• Get involved.
    We want your input!
    Apply for Membership and join the conversations about everything related to broadcasting.

    After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
    If you use a disposable or false email address, your registration will be rejected.

    After your membership is approved, please take a minute to tell us a little bit about yourself.
    https://www.radiodiscussions.com/forums/introduce-yourself.1088/

    Thanks in advance and have fun!
    RadioDiscussions Administrators

Revenue Regression

S

SpareChange

Reading Radio & Records on line, this story caught my attention after reading a few posts here which mentioned the population decline in Buffalo.
Partial Story said:
Radio Revs Off In May
The Radio Advertising Bureau (RAB) has released radio revenue calculations for May and the one positive note was non-spot revenue in all markets posting a 10% gain compared to May '06. The downside of May’s report shows local revenue in all markets was off by 2%, while national revenue in all markets showed no gain over the same period last year.
Click to expand...
If this continues, one wonders if it will lead to more voice-tracking and leaner staffs. The key phrase seems to be "local revenue in all markets was off by 2%." Now, 2% may not seem like a lot of money, but if a large market station bills $1 million a month, that's $20. My question for the more experienced and knowledgeable posters here is: Is this something to be concerned about and does it appear to be the start of a trend? I'm reminded of the adage, "Take care of the dimes and the dollars will take care of themselves."
 
Remedial Math

SpareChange said:
If this continues, one wonders if it will lead to more voice-tracking and leaner staffs. The key phrase seems to be "local revenue in all markets was off by 2%." Now, 2% may not seem like a lot of money, but if a large market station bills $1 million a month, that's $20.
Click to expand...

Actually, that's $20,000.00 ($1,000,000 x .02). Anybody here making $20K/month?
 
SirRoxalot said:
Actually, that's $20,000.00 ($1,000,000 x .02). Anybody here making $20K/month?
Click to expand...
Thank you, SR... my omission of a very key word. It's not so much my math skills as it is my attention to detail and typing skills. Much appreciated. I also should have added that 20k per month adds up at the end of the year, making a very significant $240 thousand dent. Ouch!
 
Radio Math...

$240K. Let's see, that's 6 jocks, or 3 good sales people. Since the jocks aren't the ones who failed to deliver, and fewer clients mean that you need fewer sales people...

Of course, the real problem is likely to be that the 3 good sales people making $80K+ have already be replaced by 8 sales kids making $25K. The relationships that allowed the 3 good sales people to make $80K have been destroyed, which is why billing is down 2%.

The sales people are also trying to sell stations that are VTd in multiple dayparts, which means that the one-to-one relationship between the jock & the listener is gone. Oversize spot clusters have made the individual spots less effective, which means that the advertiser isn't seeing the same results that he used to for his (inflated) advertising dollar.

Notice a trend here? The drive by management to reduce "expenses" actually reduced revenue instead. DOH!
 
The answer might be the station I work for does things like double sposor traffic and weather forcasts (not sure how they get away with that). Also on overnights and some of the weekend shifts they don't even bother to voice track them it's just automation. It's not a small station or small market either.
 
Status
This thread has been closed due to inactivity. You can create a new thread to discuss this topic.


Back
Top Bottom