Media Buying Agencies: Ad Retailers

2007-03-08 10:33:40

( Business )



ADS FOR RETAIL

Media buying agencies are companies that buy advertising slots from different media outlets. These media outlets are television, movies, newspapers, magazines, billboards, web sites, sports venues, and any other sites where advertisements can be placed.

There was a time when media buying agencies has a much simpler task. Back then, media was just print, TV, and radio. Nowadays, the art of media buying is more complicated with the advent of the Internet and wireless communications technology. In these modern times, virtually anything can be a venue for advertisement – from buses, to console games, to text messages.

Media buying agencies function much like middlemen or retail distributors. These media buying agencies build relationships with various media entities, and thus, are able to buy these advertising slots in bulk. After buying advertising slots, these media buying agencies will then peddle these slots to companies who want to advertise in that certain slot. These media buying agencies are able to earn from the transaction buy selling the slots at a considerable mark up.
They buy in bulk and sell retail for a handsome profit.

PRIME SLOTS

Of course, advertising slots are not cheap. Media buying agencies must make a substantial investment when they make a purchase. If they are able to buy a prime spot, then they can really earn a lot, especially when there are many companies vying for that right.

Examples of these prime advertising slots for television are special occasions such sports events. Slots for these television events can get very expensive such that only the top multinational companies can afford them.

The business of media buying can be very interesting. It is a very exciting and dynamic industry because it is so dependent on telecommunications technology. As it is, we are already bombarded with so much subtle and not so subtle advertising messages. Indeed, there is no saying where the advertising business will conquer next.


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