Local Merchants to Rely on TV Reps for Online Media Buys

Local businesses know they need to advertise online. Several research studies have revealed that these merchants will shift a significant percentage of their ad budgets to the digital format. But knowing how to accomplish the task is another story. For many local merchants, the TV media rep is the best person to ease their transition to the digital ad world.

Borrell Associates recently studied this situation. Local broadcasters are expected to bring in about $1.8 billion in online ad revenue from local businesses. But Borrell analysts believe TV stations could be bringing in much more with the right strategies. Currently, 50% of surveyed TV advertisers are buying online with their TV stations but many more marketers are advertising online through other formats. For all advertisers in general, only 8% buy online ad space at TV websites. The way Gordon Borrell sees it, a lot of digital ad dollars are escaping TV reps.

Not surprisingly, the heated ad market means that the typical local marketer is faced with at least 30 sales pitches per month. And for many of these advertisers, social networking and mobile have moved up in importance. These formats will benefit from higher budget allocations in the future. At the same time, merchants want to buy advertising through a trusted party, their TV rep. Here’s what they have to say about TV reps:

  • Good source of information for digital opportunities 58%
  • Confident that the rep is a good adviser on media buys 71%

TV stations that develop their digital offerings and train their reps on this format can use this situation to their advantage. Those that do so stand to make big revenue gains in this area.

[Source: Borrell, Gordon. Stations Can Turn Digital Dimes Into Dollars. TVNewscheck​.com. 4 Nov. 2011. Web. 21 Nov. 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.