Thursday, October 19, 2006

10-Figure in-store ad deals block competitors for years...

... or so says MediaBuyerPlanner in this short article, but I've read previous articles about P&G's massive in-store media deals before. Apparently, some CPGs have been buying ad rights in retail chains for up to 2 years, with discounted rates in return for making such a long-term (in the retail world, anyway) commitment. Interestingly, as the article notes, "the complete control offered to these marketers means selling space to marketers across multiple four-week cycles whether the marketer intends to use the space during every cycle or not. Even when the space is not in use by the marketer who has contracted for it, competitors can be blocked from using it."

That's an interesting wrinkle, since a long-term media buy could be looked at as a defensive manuever as well as an offensive one (no pun intended :) However, as the article also notes, "P&G allows News America to resell ads during the four-week cycles its brands don't intend to use," though the actual mechanics of this aren't described.

For reference, a 10-figure deal means at least $1,000,000,000. Ouch.

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