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Media Mixology: Local Buying Amid Political ChaosMedia Agency PerspectiveApril 18, 2012 – New York, NY
IntroductionMike Lewis – Associate Media Director; member of SRDS Agency Advisory Board
Kelly Scott MadisonOverview• Chicago-based• One of the largest independent  media agencies in the U.S.• Full service integ...
Kelly Scott MadisonPOLITICAL MEDIA LEARNINGS &INSIGHTS
Political advertising realities…    • Can’t be ignored    • Always changing    • Increasingly confusing and challenging6
So what have we learned?• 2008 learnings...  –   Over-promise / under-deliver  –   Increasingly localized  –   Clients mus...
Agencies must stay on top of political advertisingseasonality when planning for clients in a political cycle• KSM maintain...
Kelly Scott MadisonBROADCAST TV INSIGHT
Broadcast TV remains the core platform for politicalspending• Despite a slight reduction in overall  spending share since ...
Effective planning will help ensure optimal scheduledelivery• Plan and buy EARLY to lock in rates and CPPs   – Planners mu...
Effective planning will help ensure optimal scheduledelivery• Recommend less affected daypart mixes  when planning• Taking...
Consider alternative TV platforms to avoid rateimplications and inventory constraints• Explore short form TV options (i.e....
Consider alternative TV platforms to avoid rateimplications and inventory constraints• In the most severe cases, consider ...
While difficult, steps can be taken to help clients avoid beingovertaken by non-stop negative campaign messaging• Consider...
Effective account stewardship is important to maintainintegrity of client schedules during political• Ad tracking (“waterm...
Kelly Scott MadisonCABLE TV INSIGHT
Political cable spending expected to grow substantially in2012• Total spend expected to double from 2008,  although share ...
Cable provides a key opportunity to reach voters whenand where they are watching• Campaigns are targeting  moderate, swing...
Political advertisers have gotten smarter about how theypurchase cable• Historically campaigns have purchased more  specif...
Cable still provides solutions for non-political advertisers• Plan around news networks   – While political spending has i...
Kelly Scott MadisonRADIO INSIGHT
While radio receives substantially less political advertising,spending for 2012 likely to grow approximately 50%• Radio sp...
Non-political advertisers should still be mindful of politicalimplications when considering radio• Consider relevant FM fo...
Kelly Scott MadisonONLINE INSIGHT
Despite recent buzz surrounding online political spending,will likely not impact non-political advertisers• Spending is ex...
Campaigns expected to increase social ad spending 100%to capitalize on popularity amongst voters• Voters will be turning t...
Despite increase in digital spending, implications to non-political advertisers is limited• Amount of baseline inventory a...
Kelly Scott MadisonIN SUMMARY…
Helping clients navigate a chaotic political cycle is feasible,as long as we keep the following in mind...•   Discuss obje...
Thank you! Questions?
Appendix
Political advertising spending forecast
Media Agency Perspective: Local Media Buying Amid Political Chaos
Media Agency Perspective: Local Media Buying Amid Political Chaos
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Media Agency Perspective: Local Media Buying Amid Political Chaos

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Presentation from "Local Media Buying Amid Political Chaos" - a Media Mixology event from Kantar Media SRDS.

Presented by Mike Lewis, Associate Media Director at Kelly Scott Madison

Published in: News & Politics, Business
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Transcript of "Media Agency Perspective: Local Media Buying Amid Political Chaos"

