Atlanta Radio, Really

[davideduardo]

My question was, WHY doesn't it sell anymore? Is it JUST because the target demo has aged out, is it because the format has gone out of style,

Both. If you look at the once-viable formats, you see that ones like classical, smooth jazz, beautiful music, 60's oldies and soft AC aged out of the demographics advertisers want. And a good example of aging and "out of style" is Beautiful Music which reflected the declining interest in instrumental music which was also seen in the lack of new recordings.

or is it (as I am hypothesizing) there are now MANY more options for listening to those formats that appeal to marginally-profitable demos, perhaps pushing these marginally-profitable stations upside-down?

Those "marginally profitable" demos are actually "unprofitable demos" such as teens and 55 and over. It's not that the listeners went away, it's that revenue stopped being available after those listeners got above a certain age.

As an aside, smooth jazz went away because PPMs were not friendly to "environmental" formats, also including soft AC (and what was left of BM/EZ), which killed the ratings and thus the salability of that format. Doesn't change the end result but it's not a result of the demo aging out or any of the other usual suspects.

Beautiful Music died in the mid to late 80's. The issues, as I just said, were aging of the listeners and the passing from style of contemporary instrumental music.

Smooth Jazz was already aging before the 2008-2010 roll out of the PPM. Doing a straight line analysis, it would have been gone in just a few years without the PPM... just as diary market proponents of the format dropped it over the same time span. An example would be the Smooth Jazz station in Palm Springs, CA, a diary market where the station was declining until they switched a number of years ago. And that was a market where local accounts do value 55-64 but even then the stations numbers died, and so did response to ads.

The PPM did not kill environmental formats. All it did was show that some formats that had low cume and high TSL benefited from diarykeepers who wrote down long, interrupted listening spans. The truth is that such listening turned out to be much less, with lots of interruptions, in the PPM which only measures TSL and cume and not memory.

Softer AC died due to aging and the preference of under-55 listeners for brighter tempo music. It had nothing the do with the PPM. In fact, such stations like WDUV in the Tampa market moved into the PPM era with nearly identical shares... but the station aged so much over a period of years that they had to update it about year or so ago and make it much more contemporary: not the PPM, just the changing of tastes and the aging and death of listeners.

 

[TheBigA]

And a good example of aging and "out of style" is Beautiful Music which reflected the declining interest in instrumental music which was also seen in the lack of new recordings.

And yet, at the moment when Beautiful Music stations were flipping to other formats, they were still getting good ratings. The audience was there, just that advertisers no longer wanted to reach them. There are audiences for all kinds of music. But someone has to pay for it.

 

[Tibbs4]

BigA - You know, generally, I love you. I often agree and respect your take on radio, especially from the inside/corporate anal-ogy. I get it. I have been there and there is everywhere and no where at the same time. Allow me to, as always, laugh with you (and in this case David's "re-search") about Hippie. Where do I start with the REAL facts?

