November 15, 2006

Media Pricing

Met with Donald Post, an experienced media and agency guy, today. He told me how easy magazine buy used to be more than a decade ago. Ever since there have been print sales professionals who help advertisers negotiating the best price, position and added value; the rate card numbers became reference numbers. While the middle person helped selling the media, it hurt the pricing infrastructure.

Don was surprised when I told him there are many ethnic media mean to have rate card for reference only and actual rate could go as low as 10% of the open rate. There is no standard. It all depends on what is the brand, who you are and whom you talk to. Today AE John gave me the rate $1,200 and claimed it was the best rate ever ($3,000 open rate, $1,700 after all frequency discount). After I submitted the plan, client could call me tomorrow and asked me to send IO to AE Mary of the same publication at the rate of $1,000 for 9 insertions.

Yes, it is that bad. It is so embarrassing. Of course, we complained, so as the other Asian agencies. But it is an industry problem. Luckily, not all Asian media are like that. Only very small number of them in some particular segment and media type still do that. It is definitely an ethical issue.

In advertising, agency and media are partners. We work together to grow the business. Asian marketing is still just a drop of the bucket in terms of overall advertising spending in the US. No matter how big the buying power Asian have, how good the Asian agencies are, the needle won’t turn until the Asian media get more disciplined and organized. So, wake up, people!

Technorati Tags:

,
,
,
,

No comments: