Guaranteed Traffic

Written by Patricia Tunstall
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Guaranteed traffic is a boon to businesses that are not heavily capitalized or must follow a strict budget. These circumstances usually preclude much advertising other than flyers and small newspaper ads because other media are too expensive. With pay per lead, a business operating on a shoestring might be able to air a commercial on radio or television.

Per inquiry advertising encourages such businesses because they only have to pay for each lead that comes in from the audience for their commercial. There is no airtime charge; the radio or television station guarantees a certain number of leads, and if that guaranteed traffic falls short, you get a refund of a pro-rated part of the advertising agency's commission. This is what lowers the usual costs of media advertising, and this is what lowers the risk inherent in such advertising--for any business.

Prepaid Advertising

The client-advertiser prepays the advertising agency, which prepays the radio or TV station. If the number of leads does not come up to the specified number, these prepayments are not refundable. The agency that has probably produced the commercial and has certainly handled all media relations backs its work by putting its commission on the line.

This guaranteed traffic applies to radio and television commercials only. Internet advertising is not guaranteed at this time because of the different structure of the Internet compared to other media. There is, for instance, no "media relations" officer for the Internet, whereas, radio and TV stations have a manager whose job it is to deal with those wanting per inquiry advertising.

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