Remnant Advertising

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Media companies rarely sell all of their advertising space and this unsold ad space and/or time is called remnant space. Many advertisers are not familiar with the term remnant and often refer to this method of advertising as Discount Advertising or “cheap media”.

Advertising space and advertising time can be viewed as highly perishable assets and if that space or those seconds are not sold, it is considered to be lost revenue. In many cases, unsold inventory is given away to a non-revenue producing filler such as public service announcements. Instead of taking a loss for unsold airtime or advertising space, media companies will often offer unsold inventory at a substantially discounted rate to advertisers with whom they do large volume business. These advertisers are able to buy what is usually expensive, sometimes even premium media for much less than is normally offered to the general public and this in turn, allows them to maximize their client’s advertising dollars to the fullest extent. Although the space and/or time is sold at a steeply discounted rate, media sellers benefit as well, monetizing inventory that would have otherwise gone to waste. Natalie Hale, CEO of Media Partners Worldwide says, “Using remnant advertising is an ideal way for Direct Response advertisers to test their creative message and various offers. If the creative doesn’t work with remnant rates then it probably won’t work at any rate.” These discounted rates for advertising on remnant space are not offered to every client for the asking. This rate structure is generally reserved for large clients and specialized Direct Response advertising agencies and is highly relationship driven. Because the space is purchased last minute, advertisers must have the capability to make quick decisions as to creative unit(s), and have the able to swiftly measure how these last minute buys fit into and/or affects their budget. However, there is one caveat with respect to Remnant Radio Buys, Remnant TV Buys, and Remnant Internet Buys; that is this advertising space and/or time is completely preemtable. Preemtable rates can cause competition between advertisers when bidding for general market advertising space as well as remnant advertising space. Whoever bids the higher amount with the media company wins the surplus inventory.

Remnant Radio is favorable for Remnant Radio Buys because unlike print media which can be modified to fit however much or little space is needed based on total space required, Remnant Radio Advertising availabilities are limited. There are an established number of spots in one hour on air and therefore, the unsold time can be sold at a huge discount at a steep discount due to time sensitivity and predefined space to fill. “Remnant Advertising is an ideal way to test and then ramp up any Direct Response campaign. Advertisers who are risk adverse or cost sensitive can take advantage of the lowest rates available. Not only does the remnant advertising model pose less risk for the advertiser, my experience has shown that remnant generates the lowest possible cost per lead and the highest possible MER” (Natalie Hale, CEO Media Partners Worldwide).

Remnant TV Advertising is ever-evolving and burgeoning due to the vast array of television stations available for broadcast whether they are on network, cable, or satellite. Advertisers have the opportunity to buy unsold inventory from the media companies at a discounted rate however, because the rate is drastically cut, it is more susceptible to be preempted.

Another aspect of Remnant TV Advertising with great advantages is with Remnant Satellite TV. Since many television stations only have limited reach, to reach a larger audience, advertisers will often buy time from station to station, market to market or network to network. However, just as with cable television networks, Satellite TV Networks have given advertisers an additional method to reach a greater audience for their product or service. Satellite networks such as Dish and Direct TV sell available inventory to both general market advertisers and Direct Response advertisers. Similar to their wired and unwired counterparts, there are an established number of spots in one hour on the commercial channels and any unsold time can be sold at a huge discount. With Remnant Satellite TV space, advertisers can buy runs on network spots that broadcast to a nationwide audience such as CNN, ESPN, FOX News etc… by utilizing National Remnant Satellite. Remnant Satellite Buying allows the advertiser to purchase time at a significantly cheaper rate than would be available through the network with the capability to reach a larger audience through whichever Satellite TV Network programming is broadcast through.

Remnant Internet provides advertisers with unsold impressions on the internet in bulk. Advertisers are able to negotiate bulk agreements with the media company and purchase the remnant impressions at bulk rates. In some instances, advertisers can negotiate what type of sites they are buying inventory for, but like all forms of Remnant Advertising, the rates are preemptable and relationship based.

National Remnant Rates concerns National Remnant Radio, National Remnant TV, and National Remnant Satellite. National Remnant Rates apply to network television and radio on a national level. Some advertisers who buy remnant space only buy on a “spot basis market” which infers that they buy their time station by station. This usually means that the advertiser has worked out separate deals with each station and may be paying each station different rates. A larger company with a special relationship with the media company can most often negotiate rates with certain networks for their broadcasts to span a national audience.

One company that specializes in Remnant Advertising is Media Partners Worldwide, a Marketing Agency based in Long Beach, California. They focus on Remnant Buys in all forms of media for their advertisers in areas such as Radio, TV, Satellite, and Internet.

A case study, as provided by Media Partners Worldwide, involved Green Pharmaceuticals’ Snore Stop product. Snore Stop was looking to create retail sell through and increase market share with a limited budget. MPW created a TV campaign with low cost :10, :15, and :30 second commercials that ran on Oprah, Dr. Phil, Inside Edition, National Syndicated TV, and CNN Headline News. By running mostly :10 second commercials acquired on a remnant basis, the client was able to get exposure in high profile shows for a fraction of the cost of a traditional :30 campaign. As a result, the client built a brand identity and brand awareness within its first two years and increased sales over 50% each year in exchange for a relatively modest expenditure.