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Clear Channel Slashes Rates With It's "Weekend Warrior" Package

> > > > With earnings down company-wide this year to the tune
> of
> >
> > > > over 100 million Clear Channel has apparantly put out
> > the
> > > > word to "Sell Something, Dammit!" The latest offering
> in
> >
> > > > Jackson is a smooth little weekend package called the
> > > > "Weekend Warrior" package. This package offers
> > advertisers
> > >
> > > > 10 spots on Saturday and 10 spots on Sunday to run
> 6a-12
> >
> > > > midnight. You get the same deal on all six of their
> > > > stations. That's 120 spots total for just $1,100-yep,
> > less
> > >
> > > > than 10 dollars a holler. Now that is a bargain! I
> > > encourage
> > > > all sales execs in the area to be sure and inform
> their
> > > > clients about this opportunity- especially the ones
> who
> > > are
> > > > paying $50/spot on Miss 103. They might need to get in
>
> > on
> > > > the action. I can see it now- big, fat, 7 minute
> > spotsets
> > > on
> > > > all CC stations from 6A-12mid all week-end while
> program
> >
> > > > directors pull out the rest of their hair trying to
> keep
> >
> > > > listeners from bolting. Meanwhile USJ plugs away with
> 30
> >
> > > > minute commercial free sets of music. Funny stuff.
> Look
> > > for
> > > > them to start growing crops on their tower sites next-
>
> > it
> > > > should be fertile ground given the neverending supply
> > of,
> > > > shall we say, "Soil amendments."
> > > >
> > >
> > > So sad. We get to reap the "rewards" of chump channel's
>
> > > "march to the sea". Pathetic. Thanks for ruining
> radio,
> > > cc!
> >
> > All of you act as if this doesn't happen at any other
> > station or group.
> > Fire sales are common, especially with inventory that is
> not
> > moving well.
> > It's a business for god's sake! Retailers do it, car
> > dealers do it. Employee pricing from GM, you think they're
>
> > doing it to be nice or to move some product.
> > It's a business and any business does what it takes to
> move
> > product. If I were Kenny at CC Jackson, I would figure
> out
> > how to voice track every daypart except morning drive and
> > drive even more to the bottom line. They could bring in
> > great talent from anywhere in the country through Prophet
> > for that chore and it would save a bundle!
> >
> > Then you gentlemen would really have something to talk
> about
> > on this bitch board.
> > >
> > What I believe the consensus is on this "bitch board",as
> you call it,is a concern of people who truly care about the
> lack of down-the-road thinking on the part of management.
> The attempt to fill up inventory at any price lowers the
> average rate on the station,adds clutter to the
> programming,(which loses listeners),and lowers credibility
> in the eyes of advertisers.And,when a group such as CC in
> Jackson owns 4 class C's in the market,desperation packages
> like the one mentioned above influences the entire market.
> If CC in Jackson wants to start giving it away because they
> don't have the ratings they once had,it lowers the value of
> the whole market. According to Miller-Kaplan,the market is
> still down, partly because CC's management's lack of ,shall
> we say,male scrotum attachments, in showing value of their
> product,instead of panicky gimmick packages.
>
Now this is a great intelligent post on the matter. The Miller Kaplan's show revenue down in the region, not necessarily in Jackson. Memphis is down and CC has 4 of the top 5 or 6 stations in the market and they can't even make last year's numbers. National is way down everywhere. Corporate expectations are such that no matter the reason, you should try to make every effort you can to get business on the books, or in CC lingo, the BOB.

There won't be any more clutter, because each CC station has to adhere to the LIM (Less is More) guidelines. With new yield management systems in place across the entire CC platform of radio stations, you can easily pinpoint which days and/dayparts are not selling well and therefore, build packages around those areas to drive more revenue.

It has always been, and always shall be about the money. If anyone thinks that this business is anything else, your dreaming. We can all waft on about the good old days, but if the good old days were so good, people like CC would not have been able to buy up all the Class C sticks in town. And when those stations owners sold to CC, wasn't it about the money? When the big check was in front of them, they quickly forget about talent, cities, etc.

It's today's reality of broadcasting. I'm not saying it's right, I'm just saying that it is what it is.
 
> It's today's reality of broadcasting. I'm not saying it's
> right, I'm just saying that it is what it is.

OK, I'll bite! I'll go on the Record as saying it is right. Period.

