Company executives told investors and analysts on their earnings call Tuesday that Townsquare Interactive was a suggestion from an employee at one of the company’s radio stations in St. Cloud, Minnesota. That idea has resulted in a division that now generates $100 million in revenue for the company.
Here’s how the story goes. While the employee was calling on clients, it was discovered that the client — and many clients — did not have websites they felt comfortable advertising about. Nor did they have the means to create the websites. Townsquare owns radio stations in a lot of small markets. When the seller came back to the company, and told them about the issues local advertisers were facing, a suggestion was made that Townsquare get into the business of creating digital storefronts for their radio customers. Radio clients were pitched first, and they were taken care of. However, the company now creates and hosts websites for 12,400 local businesses across the country. They charge the client $300 per month for the service, which has generated $100 million in revenue for the company. And it all started with an idea from one small market employee — and a corporate office that listened and executed.
