Electronic Retailer - December 2011 - 39

BY ROBERT B. YALLEN

Local Vs. National Media
CHANNEL CROSSING: DRTV
Ask 10 baseball managers who the top 10 players are, and you will get 10 different answers. But ask the top 10 response-driven media companies which is harder to make work from a DR perspective – national media or local media – and every one of them mostly likely will give the same answer: local media. However, the better question to ask is, how can a local or regional advertiser obtain a national CPM equivalent? your marketing area represents. We have been successful with a marketing area level as low as 44 percent of the total U.S. household population. While less than a 100 percent penetration can achieve your media efficiency goal, there are other key considerations on how you handle the markets that you are not in, and sometimes you cannot overcome the efficiency gained because of the problems created by not having a 100 percent market penetration.

The Efficiency of National Media
While local media can be more targeted from a geographic perspective, national media – specifically national cable and broadcast syndication – is the cornerstone of direct response performance. There are three main reasons that national media brings in a better DR ROI. The first is CPM. While CPM is only one factor, it is a required element in the DR performance formula. Generally, the CPM on a national buy can range between 40 percent and 50 percent (or more) less than local spot broadcast. Second, many local spot markets have at least some geographic market anomalies – these include economic factors such as a higher index of unemployment, demographics and psychographics, cultural considerations, local media market conditions and, for 2012 especially, political advertising impact on rates and inventory. The third key factor is that national media is extremely targetable from a demographic and psychographic basis. Niche products that before the advent of national cable most likely would have to rely on small, targeted print publications and direct mail now can be successful on television. Don’t get me wrong, local media can work from a DR perspective, but your agency has to work a lot harder. Even under the best of circumstances, local media performance measured on an expenditure basis of obtaining the target DR metrics will be only be a fraction of the national expenditure. Irrespective of the considerations of a more efficient buy using national media, many advertisers such as local vocational schools, attorneys, doctor groups, gold bullion and coin companies are forced to purchase local media or totally forgo offline promotion.

Obtaining National Efficiency on a Local and Regional Basis
Bought properly, some local television and radio can be obtained at close to a national equivalent CPM. However, you can’t build a brand solely around the less certainty of this inventory and the scarcity of the avails. In 2012, we are likely to see local market inventory and even national become limited due to the election. FCC-mandated “political protection periods” require local broadcast TV stations and local cable systems to run political advertising, creating pricing disadvantages. National cable and syndication are not impacted in the same way as local television. For regional advertisers, one great media choice is using an unwired broadcast or cable network that has the capability to regionalize its household market footprint. We have created our own unwired networks that deliver to our regional clients national equivalent CPMs, as well as targeted programming. The unwired-network strategy will allow advertisers to compete at a different level. However, like all DR media, to secure the inventory at the right CPM will put you in a clearance game situation, so you will still most likely need to keep a local media plan in place. In the best direct response media plans, all aspects of a product or service offered through this channel are considered with the sales goals in mind to execute the most efficient campaign. All media types can be considered once a national schedule has been established. Furthermore, learning from the national campaign where conversion to sales has proven strong can be used to hone in on locally targeted areas. This also serves as a tiered marketing strategy when looking to drive retail and local market sales, thus extending the sales/purchase cycle and longevity that serves to build the brand through direct response. Robert Yallen is the president and CEO of the Inter/ Media Group of Companies. Robert can be contacted at (818) 995-1455 or ryallen@intermedia-advertising.com. 39

It’s Not the Number of States – It’s the Total Households
Many local and regional advertisers should consider when it is best to utilize national media, even though they do not have a traditional national footprint. The first step is to conduct an analysis of the percent of population compared to total U.S. population that

December 2011 | electronicRETAILER



Electronic Retailer - December 2011

Table of Contents for the Digital Edition of Electronic Retailer - December 2011

Calendar of Events
Your Association, Your Bottom Line
Industry Reports
FTC Forum
eMarketer Research
IMS Retail Rankings
Jordan Whitney’s Top Categories
Lockard & Wechsler’s Clearance & Price Index
Ask the Expert
Pillow Pet Talk
What’s New in SEM?
Canada’s Economy Weathers the Storm
How to Cook Up a Successful Offer
DRTV
Legal
Radio
Member Spotlight
Advertiser Spotlight
Bulletin Board
Advertiser Index
Classifieds
Rick Petry
Electronic Retailer - December 2011 - cover1
Electronic Retailer - December 2011 - cover2
Electronic Retailer - December 2011 - 3
Electronic Retailer - December 2011 - 4
Electronic Retailer - December 2011 - 5
Electronic Retailer - December 2011 - 6
Electronic Retailer - December 2011 - Calendar of Events
Electronic Retailer - December 2011 - Your Association, Your Bottom Line
Electronic Retailer - December 2011 - Industry Reports
Electronic Retailer - December 2011 - 10
Electronic Retailer - December 2011 - 11
Electronic Retailer - December 2011 - 12
Electronic Retailer - December 2011 - 13
Electronic Retailer - December 2011 - FTC Forum
Electronic Retailer - December 2011 - 15
Electronic Retailer - December 2011 - eMarketer Research
Electronic Retailer - December 2011 - 17
Electronic Retailer - December 2011 - IMS Retail Rankings
Electronic Retailer - December 2011 - 19
Electronic Retailer - December 2011 - Jordan Whitney’s Top Categories
Electronic Retailer - December 2011 - 21
Electronic Retailer - December 2011 - Lockard & Wechsler’s Clearance & Price Index
Electronic Retailer - December 2011 - 23
Electronic Retailer - December 2011 - Ask the Expert
Electronic Retailer - December 2011 - 25
Electronic Retailer - December 2011 - Pillow Pet Talk
Electronic Retailer - December 2011 - 27
Electronic Retailer - December 2011 - 28
Electronic Retailer - December 2011 - 29
Electronic Retailer - December 2011 - What’s New in SEM?
Electronic Retailer - December 2011 - 31
Electronic Retailer - December 2011 - 32
Electronic Retailer - December 2011 - 33
Electronic Retailer - December 2011 - Canada’s Economy Weathers the Storm
Electronic Retailer - December 2011 - 35
Electronic Retailer - December 2011 - 36
Electronic Retailer - December 2011 - 37
Electronic Retailer - December 2011 - How to Cook Up a Successful Offer
Electronic Retailer - December 2011 - DRTV
Electronic Retailer - December 2011 - Legal
Electronic Retailer - December 2011 - Radio
Electronic Retailer - December 2011 - 42
Electronic Retailer - December 2011 - 43
Electronic Retailer - December 2011 - Member Spotlight
Electronic Retailer - December 2011 - 45
Electronic Retailer - December 2011 - Advertiser Spotlight
Electronic Retailer - December 2011 - Advertiser Index
Electronic Retailer - December 2011 - Classifieds
Electronic Retailer - December 2011 - 49
Electronic Retailer - December 2011 - Rick Petry
Electronic Retailer - December 2011 - cover3
Electronic Retailer - December 2011 - cover4
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