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Cable Advertising Question
Posted by Aaron Cadieux on March 12, 2010 at 3:43 pmHey everyone,
I am in talks with the local cable outlet to run a spot I have produced. The spot advertises a service that my video production company is offering. I told the cable company what my budget is. I said I was willing to spend between $700 and $1000 for a flight on cable. The cable company came back with a presentation with my target demographic, target channels and yadda yadda yadda. Their fee is going to be $700/month to run my spot. Here’s the problem. They want me to sign a 6-month commitment for $4200. I don’t have the money for that. It’s out of the question. I could maybe do 2 months, but not 6. My spot would be running on a half dozen channels 160 times a month. My question is this . . . Are the cable companies selling a lot of advertising lately, or do you think I could talk them into a 2 month contract? And do the numbers I am giving you guys sound right, or am I getting taken for a ride? It’s funny, I work for an ad agency, but I am never involved in this side of the equation, so I am clueless. Thanks.
-Aaron
Steve Kownacki replied 16 years, 1 month ago 7 Members · 22 Replies -
22 Replies
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Steve Kownacki
March 12, 2010 at 4:09 pmI would simply ask for a new sales rep that listens.
We are all in the same boat of properly pricing our products for clients and this guy didn’t listen to you. What if you had a client come in and pose a similar situation: They had $2500 to spend and you came back with only a $10K deal; never addressing what you could do for the $2500. Fail.
In this economy I have no patience for stupidity such as that. I’d look around for a media buyer that can provide very detailed demographics and target market. Forget about shotgunning the masses and spend your money wisely. (it seems as though they may have at least done that) You’ll have a competitive bid which will help you learn that side of the biz.
And since you work for an ad agency, hopefully your relationship is good enough that you should ask them what you are asking here. Perhaps you should be doing an ad or other marketing materials for the agency as they probably have a larger sales force.
Steve
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Aaron Cadieux
March 12, 2010 at 4:17 pmSteve,
Thanks for your swift response. Getting another bid from a media buyer is a great idea!
In regards to your suggestion that I talk to the agency I work for . . . I am in a unique situation. I work full-time for an ad agency as their in-house video production specialist. However, I also run my own production company on the side. This commercial would be an advertisement for my own company, not for the ad agency. I am not under a non-compete at the ad agency (they don’t really pay me enough to demand that). Despite the lack of a non-compete, I try not to mix my side-business with my full-time job. I am protective of my ideas and projects, and I can’t have my superiors at the agency trying to wedge themselves into my independent venture(s). If the situtation were different, your idea would be perfect.
Thanks for your help and advice. Like I said, I am clueless when it comes to buying media. Regardless of what happens, this is a good excercise for me.
Best,
Aaron
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Mark Suszko
March 12, 2010 at 5:33 pmI think what’s happening here is the cable company doesn’t want you competing with them for the video spot production business, where they generally have a steel-trap lock, so they are pricing to discourage or cripple you.
I would also be skeptical that cable is where you want to advertise your video production services. I know at first blush it sounds logical and intuitive to advertise TV production on TV, however, my own opinion is that this is generally not what you want to do, for a couple of reasons. But maybe you have it figured another way that I’m not seeing. In any case, stick to your guns and pay what you want to pay… or walk.
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Mike Cohen
March 12, 2010 at 5:43 pmI agree with Mark here. If you are advertising your production business on local cable – how many viewers of tv in general are potential customers for video services? I would say one out of 1000 at best. If you do weddings or bar mitzvah’s, maybe 1 of out 328 or so. But I guess it is worth a try if you have the money to burn.
As for the quoted price, you basically say “I want to buy 1 month, not 6 months” and leave it at that. No one likes an over aggressive sales person, but there are a lot of them out there.
Mike Cohen
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Aaron Cadieux
March 12, 2010 at 5:48 pmMark,
The spot is actually for Tape/film to DVD transfer services, so it doesn’t compete with the cable company in any way. It’s kind of a niche item, and I think a TV commercial is a great way to inspire people to have their old home movies transfered from tape and/or 8mm film to DVD.
-Aaron
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Aaron Cadieux
March 12, 2010 at 5:49 pmMike,
I probably should have disclosed what the spot is for. It’s offers tape/film to DVD transfers for people’s old home movies. So it really doesn’t compete with the cable company.
Best,
Aaron
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Mike Cohen
March 12, 2010 at 6:06 pm[Aaron Cadieux] “The spot is actually for Tape/film to DVD transfer services”
Unfortunately Walmart, Costco and Target have killed this once lucrative small business service. $1000 seems like a lot to pay per month for a service that might fetch you $50 per job.
Mike
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Aaron Cadieux
March 12, 2010 at 6:12 pmMike,
I’ll have to check out Walmart and Target on that. I’ve never seen tape/film to DVD transfer services offered at either store. I’ve actually paid to have 8mm film transfered in the recent past (before I had the capability), and it was very expensive. $50 sounds cheap for a film to DVD transfer.
-Aaron
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Mark Suszko
March 12, 2010 at 6:26 pmWalgreens does it too, in their photo department. And at Walmart you can buy a VHS to DVD burner for under a hundred bucks and copy all day long, so you have that to compete with as well.
Really, what I was expecting Aaron was that you were going to try pitching wedding vids on Lifetime and oxygen and HGTV for a month, spring is coming after all. And I was going to suggest a different way to market event video services to you if that was the goal.
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Nick Griffin
March 12, 2010 at 6:39 pm[Aaron Cadieux] “The spot is actually for Tape/film to DVD transfer services”
Aaron –
I agree with Steve. It’s a buyer’s market out there and you should have little trouble getting a deal. That said… I’m not sure that broadcasting (even when it’s cable) will provide a cost effective return for what is, in essence, a specialized service.
Traditional media buying logic dictates that most spots require a frequency of at least 6 or 7 before they become effective. Translation: the average person has to see a spot 6-7 times before it registers and produces a buying response — from some small percentage of an audience. Therefore the last thing you need is to spread $2,500 worth of spots multiple cable channels. You will be much better served by concentrating on a single channel and a small number of programs. That’s the only way to build enough frequency to get results. (IMHO.)
In addition to frequency you need to target your most likely demographic (age) and psychographic (attitude/ pre-disposition). The transfers you are selling would be of little interest to most people under 50. I also believe that women will be more predisposed to want these than will men. So there’s your media buy. Go for the Senior channel(s) during daytime hours and sticking to just a couple or a few programs. But none of this guarantees that it will bring in more than it costs you to advertise it. Just a little more likely to actually work.
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