Borrell Associates offered a thumbnail sketch of its recently held Local Online Advertising Conference during a Wednesday afternoon webinar. It was clear that radio execs and salesforces not only need to embrace digital as a part of their mix, but digital media marketing strategies as well.
“In the past three years local advertisers have increased the types of media they buy, but have decreased the number of companies they buy from.” Borell says their data has shown them that, “They are migrating to digital and traditional bundles. Ninety percent are buying that way. Print and digital, TV and digital, or radio and digital.”
“Advertisers are ‘over-mediated’,” said Borrell. “What we think is happening is that they are moving to a company that can serve them the right way.”
The webinar offered up some tools, strategies, and metrics that, if adapted properly, can position radio as the medium that can serve advertisers the right way.
Borrell VP Sales Jim Brown had an interesting takeaway from the conference about selling content. “It’s about selling beyond your commodity content and providing context to the advertiser. Knowing and being able to value your audience appropriately takes a sophisticated salesperson to bring that right audience, products, and services together, to solve a marketing need. It takes someone that understands the data.”
Auto is a huge category for radio sales and other platforms. John Fitzpatrick of Force Marketing offered insight into co-op programs. “Ninety to 95 percent of an auto dealer’s marketing and advertising budget is typically focused on new car sales, while only about five percent of their profits come from new car sales.” Fitzpatrick has discovered a change in new car advertising. “What I am seeing is dealers pulling back on new car advertising focus. They are focusing on what they are doing with certified pre-owned cars where the profit margin is larger. Also they are focusing on service.” Fitzpatrick believes that is what salespeople should be talking to car dealerships about.
A question about price competition rounded out the webinar. Borell said what they are seeing is that those that are successful have a higher price point. “It’s not the cheapest or lowest price point, it is whether you can service and produce quality advertisements that can deliver customers.”
Brown added, “Don’t underestimate how important saving them time is to that equation. Their willingness to pay a little more for somebody who makes something turnkey for them is really important, and you can’t do that unless you bring a pretty full solution to the table. I think that commands a higher price. You don’t want to compete just on price, so I think if you sell on a high value and keep in mind saving time. That’s a pretty winning combination.”