How to negotiate advertising rates as a small business

Key takeaways

To negotiate advertising rates, treat the rate card as an opening offer. Media space is perishable: an unsold page or slot is worth nothing after the deadline. A small business that asks, compares and is willing to wait can usually improve the price or the package.

• The rate card is where the conversation starts.
• Ask for extras if the price will not move.
• Late and off-peak space is often discounted.
• Never agree on the first call.

Why are advertising rates negotiable?

Advertising rates are negotiable because the product expires. Once an issue goes to print or a week of airtime passes, unsold space earns nothing. Sales teams have targets and discretion. The published rate card is the highest price they hope to achieve, not the price most advertisers pay.

• Social media marketing vs traditional advertising: what works better for SMEs?
• What is traditional advertising? A plain guide for small firms

What should you find out before you talk price?

Find out what you are buying before you discuss what it costs. Ask for the audience in your area, who measured it, the booking deadline and what other advertisers like you have experienced.

• Audience figures for your postcodes.
• The source of those figures.
• Deadlines for booking and artwork.
• A reference from a similar advertiser.

• CPM explained: comparing the cost of reaching 1,000 people
• How much does advertising cost a UK small business?

What can you ask for besides a lower price?

If the price will not move, ask for more value at the same price. Sellers often have more freedom to add than to discount.

• A better position or time of day.
• An extra insertion or bonus spots.
• Free artwork or production.
• A feature, listing or social media mention.
• A shorter commitment or a break clause.

• The hidden costs of traditional advertising

How does timing help?

Timing helps because sellers discount what they fear will go unsold. Space close to deadline, quiet months such as January and August, and off-peak slots are all cheaper. Tell the seller you are happy to be called when late space is available, and have artwork ready.

• Seasonal advertising: timing spend across channels

What should you say on the call?

Be polite, specific and unhurried. Three sentences do most of the work.

• 'I am comparing this with two other options.'
• 'What can you do on a three-issue test?'
• 'I will decide on Friday once I have the other quotes.'

Which contract terms matter most?

The terms that matter most are length, renewal and cancellation. Avoid automatic renewal, or note the notice date. Ask for a short test before any series. Get every promise in writing, including position and bonus space. A business generally has fewer cancellation rights than a consumer, so do not rely on changing your mind.

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How do you use social media as a benchmark?

Use social media as your walk-away option. Paid social can be tested from £300–£500 a month with no contract. Knowing what an enquiry costs you there gives you a figure to hold any traditional quote against, and saying so in the conversation is fair.

• Cost per lead by channel: comparing social media and offline
• The minimum budget to test an advertising channel properly

When should you not push on price?

Do not push on price when the medium is clearly right and demand is high, such as a sold-out village magazine. Do not accept a bargain for the wrong audience either. A 50% discount on an advert that reaches nobody you serve is still money lost.

• The advertising channel scorecard: pick where to spend

What does this look like in practice?

A pattern we see with small advertisers: the first figure quoted is accepted because asking for less feels awkward. Sellers expect the question. Owners who ask for a short test at a reduced rate, in writing, nearly always get something, even if only an extra insertion.

• See client work
• Social Media Marketing for UK businesses

Next step

Before your next booking, get two alternative quotes and decide the most you will pay per enquiry. Then make the call.