During the past several days, we’d had a wide open discussion about the current state of radio sales, and the opportunities that stations have to rethink the “givens.”
The Magid infographic from Tuesday provided data that backs up a lot of what Bob Pittman was talking about at The Radio Show – that radio is very much a vital part of Americans’ lives.
And yet, radio is not growing its slice of the “revenue pie,” and at the rate we’re going, the industry may be moving in the opposite direction.
When you think about it, how many unique advertisers are on your station across a typical week? 100? 150? Or even less?
And yet, as you drive your market, there are thousands of businesses out there that depend on customers walking into their stores, calling their phone numbers, or visiting them online.
Why, then, does radio continue to call on the same finite numbers of clients and companies? Because that’s the way it’s always been done, as account lists have been handed down from one rep to another over years of same-old selling.
Maybe the way to expand the pie is to bake new pies. That is, develop different revenue streams that leverage the brand, generate dollars, and connect consumers with businesses or your station in general.
The most successful companies have figured out how to create a scalable business – the ability to create a product and generate revenue while they sleep. Unfortunately, there is no scalability selling :60s and :30s – we just write up the orders one at a time. And when the schedule is done, we try to sell them again. Not very scalable. So while we cannot get away from our core business – selling spots – the realities and the opportunities of our times compel us to think about other avenues – or pies – to go after.
In that spirit, here are three ways that radio stations could add to their bottom lines without touching the almighty inventory…much.
1. Get Serious About Couponing. There’s no question that Groupon has hit a speed bump. If radio’s corporate sales teams and local DOS’s truly went to school on Groupon, they’d discover numerous “holes” in their system – copywriting, not knowing when the deal goes live, and poor targeting. And the list goes on.
We’ve talked about this in our blog before – radio has a golden opportunity to be locally viable in this space. Stations and clusters have the ability to target deals to respective audiences in a way that is far superior to Groupon. But it’s going to take a concerted effort that goes beyond using the reps who sell :30s and :60s. This is a way for local radio to truly go after “windshield businesses” in the community, using our air, local know-how, and database targeting – all advantages over Groupon.
There are some broadcasters that are well on the way to pulling this off. Others are getting closer. But a surprising number are still eschewing couponing as a fad when, in fact, Americans haven’t been this focused on saving money and getting deals since the Great Depression.
2. Initiate merchandising programs. We have also discussed this opportunity in this blog – an area where radio has dropped the ball. More than ever, consumers want to display their favorite brands. And the Internet makes it possible to put together logoware programs that can add to your bottom line, while virally promoting your brand and iconic station events.
That’s because of POD – Print On Demand providers that can take any creative you devise and put out the number of items you need – from a single hat to 1,000 of them. So, no risk, no outlay, no fulfillment, no inventory, and limited competition – because hardly anyone in radio is doing it.
You’re not going to get rich from this (unless you’re a monster brand and you’re highly motivated), but you will make money, you’ll have something to talk about this Christmas, and you just might hit on a shirt or piece of merch that goes viral and provides you with a level of street promotion that most stations haven’t seen in years.
Our Tim Davis will have a how-to memo on this next week for Jacobs clients, but with a little digging, any station can pursue this slice of the “pie.”
3. Event marketing works. Now I know what you’re thinking – we’ve done this, or we’re doing this, or it’s risky. And yet, a strong station that knows its audience can leverage its cume, its equity, its personality, and its local market presence to make good money in this space.
There are lots of different stories here. At The Radio Show, Mike Henry talked about Ed Levine’s western New York stations that have cultivated and owned this turf for many years. A significant part of Galaxy’s cash flow comes from their skill at event marketing.
Scott Segelbaum’s “Rock Art Show” is one of many branded, event-in-a-box concepts that is a money maker for stations. And of course, there are concerts, swap meets, male expos, and any number of events that generate money, as well as become a positive event for the programming side of the station.
From our vantage point, we are amazed by some incredible station brands that are perennial ratings winners that simply give away money to concert promoters and other entities by not taking some risks and participating as more active players.
Part of the advantage of having a big cume, great DJs, time in grade, a huge database, a social media presence, and audience trust is so you can pull off events, give your audience a great time, and make lots of money.
I’ll bet there are other pies that I’ve missed here, and I’m hoping you’ll tell me about them. Radio has an incredible opportunity to try new ways to use its great brands to benefit customers, consumers, and its own bottom line.
But it will require some research, a lot of listening, some risk-taking, and smart strategic planning to make these “new pie” initiatives work.
We have the ingredients. It’s just a matter of stirring the pot and starting the baking.
It smells good from here.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
- Radio + Thanksgiving = Gratitude - November 27, 2024
- Is It Quittin’ Time For SiriusXM? - November 26, 2024
- Radio, It Oughta Be A Crime - November 25, 2024
It took us a little time to really figure it out and we are still learning, but executing an effective discounting platform is a natural for radio. Here at Entercom Madison we have found it to not only be a great way of generating revenue, but it is also something in which our audiences have significant interest. If you have an good sales effort and an engaged programming team it will make a significant and positive impact on your operation.
David Moore
Operations Manager
Entercom Madison
demoore@entercom.com
Thanks for chiming in, Dave. Entercom is one of the companies that has led the way with its “perks” program. Great to hear a testimonial from a broadcaster who’s making it work.