How do non-Arbitron stations sell their format?

[Keith_Lake]

As I understand it, subscription to Arbitron is optional and/or voluntary for stations in a given market. I know of several stations in this market that either do not subscribe to Arbitron or don't generate enough listenership to show up in the ratings. Yet they seem to have a reasonably full spot load most days.

In the absence of any "official" numbers, how do the salespeople for such stations persuade potential advertisers to buy time?

KL<P ID="signature">______________
<a href="http://home.nc.rr.com/gttyson/lastradio.html">The Last Radio Station<a></P>

 

[mwebster]

Let me count the ways!

Mostly, such stations rely on local advertisers who do not buy advertising through ad agencies. In such cases, it more of a personal sell. Selling local radio time has more in common with selling commercial lines insurance or other business products and services than it does with selling time to ad agency media buyers. Often, the sales rep acts like an ad agency: recommends a "marketing plan" and develops and produces the commercials. Local business people buy a radio station because they like the sales rep, like station and/or think other people like the station. There is also the power of ego: Local business people also buy time because they like to hear their name on the radio or because they think they are the world's best salesman and the sales rep let's them do their own spots. In an ego-driven sale, all it takes is somebody the advertiser knows to say I heard you on the radio and they is hooked.

Some stations may also be running brokered programs (like infomercials) or PI advertising (per-inquiry - the advertiser does not buy time but pays the station a fee on every response). Some stations may also be part of a cluster of stations and spots may be placed for free or at a very reduced cost on one station for advertisers who buy packages on the other co-owned stations. Some stations also salt the log: The station runs spots it has not sold to appear like it has more business than it really has.


> As I understand it, subscription to Arbitron is optional
> and/or voluntary for stations in a given market. I know of
> several stations in this market that either do not subscribe
> to Arbitron or don't generate enough listenership to show up
> in the ratings. Yet they seem to have a reasonably full
> spot load most days.
>
> In the absence of any "official" numbers, how do the
> salespeople for such stations persuade potential advertisers
> to buy time?
>
> KL
>

 

[SaltyDog]

Re: Let me count the ways!

No disagreement with what you said, but I would add the following:

1. High spot loads are not an indicator of financial success. Plenty of radio stations sell a lot of spots at rates that are too low.

2. Stations with high ratings benefit whether or not they subscribe. The agencies have their copies and call stations based on rankers.

> Mostly, such stations rely on local advertisers who do not
> buy advertising through ad agencies. In such cases, it more
> of a personal sell. Selling local radio time has more in
> common with selling commercial lines insurance or other
> business products and services than it does with selling
> time to ad agency media buyers. Often, the sales rep acts
> like an ad agency: recommends a "marketing plan" and
> develops and produces the commercials. Local business
> people buy a radio station because they like the sales rep,
> like station and/or think other people like the station.
> There is also the power of ego: Local business people also
> buy time because they like to hear their name on the radio
> or because they think they are the world's best salesman and
> the sales rep let's them do their own spots. In an
> ego-driven sale, all it takes is somebody the advertiser
> knows to say I heard you on the radio and they is hooked.
>
> Some stations may also be running brokered programs (like
> infomercials) or PI advertising (per-inquiry - the
> advertiser does not buy time but pays the station a fee on
> every response). Some stations may also be part of a
> cluster of stations and spots may be placed for free or at a
> very reduced cost on one station for advertisers who buy
> packages on the other co-owned stations. Some stations also
> salt the log: The station runs spots it has not sold to
> appear like it has more business than it really has.
>
>
> > As I understand it, subscription to Arbitron is optional
> > and/or voluntary for stations in a given market. I know
> of
> > several stations in this market that either do not
> subscribe
> > to Arbitron or don't generate enough listenership to show
> up
> > in the ratings. Yet they seem to have a reasonably full
> > spot load most days.
> >
> > In the absence of any "official" numbers, how do the
> > salespeople for such stations persuade potential
> advertisers
> > to buy time?
> >
> > KL
> >
> <P ID="signature">______________
"Be the change you want to see in the world." - Mahatma Gandhi
<a href="http://saltydog.5gigs.com">
The Salty Dog</a>
</P>

 

[N_D_Radioguy]

Re: Let me count the ways!

Excellent points on both. Having done my time in Small Market Purgatory [that describes only my experience; your results may vary], allow me to add briefly.

*******************************************

> In such cases, it more of a personal sell.

Agencies deal strictly with numbers: "We buy 6 stations deep in the market, with no more than two stations per format, and we only buy AM and PM Drive..."

However, 90% of all non-agency buys are emotional. Whether it's vanity, perception, personal relationships, or just a genuine love of the station -- all previously described -- the advertiser buys because s/he wants to do so, not necessarily because it is the right move for the business. Also, add creating the perception of being a "leader in the community." All of these are reasons that can help explain why high school sports can be huge money-makers in small towns, but never even make the air in large cities.

In short, the smaller the market, the more emotion -- and less analysis -- goes into sales.

**************************************************

> Brokered/PI/Clusters

Add to that Barter Spots. If a station uses Mediabase or any sort of prep service -- MJI, Premier Prep, etc. -- spots are traded for the service.

Likewise, network programming may also call for Barter Spots for ROS. Running the likes of ABC News, Chicago Bears football, or "The Angry, Shouting Conservative Show" may involve running spots on Barter.