Getting started with PI media can be overwhelming. Do a search for PI media and you will find many options, a lot of promises and some conflicting information including what is really PI.
The words "PI media" have become huge buzz words in 2008 and why not? More and more infomercials fail when they come out of the gate to test. Who wouldn't want a "safe" way to run media? Who wouldb't want to supplement their paid media with some per inquiry? the only people who wouldn't are those that have some sort of misunderstanding regarding per inquiry media.
As someone who has bought media for years, I will assure you that more often than not, you're paying way more for media than needed - many buyers are not negotiating the media as low as they should, if at all - they are paying stations full price or close to it.
We negotiate with stations to get clients the best media rates possible at all times - many buyers do not.
While you think this may help stations - after all aren't they then getting more money? They actually are losing as the media does not stay booked. The client can't make money on the full price media that was bought for him and he cancels. The station is then sitting on media and the client has a show that he thinks has failed. In my opinion, this has created even more unsold media than ever before.
In the past few months, we've watched PI media explode. "Everyone" is doing it. And in a situation like this - you don't know who knows what they are talking about and who does.
Some PI companies want to charge you $10k, $20K, or more to "test" the show to see if it is PI fit. Ideally, you should have a show that has ran and been tested but, in our opinion, not have to run the creative (again) with a PI agency as a condition to see if you "qualify" for their PI media selection.
In our PI world, things are definitely different - We contact stations that we have known for years, we contact new stations and quite often, stations contact us - wanting to know what new clients we have on board. The main thing is - we are in direct contact with people who work at the station. Why is this important? We want to get the most media for each client as possible so each client and each station makes as much money as possible from each airing.
We don't take money from a client, buy media and pass it off as PI - that is paid media. We offer paid media and we explain that it is just that paid media. We also offer PI and it is just that - per inquiry media. media that is available from stations and you pay them per call or lead generated.
TV and radio stations that we work with know that we bring ethical, quality long form (infomercials) and short form (spots) to them for consideration. They also know that our clients pay them promptly for every lead or order generated. They also know we provide the perfect reporting, in a format they can use and we are available to go over the reporting - even on weekends.
Is PI media a good option for you? Maybe. If you have a quality product and are willing to pay stations a fair amount promptly for sales or leads, then most likely we will present you to stations in our network. You will also have to have a way to track calls and orders so the stations can see how the product is performing on their station.
To schedule a quick consultation to see if your product is PI viable - just send us an email info@omgconsultants.com Please include your contact info, basic info about your product including selling price, a web site link and confirm if you have a call center in place for reporting. (If you do not have a call center yet - we have an excellent low cost call center contact that we can discuss with you as an option.)
We receive calls and emails daily regarding PI media. This article was written by Randy Whatley who is a business associate and will explain PI media and how it works.
Don't be fooled by the scam deals where people say spend $20k or whatever the amount and then they will get you PI.
Randy and I have been working on PI for years - we have the established contacts to get the PI media for you - fast and easy.
Some agencies use brokers (like us) to get the media for clients, like you. You would never know this when you contact someone to get PI media. The one difference is - we have contacts directly with the stations. This makes a big diference in PI media avails and in working to get your product PI advertising.
Read this article and then contact Randy info@cypressmedia.net or Diana info@omgconsultants.com and we will walk you through the process and get you started!
By Randall P. Whatley
Per Inquiry advertising is commonly referred to as "PI." Broadcast stations run PI ads for a fee based on the number of calls that are generated through a dedicated toll-free number that is exclusive to each station or network. An independent telemarketing company tracks the calls and prepares reports to document the call activity for billing and shipping purposes.
Per Inquiry is a desirable advertising alternative for undercapitalized advertisers and those who want to test an ad before risking capital on an expanded advertising schedule.
However, PI campaigns are not without risk. Advertisers can pay up to 50% of their sales revenue to the stations/networks, time brokers, and independent telemarketing firms who are involved in the PI advertising process.
Once PI ads prove their effectiveness, it is usually more cost-efficient to convert the broadcast media buying to a traditional paid direct response schedule.
