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With 24 hours in a day and only a few hours of prime spots available, the majority of the clock consists of lower tier spots.

The Hidden Strength of Remnant Inventory

September 14th, 2015   ||    by Jennifer Goforth Gregory   ||    No Comments

Remnant inventory typically includes spots with fewer viewers than premium inventory, so many advertisers assume the lower price point is less valuable. In fact, the opposite is true. Broadcasters who effectively integrate this type of inventory into their overall purchasing strategy have a significant competitive advantage over those who focus solely on premium inventory.

Here are three benefits of purchasing lower price point inventory:

1. High Concentration of Niche Audience

Every viewer is valuable to the advertisers who target their business. This is especially true if the specific customers you are targeting are tuned into lower priced time slots. Often, the lower tier spots are programs that appeal to a smaller audience, but these audiences are typically drawn to the show for a specific reason or interest. It’s usually easier to quantify the audience of remnant spots. For example, a military history show will most likely draw a male audience with viewers who are actively serving in the military, are veterans, or who otherwise have a particular interest in the military. This means the program is a prime spot for an advertiser looking to target current, former, or potential military members or at least a mostly male demographic.

2. Less Expensive Spots

On average, off-prime spots are significantly less expensive than premium time slots because they have either not been sold at the higher price or have historically gone unsold. This provides the opportunity to buy more with the same dollar, in turn creating more exposure of the company to the target audience. By using the same amount of money to create more touches per customer, the same budget will likely convert more viewers to customers when using remnant inventory.

3. High Percentage of Viewers in Remnant Spots

Many people assume lower price point spots have very few viewers overall, but this is not true. It’s simply that these spots often have fewer viewers at one time or have viewers who are not traditionally viewed as valuable customers. But with 24 hours in a day and only a few hours of prime spots available, the majority of the clock consists of lower tier spots. In fact, Nielsen found that 65 percent of all TV viewing happens during programming with a 0.5 rating or less, according to MediaPost, illustrating that the majority of your potential customers can be found in front of the television at some point during the day other than the most expensive time slots.

It comes down to strategy. By carefully targeting specific remnant spots and stretching your dollars through this strategy to reach more viewers, you can get your message out to more of the customers likely to buy. If your message is the one your customers hear, these advertising spots are more likely to convert than your competitors who focus only on premium spots.

Check out Videa for more information on how to better utilize remnant inventory to bolster your sales strategy.

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