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TV TIME: A Costco customer looks at a display of LCD HDTV televisions in San Francisco, Calif., in this file photo. Now is the season when companies, or advertisers, go into market to purchase television spots(Justin Sullivan/Getty Images)
Well, it’s that time again: this week starts the television upfront season.
It is this season when companies, or advertisers, go into market to purchase spot loads (many spots) to support their marketing plans for the upcoming broadcast year. [Note: The broadcast year is 4th Quarter 2011 through 3rd Quarter 2012.] Or to put it another way, purchasing spots for the new season of sitcoms, dramas, reality shows, and so on that start in the fall.
Many major advertisers and their advertising agencies are reviewing the upcoming season of recurring and new series and deciding which shows on the networks (that is FOX, CW, ABC, NBC, and CBS) and cable networks (FX, USA, TBS, and TNT) should be purchased in quantity. Since it is purchased upfront, the cost remains fixed for the entire broadcast year.
Just what does this means for small business owners? It pretty much paints a picture on what the demand will be for television and it allows the sellers of these spots (or time) to set their pricing based on the demand garnered out of the upfront season. Since many small business owners may not participate in the upfront season, your out-of-pocket expenditures are, in essence, being driven by the volume of spots purchased by major advertisers. Hence, it is important to follow this process closely since it directly impacts your pocket.
Even as a small business owner, you don’t necessarily have to participate in the upfront season to garner savings. With your marketing plan developed and knowing your television needs, you can purchase those spots and weeks needed at the start of your schedule to enhance overall savings.
Like with anything, frequency breathes more discounts. Conversely, if you purchase only a few weeks and then determine you want to push out a new product later, those weeks you purchase later will, in all likelihood, cost you more money. This is money that you may not have budgeted for in your annual expenses. This is why it is important to have a marketing/advertising plan in place so even you, the small business owner, can realize savings too.
Adele Lassere is a marketing/advertising consultant with 20 plus years experience, freelance writer, and soon to be published author of “Elements of Buying: A How To Advertising Reference Guide for Business Owners.” Adele was recently listed as Black Enterprise’s 2011 Top Execs in Marketing & Advertising. Contact: lassere@bellsouth.net
