Beware of Remnant Advertising Agency Brokers without 3rd Party Data
One of the hottest new buzzwords in TV advertising and radio
advertising is “remnant.” The word itself is not new. I personally remember hearing it referenced in our world for the first time in 2000. In 2003/2004, it started to become a little more common, but something most stations did not want to acknowledge or talk about. However, today is much different. Many
stations have their direct response sales rep handling remnant
advertising inventory and some stations even have a dedicated remnant sales rep.
So what exactly does remnant mean? Webster’s dictionary defines remnant as:
“A small part or trace remaining.”
So basically remnant advertising stands for unsold advertising inventory.
Over the past couple of years, clients and business owners have become more and more educated about advertising (which we think is a great thing). Aggressive business owners are calling up stations directly and saying: “We want to see your remnant radio advertising rates (or remnant TV advertising rates).”
Making that type of phone call, in that context, is like putting a kick-me sign
on your back.
The same basic principles apply in regards to remnant advertising as anywhere else. As we are always preaching, you must know what you are buying. The amount of impressions you will be receiving per spot and for the total package is all that is important. Would you buy “a package” of direct mail from some company without knowing how many pieces of mail you are actually getting delivered? The answer is “of course not”; nobody would. However, small business people continue to buy packages and spots from TV & radio stations without any knowledge of what they are buying. The buzzwords, like “remnant” and “direct response,” help mask what is important and keep small business owners in the dark. The stations know they can put a rat in a box, call it a remnant, give it to the client, and be fairly certain the client will never open the box or even ask what is in it. The client ends up thinking they are very smart, learned a new buzzword, and got a great deal. In the end, who really knows what you bought? Furthermore, using a “casino mentality” when purchasing advertising won’t work long term. Evaluating a campaign based solely on “I made money” or “I lost money” is just flat dumb. If the campaign was not profitable, how can you make adjustments without knowing how many impressions you bought to begin with? Also, how can you scale a campaign into new markets without the same information?
I would say 85% of small businesses that bought remnant radio ads or any other type of remnant advertising did not know what they actually purchased. Please don’t be or become one of those people. If you have questions about remnant advertising, or anything else regarding TV & radio advertising, feel free to contact us by going to our Contact Us page here: Wholesale Airtime Auction LLC