Most stations and networks do not accept PI advertising, so this is not a widely available option for most direct marketers.
Another similar advertising concept is "guaranteed payout." On guaranteed payout schedules, advertisers pay cash for a direct response media schedule but receive a guaranteed response rate (their breakeven figure) from the media.
Are you a direct marketer who would like to consider per inquiry or guaranteed payout advertising to sell your product or service? Does your broadcast station/network or media property want to consider PI or guaranteed payout advertising as another discount system that you can use to liquidate unsold inventory?
E-mail info@cypressmedia.net to discuss the PI and guaranteed payout advertising options for your product, service, or broadcast property.
Per inquiry advertising is a viable option for those without a large ad budget, but you will still need money to launch a PI campaign. First, it is usually necessary to pay for a test of a new ad in order to prove its viability to stations/networks so they will accept it as a PI offer. It is very difficult to find a station/network to run a totally untested PI ad. There are also startup costs involved with a PI campaign like production costs, telemarketing set-up costs, and other administrative costs that require capital.
If you have a product/service that is tested, and you can provide documented results of the advertising test, it is easier for our company to convince stations/networks to take a chance on your ad. Stations/networks that accept PI would rather do business with an advertiser and product/service with a documented track record.
PI advertising should not be viewed as an option for those without any budget whatsoever.
It is easier to test a product with a guaranteed payout schedule rather than with a PI schedule, but the same principles mentioned for PI also applies to guaranteed payout advertising. You will still need capital to launch a guaranteed payout campaign. Additionally, with a guaranteed payout campaign, you must pay for the guaranteed media schedule in advance.
Testing a product on a single local TV station or cable system is not a good way to determine its financial viability for a wider roll-out. We have found it best to test DR products and services in several local markets or on national cable networks and let the marketplace indicate which regions or demographic groups hold the most promise. For local market tests, you need to run enough media to provide statistically valid measurements. If you happen to test in the wrong local market, or on the wrong station, or with the wrong frequency, you may have a "winner," and not know it if your test is too narrow.
A 6 to 1 profit margin is necessary, at a minimum. Ideally, you should have greater than a 6 to 1 profit margin in your product or service for your campaign to be financially successful.
Granted, these margins are difficult to achieve, but it is better that you face this financial reality rather than lose your money on a campaign that has no mathematical chance of succeeding.
Many DR campaigns today are considered highly successful even if they are never profitable on their own if they open other sales channels for a product. Often the product/service awareness and brand building that occurs with a broadcast DR advertising campaign opens the doors to selling a product or service into wholesale or retail channels. It is not unusual to use response statistics from a DR campaign to show a buyer for a chain store or catalog that your product appeals to their target audience.
You can launch a campaign on a straight PI basis if you can obtain an adequate amount of media time to do so; however, it is difficult. A common challenge is to convince enough stations/networks to take a chance on an untested spot to achieve the critical mass of exposure that you need to be successful.
Per inquiry and guaranteed payout advertising is most common to TV and radio, but it can be used in any advertising medium, including newspaper, magazine, direct mail, e-mail, outdoor, and Internet ads.
What are the biggest hurdles for an advertiser interested in a broadcast PI campaign?
We can work with those who already have a spot produced. Ultimately, the stations or networks decide if they will accept the commercials, which in the case of direct response, per inquiry, or guaranteed payout ads, must meet both the production value requirements, station/network policy rules, and also appeal to the sales personnel who must accept the commercial for airing.
If you have a commercial that has already been produced but is untested with the media, it will probably be necessary to test your spot. As stated earlier, PI is not usually available for advertising tests.
Cypress Media Group, Inc. has over 28 years experience producing all forms of advertising commercials, including direct response TV and radio ads. Our company can either produce your ads or refer you to someone who can produce a spot.
Cypress Media Group likes products and services that have a wide appeal. It has also been our experience that products/services that are popular nationally rather than regionally are the most successful with PI advertising. We strongly favor products and services that can be advertised and sold in both the US and Canada.
Copyright 2003, Randall P. Whatley