1.) Signal is surely a few miles west of Nashville. Less than probably a dozen miles. She's indeed a feisty move-in from Lobelville, way west of the city, downsized to protect the contours. We call it downsizing if it's a house. Now, since it's a waste of money to broadcast to cows in la-la land and avoid similar million dollars losses like I Heart and Crums have perfected with such brilliant programing and management strategeez since they paid for de-reg to ruin them, and since Hippie is only "hobby" and no one listens, why pay a crazy power bill anyway? Plus, there was a nifty new little antenna system that was just installed this past bright and sunny Sunday (what idiot would spend $ on that if it was a profitless hobby? I must know of one???) Signal is incredible for what it is, given the hills and low tower height. Lord knows, how could Mr. Hobby pay for such a great optimization of a signal for his toy, since he can't pay the water bill on this toilet. Yes, there are a few rough spots in the signal, just like some of the 100kwers somehow have, but it covers most, if in ALL of Davidson County very nicely. Davidson, max100 and others who may not know Nashville, is the actual county where the downtown and about 650,000 people (all under 40 and listening only to I Heart) reside and it's a pretty large area, 533 square miles, if my memory from third grade is correct. Hippie also covers the surrounding "better populated" counties (about another 300k that can see the blinking little tower light if they look.) Because I try to be fair, the signal has some fading toward the east to protect 94.7 about 90 miles away. Thankfully, that area is more rural. Wavo - you have some facts correct. Rimshot is not exactly correct, but closer than translator. BigA? Really? LOL. How many stations that are 6kw, 12.5kw (Hippie's ERP), etc are translators? If you were to actually scan on a dial you will find Hippie is thicker and rounder than some stations like 96.3's in-town signal and it even penetrates a Waffle House better. And offices and homes, too. I won't discuss revenues, but let's just say you are right. It's a five year old hobby that is a train wreck of a financial pit. I have told you both this before. Your "research" always proves everyone is wrong except you, but now the people pumping out the "research" you claim on revs haven't called to ask if their numbers are right, have they?

Max - thanks for trying to post something positive. It's just a little radio station with a great group of honest people trying to do something REAL in a pretty bland radio world. (Ask me how I feel about the lame Nashville dial now compared to a few years ago.) If any one were to actually answer the only question that matters --- video didn't kill the radio stars....the tools on the inside of your radio did. They just can't tell you that cause they are highly trained professionals who never actually get to know their true customers. Customers>Listeners (buyers) and local businesses> (also buyers.)

 

[davideduardo]

Max - thanks for trying to post something positive. It's just a little radio station with a great group of honest people trying to do something REAL in a pretty bland radio world. (Ask me how I feel about the lame Nashville dial now compared to a few years ago.) If any one were to actually answer the only question that matters --- video didn't kill the radio stars....the tools on the inside of your radio did. They just can't tell you that cause they are highly trained professionals who never actually get to know their true customers. Customers>Listeners (buyers) and local businesses> (also buyers.)

The station has a usable 65 dbu signal that covers 234,000 persons. A longley-rice map looks even worse. This would be the limits of the indoor listening. The 60 dbu, good for car reception, covers 490,000. So it covers just about 15% of the MSA with that 65 dbu signal. And it just gets about a third of the market for car reception. The facility is 5,100 watts at 351 feet. It is a Class A, generally good for about 16 of good service miles around the tower, not for a whole metro.

It bills about $225,000 a year, or around $18,000 a month. That will pay the utilities and taxes and some low salaries.

I have no reason to doubt that the staff is dedicated, but they sure are not making much if the whole station just bills under $20 k a month. But that is the kind of billing you'd expect on a 1 share station mostly made up of seniors and not covering anywhere near the whole metro well.

 

[max100]

Really mature. Grow up. Nobody fires me.

LMAO> oh WOW that is mature too. I don't know who you are and I could care less. But you know damn good and well that radio is suffering not just here, but in every market in this country because of people like you. You might not get fired, but you will certainly be dissolved one day when terrestial radio completely dries up,, and those days are not far off. Maybe you can drive for Uber or Lyft.

 

[joebtsflk1]

I felt my dad's pain when his favorite BM, rather Beautiful Music station flipped in the early 80s. It's our turn now as we age out of radio's demo. Radio sucks today not because it doesn't play the music I like, rather it's the uninspired presentation, the 6 minute stop sets, the insanely overcompressed music that's damaged goods even before it hits a station's audio chain. Radio WAS better 30 years ago. If the standards of presentation, the respect for the audience and the advertiser we had back then were to be coupled with a modern music format that appealed to a demo somewhere under 50, you'd have a very successful station IF you have a decent signal.

 

[TheBigA]

Lord knows, how could Mr. Hobby pay for such a great optimization of a signal for his toy, since he can't pay the water bill on this toilet.

