What is media buying?

You might have heard about media planning, Adsmediabrokers offers to learn about one part of it – media
buying. Read our complete guide where everything is explained nice and simply.
Media buying is a wholesale purchase of advertising space and broadcasting time with further re-selling it to
advertisers or ad agencies.
There is also a reverse procedure – media selling, where the subject matter is about selling and not buying. In fact, they
are two sides of one coin, and we can easily explain the situation from the first point of view.
Who are main participants?
Generally, such kind of services are offered by specialized media buying agencies, local and network-based ad
agencies.
Direct advertisers, as well as advertising agencies, can be clients of media buying agencies that are called ad media
brokers in this case. Media brokerage can be very useful for the companies that are limited in resources for advertising.
Buyers are offered a collection of different websites that may suit to a particular advertiser according to his needs and
important factors for advertising including demographic or psychographic in each particular case.
In general, media buying cooperation is profitable for both participants. Sellers can be sure that all their ad spaces and
broadcasting time will be certainly sold. Buyers of ad media resources can always rely on some discount as they
perform a wholesale purchase.
Advertiser is also winning from this situation as he also – he can also expect that a media buyer will offer him a
discount, too.
Types of media buying resources
● Purchase of radio broadcasting time. The cost is calculated by a minute tariff. Morning hours are considered to
be the most profitable, they are called prime-time. People are getting to their work and can listen to the radio in
the car or during the working day at all.
● Buying of TV broadcasting time. Advertisers generally prefer buying broadcasting minutes. The cost, of course,
depends what the time of the day is chosen. Evening hours are more expensive as there are more people
gathered in front of the screen, that means the audience covered is bigger than at midday, for example. There
is also a rating model that is less popular as too many factors are required to be taken into account.
● Ambient media. They are billboards, ads on buses, walls and so on. The cost will include the size of your
posting, materials used and the location.
● Printed medias. Media buyers generally obtain up to whole pages in newspapers while advertisers are offered
particular lines of space. The price is variable depending on the type of the media, its popularity, print run,
audience and so on.
● Online buying. As people are more interested on the Internet, this area is very quick in evaluation. Main idea is
to buy place for publishing companies’ banners. The more popular and visited the resource is, the higher the
price will be. There are also options for pricing for the time of publishing, amount of displays, clicks and so on.
Two latter cases are the most frequent for discussing the cost.
Mind that buying of a particular ad space implies that you can use it for publications you feel necessary (according to
local laws, of course). But this inventory doesn’t become your eternal possession. It is nothing, but renting for a certain
period of time only.
What is the profit of media buying?
Generally, advertisers prefer dealing with media brokers as direct purchasing may turn out more expensive.
Ad brokers themselves are interested in selling of all that they have obtained. The point is not only in losing their own
money, but medias can claim for penalties if there is free space. Sometimes good places for publications are sold at
cost-price or even lower as losing some part of money is not so terrible as losing your investments and paying to the
radio or newspaper in case of failure.
What should be taken into account?

That’s life and unsold spaces can be and publishers should be ready to have something at their disposal to resolve the
problem. It makes publishers to stay always turned on and have some ace in the hole.
Brokers also have what to worry about as their success, as well as reputation, depends a lot on the business they buy
ad space from. They are the first place to respond and explain of something went wrong.
Media buying as business also has to develop his rules, too. Not only media brokers can be offered soft terms, but also
very persistent agencies.


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