Everything You Need To Know About Discounted Advertising Space
The advertising field is a competitive place. Companies are competing everyday for the prime advertising space or spot. With this information in mind, it might be hard to realize that a media company would have a difficult time filling in some of their advertising space. When this does happen, they sell the slots as discounted advertising space. Usually the rates for discounted advertising space are very low, and almost any company can afford them.
The only downside to purchasing discounted advertising space is due to the fact that it is usually sold with some restrictions. The company looking for the ad space needs to be easy to work with, and willing to negotiate with the media company. This is due to the fact that the media company would rather prefer giving the media space to their larger advertisers who they know will perform well.
Before buying discounted advertising space, ask yourself the following questions:
- Will I have the ability to make changes to my advertisement if I purchase the discounted space?
Sometimes, media companies will say no. The discounted advertising space is sold last minute; therefore the media company is on a huge deadline to get the publication out. They want an advertising company that will have their ad ready to go when they purchase the space. Also, in order to change the ad, this would mean that the media company would have to use production staff, which will cost the company money.
- What if I have to cancel the order before I have fulfilled the entire contact agreement?
Many media companies will have a penalty for agreements that are breached before the terms are over. When an advertiser agrees to publish an ad for a specific time period, the medium will extend the discounted rate from the first published ad until the last. The media company is assuming that the advertiser will fulfill their end of the bargain. The penalty is referred to as “short rates”. In other words, the buyer is charged back for the ad space that is published at the rate that they earned, instead of what was actually published.
To put it into simple terms, if an advertiser agrees to advertise for a year, but backs out after only three months, the rate for the ad is recalculated at the three month rate instead of the discounted yearly rate. The terms are usually spelled out in the agreement contract, and the penalties are outlined within the agreement.
- Will I have control over where the ad is placed, or how often it is printed?
In many cases, the answer will be no. The media company prints the ad at their own will, when they are needed, and to fill in the extra gaps. This is one of the reasons that discounted advertisement space is referred to as remnant advertising. Many times they will not place the same ad for the same advertiser on one page, but they might place them on opposite pages.
Keep in mind that if the media company is experiencing a slow period with ad space sales, they might only use the filler ads during one month instead of three. The media companies are also not interested in very many advertisers that are seeking a one-time opportunity. This is because the number of employees that are required to complete the production will cost the company a great deal. Discounted advertising space is thought of as an incentive to the buyer, which makes the media company’s workload lighter.
