in their tactics
and media plans.
 Planners would provide the medium (TV,
Radio, out of home) with a media strategy
and allow stations to pffer added value
that best fits the plan…can play stations
off each other as well.
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Added Value
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TV, Radio stations, out door all have promotional
departments-They can take the media strategy and provide
something that fits not only with them but for the client.
Example of a media strategy one might give to a vendor is
“Provide added value that drives traffic to my location” or
“Provide added value that increases call volume to my call
center.” Example: Movie sponsorships. Station and planner
pick movies that fit the client profile and station runs the
movie on Sat or Sun afternoon with live breaks saying “Call
000-0000 for a special price or free offer.”
Added Value
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Examples
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DJ endorcements (purchase radio schedule and some
stations wll have their on-air talent endorse
Homvevestors…needs to be included in strategies/tactics
Bonus weight-10% of cash schedule provided in NC
spots (usually 12m-5 am)
Tie-ins with stations or other station advertisers…ie if
Homevestors provides a schedule to a staton the staton
may be able to tag another advertisers commercials with
Homevestors in exchange for same…need client approval
for this
Added Value
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Homevestors may provide a TV/radio station
with a snipe on their billboard advertising in
exchange for on air promotional time
On-air client interviews in PR related programs.
Home sales is always a hot economic issue. A
homevestors client could go on a station issue
program to talk about things that are important
to consider when selling a home. Homevestors
would be mentioned several times.
Added Value
Event tickets
 Suite nights at ball games with food and
drinks provided for up to 15 franchisees
 Movie passes
 Client parties…ie a station or billboard
company might host a “Homevestor
event” at a hotel. Homevestors could
have franchisee event and get the vendor
to pay for it.
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Added Value
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TV’s radios T-shirts, CD’s other station give aways
TV, Radio, Billboard Newspaper web banners with
links to Homevestors web site.
On-air promotions…Tonights prime time line up is
brought to you by Homevestors
Exotic trips (usually based on % of expenditures
over and above previous year)
Added Value
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Editorial placement in magazine (back page or
front cover or opposite editorial page
Tie in with a charity (usually stations will ask for
an advertiser to be a drop off location for coats
for children or canned good s or toys for tots in
exchange for promotional mentions
Free :10 second spots (advertiser must provide
the :10 second copy)
Added Value
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Footballs and t-sirts with client logo on them
thrown into stands at local football games for
stadium tie-ins
Radio stations can give away Homevestor
merchandise at their remotes. (T-shirts, key
chains, pens, etc.) They would mention it on
their air-waves
A station that sponsors a Home Expo or health
fair can provide Homevestors with a free
booth/booth space to hand out fliers and provide
additional exposure to a select audience.
Added Value
You should assume client will receive 25% of expenditures in added value from
any medium and include it in your media
strategies or tactics.
 Important to remember who your target
audience is. No rap DJ endorxing your
product if target is Ad 35-64 or 50+.
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Added Value
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Can be fun and very creative, but key is to
make it a win-win for everyone. A vendor is
not going to let you have free Prime time spots
if their inventory is limited.
It has to make sense to the station and their
audience in order for station to consider doing
it.
Making sense means that vendor will benefit in
some way(s) ie additional budget or that their
listeners/viewers will receive something extra
that would make them utilize that medium.
Added Value
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Example-A station may provide an exotic
trip to Africa but they will expect an
additional @20,000 will be spent on their
station, over and above what was spent
previous year…they also would have client
as their captive audience for however long
the trip lasts…could be dangerous.
Added Value
Merchandising can help make media plan
sizzle, but not the main feature or theme
of your media plan.
 Added value should compliment your
media plan, not drive it.
 Important to remember that many
stations provide incredible added value
because they have nothing else to offer.
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Added Value
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Many times a client will get excited
because they think they are getting
something great …just for placing a
schedule with a vendor. If you look at it
closely you might find that the schedule is
worth very little and that the client is
paying for a “perk” many times over at
the risk of wasting their media dollars.
Added Value
Show you are a smart planner by
including added value tactics or wish lists
on your media plan
 Be creative with it
 Make it fit with your target audience
 Remember you are trying to get people to
sell their house to Homevestors…They are
buying a service
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Added value
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Examples of some I have done
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Placed a 52 week radio buy with Clear Channel
in LA for Pepsi. Got the stations to provide a
wrapped helicopter doing traffic reports during
rush hours
When American Airlines entered Atlanta, got
stations to host a cocktail party for 100 of their
important clients.
Got radio station to create a feature that aired
in drive time called “Hard working man” for
Wolverine’s Mens Boots. The feature
highlighted hard working men in the market.
Added Value
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Got American Airlines 18 trips for 2 to the
Olympics is Switzerland
Got all stations in a market to fun targeted
movies in prime time and weekends for the
release of a new softdrink
Negotiated on-air TV newscasters wear Hager
clothes with a mention at the end of the show.
Got stadiums to throw footballs with client
logos on them into stands at local games
Added Value
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Got a TV station to create a fireworks logo and
fire it off at a July 4th concert.
Negotiated sponsorships of major
concerts/performers for clients at no charge to
them
Negotiated client appearances with TV and radio
stations as guest expert on morning shows and
PR shows
Sponsored entire week of Christmas on a radio
station for a client at no charge to them
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