(By Marc Greenspan) Like many industries, radio is going through a tremendous transition. People have a vast number of options for their audio entertainment. This gives radio station management opportunities to increase their top line by focusing on new revenue opportunities. A few areas for revenue opportunities include: streaming audio, podcasting, digital advertising, new NTR, and using attribution as a revenue source.
Few people will argue that it is important to spend time and resources on these new opportunities. As a sales rep, or even a local sales manager, it comes down to focus and time. As you dedicate limited resources, it is imperative not to ignore radio’s chief source of revenue – selling broadcast commercials.
As we start a new year, management and local sellers need to ask the question, “What am I doing to grow my spot business?” It comes down to the basic blocking and tackling of radio sales. Without these basics, it will be difficult to support any of these future initiatives.
What are some of those basic blocking and tackling strategies?
- Scouring qualitative sources (like Scarborough and The Media Audit) to find potential new advertisers that are ideal for your radio station
- Communicating frequently with your existing advertisers about their needs and making sure they are satisfied with their advertising investment
- Regularly promoting broadcast audio as a vibrant entertainment choice that is still effective at moving products and services
- Making sure your radio station is recognized as a part of the community
Do you or your station have the focus and tools in place to grow your base? Without concerted effort and proper attention, this base of your station’s financial success will not grow. Most likely, it will shrink.
Please understand that new initiatives are important for the long-term success of our industry. Resources at the local station level can be very limited. Therefore, the important question is how you allocate those resources (which includes your time) to maximize your success in 2023 and beyond. Focusing on your spot radio core business needs to be a priority. Without securing this base, the other initiatives will not have the resources they need to succeed.
This column is part of a series titled “Growing the Radio Pie.” To view past articles, visit The Ratings Experts at Research Director, Inc. online here.
Marc Greenspan is CEO and a founding partner of Research Director, Inc. He can be reached at 410-295-6619 x11 or by email at [email protected]. Research Director, Inc. offers consulting services to media companies to help them grow their audience/ratings and their revenue.