All media planners and buyers expect a discounted rate from publishers
After a media planner or buyer has put together a list of media brands to consider, how do they determine which brand(s) will be selected and bought? We found that the top three criteria, those most important to the final buying decision, are all price-centric, according a study we conducted with the firm James G. Elliott on more than 200 SRDS.com users.
Respondents report that total cost/price is the most decisive factor to the final buy. Cost per thousand (CPM) and discount on the rate took the second and third spot, respectively. Although some media companies may push back on discount rates, all of the respondents surveyed expect to be offered a reduced rate. Perhaps most important for a media sales team to know is that the average discount expected by media planners and buyers is 29%.
One good sign for publishers; agencies feel as if publishers are trying to stay innovative in terms of their pricing. Over three-quarters of respondents (84%) say they are approached with new or unique pricing practices (always, often or sometimes).
Over the next few months, we'll be sharing insights from the study to help media brands better understand today's planners. Click here to sign up to receive occasional emails with these insights right to your inbox.
More Information about the Study: In Q4 2013, Kantar Media SRDS and James G. Elliott joined forced to understand the media planning and buying information needs of media planners and buyers at agencies. The objectives were to understand the habits of media planners and buyers, to learn about the types of clients and plans that media planners and buyers are working with, to determine the types of resources used for planning and buying and to understand what factors have an impact on media selection. The 200+ respondents were very qualified: they currently have media planning or buying responsibilities and had researched, recommended, planned or bought business-to-business, consumer magazine or digital media in the past 12 months. Click here for more information on the methodology.