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Pay no attention to the people behind the curtain

Monday, November 03, 2008

More for Your Money

By Keith R. Schmitz

Some interesting news today from industry web site Media Daily News:
Democratic Presidential candidate Barack Obama may have made history in raising big bucks for his campaign's fund-raising--but what's more incredible has been his extremely efficient media buying.

Case in point was last week's roadblock of infomercials: According to one TV media executive, Obama's effective price--the cost per thousand viewers (CPM)--came out to a very cheap $1.66. The Obama 30-minute infomercial ran across four broadcast and three cable networks on Thursday night, grabbing a total of 33.5 million viewers.

Such figures are incredibly inexpensive when compared against a typical prime-time network household CPM, which runs in the $12 to $14 range. It is even better against other CPM demographics--such as adults 18-49, where the price tag in prime time is now nearing a $30 CPM for 18-49 viewers, across all four major broadcast networks.

This executive equated the 30-minute infomercial with 60 30-second commercial messages, or $55,000 for a 30-second commercial unit, running across seven networks.

Comparing this number against what the networks typically get for their prime-time series shows glaringly big results. One typical prime-time network spot on any of the big three networks averages around $110,000.

The reaction to this particular media buy? The TV media executive says simply: "Wow."
A couple of things about this.

1) According to many pundits, the way in which the Obama has managed his campaign -- being tight with the bucks and clever when it comes to spending money, efficiently organizing resources, beating one of the most formidable Democratic candidates in some time -- indicates the way in which an Obama administration will govern.

2) These guys get strategy and technology.

3) Those of you fear or who are spreading the fear that is going to be some kind of proliferate spending administration are thinking of somebody else. Team Obama might not be afraid to ask for the money it thinks this country needs, but it appears they will be getting the most for your money in terms of efficiency can results.

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