Trading TV

This week at work, we had co-ordinators training which focused on media buying, in particular TV. We went through the different models for trading like agency deals, where an agency will lock in prices with one network for a 12 month period. This enables the agency to gain some serious benefits regarding prices for that particular network. However, it does limit the agency’s clients to advertise on that network. Dynamic trading allows the trader to consider what is happening at the point of when each spot needs to be bought and negotiate the prices on a spot-by-spot basis. The advantage here is the agency’s clients are able to get spots in the best possible programme as opposed to limiting them to whichever network the agency has a deal with. However, the price for each spot may be higher than an agency choosing the agency deal model.

There are advantages and disadvantages for both models, but it is best for the agency to choose what is best for them and their clients.