Hey Tibbs, don't mistake my post as a criticism of the station. I fully admire "Mr. Hobby" for the investment he has made, for the dedication he has, and for all he has done. I admire the handful of other entrepreneurs around the country who've done the same thing, in Boston, Knoxville, and other places. These are people who are personally committed to the stations they operate. They HAVE to be. Personal commitment is what it takes to run such a station, because most traditional advertisers won't support it. That's the point I was making. Someone has to foot the bill. Someone has to make the commitment. Someone has to take responsibility, because the audience isn't willing to pay a subscription fee, and the bulk of the advertising community isn't interested in reaching that audience. Is there such a person in Atlanta? Someone who is willing to invest their own personal money in a station that isn't chasing the sellable demo? I don't know. But what I do know is that for now, this kind of station isn't likely to happen in Atlanta.

 

[wavo]

LMAO> oh WOW that is mature too. I don't know who you are and I could care less. But you know damn good and well that radio is suffering not just here, but in every market in this country because of people like you. You might not get fired, but you will certainly be dissolved one day when terrestial radio completely dries up,, and those days are not far off. Maybe you can drive for Uber or Lyft.

Come on, Max! It's not Big A's fault that the world has changed! BigA didn't invent the internet (Algore did) and BigA doesn't control the ad dollars in all markets 200+. Don't be one of those who "kills the messenger."
99.9% of the time he is spot on when it comes to anything radio. I have never known him to be anything less than blunt when expressing his opinion but my guess is he tires of arguing with those of us who really don't understand the business model.
Have you had a chance to check out 88.5's HD3 yet? I listen a good bit and really enjoy hearing artists/tracks I haven't heard in decades. It sounds to me like it would be your cup of tea too.

 

[wavo]

BigA - You know, generally, I love you. I often agree and respect your take on radio, especially from the inside/corporate anal-ogy. I get it. I have been there and there is everywhere and no where at the same time. Allow me to, as always, laugh with you (and in this case David's "re-search") about Hippie. Where do I start with the REAL facts?

1.) Signal is surely a few miles west of Nashville. Less than probably a dozen miles. She's indeed a feisty move-in from Lobelville, way west of the city, downsized to protect the contours. We call it downsizing if it's a house. Now, since it's a waste of money to broadcast to cows in la-la land and avoid similar million dollars losses like I Heart and Crums have perfected with such brilliant programing and management strategeez since they paid for de-reg to ruin them, and since Hippie is only "hobby" and no one listens, why pay a crazy power bill anyway? Plus, there was a nifty new little antenna system that was just installed this past bright and sunny Sunday (what idiot would spend $ on that if it was a profitless hobby? I must know of one???) Signal is incredible for what it is, given the hills and low tower height. Lord knows, how could Mr. Hobby pay for such a great optimization of a signal for his toy, since he can't pay the water bill on this toilet. Yes, there are a few rough spots in the signal, just like some of the 100kwers somehow have, but it covers most, if in ALL of Davidson County very nicely. Davidson, max100 and others who may not know Nashville, is the actual county where the downtown and about 650,000 people (all under 40 and listening only to I Heart) reside and it's a pretty large area, 533 square miles, if my memory from third grade is correct. Hippie also covers the surrounding "better populated" counties (about another 300k that can see the blinking little tower light if they look.) Because I try to be fair, the signal has some fading toward the east to protect 94.7 about 90 miles away. Thankfully, that area is more rural. Wavo - you have some facts correct. Rimshot is not exactly correct, but closer than translator. BigA? Really? LOL. How many stations that are 6kw, 12.5kw (Hippie's ERP), etc are translators? If you were to actually scan on a dial you will find Hippie is thicker and rounder than some stations like 96.3's in-town signal and it even penetrates a Waffle House better. And offices and homes, too. I won't discuss revenues, but let's just say you are right. It's a five year old hobby that is a train wreck of a financial pit. I have told you both this before. Your "research" always proves everyone is wrong except you, but now the people pumping out the "research" you claim on revs haven't called to ask if their numbers are right, have they?

