Here’s a summary of a talk Terry Carmody of Integration Media and Beverly Rothenberg of NYMM gave on National Advertising at the IBOUSA meeting. Agencies control the business on many large national companies (e.g. BP, Sprint, Verizon, Coke, Sams Club, Walmart) and place the advertising nationally for short 4-6 week campaigns.
What are the advantages of national advertising?
- High profile advertisers which look good on your boards look good.
- Good Credits. Carmody can’t think of a large national account which hasn’t paid an outdoor bill.
- Agency buyers are less rate sensitive especially for smaller dollar amounts. If you’re paying $50,000/month for a board on Sunset Blvd are you going to sweat $200 versus $400 for a board in a smaller market? No.
Cons of National Advertising
- Slow pay. Agencies take 90-120 days to pay. The solution is to charge an extra price for the annoyance factor of waiting for your money. 12% interest on $1,500 for 6 months comes to $90 so it probably makes sense to mark up your normal rate by a couple hundred dollars when you bid for national business.
- Holds. A national campaign may want to place a hold of 1-3 weeks on a board while they finalize a campaign. This leaves you scrambling if the campaign never materalizes.
- Short Term. Most national business is 4-6 weeks. You can price the extra service costs into a contract but sometimes it’s better to take a lower priced long term contract with a local advertiser because it’s less hassle.
What’s necessary to get agency business?
- A rep firm. Insider uses and likes Integration Media, which works with lots of independent outdoor advertising companies. There are other options.
- Quality pictures. Agency people review hundreds of photo sheets. They spend a second or two on each one. If you don’t have a good sign picture you won’t get business. Pictures should be a street view which shows cards as well as the board. A closeup of the board is not helpful. Google earth shots of the board are ok.
- Accurate information on the sign’s location, size and illumination.
- A quick response. Most proposal requests require a quick turnaround.
Paid Ad
