Today we were exposed to the underbelly of media and ad buying compliments of the Wall Street Journal. I will say that these at the moment are allegations; however, as a media buyer, situations similar to this have bugged me for years-especially on the local level.
The WSJ allegedly using a controversial scheme to boost its European circulation
Essentially, ad prices are based on circulation numbers. Larger publications are regularly audited by an outside organizations to ensure that the numbers are correct and accurate.
In this case, the Wall Street Journal is accused of using a scheme in which they themselves essentially buy up copies of their own paper to keep circulation up and thus ad prices up.
So, if the BIG guys that are audited are gaming the system, let’s consider those that are NOT audited and what they can do to game the system.
Local Media and Ad Buying Implications
If you look at the audited number for the Gainesville Sun: (Circulation averages for the six months ended: 3/31/2011)
Publication Name
Frequency
Circulation Type
Total Circulation*
Filing Status
SUN, GAINESVILLE (ALACHUA CO.)
SAT M
DLY
32,392
SUN, GAINESVILLE (ALACHUA CO.)
SUN
DLY
42,764
SUN, GAINESVILLE (ALACHUA CO.)
AVG M (M-F)
DLY
33,444
So here we have a 3rd party the circulations that we can do our calculations as to CPM, etc.
Now imagine, if a local periodical was allowed to just make up their own circulation numbers.
Yes, if they are not audited – that is exactly what is happening. We must rely on the media to tell us as ad buys their circulation.
Games Played by Local Periodicals & Magazines
As media buyers, we see three games being perpetrated by unaudited periodicals and magazines.
1) They just make it up.
We have seen several examples, in which we estimate the periodical or magazine’s revenue using FULL rate card for each ad placed in said magazine.
We then price the same periodical for printing, using same materials and the number they claim to print.
It is NOT even close.
2) They just make it up – mutliplier.
Some are not as blatant as mentioned above – they just ‘fudge’ a little.
What they are doing is telling you a printed number increased by a fabricated “readership multiplier”.
The theory goes something like this “A magazine sent to my house is 1 printed copy, but it is read by me and my wife. It should count as 2.”
This is sometimes also referred to as as “pass-along.”
3) They print more than are actually put into circulation.
We have on occasions, found bundles of magazines in the recycle bin versus being distributed. Yes, they are printing them – but only if dumpster divers are your target market does it make sense to buy these ads.
What should you do?
Just realize that if the publication is unaudited, all bets are off.
In truth, the ad prices are NOT based on circulation, but on what the market is willing to pay for it.
Ask if the publication is audited on their circulation.
If not, ask two questions – how many do you print? What is your estimated readership?
Ask detailed questions about distribution? Direct Mail? Or do they just drop off 500 copies at doctors’ Offices who then trash 498 of them?
If you think you are being taken advantage of, do the market test. Get the rate card, estimate the ad revenue, call a printer and estimate the cost to print. If the numbers are anywhere near even, you have something to discuss with your ad rep. (Secret – most ads are not sold at rate card – some are given away for charity, others are sold at reduced rates because of negotiations.)
Negotiate, negotiate, negotiate Again, the price is NOT really based on circulation, but on what the market is willing to pay.
Bottom line: If you think you are being taken advantage of – don’t buy the ad.
If you are uncomfortable in negeotiating, please call a media buyer to do it for you.
Ozean Consulting has worked with a number of first time political candidates. They all have a lot in common – the biggest thing is “No first time candidate is as ready as they think they are.” The only exception to this is first time candidates that have been intimately involved in campaigns, and even then there is a learning curve, especially on the fund-raising side.
So, in an effort to help all first time candidates, Ozean Consulting offers the following mental check list that all first time candidates should go through before announcing.
Decided if you really want to run for office:
1) Talk to your Family. We mean REALLY talk. A couple of reasons:
Campaigns are stressful on the family.
You are away. You will be gone – fundraising, walking neighborhood, events.
You can be attacked and your secrets will come out. You need to make sure there is nothing you want to tell your spouse before you announce.
Have school age children? Your campaign will become a conversation piece for kids and their parents.
2) Think about your employment situation -even if you are the boss/owner/ceo – A couple of reasons:
Campaigns are stressful on the work environment.
You are away. Your lunches will be expanded in time so that you can travel across town to attend the X luncheon. You may come in late so that you can attend the X breakfast. You may leave early so that you can attend X meeting.
Who will pick up your slack and more importantly will they resent it?
If you win, and you have to attend day long meetings or if you goto Tallahassee and have to be gone for weeks or months – how will you get your “real” job done?
The minute you announce you are a Republican that wants to end X program, and your best assistant OR YOUR BOSS has an Uncle dependent upon X program, you are going to hear about it.
If you are not the boss, ask for permission. I am amazed on how many people don’t tell their employer they are thinking about running. You need to have a plan that addresses the points above, but you must have the discussion.
3) Answer this question, if I win, then what?
What will my family life be like? If I have meetings every Wednesday and Junior has baseball games every Wednesday, am I willing to sacrifice? If I am gone for two months to Tallahassee and it takes me 5 hours to travel, will my family join me for session in Tallahassee? etc. etc.
What will my job be like? Is there a different role I may need to explore with the company? Who in the organization can pick up my duties at least partially? If I own the company, do I have the support staff needed? Can I find them?