Max - thanks for trying to post something positive. It's just a little radio station with a great group of honest people trying to do something REAL in a pretty bland radio world. (Ask me how I feel about the lame Nashville dial now compared to a few years ago.) If any one were to actually answer the only question that matters --- video didn't kill the radio stars....the tools on the inside of your radio did. They just can't tell you that cause they are highly trained professionals who never actually get to know their true customers. Customers>Listeners (buyers) and local businesses> (also buyers.)

Tibbs: WHYP is 5100 watts at around 330 feet above average terrain. I'm sure the signal is great for what it is but it's still, as David points out, limited by the laws of Physics. A Class A FM is a Class A FM! Even if it were 12,500 watts that would only be a little over 3 db more power which is, for all practical purposes, unnoticeable.
I will join the group applauding "Mr. Hobby" for making a tangible effort to create good radio. BigA's comments still apply.

 

[b-turner]

I, for one, love to see broadcasters try something different. The only way change happens is by going outside the box. The problem is that the innovators usually fail and it is the one, usually several tries down the line, that builds the better mousetrap.

The station at one point was a Lobelville station. Not much there in their city of license. They were country using the moniker Froggy several years back...10 years maybe. As I recall, their billing was pretty low back then. Certainly the format change and move toward Nashville helped substantially. I recall hearing the station from my parent's house near the Charlotte Pike exit off the freeway. As I recall it sold once for about $75,000 and not much later for a bit more money. Memory is a bit hazy on that so don't consider those figures rock solid. To pull off what they are doing, you can't have major market debt service, so it is being done right. The move toward Nashville is a long term investment that increases the value of the station and in the immediate future, hopefully the billing potential.

The station likely has a tough road with billing, paying the bills but not far from looking over that financial cliff (ie: paycheck to paycheck living) if a big emergency expense happens. Many stations are there and always have been (that's not something new...in 1978 that would describe the first station that hired me).

Yes, that side of Nashville, as well as south side, are the best areas to reach. They certainly are not a player as far as sales goes, in the Nashville market. Their sales come from direct from business sales. The issue is always finding those businesses that don't have an ad agency representing them, then seeing what they can spend. Usually it is peanuts versus a big buy. The true struggle is to have enough listeners in a business trade area to get the business to renew. When I was doing this in Houston, I actually spent more than my commission cultivating each account hoping renewals would eventually cover the losses over the long haul. The reality was 90% didn't renew, maybe more. Literally with all the signals people could choose from on the dial, I couldn't seem to produce enough results with the station I sold for to make that small business spending a few hundred a month to continue. Simply put, too few listeners in an average single location business trade area to justify renewing.

Those of you that listen to Hippy Radio, do you consistently hear the same advertisers month after month? Are there only a handful of advertisers you hear every couple of hours?

For most of us in radio, I suspect David and BigA as well, we do what our clients/employers want us to do. They are our bosses and that's where our paychecks come from. We don't just decide to do radio our way. We gather as much research as we can and the desires of the ownership and their directive to create the best surefire plan we can to achieve everything the employer wants. Many seem to think we yank the chains. No matter our position, we are does what those who hire us want us to do. It's no different from working at McDonald's and flipping burgers. You will flip burgers the way McDonald's wants to get your paycheck. For some reason folks think otherwise.

 

[Tibbs4]

David - $18,000 a month? You nailed it. Ok. You know more than anyone on or near Music Row. I will let you and Big A explain away a business and signal you haven't seen or dealt with.

