The Right Way to Buy TV Spots. A Guide to Upfront, Scatter, and Remnant Buying

Chase prime-time slots aim for the lowest CPM, focus on placements that guarantee the message reaches the right audience, or purchase at the last minute for an attractive price. The real goal of TV ad buying isn't just to secure airtime - it's to drive measurable impact.

To maximize the investment, it's important to navigate the complexities of TV spot purchasing, avoid common pitfalls, and refine the strategy for maximum effectiveness.

How to buy TV spots?

There are different methods to purchase TV ad slots. Each has advantages and disadvantages based on budget, planning needs, and flexibility. Everything is focused on direct response and measurable outcomes.

1. Upfront

Upfront means that advertisers purchase TV ad slots well in advance of the upcoming television season (usually late spring - early summer). This process typically kicks-off with an annual event where TV networks present their programming lineups to advertisers and begin the negotiation process. Buying upfront means premium inventory at more favorable rates but requires a long-term financial commitment. It is best suited for brands with predictable budgets and established media strategies.

Advantages of buying TV ad slots on Upfront:

• Bulk buying reduces costs compared to scatter market purchases.
• Advertisers secure ad space in high-demand programming.
• Networks and advertisers benefit from financial and scheduling certainty.

2. Scatter Market

The scatter market allows advertisers to buy available inventory closer to the broadcast date. This option provides greater flexibility and the ability to adjust campaigns based on real-time needs. However, ad rates in this market tend to be higher, and availability can be unpredictable.

Advantages of buying TV ad slots on Scatter Market:

• Ad slots could be purchased closer to the airdate, enabling the strategies to be adapted based on current market conditions, viewer preferences, and real-time data.
• Targeted audience reach. Specific geographic regions and time slots that align with the target audience's viewing habits could be selected.
• Data-driven decision. Advertisers can have real-time insights to adjust ads' messages based on audience response.
• Budget optimization. Last-minute deals or unsold inventory for lower rates can help save some money.
• Flexibility. Scatter buying allows advertisers to avoid being locked into contracts for an entire season.
• Brands can adjust the creative elements of their campaigns right up until the broadcast date. This agility helps ensure that advertisements remain relevant and resonate with viewers based on the latest trends and insights.

Key Differences: Upfront vs. Scatter Market

3. Direct Response (Remnant)

This is the last call for advertisers. This method involves purchasing last-minute, unsold inventory at reduced prices. It is cost-effective but limited in terms of placement control and audience targeting. Advertisers using this approach must be flexible with scheduling and creative execution, but it's a great opportunity for brands looking for cost-effective and flexible options.

Advantages of buying TV ad slots on Remnant

• Cost-effectiveness. For broadcasters, it's better to sell slots for a low price and leave them empty so advertisers can achieve TV exposure without high spending. This could work for starter brands or that have low budgets but want to advertise on TV.
• Broad reach for smaller budgets. Remnant advertising provides access to TV's vast audience at reduced rates.
• The place for testing. Remnant ads allow brands to test new markets or audiences without committing to long-term contracts or high costs.
• Brand awareness improvement. Businesses can get more exposure without spending as much money.

Advertisers decide between Upfronts, Scatter, and Remnant based on budget, risk tolerance, and campaign objectives. Many use all three options - securing key placements early through Upfronts for better pricing while keeping flexibility with Scatter for last-minute adjustments and even buying some slots on Remnant.

What is the step-by-step strategy for buying TV ad slots?

Step 1

First, brands should define the role of TV ads in their media mix and clearly outline what is planned to be achieved with TV ad campaigns. Common objectives include increasing brand awareness, driving sales, or promoting a specific product.

Step 2

Brands should research their targeted audience to understand customer needs and demographics, including age, gender, interests, and viewing habits. The more details, the more possibilities there are for creating an ad campaign that meets audiences' needs.

Step 3

It's time to set the budget. This budget should align with your objectives and consider both production costs and media buying expenses.

Step 4

Advertisers need to choose the market where they want to buy ads, decide whether to purchase ad slots in the Upfront, Scatter, or remnant market or divide their budget between all options.

Step 5

At this stage, brands should create a media plan. The more detailed the plan is, the easier it is to work on and update.

Step 6

Brands should look for an agency or platform that can help negotiate better rates and placements based on their industry relationships.

Step 7

After the ads air, performance must be tracked using metrics such as unique reach or frequency. This data will help assess the effectiveness of your campaign.

Step 8

Constant optimization is very important. Based on the collected data, advertisers can receive real-time insights that help improve ad campaigns and strategies.

What are the biggest risks for advertisers when buying TV ad slots?

Ad Fraud

Ad fraud is a major concern in the TV advertising landscape, particularly in CTV. Bad actors can exploit vulnerabilities in the system, leading to wasted ad spending through fake impressions, click fraud, or domain spoofing. For instance, advertisers may pay for ads that are never actually seen by real viewers, resulting in significant financial losses. The best way to avoid ad fraud is to find a trusted partner.

High Costs

Purchasing ad slots, especially in prime time, during popular shows or events, can be prohibitively expensive. The financial commitment required for upfront buys can strain budgets, particularly for smaller businesses or those with limited advertising resources.

Poor Performance of Programming

There is a risk that the shows surrounding the ads may not perform well with audiences. If a program does not attract viewers as expected, the effectiveness of the ads can diminish significantly.

Measurement Challenges

Measuring the effectiveness of TV ads can be complicated due to the lack of immediate feedback and clear performance metrics. Traditional methods often rely on indirect correlations, such as spikes in web traffic after an ad airs, which do not accurately isolate the impact of each touchpoint.

Also, in the remnant market, advertisers may face such risks as lack of scale, where they can only choose from what’s left over, and the risk of not reaching the target audience.

In Upfront, where advertisers don’t control the frequency across all buys, they could have high frequency/viewer over-exposure. Lack of control and flexibility where decisions are made far ahead of time and the changes can’t be made closer to the time to stay agile

The best way to avoid all these challenges is to find a trusted partner who is experienced and has the necessary tools to minimize ad fraud, use data-driven platforms that provide measurement and real-time insights to help allocate the budgets effectively and deliver true business outcomes efficiently.