Can I afford it? really! What is the opportunity cost to you getting elected? Will your billable hours be reduced to be replaced by a $30,000 annual salary? Are you ok with that?
Once you get the home life and the financial life settled and have buy in from all, next you need to do some quiet research to decide what is the probability of winning.
Decided if you can win:
1) Fundraising
No first time candidate, unless they have done it, can fully appreciate the time, effort, and difficulty in raising money.
Do you have 100 -150 friends that will give you X donation? Is that enough to win?
More importantly, ARE YOU WILLING TO ASK 100-150 friends to give you X donation? Is that enough to win? (I have witnesses many self assured candidates fall to pieces asking for money.)
Most candidates will need to spend 70-80% of their time raising money. No one else can take on this role for candidates, they have been and will remain the Chief Fund Raiser in Charge.
Before you announce take out a sheet of paper, write a name, a phone number, and how much you are going to ask them for. (yes, the phone number is important – if you don’t have it handy, you may not be as close as you think you are). Total it up. Take a list of previous contributors to like candidates? Know them? write it down. etc. [side-note: When I ask first time candidates to make this list, we total it up, cut it by 50%, then cut it again by 25% – and that is the initial internal working budget]
Is the timing right? When do I need the money in the bank? Need to raise $150,00 and you have two weeks until qualifying? You may want to reconsider.
2) District
Do I meet any residency requirements? Some districts have residency requirements, some you must live in for a period of time to be eligible to run.
Do I meet any other requirements? Age, etc.
If no residency requirement before the election to office, are there after? Do I need to move? If so, what is the plan?
What is the past performance of the district? Voter Registration is a starting point, but you really want the PERFORMANCE for your district. Get as many data points as you can get your hands on. If you are a Republican, and the district you wish to run for performs 63% Democratic, you may want to reconsider. The dirty little secret? You may be the most incredible potential politician to walk the face of the Earth – but if you are in the wrong district, you may stand a significant chance of not winning.
3) Political Environment
What else will be going on during your potential ballot? Are you running during a presidential election, a gubernatorial election, or a stand alone election? How will other races affect your ballot? Are there any amendments or proposals on the ballot that may affect turnout?
What is the mood of the electorate? Don’t know? Talk to people- fast. Don’t know? Poll.
Any first time candidate has a period of soul searching that they must go through. Set the ambition & ego aside, do a little research, and then take a very long walk on the beach.
If you are in, you should then be able to say
“I have thought through and talked about my family situation and my employment situation, and I have gotten buy-in from both. I have the beginnings of a Fundraising plan – HERE IS MY FUND RAISING LIST, and my goal is to raise $X within 30 days of filing my paperwork. I am eligible to run in district x. I have researched the past performance of the district, and in this current political environment, the voters stand a good shot of electing someone of my political persuasion. ”
If you can say the above paragraph, then you are more prepared then half of the first time candidates that we have worked with.
One last thought, the above checklist is just the beginning. The hard lifting starts after the check list is complete.
Don’t worry, Ozean stands by waiting to discuss the rest of the path to victory.
On Friday, March 11, 2011 Ozean Consulting was awarded a 2011 Pollie award by the American Association of Political Consultants. The AAPC Pollie Awards recognize the best of the best in political communications for 2010.
The Pollie Awards are awarded annually to recognize excellence in political advertising, and they are billed by Esquire Magazine as the “Oscars of Political Consulting.”
“Personally, I have never been a big awards person, but the fact that Ozean is competitive with political consultants from Washington and around the nation, makes this one special,” said Alex Patton, owner of Ozean.
The award was announced at the 20th Annual Pollie Awards & Conference held March 9-11 at the Fairmont Hotel in Washington, DC.
The Pollie awarded for a radio commercial produced for the Alachua County Republican Executive Committee for the annual Black Tie and Blue Jeans Dinner, entitled “Zombie Black Tie and Blue Jeans”.
“What allowed this to be successful is a client willing to task risks and push the envelope a little bit, we thank the ACREC,” commented Alex Patton. “While I am proud of the award, the highlight of the event was meeting University of Florida graduate and Washington consultant Charlie Black – THAT guy is a legend,” concluded Alex Patton.
About Ozean Consulting (www.ozeanconsulting.com) – Ozean Consulting is a political consulting firm specializing general political consulting & media for Republican candidates and conservative Issues.
About the American Association of Political Consultants (www.theaapc.org/) – Association membership consists of political consultants, media consultants, pollsters, campaign managers, corporate public affairs officers, professors, fund-raisers, lobbyists, congressional staffers and vendors and is open to everyone associated with politics from the local level to the White House.
We can’t release any additional details regarding Ozean’s win – because we don’t know any. We have been notified that Ozean Consulting has won an award hailed as the “Oscars of Political Advertising”.
Winners, selected by a panel of judges representing the industry’s best campaigning experts, will be announced at the Awards Ceremony in Washington, D.C. Winners represent the latest talent and techniques in this 8 billion dollar industry.
It is a very strange feeling in that I have not ever been a big award person, but in this case Ozean is excited about the win. Too often political advertising is looked down on by the “real” advertising community – at times making me want to scream – “It is 9 pm – you design a piece tonight that moves a measurable needle 10 points-with little budget-in a crowded cluttered environment-NOW-and if you don’t you are fired-absolutely no second chances-see you in the morning!”
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