Media buying
Encyclopedia
Media Buying is a sub function of Advertising management
. Media Buying is the procurement of the best possible placement and price of a piece of media real-estate within any given media. The main task of Media Buying lies within the negotiation of price and placement to ensure the best possible value can be secured.
There is an apparent distinction between General Marketing
Media Buyers and Direct Response
Media Buyers. General Market Media Buyers enact or actualize media plans drawn up by media planners. They negotiate rates and create media schedules based on a media plan constructed by a Media Planner. Through the Media Planner, General Market Media Buyers rely on published cost per point guides which in actuality, are often based on hypothetical benchmarks, and rather outdated models. An experienced Direct Response Media Buyer knows what stations generate a specific quantity of response and knows within reason, the break even point of the expenditure versus the return. With that information, the Direct Response Media Buyer is efficient in negotiating a functional rate and in purchasing media from the appropriate stations. The Direct Response Buyer attaches unique phone numbers to each station they purchase media from and track the sales, and make adjustments to the media plan and schedule as necessary to optimize results. With these differing methodologies, Direct Response Marketing can be considered a specialized arena.
Media Research Planning can be done by Media Buyers as well as Media Specialists. Depending on product and service, Media Buyers and Media Specialists must do a fair amount of research to determine how best to spend the allotted budget. This includes research on the target audience and what type of medium will work best to reach the largest amount of consumers with the most effective method. Media Planners and Media Specialists have a vast array of media outlets at their disposal, both traditional media and new media. Traditional media would include radio, TV, magazines, newspapers, and out of home. New media might include Satellite TV, cable TV, Satellite radio, and internet. The internet offers a number of Online Media that has surfaced with the improvement of technology and the accessibility of the internet. Online Media can include emails, search engines and referral links, web portals, banners, interactive games, and video clips. Media Planners and Specialists can pick and choose what and/or which combination of media is most appropriate and effective to achieve their goal, whether it is to make a sale, and/or to deliver a message or idea. They can also strategize and make use of product placements and Positioning. Inserting advertisements as print ads in newspapers and magazines, buying impressions for advertisements on the internet, and airing commercials on the radio or TV, can be utilized by Direct Response Advertisers as well as Remnant Advertisers.
All the major marketing services
holding companies own specialist media-buying operations.
Prior to the late 1990s, media buying was generally carried out by the media department
of an advertising agency
. The split between creative agencies and media agencies is often referred to as "unbundling". In 1999, WPP Group
created MindShare from the media departments of its two advertising networks, Ogilvy & Mather
and J Walter Thompson, now JWT
.
In 2003, after purchasing Young & Rubicam
and Tempus, WPP further consolidated all of its media operations including media buying and media planning through the formation of GroupM
, which is now the number one media investment management company in terms of billings. The other major media holdings include Omnicom's OMD, Publicis
's Vivaki and ZenithOptimedia, Interpublic's Mediabrands, Aegis's Aegis Media and Havas
's Havas Media.
Advertising management
Advertising management is a career path in the advertising industry. Advertising & promotions managers may work for an agency, a PR firm, a media outlet, or may be hired directly by a company to develop branding for the company's product or service...
. Media Buying is the procurement of the best possible placement and price of a piece of media real-estate within any given media. The main task of Media Buying lies within the negotiation of price and placement to ensure the best possible value can be secured.
Buyers
Media Buyers are individuals responsible for purchasing time and advertising space for the purpose of advertising. When planning what to buy, they must evaluate factors based on but not limited to station formats, pricing rates, demographics, geographic, and psychographics relating to the advertisers particular product or service objectives. The Media Buyer needs to optimize what is bought and that is dependent on budget, type of medium (radio, internet, TV, print), quality of the medium (target audience, time of day for broadcast, etc.), and how much time and space is wanted. Media Buyers can purchase spot, regionally, or nationally. National Media Buyers might have to factor in determinates based on a state by state basis. Rates, demand of leads, space, and time, and state licenses will vary from state to state. National Media Buyers will need National Media Planning to generate National Media Marketing strategies and National Media Advertising that can be adaptable from area to area but also work on a national level.There is an apparent distinction between General Marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
Media Buyers and Direct Response
Direct response marketing
Direct-response marketing is a form of marketing designed to solicit a direct response which is specific and quantifiable. The delivery of the response is direct between the viewer and the advertiser, that is, the customer responds to the marketer directly...
