TV Media Buying: What Is It & How Does It Work?

by The MNTN Team

7 Min Read

Every year, marketers spend billions on television media buying. In fact, in 2022 alone, TV media buying neared a collective value of $67 billion. But does that mean you should still be pouring huge sums of money into traditional TV media buying, too? Or is there a better way?

Below is everything you need to know about TV ad buying, including the good and bad of the marketing medium, as well as an impressive alternative for you to consider.

What Is TV Media Buying?

TV media buying is the process of purchasing television advertising space to promote products or services.

It involves selecting the right channels, negotiating rates, scheduling ad placements, and monitoring the effectiveness of the campaigns. The ultimate goal is to reach your desired audience at the lowest cost possible, ensuring a good return on investment (ROI).

TV ad buys are typically listed in cost per thousand (CPM — the “M” stands for “mille,” the French word for “thousand”), which represents how much you’ll need to pay to obtain 1,000 ad impressions. Each time a user is exposed to your ad during a time slot, it counts as a new impression.

Benefits of TV Ad Buying

There are several advantages to television media buying:

Wide Reach: You can reach thousands or even millions of viewers at a time.
Targeted Ads: TV advertising offers specific targeting capabilities.
High Engagement: You can connect with viewers as they engage with their favorite content.
Credibility: Being featured on TV enhances your trustworthiness.
Measurable Results: Once your ads are broadcast, you can track your campaign’s performance.

However, unlocking each of these benefits requires a strategic approach, which involves carefully selecting when and where to advertise.

TV Ad Buying Approaches

There are a few different ways to advertise on television:

Remnant

A remnant strategy involves purchasing unsold ad inventory at a discounted rate. Broadcasters don’t want unused advertising slots, so they will often offer substantial discounts to fill their last-minute vacancies. Though it does represent a cost-effective approach, you’ll likely have a tough time landing primetime ad slots.

Non-Preemptible (NPE)

NPE ads are guaranteed to air at a specific time and will not be replaced by higher-paying ads. These ads do come at a premium cost, but they ensure that your content runs exactly as planned, making them ideal for campaigns with strict scheduling requirements.

Super Bowl ads are a prime example of NPE content, as brands pay millions to ensure their content doesn’t get bumped out of schedule.

Upfronts

Upfronts involve purchasing slots months in advance, typically during the spring prior to the next major TV season. You can use an upfront approach to secure premium ad placements, and you may even receive discounts for early commitments in return. Upfronts also allow you to align your campaign with the launch of new and returning TV shows, which promotes greater exposure.

Types of TV Inventory

TV advertising inventory can be grouped into one of two broad categories: cable or broadcast.

Cable

Cable TV offers access to dozens of channels, many of which cater to niche audiences. You can purchase ad slots on channels whose viewership aligns with your ideal audience.

Broadcast

Also known as network TV, broadcast television includes major networks like ABC, CBS, NBC, and Fox. These channels can be picked up with a TV antenna (i.e., for free) and thus have broader audiences and are ideal if you are seeking mass exposure.

How Does TV Media Buying Work?

The TV media buy process involves the following steps:

Identifying Campaign Goals and Objectives

Before you spend a single dollar on ad space, you need to establish clear goals. Start by asking broad questions like “What are we trying to achieve?” Then, build on those big-picture statements by setting specific, measurable objectives, such as increasing sales by 10% or acquiring 1,000 new customers in a particular quarter.

Research and Audience Analysis

Understanding your target audience is essential for effective TV media buying. Analyze viewer demographics, behaviors, and preferences to determine how best to connect with your ideal customer.

Budget Allocation and Media Planning

Next, determine how much you’re going to spend on your campaign and decide whether you’ll divide that budget across multiple channels or focus on a single provider (depending on your core audience).

Get granular with your spending strategy and identify how much you’ll commit to various time slots. Just remember that balance is key. While spending extra on premium inventory can improve engagement, it will also burn through your budget quickly.

Negotiating Ad Placements and Rates

Work with networks and cable providers to secure the best ad placements at the most competitive rates. If you can commit to larger ad purchases, you might unlock significant discounts. Consider purchasing remnant space if you are working with a tight budget or prefer not to pay standard market rates.

Ad Placement and Scheduling

Once you’ve locked down your timeslots, it’s time to schedule your content. Coordinate with the networks to ensure your ads air at optimal times to reach your intended audience. Proper scheduling maximizes the chances that your content will be seen and acted upon by the viewers you want to reach.

Monitoring and Optimization

Carefully monitor the performance of your television ads by tracking key marketing metrics, such as viewership, and making adjustments to future placements to improve campaign efficacy.

Traditional TV offers limited performance monitoring, which represents one of its biggest downfalls. The good news, though, is that Connected TV (CTV) marketing offers precise TV attribution capabilities (more details below).

TV Media Buying Today

While traditional television media purchasing has evolved tremendously over the last several years, the process remains opaque, to say the least. It can also be quite expensive to land premium slots. And since you’ll have to buy space for an entire market area, your ad will be played for lots of people outside of your target audience.

How CTV Advertising Changes the Game

If completing the TV media buy process sounds complicated, that’s because it can be, especially at scale. Fortunately, MNTN Performance TV offers a better solution. Our platform links advertisers with premium CTV inventory across a wide variety of streaming platforms and networks.

During the campaign creation process, you can skip right past entering a specific CPM. Instead, simply enter your budget, goals, and desired audiences you want to reach. Our robust algorithm will handle the media buying based on your settings to ensure optimal ad placement while also giving you more bang for your buck. It will intelligently buy CTV advertising space across leading streaming networks using a multitude of data signals.

The result is more relevant targeting, more impactful ad spend, and data insights that can make your campaigns perform even better as you go. By eliminating the complexities of purchasing ad space, MNTN Performance TV frees up your team to focus on more important things, like creating great content and generating meaningful results for your brand.

But that’s not all — our Creative-as-a-Subscription™ connects you with top content designers, ensuring you have a steady stream of fresh marketing assets to get noticed and generate sales. Don’t get bogged down in the complexities of traditional TV media buying. Simplify your road to results with MNTN today.

Request a demo to get started.

Television Media Buying: Final Thoughts

Television media buying remains a viable marketing tool for businesses, especially large brands, but it’s no longer the most optimal use of your TV advertising budget. With MNTN Performance TV, you’ll reach your ideal customers, hit your key marketing goals, and build an arsenal of performance measurement that will help your campaigns grow as your brand does. Explore MNTN today, and elevate the way you advertise.