Many of the advertisers you have relationships with are those operating in your market. However, these businesses aren’t the only ones that want to capitalize on the local angle.
National advertisers also see the appeal of and spend money in local markets to reach audiences on a more personalized level. So, how will these brands leverage local TV advertising in 2023, and how can you grow this revenue segment?
National Advertisers at the Local Level: Trends
National brands have been part of local TV ad spot buying for some time. Marketers realized that customizing messages based on regionality drove better engagement and relevance. For example, national home improvement stores need different ad messaging based on climate. Promoting winter weather products in the southwest or products for coastal construction in the Midwest doesn’t make much sense.
Another popular TV ad buyer is automotive. A big part of manufacturers’ playbook for 2023 hinges on introducing their electric vehicles. Metro areas where charging is accessible and where the population is increasing its adoption of these vehicles would be excellent targets for automakers. These advertisers are also looking for spots where there’s a trust factor, and people trust local TV news more than any other media platform.
National brands began to segment their TV spot buys in a way that made sense for the audiences watching them. There was greater adoption of this during the pandemic because each state had its own rules and laws about what was open and how consumers could purchase products and services.
In 2023, the pandemic is over, but new trends are impacting how national advertisers approach local markets. Some are weathering economic uncertainty better than others. Additionally, regulations for certain types of advertising vary by state, as do the specific preferences of its citizens for any product or service. This knowledge of the local audience and ad spots that reflect it will have a more personalized feel.
So, how do local TV media sellers improve upon this revenue stream?
Advantages for Local TV in the National Brand Spot Opportunity
Several elements can make your local ad options more appealing to national brands. Consider these when developing your strategy.
Personalization Factors
Consumers know big brands, but they don’t always connect with them. Many prefer to buy locally, which has increased during the past few years. A consumer sentiment study revealed that 83% of shoppers would rather support local businesses than a large corporation. In some cases, big brands have a big image problem. When they take the time to personalize their ad content for a local audience, they can see better results.
Spotlighting the owners and operators at the local level in these messages could improve opinions. You’re a local market expert and can provide insights they can’t get anywhere else. That can prove to be a significant differentiator.
Local Has a Trust Factor
Consumers put high trust in local news, much more so than cable or other mediums. As a result, these are very attractive to all advertisers. There’s no better inventory for national brands looking for engagement and association with a trusted source. In terms of programming and dayparts, these will often be your easiest spots to move with high demand.
Rates Based on Supply and Demand
What’s your pricing strategy for national brands? While you want to be competitive, much of your airtime has great value because of the demand for it. Instead of selling at flat prices or using a complicated and possibly inaccurate spreadsheet formula, look to dynamic pricing to maximize revenue.
Dynamic pricing looks at supply, demand and other data to provide the optimal price for spots. You’ll have access to real-time avails, so the price is always “right.” You can also include some parameters, with floors, ceilings and discount tolerances to keep numbers consistent. Explaining that this is your pricing strategy is something national brands can appreciate, and they’ll have options for spots in high- and low-demand periods.
Shifting to Pay for Performance
Pay for performance (also known as proof of performance or post in-flight) is the process of delivering impressions (performance) agreed upon between the station and advertiser. National TV has been using this framework for some time, and local TV is slowly adopting it. In the current selling process, buyers come to you with ratings, dayparts and programming parameters. The contract is specific as to when and where the ad will run. When ads get preempted, you have to scramble to meet the agreement through makegoods and credits.
Pay for performance is different. You deliver the ratings information, and buyers accept them. Buyers can still issue restrictions around times, programming and other specifications. They also agree to how you’ll weigh makegoods, so makeups can occur in flight.
The approach creates greater reliability. It also streamlines the process for all parties. National advertisers have more familiarity with this model and will find it appealing when local stations offer it.
Is Your Organization Ready to Win More Spots from National Brands?
National brands seek many different things in local advertising partners. The market itself and the consumers who reside there are a big part. Much of the rest concerns the value they perceive for localizing their ad buys and content. If you have the operational processes and technology to support this, you can be a contender. Learn more about how to evolve your operational structure to grow this revenue stream and many others with the right platform.