Media Buyers. General Market Media Buyers enact or actualize media plans drawn up by media planners. They negotiate rates and create media schedules based on a media plan constructed by a Media Planner. Through the Media Planner, General Market Media Buyers rely on published cost per point guides which in actuality, are often based on hypothetical benchmarks, and rather outdated models. An experienced Direct Response Media Buyer knows what stations generate a specific quantity of response and knows within reason, the break even point of the expenditure versus the return. With that information, the Direct Response Media Buyer is efficient in negotiating a functional rate and in purchasing media from the appropriate stations. The Direct Response Buyer attaches unique phone numbers to each station they purchase media from and track the sales, and make adjustments to the media plan and schedule as necessary to optimize results. With these differing methodologies, Direct Response Marketing can be considered a specialized arena.
Media Research Planning can be done by Media Buyers as well as Media Specialists. Depending on product and service, Media Buyers and Media Specialists must do a fair amount of research to determine how best to spend the allotted budget. This includes research on the target audience and what type of medium will work best to reach the largest amount of consumers with the most effective method. Media Planners and Media Specialists have a vast array of media outlets at their disposal, both traditional media and new media. Traditional media would include radio, TV, magazines, newspapers, and out of home. New media might include Satellite TV, cable TV, Satellite radio, and internet. The internet offers a number of Online Media that has surfaced with the improvement of technology and the accessibility of the internet. Online Media can include emails, search engines and referral links, web portals, banners, interactive games, and video clips. Media Planners and Specialists can pick and choose what and/or which combination of media is most appropriate and effective to achieve their goal, whether it is to make a sale, and/or to deliver a message or idea. They can also strategize and make use of product placements and Positioning. Inserting advertisements as print ads in newspapers and magazines, buying impressions for advertisements on the internet, and airing commercials on the radio or TV, can be utilized by Direct Response Advertisers as well as Remnant Advertisers.
All the major marketing services
Advertising management
Advertising management is a career path in the advertising industry. Advertising & promotions managers may work for an agency, a PR firm, a media outlet, or may be hired directly by a company to develop branding for the company's product or service...
holding companies own specialist media-buying operations.
Prior to the late 1990s, media buying was generally carried out by the media department
Departmentalization
Departmentalization refers to the process of grouping activities into departments.Division of labour creates specialists who need coordination. This coordination is facilitated by grouping specialists together in departments....
of an advertising agency
Advertising agency
An advertising agency or ad agency is a service business dedicated to creating, planning and handling advertising for its clients. An ad agency is independent from the client and provides an outside point of view to the effort of selling the client's products or services...
. The split between creative agencies and media agencies is often referred to as "unbundling". In 1999, WPP Group
WPP Group
WPP plc is a global media communications services company with its main management office in London, United Kingdom and its executive office in Dublin, Ireland. It is the world's largest advertising group by revenues, and employs over 150,000 people in 2,400 offices in 107 countries...
created MindShare from the media departments of its two advertising networks, Ogilvy & Mather
Ogilvy & Mather
Ogilvy & Mather is an international advertising, marketing and public relations agency based in Manhattan and owned by the WPP Group. The company operates 497 offices in 125 countries with approximately 16,000 employees.-History:...
and J Walter Thompson, now JWT
JWT
JWT is one of the largest advertising agencies in the United States and the fourth-largest in the world. It is one of the key companies of Sir Martin Sorrell's WPP Group and is headquartered in New York. The global agency is led by Worldwide Chairman and Global CEO Bob Jeffrey who took over the...
.
In 2003, after purchasing Young & Rubicam
Young & Rubicam
Y&R is a marketing and communications company specializing in advertising, digital and social media, sales promotion, direct marketing and brand identity consulting.-History:...
and Tempus, WPP further consolidated all of its media operations including media buying and media planning through the formation of GroupM
GroupM
GroupM is the world’s largest advertising media company in terms of billings. It is headquartered in New York City with over 17,000 employees and 400 global offices in 81 countries. GroupM was formed in 2003 by WPP Group to serve as the parent company of WPP's media agencies including , , , , , , ,...
, which is now the number one media investment management company in terms of billings. The other major media holdings include Omnicom's OMD, Publicis
Publicis
Publicis Groupe is a French multinational advertising and communications company, headquartered in Paris, France. It is one of the world's three largest advertising holding companies . Its current president is Maurice Lévy. Publicis Groupe S.A...
's Vivaki and ZenithOptimedia, Interpublic's Mediabrands, Aegis's Aegis Media and Havas
Havas
Havas is the second largest advertising group in France and is a "Global advertising and communications services group" and the sixth-largest global advertising and communications group worldwide, operating on the communications consulting market through three main operational divisions:*Euro RSCG...
's Havas Media.