Radio Leaves Money On the Table
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Thread: Radio Leaves Money On the Table

  1. #1

    Radio Leaves Money On the Table

    Yes, here it is. Proof that radio companies are leaving money on the table. I've been saying this for years, and now we have actual statistics. Radio companies are not taking advantage of their incredible local branding by selling digital with broadcast. The reason it happens from what I can see is radio companies have put their digital platform under a different department from broadcast. Sometimes it's under technology, sometimes it's under marketing, but it's usually not included in the same food chain with broadcast. So the sales rep who is pitching the station to an advertiser doesn't mention web ads or podcasts or anything else because they only sell spots. Big mistake. Radio stations need to read this article, and then realign their departments so digital is part of the plan.

    http://radioink.com/2017/05/18/hes-j...tal-baby-ugly/

  2. #2
    TheBigA-- I agree with you. Would like to see the article, but the link you listed is bad..

  3. #3
    Looks like they changed the location. Here's another link:

    http://radioink.com/2017/05/19/hes-j...tal-baby-ugly/

  4. #4
    The new link works. Good article, Thanks.. I completely agree with your assertion and really can't add anything..

  5. #5
    "So the sales rep who is pitching the station to an advertiser doesn't mention web ads or podcasts or anything else because they only sell spots. "
    Interesting. My experience was different. We were selling spots and digital but the pressure was to discount (or give away) digital in exchange for a radio or TV buy. Then when there was a separate team for broadcast and digital the company wouldn't share knowledge between the two teams. That's the way I would go. I would have separate sales teams but shared CRM data with incentives to both teams to sell both sides. I'm out of radio and running my own digital ad business. I gave up on broadcast companies ever getting it right.

  6. #6
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    Quote Originally Posted by SaltyDog View Post
    "So the sales rep who is pitching the station to an advertiser doesn't mention web ads or podcasts or anything else because they only sell spots. "
    Interesting. My experience was different. We were selling spots and digital but the pressure was to discount (or give away) digital in exchange for a radio or TV buy. Then when there was a separate team for broadcast and digital the company wouldn't share knowledge between the two teams. That's the way I would go. I would have separate sales teams but shared CRM data with incentives to both teams to sell both sides. I'm out of radio and running my own digital ad business. I gave up on broadcast companies ever getting it right.
    The whole problem is that radio uses too many internal standards and practices.

    The advertiser does not want over the air radio, streaming, clicks and page views. They want sales.

    Broadcast companies that understand that they are not selling a platform but a way to reach consumers will develop options for advertisers to reach those consumers with specific blends of different over the air and digital delivery products.
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  7. #7
    Quote Originally Posted by SaltyDog View Post
    I would have separate sales teams but shared CRM data with incentives to both teams to sell both sides.
    My take is it's confusing for the client. They have to get two meetings for the same company, pay two bills, and potentially play one side against the other. What's wrong with training one salesman in two products? How hard is that? We need to find a way to simplify this for the client, and get them what they want in an easy package. We always hear that selling is about relationships. That means it's not about on-air vs online. It's about both. We need to start thinking this way. PDs need to think about integrated brand presentation. A way to continue engaging audiences 24/7 on multiple platforms. It's not that hard. Save all the technical stuff for the office folks to figure out. The salesman just needs a good product to sell.

  8. #8
    "My take is it's confusing for the client. They have to get two meetings for the same company.."
    They deal with two companies now. I worked for a national company that had its own digital brand and my customers were for the most part completely unaware that our company also owned the local TV station (but it applies to radio too.) You can train one salesman in two products but in my experience the customer can't see one person as an expert in both. I can appreciate your different point-of-view but another time I also ran a radio sales team selling both products and every market in our company did it this way. It didn't work.
    Last edited by SaltyDog; 05-28-2017 at 09:58 PM.

  9. #9
    Quote Originally Posted by SaltyDog View Post
    It didn't work.

    According to the article, having two teams isn't working either. Part of the problem is the digital products sell for about 10 or 20% of the price of on-air. So the commissions are smaller. Smaller commissions aren't attractive to killer sales people. So you end up getting one guy selling part time. Not very effective. And he doesn't have the contacts the on-air guy has.

    The bigger problem to me is radio companies for the most part aren't building digital platforms at all. They're just selling ads on web sites, and that's not very challenging. Pre-rolls on podcasts? Also not very challenging. These companies have the content, but can only see one use for it: On-air. So we have maybe two companies that understand the situation: iHeart and Townsquare. That's a fraction of the radio stations in the country. Everybody else is treating digital like a stepchild. Maybe that's why you gave up on broadcast companies. I see what you mean.

  10. #10
    Maybe we're both making an erroneous assumption that it CAN work. Maybe digital is such a different business that it really represents diversification and not growth. I remember when the Mays Family still owned Clear Channel, they touted the creativity of a GM who was hitting his NTR budget by growing and selling Christmas trees on the the station's very large property. It was great but it wasn't adding to the radio business, he had diversified into an entirely different business.

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