Media Arbitrage

The economic downturn provides marketers with media arbitrage opportunities. My direct response bias leads me to consider media from the following rules:

“Reach the widest possible targeted audience at the lowest cost.”

What do I mean?

1.  Reach… In 2009, what constitutes reach? Media is crowded. Measuring results is more critical than ever. We see an enormous variation in Website interaction based on media source.
2. …widest possible targeted audience... In 2009, a wide audience is not as valuable as a targeted audience. Humans are too busy and the recession makes every dollar too valuable to just throw into the media wind. A prospect or customer must be targeted to achieve measuable and repeatable ROI.
3.  …lowest possible cost. Reach the prospect or customer efficiently. Consider the cost of message production in the overall cost. Don't go wide when you can aim directly. A wasted dollar is an inefficient dollar.

This rule set tends to make Public Relations and the Internet value leaders. However, we see a significant opportunity in local spot and cable developing rapidly even with the added costs of television production. We anticipate radio to respond later in 2009. National print is already a better value than it has been in years.

Media costs respond to supply and demand considerations. It pays to examine assumptions and strategies in 2009.

Peter Rinck, President of Rinck Advertising