  1. 1. Media Mixology: Local Buying Amid Political ChaosMedia Agency PerspectiveApril 18, 2012 – New York, NY
  2. 2. IntroductionMike Lewis – Associate Media Director; member of SRDS Agency Advisory Board
  3. 3. Kelly Scott MadisonOverview• Chicago-based• One of the largest independent media agencies in the U.S.• Full service integrated media solutions including research, buying, planning, and promotions• Vast client experience across numerous categories• 110+ media professionals
  4. 4. Kelly Scott MadisonPOLITICAL MEDIA LEARNINGS &INSIGHTS
  5. 5. Political advertising realities… • Can’t be ignored • Always changing • Increasingly confusing and challenging6
  6. 6. So what have we learned?• 2008 learnings... – Over-promise / under-deliver – Increasingly localized – Clients must be appropriately educated – Rise of social media• PACs & Super PACs are here to stay• Candidates are increasingly employing narrowcasting/targeting strategies (what took them so long?!)• Don’t believe everything you hear in the media
  7. 7. Agencies must stay on top of political advertisingseasonality when planning for clients in a political cycle• KSM maintains a political “heat map” to monitor activity in markets across the country – Constantly changing and being updated
  8. 8. Kelly Scott MadisonBROADCAST TV INSIGHT
  9. 9. Broadcast TV remains the core platform for politicalspending• Despite a slight reduction in overall spending share since 2008, TV will likely still account for 57% of total spending• TV will present additional challenges to non-political advertisers – Super PAC spending – Candidates increasingly purchasing weight outside core news dayparts – Other major events will add to a cluttered TV environment (i.e. London Olympics) Source: Borrell Associates Inc.: 2012
  10. 10. Effective planning will help ensure optimal scheduledelivery• Plan and buy EARLY to lock in rates and CPPs – Planners must work hand-in-hand with buyers to gauge local realities during planning – Account for baseline CPP increases when planning budget recommendations• Counsel clients on the importance of flexibility (incl. makegood packages)
  11. 11. Effective planning will help ensure optimal scheduledelivery• Recommend less affected daypart mixes when planning• Taking advantage of broader time periods can provide a loophole in avoiding some rate constraints• Consider over buying TV weight (pending client approval and understanding) in “hot” markets
  12. 12. Consider alternative TV platforms to avoid rateimplications and inventory constraints• Explore short form TV options (i.e. traffic/weather, closed captioning, programming sponsorships) – Won’t work for all clients given creative/messaging limitations• Consider public TV for relevant clients; again keeping creative constraints in mind
  13. 13. Consider alternative TV platforms to avoid rateimplications and inventory constraints• In the most severe cases, consider shifting some broadcast TV weight to... – Online video platforms o 71% of online users are video viewers; represents the fastest growing segment of online advertising – Cinema advertising o Highly targetable; reaches a captive, entertainment focused audience – Radio o Significantly less inventory stress, but lacks visual impact Source: eMarketer: 2011
  14. 14. While difficult, steps can be taken to help clients avoid beingovertaken by non-stop negative campaign messaging• Consider news break sponsorships that typically run leading out of content into ad breaks (“This portion of ABC 7 News is brought to you by...”)• Purchase premium positioning to ensure spots run “first in pod”• Avoid weather, sports, and human interest segments, when most political ads run• Campaigns typically purchase “plus demos,” so older skewing stations likely more cluttered
  15. 15. Effective account stewardship is important to maintainintegrity of client schedules during political• Ad tracking (“watermarking”) can be employed to provide real time tracking of TV schedules• Maintaining positive relationships with station contacts important – Can alert the agency when last minute avails become available – Including traffic departments!
  16. 16. Kelly Scott MadisonCABLE TV INSIGHT
  17. 17. Political cable spending expected to grow substantially in2012• Total spend expected to double from 2008, although share remains fairly flat• No longer considered a “mysterious” platform for political advertisers – I+ advancement addressing penetration concerns• In general, TV viewers no longer associate broadcast versus cable when choosing what to watch Source: Borrell Associates Inc.: 2012
  18. 18. Cable provides a key opportunity to reach voters whenand where they are watching• Campaigns are targeting moderate, swing, independent, and younger voters with non-news cable networks
  19. 19. Political advertisers have gotten smarter about how theypurchase cable• Historically campaigns have purchased more specific cable zones than interconnect• Strategic shift to leverage economies of scale by buying full DMA and running different copy across local zones• Also purchasing interconnect to achieve reach, and supplementing with specific local messaging via zones buys• Large percentage of cable buys remain as zoned
  20. 20. Cable still provides solutions for non-political advertisers• Plan around news networks – While political spending has increased, non- news networks still offers a less cluttered environment – During primary season, between two and eight networks are deeply impacted; increases to 10 – 30 networks during general election• Explore broader buying periods (i.e. 4pm – 12am)• Consider an interconnect buy for clients who typically use zones
  21. 21. Kelly Scott MadisonRADIO INSIGHT
  22. 22. While radio receives substantially less political advertising,spending for 2012 likely to grow approximately 50%• Radio spots are cheap to produce and can be created quickly, allowing for efficient of rotation of multiple messages• News Talk formats generally raise rates during political windows in anticipation of avails• FM stations are generally less impacted unless a candidate has a lot of cash to spend• However, recent research indentifies FM formats best suited to reach partisan audiences
  23. 23. Non-political advertisers should still be mindful of politicalimplications when considering radio• Consider relevant FM formats to combat constraints with news talk formats (i.e. country, classic rock)• Explore short form radio options (i.e. traffic/weather sponsorships)• Be flexible when it comes to scheduling of promotional campaigns and bonus weight• Look into streaming pure/play radio platforms to avoid terrestrial constraints altogether
  24. 24. Kelly Scott MadisonONLINE INSIGHT
  25. 25. Despite recent buzz surrounding online political spending,will likely not impact non-political advertisers• Spending is expected to increase over 600%+, but total spending is “only” $159 million
  26. 26. Campaigns expected to increase social ad spending 100%to capitalize on popularity amongst voters• Voters will be turning to social media to learn more about candidates – Top social platforms for campaigns: Facebook, Twitter, YouTube, Google+
  27. 27. Despite increase in digital spending, implications to non-political advertisers is limited• Amount of baseline inventory available prevents constraints felt elsewhere• Cost-per-click platforms could see increases in CPCs as more candidates enter the space and drive up competition• Within the political window, video network CPMs may increase as candidates heavy-up video presence before the election
  28. 28. Kelly Scott MadisonIN SUMMARY…
  29. 29. Helping clients navigate a chaotic political cycle is feasible,as long as we keep the following in mind...• Discuss objectives and educate clients• Plan early• Encourage flexibility• Planners and buyers need to work together• Maintain strong vendor relationships• Steward appropriately• Be sure to VOTE!
  30. 30. Thank you! Questions?
  31. 31. Appendix
  32. 32. Political advertising spending forecast
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