The Return on Media Investment

Are you considering spending big on media buying? Check what deals you could get in return for your investment. #MediaInvestment #PaidMedia

A good media investment is all about good results and its positive impact on the business and brand, but if it is not optimized you will end up paying more than you should. Here is a list of the Return on Media Investment solutions (Rewards) that you could secure when negotiating a media-buying deal:

• Price Discount: A straight amount of discount you are given on your media space buying for every campaign, and it is a fixed rate but can be negotiated to push it up on certain occasions. It applies to rate-carded media, also called Reserved Media. The more you spend the higher the discount rate. All suppliers who offer this kind of media space (rate carded) no matter how popular or unpopular must provide you with a discount rate on your media investment. This is common in Traditional Media but also offered in some digital formats, and it can be negotiated to increase every year (incremental discount).

• Added Value/Incentives: An additional media value is offered, on your media investment, in extra media space or extra time (extension) for every campaign. It also includes offering additional media formats or products when booking a specific medium at no extra cost. For instance, you get more TV spots on the same program or another program/channel with the same supplier for free in return for your investment in a specific channel. On OOH you can expect additional faces or campaign extensions at no extra cost. Also, additional free impressions or free tools can be offered in return for your digital investment. Free Press Releases/Coverage, Free Production, Free training and many other media values can be also negotiated depending on the budget, media supplier, and nature of the contract/agreemnt.

• Volume Rebate: over and above the discounts and incentives/added value, you can expect more rewards from your media agency by offering you a coupon value to redeem as a free campaign on specific media in return for your annual investment. Usually, it’s been offered at year-end, but it can be agreed to claim it on the spot rather than waiting until year-end.

• Rate protection: an agreement to secure a fixed rate for specific media, especially when anticipating inflation in the market where media prices are expected to increase. This is usually done on a contractual basis for a three to five-year agreement. For example, you can keep the same rate card for a specific medium, for 3 years, even when it launches a new rate card (Offline/Online media).

• Exclusive Products: Some media suppliers will offer you early access or exclusivity to certain formats when booked in advance and in return for a specific investment. It’s popular with digital media, but also, can be negotiated with offline media especially TV & OOH. This solution can be used to get a larger discount, compared to the standard discount, also referred to as Proprietary Media.

• Payment Discount: if you are willing to make a payment earlier than contractually scheduled, you will be able to negotiate an additional discount. It applies to many offline media, some digital media, and influencers.

It is possible to get multiple rewards on a single medium, however, popular media companies/suppliers will show more resistance to making such an agreement. Nevertheless, the more money you spend the more rewards you can expect, it is an ongoing task with endless opportunities, and you will always get more on your media investment. This is one of many great advantages of dealing with a media agency when you are spending big or seeking growth.

#MediaInvestment #MediaBuying #BusinessCommunications #MediaAgency #Negotiations