In our continuing theme devoted to redefining and rethinking radio sales, let’s take a look at an area that may lose me a friend or two – the concept of the Director of Sales. Now I’m not suggesting that all those DOS’s aren’t doing their jobs. In fact, most are dedicated, hard-working former sales reps and sales managers who are trying mightily to generate revenue during a difficult time.
While this position made a great deal of sense during the heady days of consolidation, the fact is that many of the qualities that defined a successful DOS a decade ago are out of date. Oftentimes, most of these managers are managing inventory rather than developing a strategy.
And if radio is to survive and prosper by further developing its brands as successful content outlets that provide value for advertisers in a changing media world, the DOS role requires some rethinking.
Yes, cranking revenue by selling ads is at the heart of this job. But so is seeing and acting upon that bigger picture – leveraging great radio brands on a variety of integrated platforms that allow clients to effectively reach and benefit from our audiences. And creatively packaging some of the new and exciting assets that programmers and talent are developing that reach consumers on different screens and on new platforms. In the process of crafting multi-media campaigns, listeners benefit, too, because a newly defined DOSS – Director of Sales Strategies – should also have the ability to better connect consumers with clients, thus solving a myriad of problems.
One reason for the failure of radio sales staffs to capitalize on digital outlets is an absence of vision, born out of a glaring lack of research because data helps define new strategies. Programmers have been used to seeing their radio brands under the analytical microscope for years, learning more about their brands and how listeners interact with them. As difficult as this process can be, it often leads to more successful, more popular stations, and ultimately more powerful, durable brands.
But in sales, research is not even an afterthought. Instead, the focus is more on tactics rather than developing the strategic thinking that can truly lead to new opportunities and revenue streams. We’ll be talking about some of these opportunities in the days ahead, but their emergence and development can only occur when there’s a Director of Sales Strategies at the helm – not just designing new rate cards, not just analyzing Miller Kaplan reports, and not just planning the first quarter sales trip.
To lay the blame at the feet of the DOS or even the GSM isn’t fair. Because the disconnect often occurs a rung or two above. If radio’s CEOs aren’t asking questions about how revenue might be generated differently, local managers will continue behaviors that have been learned and sanctioned for years.
Until radio treats its sales departments with the same type of strategic-based approach it has traditionally reserved for its on-air product, the false starts, bad habits, lame tactics, and lost opportunities will continue. And in the meantime, that revenue pie will continue to shrink.
Who wants to be the first true DOSS in radio?
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.
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This is a great column, but the premise is hard to execute in today’s environment. If you combine two (really good) points here you can see how the typical DOS may limited in their real strategic options: “leveraging…on a variety of integrated platforms” and “Programmers have been used to seeing their radio brands under the analytical microscope for years”. If you place radio’s typical “integrated platform” “under the analytical microscope” you’ll find that there isn’t much there. And you’re right, the real issue is several levels above the DOS.
I’ve been out of radio’s line of fire for a long time, but I’d be willing to bet that despite the lack of real substance or audience in radio’s digital platform, most DOS comp plans include ensuring that a certain percentage of revenue is under the digital banner. Because there is little media value to those digital assets, a big part of the DOS’ job is to do what we used to call moving money around. In practical terms, this means assigning a rate to the digital media and discounting or bonusing the terrestrial spots.
The net effect is that no incremental revenue is generated, while sales and sales management time that could be spent on the kind of productive strategy you suggest is devoted to moving money around so that radio can continue to report to Wall Street that their digital assets are growing faster than their terrestrial ones.
I wonder if there are any working DOS’ that could anonymously shed some light on this.
You raise some real practical concerns and yes, it always comes down to compensation, incentives, what’s doable, and where the future lies. We KNOW where the puck is going. The question is whether we’re goiing to make the short and long-term investments to get there. Or have it pass us by. And i would LOVE to hear from a current DOS about what’s really happening in the trenches. Thanks as always, Bob.
Great string Fred… “how revenue might be generated differently” is the key, and it’s not about abandoning core “radio” business. Having had the good fortune to be around “crowd-sourcing”, customer management system software, and some smart brand extension platforms, there is business, revenue, and opportunity that is totally outside “spot” strategy; and doesn’t just “move money”. The audience/customers around these platforms are targeted and valuable, and enable innovative strategies to be developed that equally engage sales, programming, and marketing. The data/metrics these platforms generate are distinct from Arbitron PPM etc, but give separate and new insight into audience dynamics, habits, and patterns that are both comparative and complementary. Most importantly these platforms have real currency when the conversations begin at digital agency, agency, and brand/corporates.
Looking forward to your commentary coming up on these opportunities.
Thanks, Lee. We’re tracking well and you’ve written a great tease for tomorrow’s post. Yes, spot radio business is still the meat & potatoes, but radio is in need of “side dishes” that can be additive to the total package. I always appreciate your thoughts.
Hi Fred –
This discussion is critical to the present and future viability of this platform. The premise you stated in short is – “if radio is to survive and prosper by further developing its brands as successful content outlets that provide value for advertisers in a changing media world, the DOS role requires some rethinking”.
It’s time to change the paradigm. The present and future is “obsessing about providing value for the listener, who is the customer/consumer of the local business/advertiser”.
Radio has made its living by selling or renting our audience to the advertiser in bulk. Those days of low hanging fruit are vanishing quicker than broadcasters have other revenue streams to take its place. Seth Godin said it best earlier today and has really been saying it for years now. He said “It’s the end of mass. If you need the masses to buy you will feel pain… selling to the masses is getting harder and harder and less effective every day”.
As an industry we must stop being a middleman and selling our audience to business as if we owned them. Understand that random commercials on the radio is not a growth industry. New paradigm – “partner with business and serve the audience then share in any transaction”. Internet businesses are targeting our listeners on a personal basis with products, services and experiences that are personally relevant and in a context as to why you would care. Why aren’t broadcasters defending against this new challenger? In fact why aren’t we partnering with digital businesses our audience is into?
Remember the marketing model? It was the basis for building many of the greatest radio stations in the world. As researchers, we uncovered the programming attributes of importance as well as identifying their favorite songs and created programming strategies with ratings in mind that resulted in top Arbitron rated stations. Today we need to use the same tools to develop strategies with revenue in mind and it’s done through continuously researching listener’s lives. The missing element is being able to share targeted products, services and experiences with our unique listeners based on their input.
Imagine if the focus was on making the second biggest reason people tune away from a station (after a bad song) a reason to tune in. What if when the music stopped…we didn’t sell stuff but shared content that was targeted to the lifestyle of the listener. What if this content was treated with the same importance as the rest of the programming so there was always entertainment, information or problem solving that mattered to me personally? Advertising has always been the necessary interruption to pay the bills. What if we actually chose our local business partners (advertisers) based on listener wants and needs and not because business wanted access to our listeners?
The marketing model also works here. It’s time to revive a tried and true method to success. A radio station that provides entertaining, inspiring and informative content with a path to easily find and complete a transaction for the best products or services and you share in the outcome is the business model that serves everyone’s purpose.
Internet businesses are way ahead of us here because they are serving the user while broadcasters keep value selling the advertiser at listener’s expense. Stop giving your DOS things to sell. It’s time to give them strategies to create relevant partnerships.
Really love your take on this, Mike. Thanks for adding a thoughtful perspective to the conversation. I would love to hear from others about Mike’s comments. We’re taking the day off from our “Sales Week” to honor Steve Jobs. Back with more tomorrow.