ADDED VALUE

1. ADDED VALUE What is it? How is it used?

2. Added Value • Something many TV, Radio, Out-of Home, Print vendors provide to clients at no-cost. • Sometimes just an order • Long term orders (6 months to 1 year) • Certain share of business (40% of TV budget to CBS or 100% of radio budget to Clear Channel • The purchase by client or development of a special promotional tie-in

3. Added Value • Smart buyers and planners have to know to ask for • Stations aren’t going to provide unless you know enough to ask • Has become well known so almost everyone knows to ask for…stations promotional budgets and time have become diluted so they don’t really like to give any more • It’s a function of negotiation

4. Added Value • Traditionally added value has been negotiated by media buyers for TV, radio and cable, but planners getting more involved in it (If a tactic is to purchase high profile TV prime shows and the shows selected-by virtue of research- are mostly on one network, opportunity to merchandise with station…CBS

5. Added Value • Planners can none the less include added value wish lists and aims in their tactics and media plans. • Planners would provide the medium (TV, Radio, out of home) with a media strategy and allow stations to pffer added value that best fits the plan…can play stations off each other as well.

6. Added Value • TV, Radio stations, out door all have promotional departments-They can take the media strategy and provide something that fits not only with them but for the client. • Example of a media strategy one might give to a vendor is “Provide added value that drives traffic to my location” or “Provide added value that increases call volume to my call center.” Example: Movie sponsorships. Station and planner pick movies that fit the client profile and station runs the movie on Sat or Sun afternoon with live breaks saying “Call 000-0000 for a special price or free offer.”

7. Added Value • Examples • DJ endorcements (purchase radio schedule and some stations wll have their on-air talent endorse Homvevestors…needs to be included in strategies/tactics • Bonus weight-10% of cash schedule provided in NC spots (usually 12m-5 am) • Tie-ins with stations or other station advertisers…ie if Homevestors provides a schedule to a staton the staton may be able to tag another advertisers commercials with Homevestors in exchange for same…need client approval for this

8. Added Value • Homevestors may provide a TV/radio station with a snipe on their billboard advertising in exchange for on air promotional time • On-air client interviews in PR related programs. Home sales is always a hot economic issue. A homevestors client could go on a station issue program to talk about things that are important to consider when selling a home. Homevestors would be mentioned several times.

9. Added Value • Event tickets • Suite nights at ball games with food and drinks provided for up to 15 franchisees • Movie passes • Client parties…ie a station or billboard company might host a “Homevestor event” at a hotel. Homevestors could have franchisee event and get the vendor to pay for it.

10. Added Value • TV’s radios T-shirts, CD’s other station give aways • TV, Radio, Billboard Newspaper web banners with links to Homevestors web site. • On-air promotions…Tonights prime time line up is brought to you by Homevestors • Exotic trips (usually based on % of expenditures over and above previous year)

11. Added Value • Editorial placement in magazine (back page or front cover or opposite editorial page • Tie in with a charity (usually stations will ask for an advertiser to be a drop off location for coats for children or canned good s or toys for tots in exchange for promotional mentions • Free :10 second spots (advertiser must provide the :10 second copy)

12. Added Value • Footballs and t-sirts with client logo on them thrown into stands at local football games for stadium tie-ins • Radio stations can give away Homevestor merchandise at their remotes. (T-shirts, key chains, pens, etc.) They would mention it on their air-waves • A station that sponsors a Home Expo or health fair can provide Homevestors with a free booth/booth space to hand out fliers and provide additional exposure to a select audience.

13. Added Value • You should assume client will receive 2-5% of expenditures in added value from any medium and include it in your media strategies or tactics. • Important to remember who your target audience is. No rap DJ endorxing your product if target is Ad 35-64 or 50+.

14. Added Value • Can be fun and very creative, but key is to make it a win-win for everyone. A vendor is not going to let you have free Prime time spots if their inventory is limited. • It has to make sense to the station and their audience in order for station to consider doing it. • Making sense means that vendor will benefit in some way(s) ie additional budget or that their listeners/viewers will receive something extra that would make them utilize that medium.

15. Added Value • Example-A station may provide an exotic trip to Africa but they will expect an additional @20,000 will be spent on their station, over and above what was spent previous year…they also would have client as their captive audience for however long the trip lasts…could be dangerous.

16. Added Value • Merchandising can help make media plan sizzle, but not the main feature or theme of your media plan. • Added value should compliment your media plan, not drive it. • Important to remember that many stations provide incredible added value because they have nothing else to offer.

17. Added Value • Many times a client will get excited because they think they are getting something great …just for placing a schedule with a vendor. If you look at it closely you might find that the schedule is worth very little and that the client is paying for a “perk” many times over at the risk of wasting their media dollars.

18. Added Value • Show you are a smart planner by including added value tactics or wish lists on your media plan • Be creative with it • Make it fit with your target audience • Remember you are trying to get people to sell their house to Homevestors…They are buying a service

19. Added value • Examples of some I have done • Placed a 52 week radio buy with Clear Channel in LA for Pepsi. Got the stations to provide a wrapped helicopter doing traffic reports during rush hours • When American Airlines entered Atlanta, got stations to host a cocktail party for 100 of their important clients. • Got radio station to create a feature that aired in drive time called “Hard working man” for Wolverine’s Mens Boots. The feature highlighted hard working men in the market.

20. Added Value • Got American Airlines 18 trips for 2 to the Olympics is Switzerland • Got all stations in a market to fun targeted movies in prime time and weekends for the release of a new softdrink • Negotiated on-air TV newscasters wear Hager clothes with a mention at the end of the show. • Got stadiums to throw footballs with client logos on them into stands at local games

21. Added Value • Got a TV station to create a fireworks logo and fire it off at a July 4th concert. • Negotiated sponsorships of major concerts/performers for clients at no charge to them • Negotiated client appearances with TV and radio stations as guest expert on morning shows and PR shows • Sponsored entire week of Christmas on a radio station for a client at no charge to them