What’s the price for TV advertising placement in Moldova?
In the XXI century, called the century of information technology, people are surrounded by numerous information streams, as advertising takes a significant share of them. Often we do not even imagine why we want to own «Samsung S6 Edge +», drink coffee «Jacobs Monarch», dream of a posh apartment in «Eldorado Terra», and share beautiful moments with our relatives enjoying chocolate «КоронА». But the answer is clear, since we fall under the influence of numerous advertising sources: while listening to funny tracks on Hit FM, flipping through your favorite magazine VIP magazine, driving a car on the boulevard Stefan cel Mare past city lights and billboards, communicating via social networks and searching on Google your favorite salad recipe. But one of them is properly called the reign of advertising and it is television.
WHY TV ADVERTISING?
It’s difficult today imagining life without television. Every house in the most remote village has got a TV which broadcasts national and local TV channels. That is why advertisers aim to promote their product or service on TV.
Below you find the most important advantages of TV advertising:
- MASS – among all forms of advertising, it allows to cover and to inform the largest number of potential users of a product or service;
- UNIVERSALITY – in just a few seconds, it can have an effect on hearing, vision and subconscious providing a much greater impact on audience than other media channels;
- INFORMATIVE and ATTRACTION – TV advertising is becoming more interesting, informative, allows you create the image of the product, emphasizing its advantages.
The disadvantages should be mentioned as well:
- It takes a long time for planning – not suitable for a quickly launching campaign;
- High clutter;
- For placing you need to have a video ad, the production of which is expensive;
The “scariest” factor, especially for small and medium business is the high cost of “entrance ticket” on the TV and the opinion that advertising on TV is more expensive than the other media.
PRICES AND TV BUDGETS
Analyzing the absolute values of TV budgets, it can certainly be said that the “entrance fee” is really quite expensive. The cost of an advertising campaign on TV can starts with 5 000 – 10 000 Euro, not mentioning the giants of the advertising market, the annual budgets of which consist of hundreds of thousands of euros. Such volumes are too much for small businesses, this play field being meant for stronger and solid players.
Although there are exceptions to every rule, and if the calculation is correct and planning is rational, you can find a way to jump on the footstep of that “elite tram”.
On the other hand, if we analyze TV advertising in terms of efficiency, especially the cost of coverage, it is surprising that the value will be minimal in comparison to other traditional media channels. Of course, we exclude Internet advertising, which recently started taking the ground from under the feet of the traditional TV.
TV ADVERTISING PRINCIPLES AND TERMS
Veteran employees of advertising agencies certainly have heard a very simple and at the same time a difficult question: How much is advertising / placing on the TV in Moldova? The question is simple – because you understand it properly, but difficult – because you can’t immediately answer it. Let’s immerse ourselves in this topic and find out what’s the matter.
So, purchasing the goods, and in this case, TV advertising opportunities (minutes / inventory) is important to understand who really sells them. Usually the sellers are:
- TV Channels, which sell their inventory by themselves;
- Sells Houses, usually they unite several TV channels.
Inventory can be bought from channel / Seller directly (by yourself) and indirectly (by means of advertising agencies). It can be a long discussion about how it would be correct and profitable to buy – by yourself or through the Agency. In practice, real professionals win, but let’s talk about it later.
Further, we need a clear understanding of the following key terms that are barely familiar to the ordinary man:
- Prime time – time band in the range of 18:00-23:59 – the most claimed time, when people return from work, spend time watching programs and movies, so the audience is high. In this connection cost of prime-time is two times higher than in off time.
- Off Time – time in the range of 00:00-17:59. Typically, the cost is 50% of the prime time.
It is also important to note two key principles of advertising on TV, currently existing in Moldova:
- Sale by minutes – until recently, the only method of advertising time sale. In price lists it is usually specified the price for a 30-second spot at different time intervals. The highest price is in prime time.
- Sale by ratings. RATING – the average number of people who watched a channel during a specific event (program series, movie, ad unit). Using the method of sale by rating price (CPP – cost per point), as a base we take channel audience rating, weighted by 30 seconds spot (EqGRP or 30 “GRP).
The second method became possible only after October 2003. At that time in Moldova appeared the monitoring company TV MR MLD – official representative of AGB Nielsen Media Research (today is the world leader of TV audiences measurement in many countries), which monitors TV viewing audience with people-meters.
The main difference between these two methods, mentioned above: purchasing minutes, we pay for impression, buying ratings we pay for views.
This distinctive feature proves the effectiveness of buying by ratings, this method is based on TV research and measurement.
Many advertisers are skeptical about buying by ratings, distrusting the study, but in fact it can be compared to typing on a typewriter of 1960s in the era of ultramodern gadgets and tablets.
TV ADVERTISING PRICE DETERMINATION
The process of price determination is quite simple, but it depends on many factors, which in turn, have a direct impact on the end result – the cost of placing on television. So let’s try to identify the most important:
- The cumulative budget is the starting point for calculating the cost of advertising on TV. As anywhere, there is market’s law – the larger budget gets the lower price. That’s why the advertising giants get the most attractive price, but as practice shows, with proper planning and successful buying strategy, the smaller players can easily succeed.
- Format. The possibilities of television are so wide that allow you promote products / services in dozens of ways. Advertising on television can be classified according to several types:
- direct advertising
- linear placement;
- product placement;
- television savers;
- reports / interviews
- Individual project (VIP-product).
- Channels split. The choice of channels, their popularity and the possibility of coverage can notably influence the price: for example the cost of airing on channels with national coverage, such as Prime, is much higher than on local niche channels. In many ways, the choice of the split depends on the product, advertising goals, target audience and other factors.
- Spot duration. The price of the spot depends on its length. Usually the full and the short versions are combined.
- Share Prime Time / Off Time. Taking into consideration the difference between prices in Prime Time and Off Time in almost 2 times, price reduction can be achieved by increasing the Off Time share.
- Seasonality. Besides the discussed moments a significant influence on the final price has the seasonal factor – depending on the period of airing price can be higher or lower than the basic one. According to price lists March-April, October-December – are premium months; January-February, June-August – months at discount.
- The amount of active placement months outlines the average monthly budget; hence, concentrating the budget for a shorter period will optimize the budget instead of stretching it for 12 months.
- Payment terms. Usually, in case of prepayment many sellers provide additional discounts that lower your price.
All the mentioned above is just a small set of factors that influence the final cost of advertising on TV in Moldova. Yet it is the visible top of a huge iceberg, of the large “media kitchen” called Art of Buying. That’s why the simple question – “What’s the price for TV advertising placement in Moldova?” – has no simple answer and most likely we respond at: «What do you have?” – “What do you need?!”
Finally, you are the one to decide how easy or difficult it is, will you manage it or not, are your experience skills and abilities enough for that, but our suggestion is “Better trust a team of professionals”.
As a proponent of advertising and a “pioneer in marketing” John Wanamaker said: “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” Unfortunately, since then, little has changed. Advertisers realize that TV advertising is necessary, but not always understand – where and how to buy it.
If you have not figured it out yet, and the questions remain the same, we do have the necessary experience, resources, and a huge desire to help you.