Another basic question: How are rates determined?

[Oscar]

Does Cost per Point still exist?

What about a small station that doesn't sell Arbitron, but is located in a large market and covers about a million people?

Thanks in advance...

 

[LITTLEBLONDEGIRL]

> Does Cost per Point still exist?
>
> What about a small station that doesn't sell Arbitron, but
> is located in a large market and covers about a million
> people?
>
> Thanks in advance...

You mean subscribe to Arbitron, right? If you have friends in the biz, you can ask them for info on demo's, duplication, cume, AQH rating and Share. In order to know what your CPP is in a certain demo, you must have access to Arbitron.

Not having this information at your finger tips could cost you an agency buy.
9 out of 10 live and breath by the numbers. Why? Because they must have justification on why they placed the buy with xyz station to the client.

If they are local direct, they will be buying YOU. That is, you will have to build trust with these clients. They will then trust that what you are telling them about your station is the right choice. Local Direct is all about relationships. Agency is too, but bottom line....CPP! However, it is rare that you cant meet the CPP as long as they will allow you to "bonus" overnights or weather/news sponsorships.
So, how do you know it covers about a million people? Are you basing this # on the station map? Or do you have a million listeners each week? This makes a big difference.
Did this help?
>

 

[Oscar]

The station covers a million people based on the coverage map, but only cumes about 20,000. AQH is about 1200. It's not a major player at all.

They don't buy Arbitron because it's not worth it.

What is the formula for CPP?

 

[middlega]

> What is the formula for CPP?

Spot Cost / Spot Rtg (for a specific daypart)
or
Schedule Cost / Total GRP (for a schedule)

The definition of CPP is basically "the average cost of a single GRP"

If you check the Arbitron website,on either the radio station or agency sections, you'll find a link to what's called the "Purple Book", the guide to understanding radio estimates. Included in that .pdf file are most all of the formulas commonly used by stations (and agencies) including pretty good descriptions of what those formulas produce.
<P ID="edit"><FONT class="small">Edited by middlega on 08/26/05 09:23 PM.</FONT></P>

 

[tcsnrayp]

See--take a look at this little thread from August 2005. This is how GOOD the Sales board USED TO BE. I just think it is a shame more sales reps aren't sharing, asking and answering these days.

 

[Stewy]

Pledge - I promise to visit and comment often on this board to try and help. You can lose an agency buy if you don't meet the target CPP. If it is a national agency your pretty much up the creek, don't sweat it, replace it. If it is a local agency they'll jsut use the CPP to beat you up when they can with a big smile on their face. Go directly to the client, approach them at a social or charity function (even better if your station is a sponsor), use the old line with the client that you understand that so-and-so is handling their ads but that you've some great ideas to make them lots of money and want to compete with the local agency to handle their budget. This is not my original idea, I got it from one of the sales gurus of the past, sorry i'm too old to remember who deserves the credit.

Remember that agencies control the budget for the time being but you have the medium of delivery and control all those pairs of ears.

Hope this helps

 

[amfmsw]

Yes, they still use CPP, but maybe shouldn't.

I just had a CPP field day with an agency. They wanted XX$$ based on Spring and Fall combined Arbitrons. They shortened dayparts and cherry picked. Through TAPSCAN, I sent the proposed schedule with rates to match their specs on days/times/and CPP.

They balked at the rate saying that the station had a down fall book, and to resubmit under the fall only book. Angered at a really poor, thinly veiled attempt at rate negotiation, I did the schedule again in MAXIMISER using only fall numbers. But this time, I inserted their CPP as universal. Our rates went up $16 in morning drive, doubled on weekends, heck they all went up because they didn't know how to read a bargain. I got a frantic call in five minutes begging for the original rate they tried to negotiate down. Now I'm a hero, and everyone else is overpriced.