Radio survived the first depression...Ideas to survive the next one.

[Radio girl]

Let me start by saying this is a sales related topic, but the "sales thread" on this forum stays pretty quiet.

We all know where our economy is headed, and most would agree it does not look good, regardless what terminology you use. Recession, depression, economic downturn, whatever. The bottom line is radio station sales will be effected.

So here's the question. What new or different types of clients will be prime for advertising in the coming years?

I remember a story about cereal manufactures during the depression of the 30's. Apparently there were over 30 different manufactures. Post and Kellogg's spent the lions share of ad money in those days. Not only did they get the majority of the market share, but built a stealler brand name and are still in business today.

Radio will survive, but I really think we need to look to prospects that received little attention in the last 20 years. Think outside the box, get creative, shake things up.

Thoughts? Ideas?

 

[michaelshiloh]

It'll be interesting to see if anyone has any ideas about this. I think we should focus on convincing smaller profitable companies that they can easily afford advertising with a clear plan for the companies' return on their ad investment. Research and a plan the prospective advertiser hasn't thought of.

That may sound like a duh, but...

First -- speculation aside -- there is no evidence that we're going into the Second Depression. (Yet.)

Second, since we're coming from radio, you can go back and listen to the radio shows of the 1930s and the big sponsors are manufacuters. They made products here in the US. Today, there are fewer such companies, since much of our manufacturing has been moved overseas.

Third, so many commentators say we're in a "service economy." If that's true, then we in radio are going to have a hard time wringing extra advertising dollars from services that depend on consumers having "discretionary" money to spend? Y'know, money beyond rent, food, car payments (including upkeep) and utilities?

Maybe tough times ahead will require sales reps to get down to basics: Really helping the advertisers achieve their goals?

I'm a fan of the scrap metal company that has radio flights and uses the payoff-in-$2-bills gimmick. (Do they pay their ad execs in $2 bills?) Who ever heard of scrap metal advertising? Metal is a commodity that's hot right now. The company wants to bring in more scrap. What better way to get the point across than radio? You don't need TV to bring in more scrap metal.

 

[Radio girl]

Thanks Michael for your input....

Many have viewed this thread, but you're the first reply.

I agree, radio sales 101 will be the key. I forsee a shift from national ads, to more local.

Lets face it, we are all a bit scared about what the future could hold. It's human nature to not like change.....but it's coming. As long as we are prepared, and willing to adjust, we'll be fine!