Master Online Media Buying to Negotiate the Best Deals

What is Media Buying?

Media buying is purchasing advertising space and time slots across various platforms and channels such as TV, radio, print, and digital media (website, social media, streaming) to reach a target audience effectively. 

Its critical function is to amplify the businesses’ visibility and connect with potential customers where they are most engaged.

Media buying is a multi-step process involving meticulous research, negotiation, and execution to ensure that ad placement is at the right mediums and at the right moments. 

Three broad categories of media buying;

• Traditional Media Buying
• Digital Media Buying
• Programmatic Media Buying

Let us explore these categories and their respective buying processes below. 

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Types of Media Buying

Traditional Media Buying

Traditional Media Buying involves purchasing advertising space or time on channels like TV, radio, print, and outdoor platforms. 

Among all other types of media buying, this is the longest-standing method, offering broad reach and targeted placements within established media channels.

Here’s a look at key components of traditional media buying:

TV Advertising

Television remains a powerhouse in advertising, with options for various types of placements. 

Advertisers often target specific time slots, such as prime time, which attracts high viewership and engagement. 

Additionally, they may choose dayparting, the practice of selecting different dayparts—morning, afternoon, or evening—to reach distinct viewer segments. 

Special events like the Super Bowl and award shows offer exceptional exposure, albeit at a premium cost, due to the massive viewership of these events command.

Radio Advertising

Radio advertising continues to be effective, especially during peak listening times like drive time. 

Advertisers target commuters and regular listeners during rush hours when radio engagement is high. 

Radio stations often have different formats, such as news, music, or talk shows, allowing advertisers to tailor their messages to specific audiences. 

The versatility and opportunity for local/ national reach make radio a valuable channel for traditional media buying strategies.

Print Advertising

Print media, including newspapers and magazines, provides tangible ways to engage audiences. 

Local and national newspapers offer broad reach and targeted messaging options. 

Whereas magazines cater to specific interests and demographics, allowing advertisers to reach niche audiences effectively. 

Direct mail campaigns send promotional materials directly to households and remain an advertising medium of choice for localized and targeted advertising efforts.

Outdoor Advertising

Billboards and transit ads offer visibility in the physical world, capturing attention in high-traffic areas. 

Billboards strategically placed along highways or in urban centers create lasting brand impressions on commuters and pedestrians alike. 

Transit ads, seen on buses, trains, and subway systems, reach audiences during their daily commutes, making them an effective way to increase brand visibility in urban environments. 

These forms of outdoor advertising are known for their ability to create strong visual impact and broad exposure for brands targeting a local or regional audience.

Digital Media Buying

Acquiring online advertising space or placements across various digital channels is covered by digital media buying. 

It relies on data-driven insights and technology to target specific audiences, optimize campaigns, and maximize the impact of digital advertising efforts.

Types of Digital Media:

Social Media Advertising

Advertisers leverage social media platforms like Facebook, Instagram, Twitter, and LinkedIn to reach targeted audiences.

It allows for precise audience targeting based on demographics, interests, and behaviors. Various ad formats, sponsored posts, and display ads offer engagement opportunities.

Display Advertising

Display ads appear on websites, apps, or social media feeds as banners, images, or interactive media.

It offers broad reach and brand visibility. Advertisers can target specific websites or use retargeting to reach users who have previously interacted with their brand.

Search Engine Marketing (SEM)

SEM involves placing ads on search engine results pages (SERPs) through platforms like Google Ads (formerly AdWords) and Bing Ads.

It targets users actively searching for specific products or services. Advertisers bid on keywords to appear prominently in search results, driving traffic and conversions.

Video Advertising

Video ads appear on platforms such as YouTube, Vimeo, or social media channels.

It engages users with compelling visuals and storytelling. Options include in-stream ads before, during, or after video content or in-display ads alongside video recommendations.

Programmatic Media Buying

Programmatic media buying is the automated process of purchasing ad space in real-time auctions, leveraging data and algorithms to target specific audience segments. 

It eliminates manual negotiations and streamlines the ad-buying process for increased efficiency and effectiveness.