Look, simply put, it's just a different business model. Loyal listeners by the thousands, support the businesses on average more tangibly than most of the younger skewing 50-100kw stations. The advertisers are local businesses. Last time anyone looked, there were plenty of those out there. And they often simply renew. How many stations can boast the same LOYAL advertisers for over 1,000 days? Maybe you hear the same ads week after week, but there are plenty of new advertisers as well. All in all, despite the obvious obstacles, the station is doing fine. Depends on what you expect and who you compare it too. Look at it like a big grocery store chain vs a convenience store. They sell similar products, but the overhead is on a different scale. Cost of doing business is dramatically different. Five or ten employees vs. hundreds. Tiny monthly rent and expenses vs. huge outlay of profits for tens of thousands of square feet. To compare 7-11 to Safeway is not exactly fair. Yet 7-11 on average makes pretty good profit on it's scale and rewards are decent. If Mr. Hobby were to say use this as (part of) his retirement, he might end up with more than people would expect. Before and after. Flippin burgers ain't on the horizon, YET. B-Turner - what was your format when you attempted to pull in rev. with your small station?

 

[wavo]

David - $18,000 a month? You nailed it. Ok. You know more than anyone on or near Music Row. I will let you and Big A explain away a business and signal you haven't seen or dealt with.

Look, simply put, it's just a different business model. Loyal listeners by the thousands, support the businesses on average more tangibly than most of the younger skewing 50-100kw stations. The advertisers are local businesses. Last time anyone looked, there were plenty of those out there. And they often simply renew. How many stations can boast the same LOYAL advertisers for over 1,000 days? Maybe you hear the same ads week after week, but there are plenty of new advertisers as well. All in all, despite the obvious obstacles, the station is doing fine. Depends on what you expect and who you compare it too. Look at it like a big grocery store chain vs a convenience store. They sell similar products, but the overhead is on a different scale. Cost of doing business is dramatically different. Five or ten employees vs. hundreds. Tiny monthly rent and expenses vs. huge outlay of profits for tens of thousands of square feet. To compare 7-11 to Safeway is not exactly fair. Yet 7-11 on average makes pretty good profit on it's scale and rewards are decent. If Mr. Hobby were to say use this as (part of) his retirement, he might end up with more than people would expect. Before and after. Flippin burgers ain't on the horizon, YET. B-Turner - what was your format when you attempted to pull in rev. with your small station?

Tibbs: You can't run a typical Class A station for $18K /month unless you're a mom & pop outfit. Even then, you might take out $100K at the end of the year. Uncle Sam will take a bite out of that. That may interest you as a business but most of us would pass.
There are NOT plenty of local advertisers...that's why small market radio is suffering. I have done radio sales and I know what many, if not most small business people expect. They usually are not very realistic and have no guidance from the local sales weasel on how to effectively market their business. That usually leads to no repeat schedules.

 

[Tibbs4]

Big A - Thank you for saying what you are saying on this. You are spot on. I think we are saying very similar things. All I was, and have been saying, is in THIS case, it just has to be a different model than 99.9% of the rest of the other stations. Lightning 100 is similar. Single (well he is married) owner. Makes decent money, but does things like Live on the Green music events that draws tens of thousands, places smart marketing out there and enjoys what he does. Again, obviously not making millions. For what it is, it is good. Enough that someone even has tried a similar format on a translator.

Wavo - I appreciate your knowledge of signals. You are accurate on the numbers and signal platform. I didn't say it covers like 100,000 waters. It does a GREAT job for what it is. Enough to surprise many and allow for a fairly loyal audience to listen in and support the businesses. That makes it work.

 

[TheBigA]

Big A - Thank you for saying what you are saying on this. You are spot on. I think we are saying very similar things. All I was, and have been saying, is in THIS case, it just has to be a different model than 99.9% of the rest of the other stations.

Exactly, I agree. The question is: Can it happen in Atlanta, and my view is no. Too much at stake. Maybe in Athens, but not Atlanta. Maybe there was a time when an entrepreneur like Ted Turner could do something crazy in Atlanta, but even he couldn't do it there today. People can't take chances when there's a lot of money at stake. That's why all the format innovation gets done in smaller markets or late at night. It was easy for Allan Freed to take chances with music after 11PM. Today it happens online. That's why I spend so much time looking at streaming charts to see what's getting played online. The stakes are much lower. People can afford to lose a few thousand dollars if it makes them happy. But losing millions in a Top 10 market isn't fun for anyone.

