For the next several weeks we’ll hear exactly how radio’s public companies performed in the third quarter, as they report earnings. We also like to check in with companies who have smaller groups, operate in medium and smaller markets, or simply do not report to Wall Street. Ben Downs is responsible for 10 stations in Texas for Bryan Broadcasting, where he’s been for 26 years as Vice President and General Manager. Here’s how Ben and his team are doing in the state of Texas.
Radio Ink: What is the economy like in your markets and are you bringing in new advertisers?
Ben Downs: Here in Texas, we hope you’re enjoying your $2-a-gallon gasoline. When the price of oil drops as precipitously as it did last year, the retail community takes a substantial hit. When a drilling rig shuts down it’s like a business closing and hundreds have quit drilling in the past year.
Radio Ink: How have you done sales-wise through the first three quarters?
Ben Downs: As I expect many managers will tell you, an economy that takes that sort of hit will make flat, the new “up,” and we’re working with that now. Our new stations are showing modest growth while our mature stations are holding flat. That’s all well and good, but if your budget failed to take into account “rig counts” you don’t look like the smartest guy in the room.
Radio Ink: What categories are strongest? Which are the weakest? Any surprises?
Ben Downs: Car business is very strong for us. However, our student housing category is moving to digital. We’re in the market with 60,000 students attending Texas A&M and we’re being tasked with ways to combine our traditional media with Internet marketing. If we don’t include digital in some form, we stand to lose the business.
Radio Ink: How are you doing with political and do you believe the industry is going to be disappointed with political revenue when election day finally arrives?
Ben Downs: Political is for local races only. Texas remains a dark red state and is seldom fought over at the national level. When the primary season is over, we pretty much know who the winners are. But as far as local races go, we’re receiving excellent buys and our News/Talk properties have been used as a primary medium to reach voters.
Radio Ink: What would you say the radio industry needs to do better?
Ben Downs: As an industry, we have ways to integrate a digital component into every over-the-air buy; either through our own efforts or through a third-party white-box solution. And we have to do this. There’s not enough money involved to sell digital as a standalone product at the local level, but in conjunction with our regular advertising, we will earn incremental dollars while providing the clients what they’re asking for. We don’t just need to do this better… we must do this better; and we must offer it every time.
Radio Ink: Are you optimistic about 2017 or will it be another flat year for radio?
Ben Downs: I think we’ll be working our way out of this gentle slump for most of 2017. Outside of our specific Texan concerns, the national small business retail base has a lot hitting it right now. Health insurance and the new Department of Labor rules are throwing shade on the enjoyment of running a business. And when our advertisers aren’t in a positive mood, they seldom look to advertising as a way to feel better about their future. But, there’s nothing to do but work through it.
Reach out to Ben by e-mail at [email protected]
At Radio Ink’s Forecast 2017 we have a panel called Independent and Optimistic: Why Smaller Can Be Better — and More Profitable. That panel will include Moderator: Kevin Garrity, CEO of Gen Media Partners, John Caracciolo, President/CEO, JVC Broadcasting, Ed Levine, President/CEO, Galaxy Communications, and Norberto Sanchez, Chairman/CEO, Norsan Group. See the entire agenda HERE. Register HERE
