MEDIA EMPIRE

How to sell advertising well

Most of a station's money comes from advertising. Understand the quote, the price, the contract type and the rating you promise, and you will stop signing deals that lose money.

Prime-time ad price: ×1.7
Campaign length: 7–30 days
Mid-roll breaks: shows of 30+ min · up to 6
Extra spots per hour: up to 2

Quotes and negotiation

A spot's price starts from expected viewers × CPM, then multiplies by the day part, how well the show fits the advertiser's target, the programme's ad value and seasonal demand. Ask above the quote and the chance of a yes falls; ask too many times the market price and you hit a cap.

The five contract types

Spot
Weekly
Campaign
Exclusive
Performance-based

Keeping a contract

Each contract names a rating you must deliver. Fall short and you pay a penalty in proportion to the shortfall, and that advertiser will not deal with you for a while. Performance deals pay a bonus when you beat the target.

Upfronts pre-sell a season's prime-time advertising at a discount against a guaranteed rating. Miss the guarantee and you owe free spots — make-goods.

Mid-rolls and ad load

Shows of 30 minutes or more can carry mid-roll breaks, but each one loses a few viewers. If the day's or prime time's ad load goes over 100% of the allowance, the regulator steps in with a fine. Sponsorship pays per episode, but too much of it costs word of mouth.

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