 

[Tibbs4]

I couldn't see it working in ATL either, unless, I guess you had a fringe signal that just focused on a specific corridor, but that would be really micro-marketing and the results would be hard to predict or certainly maintain business. Nashville has less space to cover and when you look at the actual signals vs. formats, you see it's hard to find a place to play in the sun. So, when things click, even on a small basis, compared to the big guys, it's actually pretty exciting. Look at small markets like Fort Walton Beach and see a few niche formats are still holding on and generating decent (and some times great) returns. WSBZ (Seabreeze 106.3) is a good example. Work a plan, stay focused and don't look back. Been on the air about 20 years. It's nice to see some slightly different things still viable on the dial. Even with so much competition. Lord knows 75 signals ( more like 35) in Destin/FWB/Panama City ain't easy to contend with. I consider it every week, though. Ask CCENG on the Northern Florida board, but mannnnnn. Longshot....

 

[b-turner]

For some reason some think the consumer, the potential advertiser, does not make the decision to advertise but we do. Contrary to popular belief, salespeople sell what people want, not what they don't want. If you have a product people want to buy they will buy it. If it is not what they want, they don't. A salesperson might put lipstick on a pig but the advertiser will see only lipstick on a pig and will never trust that salesperson again. It is truly that simple. Yes, the older demographic might have more disposable income. I don't dispute that. It is the buying decisions that are made that really matter. When an agency says we don't buy 50+ year old demographics, then they don't. It doesn't matter what you say or don't say. It is what they do. This is why well listened to Beautiful Music stations switched formats by the 1980s. Radio, it's programmers, it's management, etc., do not make buying decisions. We walk that barbed wire fence of trying to attract listeners and creating a product the most potential advertisers want to buy. It's like starting a hat store. If everybody is wearing baseball caps, you had better be selling baseball caps not top hats or sombreros. We do not wear what we do on our sleeves. We might develop a station we don't care for personally. We're simply doing a job. We realize to change radio, we have to change the listener. Likewise, to change buying habits of advertisers, we have to change the advertiser first. It's like changing gravity or perhaps like getting a bank loan for an unproven idea. The advertising industry standard is they don't buy radio to reach the 50+ audience. They buy other media. They see it as more effective in return on the investment. I wish it wasn't that way but it is.

The low debt mom and pop station can take chances if they choose. I applaud that. Trying something outside the box means you offer a less desirable demographic and must rely on the local mom and pop business that might spend only a few hundred rather than a few thousand a month. Most of those mom and pop businesses do not renew because your station usually has too few listeners in the trade area of that business. I'm sorry, but that auto mechanic that buys is not going to get customers 20 miles away because they advertise on a certain station. You're talking 5 up to maybe 8 miles at most. If your station reaches 1 or 2% of the radio listeners, it is tough to get enough listeners in a concentrated geographic area to make a difference. Add to the reality people do not say (and many times have no clue) what brought them to a business.

For Hippy Radio, they are taking the hard road. It is likely their best option considering. The sacrifice is theirs to make, to struggle and hopefully pull it off. There's room to do that in the Nashville area. That they have lasted and been able to improve is a testament to their dedication. For most investors, they simply want a more proven, easier route that is more secure, something that has proven profit potential time and again. Being in a compromised position running a daytime only AM, there is a fine line to walk: become too successful and a better coverage station with deeper pockets will steal your format. Not being successful enough means changing formats. If you can walk that fine line, you're in great shape.

By the way, sales figures for all kinds of businesses are readily available and radio is regularly reported. David has all this data available to him. Dun & Bradstreet, Manta and Find The Business will show figures.

