At a breakfast gathering earlier this week to the media buying community, TV3 announced details of their new airtime trading policy which they are looking to implement for 2013 period onwards. TV3 does not officially publish an advertising rate card as such, but sells their airtime on a negotiated / individual basis which takes into account particular factors such as expenditure level, campaign target audience and advance commitment. The vast majority of media buyers currently use historical RTE costs to price and negotiate TV3 airtime prices.
The main trading changes which TV3 announced this week are as follow:
- TV3 have decided to half the number of target audiences for which they trade from 28 down to 14.
- TV3 will only trade on National target audiences (as against Multi-Channel) across both TV3 and 3e stations. TV3 will continue to offer a bundled price for TV3 & 3e stations and advertisers will be incentivised accordingly.
- Costs (costs per thousands) will be increased across all TV3’s trading audiences, but that TV3 are intent on maintaining a lower price versus RTE costs.
- Advertisers who spend €150,000 or more per year will be particularly rewarded in terms of discounts etc.
- A new Impact tolerance pricing method will be introduced, which in effect will allow TV3 to adjust their pricing to reflect real time viewing performance levels. This impact tolerance pricing method will only apply to campaigns / prices when TV3’s audience impacts fall by over 10%. When this -10% happens it will trigger a price increase for that particular month. TV3 have said that the any price increase from impact tolerance will be kept to a maximum of 5%.
- TV3 will continue to offer / trade fixed advertising prices, however such “fixed prices” will be subject to new impact tolerance pricing method.
- All negotiations and deals for 2013 period will have to be concluded and agreed with TV3 by early December 2012.