I see the same infomercials run at the same time different times a day on different channels. How do they get paid for them. Is it a check cut and the station runs it at will or do they only get paid per play? The biggest ones now seem to be the Copper Chef series and the fake Larry King talk show.
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How are stations paid for infomercials
- Thread starter Don CT
- Start date
Some of those infomercials are called "Per Inquiry" ads... the station is paid by inquiry (generally even if a sale is not made). This is similar to the way click-throughs are paid on the Internet.
This method is used by many TV stations in unsold hours where they do not have syndicated product. Or in off seasons where normally they'd have sports. Or late at night.
If the show is sold as block time, it is paid for by run, and often against cash in advance (meaning a wire transfer, etc.)
There are hybrid sales systems, where a fee is paid with an added payment for responses, etc.
The other thing I might add is that on the 'per inquiry' end, the toll free number given is exclusive to the market. In other words the number you hear is for that specific market based on the zip codes the station reaches via on air and cable reach. It might be the same number in Milwaukee as Dallas or Las Vegas but no two stations in the same geographic area have the same number. They credit the station based on the zip code of the caller.
Most of those spots on TV with the toll free numbers offering a product (usually under $20) is a per inquiry spot.
Every radio station I've worked never got a decent check from a per inquiry deal. Most were around $20 a month and a few would reach $75 or so but once we cracked $100. Given the number of airings, it was pennies per spot.
On the radio end, we always went cash in advance on infomercials. I had a couple that were poor sellers and I had to give them a few bonus airings but usually it worked for the agency buying and we got repeat business. One selling vitamins actually bought 5 hour long infomercials a week for about 3 months. Theirs worked likely because it sounded like a live talk show with callers and giving out a toll free number for asking the host a question on the show. In fact, we pulled it off satellite back then...different show/callers each day. Given our lack of ratings and how hard we worked to get billing, that was pretty sweet.
Most of those spots on TV with the toll free numbers offering a product (usually under $20) is a per inquiry spot.
Every radio station I've worked never got a decent check from a per inquiry deal. Most were around $20 a month and a few would reach $75 or so but once we cracked $100. Given the number of airings, it was pennies per spot.
On the radio end, we always went cash in advance on infomercials. I had a couple that were poor sellers and I had to give them a few bonus airings but usually it worked for the agency buying and we got repeat business. One selling vitamins actually bought 5 hour long infomercials a week for about 3 months. Theirs worked likely because it sounded like a live talk show with callers and giving out a toll free number for asking the host a question on the show. In fact, we pulled it off satellite back then...different show/callers each day. Given our lack of ratings and how hard we worked to get billing, that was pretty sweet.
I thought perhaps they bartered for cans of FlexSeal or Sham Wows.
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