A Financial Institution: Getting More for the Dollar

Overview

Traditional media has changed greatly in the last few years because the marketplace has changed. People don’t watch TV the same way, now often choosing streaming over broadcast. Satellite-delivered music competes with terrestrial radio, and newspaper readership is declining. We think advertisers should know that there is still value in the prudent use of traditional media today. In New Mexico, the huge geographic coverage area of broadcast TV allows for branding opportunities for organizations that need that broad coverage. Sometimes, hard-wired cable and satellite-delivered commercials, radio, and other traditional mediums have value. But, there must be a solid media plan for why these mediums are being recommended and what each provides to help accomplish for the overall marketing goal?

Challenge

When a new client came to us in the financial services category, they’d been using broadcast television and radio, as well as buying some digital ad packages for the TV stations’ websites. Nearly 80 percent of the budget went into broadcast TV, which had been placed for more than a decade by another Albuquerque ad agency. As we looked at the last few months’ invoices placed by the other agency, we were seeing large variations in the rates for the :30 commercials versus what we’d paid.

Solution

We audited the most recent quarter to compare the rates they’d placed versus what we’d placed in the same programs for our clients. One program had a huge disparity: the other agency paid $426 for the :30 equivalent, while we’d paid $225 for another client. Over the quarter, the client had paid more than $35,000 for broadcast TV spots; using our rates, it would have been less than $28,000. So either that $7,000 could have purchased additional time to increase exposure, or those funds could have gone to the bottom line.

As we negotiated rates for the upcoming buys for our new financial services client, we also negotiated some bonus spots from the station with those overcharges. We subscribe to Nielsen ratings, so we’re able to evaluate the viewership of each program against the station’s rate request and negotiate from that. As an ad agency, we hold to the industry-standard 15% commission that comes out of the negotiated rate, not added to the rate. Because we compare cost per point in the key demos and negotiate with stations, we typically receive about a 20% rate reduction versus what you’d receive if you placed the airtime yourself.

Creatives

Results

Summary

We believe an advertising budget needs to be focused on results that drive visits to a website or storefront, leading to more calls, leads, sales, and market share. It should not be directed to the sales rep that you like the most, the one that brings you donuts, or the one who visited your company at the moment when you realized “I really need to do something to generate more business.” As an agency, we’re a neutral third-party; we work on a client’s behalf with a fiduciary responsibility to make your ad dollars work the best way we can. In addition, we make sure things go smoothly–we can create the commercials, traffic them, then reconcile the invoices (fairly often, we find errors on invoices!)

85%

Product Quality Index

92%

Energy Generation

Big Data Equals Big Results

Understanding Ratings: Wrangling the Best Deal

We are looking forward to hearing more about your business and marketing goals. Let us know your basic info and we will get back to you ASAP!