Types of Programmatic Media Buying:

Real-Time Bidding

RTB is the most common form of programmatic buying, where ad impressions are auctioned off in milliseconds as a user visits a website or app.

Advertisers bid on available ad inventory based on predefined criteria such as audience demographics, behavior, and context.

It allows precise targeting, cost-efficiency through bidding, and instant ad placements on relevant websites or platforms.

Private Marketplace (PMP)

PMP involves a curated marketplace where publishers offer premium ad inventory to select advertisers.

Advertisers gain access to exclusive inventory not available through open exchanges, often with fixed pricing or preferred deals.

It ensures brand safety, access to premium placements, and greater control over ad placements.

Programmatic Direct

Programmatic Direct combines the automation of programmatic buying with the assurance of guaranteed ad placements.

Advertisers negotiate directly with publishers for reserved ad inventory, bypassing the auction process.

It offers certainty in ad placements, premium inventory access, and a streamlined buying process with fixed prices.

Preferred Deals

Preferred Deals allow advertisers to access premium inventory before it becomes available in the open market.

Advertisers agree to purchase ad impressions at a fixed price before they go on auction.

Enables advertisers to secure top-tier placements, often at discounted rates, and ensures brand visibility in high-demand environments.

Digital Media Buying Process

Review Media Plan

Digital media buying begins with a thorough review of the media plan, which outlines the entire digital advertising strategy. 

It includes the target audience, selected digital channels, ad placements, and budget allocation. 

The review ensures that the campaign remains aligned with its goals, effectively targets the intended audience, strategically places ads for optimal visibility, and allocates sufficient resources for the best possible impact.

Develop a Media Buying Strategy 

Next, a comprehensive media buying strategy is crafted based on the reviewed media plan. 

It involves selecting relevant digital channels such as paid search, display advertising, social media ads, and affiliate marketing. 

Other elements of the media buying strategy include internal negotiations around budget allocation, planning the timing and frequency of ads, and a road map for consistent messaging to use across platforms.

The strategy takes shape based on the goals and objectives the ad campaign is expected to achieve and may explore added value opportunities within budget. 

Conduct Media Research 

Media research plays a pivotal role in digital media buying, providing valuable insights into the target audience, market trends, and competitor strategies. 

Advertisers dig into audience demographics and behaviors to tailor their approach to align with consumer preferences and habits. 

They also study market trends to make adjustments to the media buying strategy to capitalize on emerging opportunities. 

Competitive analysis is another critical part of media research that helps analyze competitor strategies to gain an edge and differentiate brand messaging. 

It facilitates informed decisions, ensuring strategic, targeted campaigns poised for success in reaching and engaging the intended audience.

Develop Target List

Developing a target list involves compiling a list of potential digital media or platforms to place the advertisements. 

It includes selecting specific digital channels such as social media platforms, websites, mobile apps, and digital display networks. 

Digital channels are selected based on audience demographics, geographic reach, and the intended message to ensure optimal placement for maximum impact.

Set the Budget

In the light of the initial media buying strategy, a media buying budget is set depending on campaign objectives, target audience reach, and desired frequency of ad placements. 

A well-structured budget ensures optimal resource allocation across selected digital channels, maximizing the campaign’s impact while maintaining cost-efficiency. 

It allows flexibility in negotiations with media buying agencies to secure the best rates and placements within the allocated budget.

Send Requests for Proposals (RFPs)

Requests for proposals (RFPs) are sent to media buying agencies to gather proposals for the campaign. 

It includes detailed information about the campaign goals, target audience, desired digital channels, and budget information. 

Crafting compelling RFPs ensures clear communication of the brand message and objectives, allowing for comparisons, negotiations, and ultimately securing the best deals for the campaign.

Evaluate Options and Purchase Media

After receiving proposals, advertisers carefully evaluate each offer based on reach, audience alignment, pricing, and added value opportunities. 

The goal is to select digital media options that closely align with the campaign goals and overall marketing objectives. 

Advertisers compare proposals to determine the best value, leveraging negotiations to secure optimal placements and rates. 

