If you ask any radio manager what the biggest problem the industry is facing this year, it is competing against rate droppers.
iHeart has led the race to the bottom and other stations (even consolidators) have had to acquiesce.
The widespread sale of short, cheaper spots has not helped the overall radio industry.
Cumulus followed and look where it got them?
And now just this week we learn CBS Radio is initiating huge rate cuts, doing one-day sales and offering bonuses to get whatever business they can.
It’s bad in markets where local, independent operators are forced to compete with this kind of thing but it doesn’t stop there.
Rampant rate cutting has moved to markets where consolidators do not operate as buyers get used to wielding this kind of power.
They’ve created a monster and it is the media buyer who expects deep rate cuts, promotions and bonuses.
It’s hard to make your numbers like that.
But at our Philly conference next week the focus is on local and independent operators who want solutions to dealing with this new media buyer/advertiser entitlement to drive radio rates down so low stations have a hard time making budget.
- How to counter pitch a rate dropper and come out ahead.
- One thing that will almost guarantee you a premium rate making your station immune from rate droppers. Yet few stations have caught on yet. We’ll have one at the table that will share how they do it.
- How to handle expected bonus spots and meaningless digital bonus ads that drive down rates and give media buyers more weapons to fight with.
- Things you can do when you have to take a low ball buy (who can afford to turn away money) so the next time you are in a position to get a higher rate in spite of what your competitors give up.
If these issues are as important to you as they are to many broadcasters, find a way to Philly next week – air, car, