Direct Response Radio: Remnant Media vs. Discounted Media

Written By

SMI Staff

Published On

Thursday, Mar 13
IMG_1605

With Google’s foray into radio advertising, many more people are now aware of the idea of “remnant” radio media. It has become known as the “stuff nobody else wanted” and as such looked down upon. You can’t get “drive time” or “prime time” placements and you can’t get on “the top stations” in a market, people say.

It’s correct that true “remnant” inventory is just that – left over. It’s the stuff from last night’s dinner that nobody wanted. While this doesn’t necessarily mean that you can’t get drive or prime time media placements, very often this is the case. What’s more important to understand is that you don’t get to choose – you take what you get and for that you pay less. A lot less.

For radio advertisers, the lack of choice is where the true fallibility of remnant media lies. It’s not that you can’t get prime media placements or that you can’t get on a particular station when you want to. It’s that you don’t have a choice. It’s not replicable week after week. You take what (and when and where) you can get. And anyone trying to run a business knows that if the engine of your business can’t operate consistently – or at least predictably – then you’ve got a nightmare scenario on your hands. Ordering inventory, staffing your sales and fulfillment center, and planning cash flow – these are all difficult enough under normal circumstances, but when variability is high it’s a nightmare.

So that’s why discounted media is important. Remnant media, because of its low pricing, has a place in any direct response radio advertising campaign. But the bedrock of campaigns will be the discounted media. With discounted media, you are able to book daypart-specific schedules. If you want to be on Station WXYX between 7a and 10a, then you can do that with discounted media schedules. There are a few tricks to securing this kind of media, not the least of which is that it requires an agency with longstanding relationships with a large number of radio stations and radio networks. The client basically piggybacks on the agency’s reputation and relationships.

With discounted media schedules, you’re getting media that’s proven to work at a particular price. It’s “discounted” in the eyes of the radio station, but not in actuality to the radio agency or the client. To us, it’s simply a matter of paying more precisely what airtime on a particular station is worth. And of course radio stations always think their time is worth more than it is. And to some advertisers it may be worth more.

In reality, a good agency develops mutually beneficial relationships with many radio stations and radio networks. It’s not a one-way street with the agency “beating up” the radio stations, rather the radio agency helps the stations maximize their revenue by providing consistent and long-term demand for their inventory. That demand has many positively resonating effects for the radio stations beyond the actual price paid per spot.

Successful direct response radio campaigns have both remnant and discounted media. Together they form a powerful engine that drives profitable new customers for radio advertisers.

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With Google’s foray into radio advertising, many more people are now aware of the idea of “remnant” radio media. It has become known as the “stuff nobody else wanted” and as such looked down upon. You can’t get “drive time” or “prime time” placements and you can’t get on “the top stations” in a market, people say.

It’s correct that true “remnant” inventory is just that – left over. It’s the stuff from last night’s dinner that nobody wanted. While this doesn’t necessarily mean that you can’t get drive or prime time media placements, very often this is the case. What’s more important to understand is that you don’t get to choose – you take what you get and for that you pay less. A lot less.

For radio advertisers, the lack of choice is where the true fallibility of remnant media lies. It’s not that you can’t get prime media placements or that you can’t get on a particular station when you want to. It’s that you don’t have a choice. It’s not replicable week after week. You take what (and when and where) you can get. And anyone trying to run a business knows that if the engine of your business can’t operate consistently – or at least predictably – then you’ve got a nightmare scenario on your hands. Ordering inventory, staffing your sales and fulfillment center, and planning cash flow – these are all difficult enough under normal circumstances, but when variability is high it’s a nightmare.

So that’s why discounted media is important. Remnant media, because of its low pricing, has a place in any direct response radio advertising campaign. But the bedrock of campaigns will be the discounted media. With discounted media, you are able to book daypart-specific schedules. If you want to be on Station WXYX between 7a and 10a, then you can do that with discounted media schedules. There are a few tricks to securing this kind of media, not the least of which is that it requires an agency with longstanding relationships with a large number of radio stations and radio networks. The client basically piggybacks on the agency’s reputation and relationships.

With discounted media schedules, you’re getting media that’s proven to work at a particular price. It’s “discounted” in the eyes of the radio station, but not in actuality to the radio agency or the client. To us, it’s simply a matter of paying more precisely what airtime on a particular station is worth. And of course radio stations always think their time is worth more than it is. And to some advertisers it may be worth more.

In reality, a good agency develops mutually beneficial relationships with many radio stations and radio networks. It’s not a one-way street with the agency “beating up” the radio stations, rather the radio agency helps the stations maximize their revenue by providing consistent and long-term demand for their inventory. That demand has many positively resonating effects for the radio stations beyond the actual price paid per spot.

Successful direct response radio campaigns have both remnant and discounted media. Together they form a powerful engine that drives profitable new customers for radio advertisers.

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[/et_pb_column]

When it comes to audience targeting, nimbleness, and reach–the evidence is clear: audio advertising is a wise investment.  

That being said, marketing managers are more often forced to justify ad spend with ever increasing returns on investment. Budget and talent constraints–no matter how remarkable your product or service is–often put your brand at a disadvantage when it comes to breaking through the noise and seeing any meaningful ROAS (Return on Ad Spend) so relying on great creative alone is not enough. A multifaceted approach is paramount.

In order to launch, scale, and optimize a campaign for success, strategizing where and when your ad is heard is critical.

A group of gears stacked on each other

We Have the Expert Infrastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation.

influencers streaming a podcast at college radio station

We Have the Expert Infrastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation.

A group of gears stacked on each other

We have the Expert Infastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation. 

 

 

influencers streaming a podcast at college radio station

Collaboration Yields Results

Senior Media Buyer, Pam Wolfgram underscores the importance of our industry relationships:  

“Our media partners are exactly that: partners. They have a vested interest in helping us help our clients; it means more business! Even if they have to take it on the chin here and there for a client’s success–and they do–they know they’ll make it up in the long game, as we will send them every schedule that makes sense down the road. They want to work hard for us and for our clients.

As an example, we recently orchestrated a massive creative change affecting over 600 stations and it had to go off without a hitch, as “hitches” are mistakes that lead not only to credits being taken, but also to skewed results that make a test difficult to read. I reached out to every rep impacted by the change to express the importance of the test and walked away feeling completely at ease knowing that they were going to get with their traffic people and watch over the test like hawks. A little extra communication goes a long way!” 

All of SMI’s media buyers, researchers, and strategists have something in common: they know firsthand the value of respectful dialogue and perseverance. 

The motto of our Media team? 

There's always a workable solution to get meaningful return on ad spend. 

If you’re ready to invest more wisely in your audio advertising, start a conversation with us today! 

This is part one of SMI’s three-part series called Give Your Brand a Voice. Stay tuned for our next article focused on Creative! 

    facebook
    twitter
    linkedin
[/et_pb_section][/et_pb_post_content]
[/et_pb_row]
[/et_pb_column]

When it comes to audience targeting, nimbleness, and reach–the evidence is clear: audio advertising is a wise investment.  

That being said, marketing managers are more often forced to justify ad spend with ever increasing returns on investment. Budget and talent constraints–no matter how remarkable your product or service is–often put your brand at a disadvantage when it comes to breaking through the noise and seeing any meaningful ROAS (Return on Ad Spend) so relying on great creative alone is not enough. A multifaceted approach is paramount.

In order to launch, scale, and optimize a campaign for success, strategizing where and when your ad is heard is critical.

A group of gears stacked on each other

We Have the Expert Infrastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation.

influencers streaming a podcast at college radio station

We Have the Expert Infrastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation.

A group of gears stacked on each other

We have the Expert Infastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation. 

 

 

influencers streaming a podcast at college radio station

Collaboration Yields Results

Senior Media Buyer, Pam Wolfgram underscores the importance of our industry relationships:  

“Our media partners are exactly that: partners. They have a vested interest in helping us help our clients; it means more business! Even if they have to take it on the chin here and there for a client’s success–and they do–they know they’ll make it up in the long game, as we will send them every schedule that makes sense down the road. They want to work hard for us and for our clients.

As an example, we recently orchestrated a massive creative change affecting over 600 stations and it had to go off without a hitch, as “hitches” are mistakes that lead not only to credits being taken, but also to skewed results that make a test difficult to read. I reached out to every rep impacted by the change to express the importance of the test and walked away feeling completely at ease knowing that they were going to get with their traffic people and watch over the test like hawks. A little extra communication goes a long way!” 

All of SMI’s media buyers, researchers, and strategists have something in common: they know firsthand the value of respectful dialogue and perseverance. 

The motto of our Media team? 

There’s always a workable solution to get meaningful return on ad spend. 

If you’re ready to invest more wisely in your audio advertising, start a conversation with us today! 

This is part one of SMI’s three-part series called Give Your Brand a Voice. Stay tuned for our next article focused on Creative! 

    facebook
    twitter
    linkedin
[/et_pb_section]
[/et_pb_column]

When it comes to audience targeting, nimbleness, and reach–the evidence is clear: audio advertising is a wise investment.  

That being said, marketing managers are more often forced to justify ad spend with ever increasing returns on investment. Budget and talent constraints–no matter how remarkable your product or service is–often put your brand at a disadvantage when it comes to breaking through the noise and seeing any meaningful ROAS (Return on Ad Spend) so relying on great creative alone is not enough. A multifaceted approach is paramount.

facebook
twitter
linkedin
[/et_pb_social_media_follow][/et_pb_column]
In order to launch, scale, and optimize a campaign for success, strategizing where and when your ad is heard is critical.

A group of gears stacked on each other

We Have the Expert Infrastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation.

influencers streaming a podcast at college radio station

We Have the Expert Infrastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation.

A group of gears stacked on each other

We have the Expert Infastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation. 

 

 

influencers streaming a podcast at college radio station

Collaboration Yields Results

Senior Media Buyer, Pam Wolfgram underscores the importance of our industry relationships:  

“Our media partners are exactly that: partners. They have a vested interest in helping us help our clients; it means more business! Even if they have to take it on the chin here and there for a client’s success–and they do–they know they’ll make it up in the long game, as we will send them every schedule that makes sense down the road. They want to work hard for us and for our clients.

As an example, we recently orchestrated a massive creative change affecting over 600 stations and it had to go off without a hitch, as “hitches” are mistakes that lead not only to credits being taken, but also to skewed results that make a test difficult to read. I reached out to every rep impacted by the change to express the importance of the test and walked away feeling completely at ease knowing that they were going to get with their traffic people and watch over the test like hawks. A little extra communication goes a long way!” 

All of SMI’s media buyers, researchers, and strategists have something in common: they know firsthand the value of respectful dialogue and perseverance. 

The motto of our Media team? 

There’s always a workable solution to get meaningful return on ad spend. 

If you’re ready to invest more wisely in your audio advertising, start a conversation with us today! 

This is part one of SMI’s three-part series called Give Your Brand a Voice. Stay tuned for our next article focused on Creative! 

[/et_pb_column]

When it comes to audience targeting, nimbleness, and reach–the evidence is clear: audio advertising is a wise investment.  

That being said, marketing managers are more often forced to justify ad spend with ever increasing returns on investment. Budget and talent constraints–no matter how remarkable your product or service is–often put your brand at a disadvantage when it comes to breaking through the noise and seeing any meaningful ROAS (Return on Ad Spend) so relying on great creative alone is not enough. A multifaceted approach is paramount.

[/et_pb_column]
twitter
linkedin
In order to launch, scale, and optimize a campaign for success, strategizing where and when your ad is heard is critical.

A group of gears stacked on each other

We Have the Expert Infrastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation.

influencers streaming a podcast at college radio station

We Have the Expert Infrastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation.

A group of gears stacked on each other

We have the Expert Infastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation. 

 

 

influencers streaming a podcast at college radio station

Collaboration Yields Results

Senior Media Buyer, Pam Wolfgram underscores the importance of our industry relationships:  

“Our media partners are exactly that: partners. They have a vested interest in helping us help our clients; it means more business! Even if they have to take it on the chin here and there for a client’s success–and they do–they know they’ll make it up in the long game, as we will send them every schedule that makes sense down the road. They want to work hard for us and for our clients.

As an example, we recently orchestrated a massive creative change affecting over 600 stations and it had to go off without a hitch, as “hitches” are mistakes that lead not only to credits being taken, but also to skewed results that make a test difficult to read. I reached out to every rep impacted by the change to express the importance of the test and walked away feeling completely at ease knowing that they were going to get with their traffic people and watch over the test like hawks. A little extra communication goes a long way!” 

All of SMI’s media buyers, researchers, and strategists have something in common: they know firsthand the value of respectful dialogue and perseverance. 

The motto of our Media team? 

There’s always a workable solution to get meaningful return on ad spend. 

If you’re ready to invest more wisely in your audio advertising, start a conversation with us today! 

This is part one of SMI’s three-part series called Give Your Brand a Voice. Stay tuned for our next article focused on Creative!