If you listen to earnings calls, radio companies are always losing money lately but never doing anything wrong.
Next quarter will always be better.
And the corporate execs are never to blame, always someone else.
For example, Lew Dickey told analysts yesterday that two markets were responsible for Cumulus posting a quarterly loss in revenue – New York and Washington, both of which were caused by decisions made by Cumulus execs.
They fired Jack Diamond who did mornings in Washington and sacked Scott Shannon who did mornings in New York – two decisive acts by the company that they now admit had repercussions on the entire group’s earnings.
As bad as that is, it is not the worse thing radio owners are doing to hurt the industry.
Driving down rates is worse led by CBS Radio and followed closely by iHeartMedia. Rate cuts by as high as 50% off that kills their revenue potential and that of other owners.
Companies like Cumulus and others have no choice but to take the money and run at any rate.
But if you are a good broadcaster – and that’s the only kind that pays $99 to read this – there is good news.
No. Not good news.
Excellent news, positive news.
There are ways to compete against the stations that drive down ad rates and mess with your revenue potential.
This article goes on to reveal:
- How to force media buyers used to playing hardball to pay your rate – no discounts.
- The one decision you can make today that will effectively improve your price per spot by the end of the week.
- What your best advertisers will pay more for – their secret weakness – along with an owner than gets them to pay full tilt.
- A critical warning about selling ads for your on-air Internet stream.
- The media company ready to put their salespeople on salaries and then it spreads.
- And, the airline industry’s advice for radio to get your rate even when competitors are not getting theirs.
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