Once finalized, they purchase the chosen digital media placements to maximize the campaign’s reach and impact.

Finalize the Insertion Order (IO)

The final step involves finalizing the insertion order, a formal document outlining the specifics of the digital advertising campaign. 

It is a contract between the advertiser and the chosen digital media or ad-buying agencies. 

The insertion order details ad placement dates, times, sizes, and any special instructions, ensuring alignment with agreed-upon objectives and terms. 

It becomes the official contract for the campaign, guaranteeing the correct and effective placement of ads within the selected digital channels.

Develop Creative

Concurrently with media planning and purchasing, advertisers develop creative assets for digital advertisements. 

It includes designing visuals, writing copy, producing audio or video content, and ensuring alignment with the chosen digital channels and campaign objectives. 

Creatives are tailored to each digital platform and optimized for different formats and placements. 

A/B testing helps identify the creatives most effective before finalizing, ensuring consistency in brand messaging for brand recognition and campaign success.

Send the Creative

Advertisers tailor the ad creatives to each digital media channel’s specifications, including proper sizing and format requirements. 

The selected digital media receives (uploads) the finalized ad creative for placement.

Launch the Campaign

Finally, they officially launch the campaign across the chosen digital media channels. It includes ensuring that necessary software and metrics are in place to track and measure the campaign’s performance.

Monitoring and Optimization

Advertisers continuously monitor key performance indicators (KPIs) on digital media and internal metrics throughout the campaign. 

This ongoing monitoring allows for adjustments to optimize the campaign’s effectiveness.

Reconcile Ad Spending

Advertisers regularly check ad spending against the original budget to assess the campaign’s financial status. It ensures that the campaign stays within the allocated budget.

Reconcile Costs and Negotiate “Make-Goods”

After the campaign concludes, advertisers reconcile the actual costs with the initial proposals and insertion orders. 

It involves negotiating with ad-buying agencies for discrepancies and “make-goods.” The latter are additional ad placements or adjustments to boost the campaign’s performance.

How to Negotiate the Best Deals for Digital Media Buying?

Negotiating the best deals for digital media buying involves several key strategies and tactics to ensure optimal results for the campaign. 

Understand Market Rates

Before entering negotiations, it’s crucial to understand the prevailing market rates for digital media placements. 

This knowledge helps in setting realistic expectations and benchmarks for negotiations. Benchmark against historical data and industry averages to gauge fair pricing.

Leverage Data and Analytics

Utilize data and analytics to support negotiation points. Use performance metrics from previous campaigns or industry benchmarks to demonstrate the potential value of the media placements. 

This data-driven approach adds data and credibility to negotiation discussions.

Consider Package Deals

Explore the possibility of package deals or bundled offerings. 

Try bundling multiple placements across different digital channels to negotiate better rates. This approach allows advertisers to secure discounts or added value by committing to a large media buy.

Be Flexible and Open to Negotiation

Negotiation is a two-way process, as mentioned in the Board Infinity discussion. Being flexible and open to finding mutually beneficial solutions is necessary. 

It could involve discussing alternative ad formats, adjusting the timing of placements, or exploring creative partnership opportunities.

Establish Long-Term Relationships

Building relationships with media outlets can lead to more favorable terms over time. 

Maintain open communication and demonstrate a commitment to future collaborations. Long-term partnerships often result in preferential rates and added perks for advertisers.

Negotiate Added Value

In addition to negotiating rates, consider negotiating added value benefits. 

It could include bonus ad placements, extended campaign durations, or premium placement positions. Discuss these options to maximize the campaign’s impact without exceeding the budget.

Conclusion

Digital media buying acquires media impressions in the digital space, like social media, search ads, display ads, video ads, and programmatic ads. 

The digital media buying process involves several steps, including reviewing the media plan, developing a media buying strategy, and conducting a media search.

On the financial side of things, it includes setting up a budget, requesting RFPs, evaluating options, buying media, and finalizing insertion orders. 

Next, ad creatives are developed and shared. 

Finally, the advertisers launch media campaigns and monitor these campaigns for performance, optimization, reconciling spending and costs, and making goods.

 

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