RAB Radio Training AcademyRAB Radio Training Academy

Working With Advertising Agencies

RAB Radio Training Academy

When I grow up...

RAB Radio Training Academy

When I grow up...

RAB Radio Training Academy

The advertising agency industry is highly

competitive.

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Advertising agencies must address three current

issues...

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1. It is more difficult than ever before to secure new

clients

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2. It is more difficult than ever before to retain clients

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3. It is more difficult than ever before to harness and use

modern advertising techniques and technologies

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You cannot help your agencies address these issues if you restrict your contact to the

Media Department

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Typical Agency Structure

Media Dept.

AccountService

CreativeDept.

PlanningDept.

BusinessServices

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• Sales staff– New business– Account services

• Called– Account Executive– Account Manager– VP Account Services– Partner– Principle

AccountService

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CreativeDept.

• Campaign theme• Develop creative• Oversee production• Called

– Creative writer– Creative director– VP Creative services

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PlanningDept.

• Consumer Research• Media Research• Strategy• Called

– Planner– Planning Supervisor

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Media Dept.

• Execute the plan• Interface with reps• Negotiate• Called

– Broadcast negotiator– Media buyer– Buyer– Media director

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BusinessServices

• Production orders• Traffic orders• Payables• Reconciliation• Called

– Accountant– Traffic director– Billing manager– Business manager– CFO

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Our primary job? To help our clients solve

problems and seize opportunities.

Different Objectives

The media buyers primary job? To meet or exceed the cost efficiency goals set by the planning department.

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Lower your prices!

What can you do to make her job easier?

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Maximizing your Agency Business

• You must develop a relationship with the client

• Cultivate communication with people at all levels of the agency

• Make sure you are perceived as a sustaining resource by your agencies (Instant Backgrounds, Articles On Demand, etc.)

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When you get an RFP or avail request...

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• Unreasonable cost-per-point

• “I’ll buy around you if I have to.”

• Asking you to submit on a decoy demo

• Demanding no-charge added value

Don’t be offended by a media buyer’s negotiation tactics.

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Are any of your media buyers tough negotiators?

This might be why...

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Media Buyers are taught...• The art of negotiating for radio air time...from the buyer’s

side of the desk.• How to take control and be in the driver’s seat.• How to milk stations for everything available.• How to demand respect from a radio rep.• If you are a strong negotiator respect will naturally follow.

Reps enjoy a good challenge...so give them one!

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Media Buyers are taught...• Diplomacy is the art of letting someone else have YOUR

way.• Only give a concession after someone else has given a

concession of greater value to you.• Never make a concession until your opponent has made

one first.• Don’t take the word “No” as an answer from a media rep.

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Typical Buyer Tactics• “I’m sorry, but I’m not allowed to divulge our budget for

this buy.”• “We need a minimum of 65% of the commercials to air

Monday through Friday, 6a-7p.”• “We need to be guaranteed that our no-charge bonus

spots will air as placed.”• “Our cost-per-point is ______ .” (up to 35% below the

cost-per-point set by the planning department)

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• Don’t be intimidated.• Be tough, fair, ethical...and

be consistent.• You should care, but not that

much.• Know when and how to walk

away.• Be a strong negotiator and

the buyer will respect you. Remember, when dealing with a media buyer, it is better to be respected than liked.

Your Defense

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Why is it important to have a working relationship with multiple contacts within

your agencies?

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Because each department has different needs that you

can help meet.

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The more people you help, the more you strengthen

your position as a preferred vendor.

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Action Step

Write down the name of one agency where you will expand relationships at

multiple levels next week.

RAB Radio Training AcademyRAB Radio Training Academy

Working With Advertising Agencies

Consumer Marketing