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Sports Rap Radio?

SirRoxalot said:
Better yet, the profits are going back into the local economy, not into debt service.
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The people who work for the local stations for the most part live in Buffalo, and pay taxes in Buffalo. If the stations weren't profitable, they'd hire fewer local people. The stations also help a number of local charities. They generate money for the local economy as much as any business that isn't based in the area. That would include WalMart, Home Depot, and McDonalds. Certainly a part of the money also goes to the owner. But Buddy has said he didn't pay cash for WECK, so he is also paying down debt.
 
TheBigA said:
The issue isn't whether or not older people spend more money. That's NEVER been the issue in the hundreds of times this has been brought up. The issue is WHAT do they spend it on, and how do the advertisers choose to reach them.

You can see what they buy by watching cable TV channels aiming at that demo. They buy various drugs and medical devices, insurance, bathroom and kitchen remodels, financial planning, and other major expenses. The advertisers of those products need more time to sell those products than typical :30 spots. That's why when they buy radio, they use infomercials. They also feel they need the visual of TV to sell their products. As one marketing exec said to me, ''They can't buy it if they can't see it.'' Customers in that demographic are a much harder sell. They've heard it all before, and they know what they want. They don't want to be SOLD something. The whole process of selling products is harder when dealing with this demographic.

So it takes more time, and more time costs more money. Radio isn't seen as the most efficient way to sell. They prefer TV, print, and direct sales. The environment for the advertising also is important. When advertisers want to reach this demo, they prefer talk programming. That way they can explain their products better, and do it with the detail required. The drugs usually have long legal disclaimers that would take up all of the selling time of a traditional radio spot. So once again, they prefer infomercials, or appearing as a guest on the talk show, so they aren't limited by selling time.

Radio people know and understand all this. We've heard all of the concerns from the advertisers. This is why you hear infomercials, this is why you hear Buddy Shula hosting these infomercials on his station, because that's what it takes to close those sales for his stations. He has to give them more than traditional :30 spots. It helps that he has access to selling TV spots as well. It helps that he owns his own advertising agency that places those spots. Not everyone wants to go through all the crap Buddy goes through to make a sale. Even then, it's not for as much money as it would be if he was trying to reach women in their 30s. So that's why you hear more radio aiming for that demo than for people over 55.
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And he owns a new digital billboard( the whole structure )that just went up on the 290 right before Deleware exit going north. He is associated with VANN . The guy is obviously smart marketing guy
 
TheBigA said:
The people who work for the local stations for the most part live in Buffalo, and pay taxes in Buffalo. If the stations weren't profitable, they'd hire fewer local people. The stations also help a number of local charities. They generate money for the local economy as much as any business that isn't based in the area. That would include WalMart, Home Depot, and McDonalds. Certainly a part of the money also goes to the owner. But Buddy has said he didn't pay cash for WECK, so he is also paying down debt.
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He paid off that station and its debt by year 2 out of 7 now.
 
RadioGuy1864 said:
Those big stations are part of clusters, so sales revenue can be "moved around" for the benefit of the entire cluster. WECK is a stand-alone.
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Adding what are essentially freebies on an also-ran station doesn't really pump up the revenue much. I understand clustering to get the cost-per-thousand down below the competition but in the end you're just adding clutter and not really making more money.
 
SirRoxalot said:
Adding what are essentially freebies on an also-ran station doesn't really pump up the revenue much. I understand clustering to get the cost-per-thousand down below the competition but in the end you're just adding clutter and not really making more money.
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The other aspect of both WBUF and WLKK is they each air a couple of national shows owned by the owner. So while the station may not deliver a lot in local sales, it does contribute to the national platform, and that makes money for the company. National shows don't work off local ratings but rather markets cleared and total audience. Combine that with online content and podcasting, and it's a different way of selling radio besides just local spots. That would be the case for this sports rap radio format if it were to expand beyond Detroit.
 
TheBigA said:
The other aspect of both WBUF and WLKK is they each air a couple of national shows owned by the owner. So while the station may not deliver a lot in local sales, it does contribute to the national platform, and that makes money for the company. National shows don't work off local ratings but rather markets cleared and total audience. Combine that with online content and podcasting, and it's a different way of selling radio besides just local spots. That would be the case for this sports rap radio format if it were to expand beyond Detroit.
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We've had ample proof that WBUF could be a lot more profitable with better ratings. Of course, that would cost a little more for talent and programming that people actually wanted to hear, but those costs would be more than offset if you tripled their anemic 1.2.
 
