Advertisers using regional buys to get most bang for their buck

Written By Unknown on Jumat, 20 Maret 2015 | 10.46

Guerrilla TV ad buying is gaining steam as marketers throw more money at a back door way of buying TV sports — such as the March Madness men's college basketball tourney now dominating the ratings.

The guerilla campaign, using the long-existing but recently souped-up strategy of stitching together regional buys to deliver the same buzz and power of a national ad buy, likely saves advertisers 30 to 50 percent — while getting them just about the same result.

New York-based Cadent Network is behind the strategy. successfully pitching advertisers and agencies on a fast- growing ad platform that gives them access to national events like March Madness by cobbling together regional buys.

While CBS and Turner Broadcasting — which own the rights to the highly rated tourney — are close to selling out their ad inventory for $700,000 to $1.5 million for a 30-second spot, Cadent said it can deliver similar national reach for as much as 50 percent less.

While the strategy has been around for years, Cadent has juiced it up, promising year-round placement, plus data to verify commercial reach.

The company can't guarantee an appearance in any one show, but by acquiring ad inventory at the right time of day, there's a high chance of getting into many of the tournament's sports packages — as Cadent client Barbasol has done.

"When ratings are down and procurement officers are all over the agencies to deliver audiences more efficiently, we deliver first run shows and sporting events," said Cadent Network Chief Revenue Officer, Jim Tricarico, a former ad- sales chief at Nickelodeon.

Tricarico, who is working with a raft of advertisers, from Boston Beer to Allstate to Applebee's, says first-quarter business rose 25 percent and the second quarter is "off the charts."

This comes as some cable ad sales departments struggle with both make-goods and ratings declines.

Cadent, formerly known as TelAmerica, is offering challenger brand advertisers a way to punch above their weight.

The company buys not just from local cable MSOs, but also broadcast stations and satellite and telecom-TV operators such DirecTV and Dish and Verizon to help create national ad campaigns.

"We're relatively new to this, but it's been nothing short of amazing," Tom Dixon, chief marketing officer at Welch's, told The Post. "It's like a Hotels.com model, they aggregate pods of advertising for you."

Dixon said he spent an equal amount of ad revenue on a traditional TV network and with Cadent over two separate time periods. "First quarter we were on six to eight weeks and then in the second quarter with Cadent we were on 12 weeks and sold 25 percent more juice."

The airtime is acquired by Cadent after cable operators who own sales times fail to sell their allotment. Typically cable operators get two minutes of ad time per hour on the networks they carry.

Catherine Warburton, chief investment officer at ad agency Assembly, told The Post: "What I love is that I can buy inventory at the most cost-efficient rates." She is also able to verify the spots ran and gathered enough audience.

Heavyweights such as former NBCUniversal chairman Bob Wright and Barry Baker are on the board of the firm.


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