There are a number of strategies and approaches that can be used in media negotiations. In this article we will discuss some of these approaches. But before we get into the approaches themselves, we should consider strategic segmentation of negotiation partners. It can be advantageous to divide the media owners you are working with into strategic segments so that the correct negotiating principles can be applied to each segment.
Strategic Segmentation for Negotiation
Not all media owners will be of the same strategic value to you. It can help you to deploy your time and resources appropriately by segmenting media owners into a number of strategic groups based on their value to you. For example, some media owners may be “Must-have’s” or “Stars”. Here you need these media owners more than they need you so you will need to tread carefully and build a relationship with the media owner so they are prepared to work cooperatively with you. On the other hand, some media owners may be “Borderlines”. This group can only work for you if you are able to trade at exactly the terms you need. Here the approach can be more cavalier. If they don’t agree to your terms, they don’t go on the schedule.
Now we have segmented our media suppliers into segments we can look at how specific techniques can be applied.
Reason / Logic
Reason and logic can form a strong platform for a successful negotiation. It is important that you negotiate with the logic of a lawyer. So for example, you build arguments with logic, just as a barrister may present his case in the courtroom. You build your argument in steps based on if-then logic. “If x=y, then a=b”. This may manifest itself as “So you are saying that if I deliver X to you, you can deliver Y to me”. You gather information to build a logical case for deciding on the negotiation terms your present. If the person you are negotiating with buys into your logic, you reach a point where they have to buy into your desired (and shared) outcome.
Win-Win
Whilst win-win is not a strategy in itself, it is an outcome which informs a collaborative negotiation strategy. It is unlikely that a win-win outcome will be achieved through a high confrontational style of negotiation. A confrontational negotiation will almost certainly result in at least one side feeling that they have not got the best possible outcome. Win-win outcomes often require cooperative and transparent negotiation. Co-operation and transparency engenders trust which allows negotiations to develop in a constructive manner. Here both the agency and the media owner feel they are working towards an outcome that will work well for both parties. The media agency gets a value of communication they need, whilst the media owner gets the revenue they need.
Zero-Sum
Zero sum negotiations work on the basis that if somebody gains, somebody loses. By definition, zero sum negotiations cannot be win-win negotiations. So, what is zero sum? Imagine negotiating for pieces of apple pie and the pie is cut into 8 pieces. If one person has five, the other person can only have three. The person with five is the winner, the person with three is the loser. Zero sum is not usually present in media because media owners can usually expand their pie (items supplied) and media agencies can usually expand their pie (Money to buy media). However, there are often fixed media budgets, so for example £1m for a TV campaign. If there are 5 TV stations vying for a share of budget then those TV stations are effectively engaged in a zero sum game. The agency can of course exploit this, as each media owner wants a bigger slice of the budget, the agency can improve the terms on which each slice of the budget is allocated.
Sanction
Assume you are dealing with 5 media owners, all of whom can give you the audience delivery solution you need, but media owners 1 and 2 want a lot more money for the solution they are offering. If you are in a position to get what you want from the other parties then you can threaten to sanction Media owners 1 and 2. Here you say that they cannot agree to your terms, there will be no further negotiation and you will deal only with the alternative suppliers (3,4 and 5). Sanction is tough talk and can have long-term negative consequences. At some point in the future you may need either Media owner 1 or Media owner 2, and by the time you need them, they may not need you. Some UK media stand-offs have famously gone on for months.
Confrontation
Whilst confrontation is not a negotiation strategy itself, a negotiation can be run in a way that builds tension and results in confrontation. This is usually caused by one party acting in a very bullish way and trying to impose their solution on the other party. Whilst this approach might work in certain circumstances, the most likely outcome is that one party will leave the negotiation and the negotiation will fail.
Remember, we don’t buy space, we sell money
Whilst working at Ogilvy the Head of Print Buying used to say, “I don’t buy space, I sell money“. Media agencies are often selling money. They are saying you can have this slice of the budget, but these are the terms I need in order to give that budget to you. This approach effectively makes the media owner the buyer of the budget.
You can find more information on media agencies here.