To follow up on #20: Let's not forget that Byrnes Communications(who own CFLZ & CJED in the Niagara region)are in an ad sales partnership with WECK.
 
SirRoxalot said:
We've had ample proof that WBUF could be a lot more profitable with better ratings. Of course, that would cost a little more for talent and programming that people actually wanted to hear, but those costs would be more than offset if you tripled their anemic 1.2.
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The ratings were better when they were JACK. No talent at all except for the snarky pre-recorded liners. Town Square has decided it's more important to air a moribund syndicated morning show. That strategy also keeps WBLK and WYRK in the Top 2. Addition by subtraction...
 
SirRoxalot said:
We've had ample proof that WBUF could be a lot more profitable with better ratings. Of course, that would cost a little more for talent and programming that people actually wanted to hear, but those costs would be more than offset if you tripled their anemic 1.2.
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The same company that owns WBUF also owns the top 2 stations in the market, so they obviously know what they're doing.

Not everything a company does is based on local 12+ ratings.
 
Not sure any of you are aware, but no large radio cluster is doing well financially.

Ratings are not an issue anymore as national business has dried up no matter what the ratings are, and local direct accounts don’t care about ratings because everyone has lied and said they are #1. They are no longer trusted

The media landscape is not encouraging. Cumulus just restructured debt to kick the can down the road and protect their high paid c-suite executives at the sacrifice of the rank n file and the product.

All media outside of digital and outdoor have no way forward. Listeners have other options, viewers have other options, readers have other options.

Corporate companies have not been smart operators. They have racked up debt at the expense of stockholders, whose money they play with. On top of bs’ing their stockholders, they have bank debt out of control that can never be paid back, especially with a significant decline in traditional ad revenue. They are keeping everything afloat by paying the interest only payments.

Smart local operators will win it all. Those who have definable differences in ways of doing business. The bigger stations will go to the smaller well-run operators. It may take a few years, but the spiral has been happening for more than a few years.

Small operators will go away too. The ones who are bad operators with no out of the box thinking.

TV and Radio spots are at an all-time low at the most top rated stations. Top ranked radio stations are now charging $15 in prime areas for a 60 sec spot. Top TV stations are charging $25 for top newscasts for 30 sec spots. Do you really think these companies are going to pay back multi millions of dollars by charging hardly anything for their top products?

The best small owner operators are going to get it all.
 
Radiowaves said:
Top ranked radio stations are now charging $15 in prime areas for a 60 sec spot. Top TV stations are charging $25 for top newscasts for 30 sec spots.
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In which market(s)? If the big stations (in whichever market) are doing so badly, why would smaller owner operators be able to afford to or want to buy them, if the overall business is in as much of a downward spiral as you say?
 
Because a smart owner would know how to run them, and would get them at fire sale prices.

Just check the financials of all the major broadcast companies.

I was specifically referring to Rochester and Buffalo, however, I also know what rates have gone down to in NYC . There is no demand for advertising. Spot rates are plummeting. Do the math.

Smart locals will wait and grab, and make a lot of money by doing it right.
 
1270 Detroit's incumbent programming has aired all day. Sports Rap was supposed to debut this morning. There is only one post on the (supposed) new station's twitter page - from April 25. It literally received only 1 like.

Is this project already dead in the water?
 
Radiowaves said:
I was specifically referring to Rochester and Buffalo, however, I also know what rates have gone down to in NYC . There is no demand for advertising. Spot rates are plummeting. Do the math.
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Kind of a broad hyperbolic brush you're painting with there. You are correct that national ads for radio and TV are down. The same could be said for digital/online and social media advertising. This isn't just a radio or TV problem, it's going on everywhere; outdoor, airport, magazines, both paper and online. Advertising is just down.
A TV station in Watertown NY might be getting $25 spot rates, but that's more typical of a local TV station in a +150 market, not with all TV stations.
Radiowaves said:
Smart locals will wait and grab, and make a lot of money by doing it right.
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There are lots of local single radio stations on the block right now. Heck, some one could purchase for the price of a new car. The problem is it doesn't matter what sort of local you are, 'smart' or not. If too much local-direct ad revenue has been pushed out by the likes of Amazon, Home Depot, and Walmart, it doesn't matter if you're the hit of the town. All that means is the community expects you to play their favorite music or entertain them for free.
 
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