Introduction
As someone who has spent years analyzing media buying and advertising strategies, I find pre-empt spots one of the most fascinating yet misunderstood concepts in broadcast advertising. These ad slots offer unique advantages for advertisers who want premium placements without long-term commitments. In this guide, I break down what pre-empt spots are, how they work, and why they matter in today’s competitive media landscape.
Table of Contents
What Are Pre-empt Spots?
Pre-empt spots are television or radio advertising slots that stations sell with the condition that they can be “pre-empted” (replaced) by higher-paying advertisers. These spots come at a lower cost than guaranteed placements but carry the risk of being bumped if demand increases.
Key Characteristics of Pre-empt Spots
- Lower Cost: Typically 30-50% cheaper than fixed-rate spots.
- Flexibility: Stations can replace them if a higher bidder emerges.
- Variable Availability: More common during peak seasons (e.g., elections, holidays).
How Pre-empt Spots Work
When I first encountered pre-empt spots, I assumed they were just leftover inventory. But the reality is more strategic. Stations use them to maximize revenue while filling unsold slots. Here’s how the process typically unfolds:
- Initial Sale: The station sells a pre-empt spot at a discounted rate.
- Higher Bid Comes In: If another advertiser pays full price, the original ad gets bumped.
- Makegood Clause: The station may offer a replacement spot, often in a less desirable time slot.
Mathematical Pricing Model
The pricing of pre-empt spots follows a probabilistic model. If P_g is the price of a guaranteed spot, the pre-empt price P_p can be expressed as:
P_p = P_g \times (1 - r)Where r is the risk discount factor (usually between 0.3 and 0.5).
For example, if a guaranteed 30-second prime-time spot costs $10,000, a pre-empt version might sell for:
P_p = 10,000 \times (1 - 0.4) = \$6,000Advantages of Pre-empt Spots
Cost Efficiency
Small businesses and startups often use pre-empt spots to access premium slots without overspending.
Flexibility for Stations
Broadcasters optimize revenue by filling gaps while retaining the ability to upsell.
Strategic Campaigns
Savvy advertisers use pre-empt spots for testing creatives before committing to guaranteed buys.
Disadvantages of Pre-empt Spots
Unpredictability
Your ad might not air when expected, disrupting campaign timing.
Lower Priority
Pre-empt spots often get replaced during high-demand periods (e.g., Super Bowl season).
Makegood Challenges
Replacement slots may have weaker audience reach.
When to Use Pre-empt Spots
I recommend pre-empt spots in these scenarios:
- Testing New Markets: Low-risk way to gauge audience response.
- Supplementing Guaranteed Buys: Fill gaps in a broader media plan.
- Budget Constraints: Ideal for advertisers with limited funds.
Real-World Example
Suppose a local car dealership buys a pre-empt spot during the evening news for $2,000 (normally $3,500). Two weeks later, a national automaker pays full price for the same slot. The dealership’s ad gets bumped, but the station offers a makegood during late-night hours.
Calculation of Effective Cost
If the makegood slot’s fair market value is $1,200, the dealership’s net loss is:
\text{Net Loss} = 2,000 - 1,200 = \$800Despite the loss, the initial exposure may still justify the expense.
Comparison: Pre-empt vs. Guaranteed Spots
| Feature | Pre-empt Spots | Guaranteed Spots |
|---|---|---|
| Cost | Lower (30-50% off) | Full price |
| Air-Time Certainty | No | Yes |
| Flexibility | High | Low |
| Best For | Testing, budget ads | Critical campaigns |
Industry Trends Affecting Pre-empt Spots
Rise of Programmatic Buying
Automated ad buying reduces pre-empt inventory as algorithms prioritize guaranteed placements.
Political Advertising Surges
Election years see heavy pre-empting due to inflated ad demand.
Shift to Streaming
Traditional TV pre-empt spots face competition from digital alternatives.
Conclusion
Pre-empt spots offer a high-risk, high-reward proposition. While they provide cost savings, the lack of certainty makes them unsuitable for time-sensitive campaigns. As someone who has negotiated countless media buys, I suggest using them strategically—paired with guaranteed placements or as a testing mechanism. By understanding their mechanics, advertisers can make informed decisions that align with their goals and budgets.
