Discounts and mark-ups, Perception of advertising...

Discounts and extra charges

The system of mark-ups and discounts when placing advertisements on the radio is fairly ordered and debugged. As well as on television, on the radio there are extra charges for positioning the video in the ad unit. In addition, you can choose a specific ad unit for placement or placement of an advertising video outside the ad unit. The margin for the choice of location is from 10 to 25% of the basic cost of advertising.

The margin for urgency is also very actively used by almost all radio stations. Urgent placement of advertising on the radio - a very common phenomenon and is in great demand among advertisers. Urgent placement means the placement of the video less than three days before it is broadcast. When placed in less than 72 hours, the surcharge can be 25-50% of the basic tariff at large stations, 50-100% for 48 hours, and 100-200% for less than a day.

To special mark-ups when placing advertising on the radio, you can refer to the increase in the cost of advertising on holidays - for example, in the New Year, Christmas, March 8, February 23. There is a seasonal increase in prices. Most stations apply seasonal surcharges at the end of December due to a general increase in advertising.

The main discounts used for the sale of radio air are as follows:

• agency;

• three-dimensional;

• Packages;

• Individual.

The discount calculation system is similar to that used on television, as was already mentioned above.

Perception of advertising as a price factor

Another point that matters when placing advertisements on the radio, but not always taken into account in United States conditions, is the perception of advertising. Earlier (see Chapter 7) mentioned the factors of perception and memorability of advertising on the radio, singled out by Dutch researchers. Recall that according to these data are most well remembered videos;

• coming out in a short ad unit, with the largest number of advertising messages;

• standing at the first position in the block (+10 - 30% to rememberability);

• lasting more than 30 seconds, while between rollers 15 - 30 there is no significant difference in memorability.

The conclusions are certainly interesting, but hardly applicable in United States practice. First, the ability of an advertiser or an advertising agency to influence the duration of an ad unit on radio stations is almost zero. The only way out, perhaps, is to use non-standard options for placing on the radio, in particular sponsorship of radio, thematic programs, the organization of games and raffles on radio stations. Secondly, not only advertisers and advertising agencies know about the benefits of placing on the first positions in the block, but also radio stations themselves, which make an additional mark-up for such positioning, reaching 20% ​​(markup of the same value is made when positioning the video in the last place in the block ). As a result, if you translate the acquired effects into unit costs, it turns out that there is no saving. And if it is not there, then where is the optimization? Thirdly, if you also recalculate the increase in effects from the placement of videos lasting 45 seconds or more at their cost, then again we will not see any difference. Compared to a 30-second clip, a 45-second roller improves brand awareness by about 1.5 times, but it's more expensive that way.

Thus, the most interesting from a practical point of view, the statement of the Dutch researchers can be considered the statement that there is no difference in memorability of messages lasting 15 and 30 seconds. There is no difference in memorability, and the placement price differs by two or nearly two times - this is the basis for optimizing costs by actively using smaller rollers.

Speaking of radio advertising, we noted only specific factors, primarily affecting the bid price. The very technology of sales was not deliberately considered, as it is comparable to sales in print media, which is carried out by its own sales service.

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