landtuna said:
When I lived in Noo Yawk it seemed that every ad was "local" (most Noo Yawkers don't realize there is a big country just west of the Hudson River). Those ads may have been agency-bought but they didn't sound like it.
Out here in Palookaville it seems that virtually all ads are also local.
Going to a smaller-yet market I am absolutely certain that all advertising on KODS (Reno) is local.
Whyizzat?
The term I used is "direct" and not "local". In many cases, larger local businesses use local ad agencies... and those agencies buy tools like Nielsen and Arbitron and such to analyze and justify their ad placements.
Car dealer associations, larger car dealers, local retailers with large volume or multiple locations, etc., etc., generally use agencies. Businesses that are only concentrated in a single state or smaller multi-state area will use agencies, too.
In Reno and Las Vegas, the casino and significant hospitality accounts all use agencies. In fact, 30% of revenue in Reno is national agency business, and something like 30% more is local and regional agency business. Of course, a low rated station or one with bad demos is not going to get much agency business, and will sell at much lower rates...
In Phoenix, an even higher percentage of business is placed by agencies. In most cases, a good tip-off that an account is managed by an agency is that it advertises on more than one station or in multiple types of media.
And yes, there are lots of local agencies. When I was in management in a market almost identical in size to Phoenix, I always had over 120 local agencies on my list, and that was without counting house agencies.
KODS is in the top 6 or 7 stations in billings in Reno (out of 27 commercial stations) so they are likely getting a lot of agency business. Of course, KODS is not in a small market... Reno is #87 in billings.
An account is only "direct" if a station seller can walk in to the store or business and talk to a person who can actually sign a contract.