 

[max100]

Come on, Max! It's not Big A's fault that the world has changed! BigA didn't invent the internet (Algore did) and BigA doesn't control the ad dollars in all markets 200+. Don't be one of those who "kills the messenger."
99.9% of the time he is spot on when it comes to anything radio. I have never known him to be anything less than blunt when expressing his opinion but my guess is he tires of arguing with those of us who really don't understand the business model.
Have you had a chance to check out 88.5's HD3 yet? I listen a good bit and really enjoy hearing artists/tracks I haven't heard in decades. It sounds to me like it would be your cup of tea too.

I won't reply to the first part, but yes I tuned in yesterday and like it. Even if this was on 100.5 or 97.1 it would be better than the crap there now.

 

[b-turner]

We were trying a longshot: an AM daytimer running a mix of 'positive lyric' Country and Christian Country. We supplemented with local info, frequent traffic & weather and long music sets with a more top 40 delivery billed as "Kind Country". Oh the humanity! Those were rough years. And the revolving door of beat down salespeople! It was like I could never get past square one. We would bonus about 4 spots for each one bought in hopes we could get some results to get renewals but very few did...1 in 10 on a good week, 1 in 20 on a bad one. Once we got traction a salesperson would quit for a better gig.

 

[davideduardo]

David - $18,000 a month? You nailed it. Ok. You know more than anyone on or near Music Row. I will let you and Big A explain away a business and signal you haven't seen or dealt with.

Look, simply put, it's just a different business model. Loyal listeners by the thousands, support the businesses on average more tangibly than most of the younger skewing 50-100kw stations. The advertisers are local businesses. Last time anyone looked, there were plenty of those out there. And they often simply renew. How many stations can boast the same LOYAL advertisers for over 1,000 days? Maybe you hear the same ads week after week, but there are plenty of new advertisers as well. All in all, despite the obvious obstacles, the station is doing fine. Depends on what you expect and who you compare it too. Look at it like a big grocery store chain vs a convenience store. They sell similar products, but the overhead is on a different scale. Cost of doing business is dramatically different. Five or ten employees vs. hundreds. Tiny monthly rent and expenses vs. huge outlay of profits for tens of thousands of square feet. To compare 7-11 to Safeway is not exactly fair. Yet 7-11 on average makes pretty good profit on it's scale and rewards are decent. If Mr. Hobby were to say use this as (part of) his retirement, he might end up with more than people would expect. Before and after. Flippin burgers ain't on the horizon, YET. B-Turner - what was your format when you attempted to pull in rev. with your small station?

A 7-11 makes money based on volume... thousands of small stores. Many franchisees operate sizable groups of stores. And individual franchisees get a reasonable income and the pride of ownership.

That last case is what seems to be the model for WHPY. It's a small, Class A, serving a portion of a large metro... just as a 7-11 only serves its immediate area. And it may provide some satisfaction, fun and pride for the owner, but not a lot of money.

It is tough out there if your only customers are local direct retail and service accounts. The big box stores and chains have pretty much eliminated many categories of small business, and the remaining small businesses have lots of alternatives for advertising, ranging from direct mail to target geography cable to the many online options.

If they can consistently turn a profit they are happy with, great. But that station is not an example that is valid in Atlanta and that was the whole point of the original reference to WHPY.

 

[b-turner]

I might add one other point, when the business owner is making advertising decisions, they are not always the wisest. Most are willing to try anything that can sound logical to them but they generally do not understand how advertising works. It might be a business owner that believes a non-time sensitive spot is suppose to blow his doors down after a 5 day run or that buying that pricey ad in a neighborhood/subdivision monthly newsletter reaches everyone living there, not just the 1 in 10 or 20 that actually peruse every page. The smaller advertiser takes much more time and educating on basics of advertising than the typical advertiser. On the other hand, if you can have a stable staff and build trust, that can spell your success.

So, does Hippy Radio have many businesses advertising every month or is it new advertisers all the time with few regulars?