CC is a publically-traded company. So, what is the #1 task for those running a publically-traded company? TO MAKE MONEY FOR THE STOCKHOLDERS! Everything else -- and I mean EVERYTHING else -- is secondary.

If the corporate weasels feel that the moves they are making are the best way to maximize profit, to do anything else would be wrong, and perhaps be actionable as a violation of various fiduciary duties.

Sorry, guys. That's just the nature of business.

All this beating up of CC is misguided. This is the monster that Congress and President Clinton created in 1996. Complain to them.

DE
 
> > It's today's reality of broadcasting. I'm not saying it's
>
> > right, I'm just saying that it is what it is.
>
> OK, I'll bite! I'll go on the Record as saying it is right.
> Period.
>
> CC is a publically-traded company. So, what is the #1 task
> for those running a publically-traded company? TO MAKE
> MONEY FOR THE STOCKHOLDERS! Everything else -- and I mean
> EVERYTHING else -- is secondary.
>
> If the corporate weasels feel that the moves they are making
> are the best way to maximize profit, to do anything else
> would be wrong, and perhaps be actionable as a violation of
> various fiduciary duties.
>
> Sorry, guys. That's just the nature of business.
>
> All this beating up of CC is misguided. This is the monster
> that Congress and President Clinton created in 1996.
> Complain to them.
>
> DE
>
Hey- I said it was a great deal-what do you want from me? :) I just want all their clients to have a shot at those rates so CC will get a little taste of of the ire and rate resistance from clients that the rest of the market will have to deal with next time they try and nail down a buy. Maybe only their stations rates will be affected long-term, but I doubt it. I agree with your analysis concerning the responsibility of management to it's stockholders. Profit is the goal of any business enterprise despite whatever noble protestations some professions may attempt to interject into the discussion. However, I really did not start this string as a "beating up of CC" session. They are big boys and can take it though I'm sure. As you will see in the posts above this one, many people simply feel that what CC is doing is bad for the business in general. I will go one better by extension and postulate that in fact Clear Channel is bad for the business. In a relentless drive to pull in every penny possible to cover their way-overextended posteriors because of the outrageous prices they paid for some properties- like the Jackson cluster- they seem to have lost sight of the long term impact of these practices. Simply because things are legal doesn't make them right, either. As the saying goes,"You can't legislate morality." And don't hang all this on Clinton. Ronald Reagan, God rest his soul, started this crap with his "deregulation" back in the 80's. Regretfully, he is very hard to get in touch with these days.
 
As I said above, I have been a PD, a GSM, a GM and a MM for several companies in several markets.

"Fire sales" are almost always a terrible idea. Why? Because they are rate-focused. You are focusing on how "cheap" you are and not about how GOOD you are. You are essentially turning your product - airtime - into a price based commodity instead of a results based one.

And just TRY raising rates later. Hahahaha. The car dealer will say "Hey, wait a minute, the spot that you sold me in August for 10 dollars now costs 50? The heck with you, what are you trying to pull?" You can talk all you want about supply and demand to a guy like that, he'll just laugh at you.

In siutations where I have come across fire sales it's been cases of lousy sales staff training. A lack of negotiating skills, a lack of being able to manage client expectations, a lack of making good demo tapes (a problem for many Clear Channel stations from what I hear - but that's just second hand rumors - production guys keep getting let go and not replaced). Clear Channel can't expect to make chicken soup out of chicken spit.

Yes, I applaud their "less is more" initiative. I truly do. And yes, they now have in-house training, I saw it taking place at the RAB in New Orleans two years ago. I remember lots of baning drums, a marching band, excersizes, people seemed to like it. Again, this is GOOD.

"Rate drops" are NOT good. EVER (except for the very short term).

Sales Trainer Paul Weyland (the best radio sales trainer in the business in my opinion) wrote a GREAT piece about this.

If you've ever been to Mexico you'll know exactly what he is talking about. And if you've ever been in a market where a competitor does this to you, you'll empathise as well.

http://www.paulweyland.com/chiquitas.html

Point continued here...

http://www.paulweyland.com/rate_resistance.html

Real pro's negotiate, any nimrod can give it away...

http://www.paulweyland.com/negotiator.html<P ID="edit"><FONT class="small">Edited by radioray on 08/23/05 01:55 PM.</FONT></P>
 
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