Has anyone had any experience with Per Inquiry Advertising? I am always afraid that we wont get paid for leads developed and I simply have a trust problem with people who wont pay for my investment.
Woody, we shy away from it, but when a long time advertiser went to an agency that was pushing it, we came up with a hybrid that works well. First, you must know the coast per lead, and there must be agreement as to how leads are counted. Phone calls, web hits that come ghtouhg your station links, calls to the station asking for the advertiser.
In my experience, they PI advertiser or agency uses a reputable third party. But you need the details described above.
Our hybrid was cash for a specific number of spots in prime that equalled a specific number of leads. The we add as much unsold inventory as we are comfortable with. We get paid additional cash for all leads over the threshold. I write that up as non-spot.
We never take 100% PI. You will see a lot of it on cable TV in fringe as they have vast amounts of unsold inventory and it costs them nothing. You will also here it on bottom-feeder stations in your market.
I trudt this helps.
Kind regards,
Chris Lagey
Woody:
While I'm not an advocate of PI, there is a place for it if negotiaions are done so that the whole barn isn't given to the advertiser. I worked out a spreadsheet that allows radio to calculate a dollar value it needs to receive "per inquiry," and also gives an estimate on the total cost/revenue for the campaign.
http://www.audiographics.com/agd/062411-1.htm
As for quantifying response - with the internet, broadcasters can build verification into a campaign by insisting the PI advertiser goes through radio's validation system. Building this is not difficult for someone who knows how to code.
Best wishes,
Ken
Make sure the cost per lead is worth the run, and make sure the PI fits the market/station. I've seen PI's that work great, and others that don't because: #1 everyone is running the same spots in the market. #2 The offer/product is poor.
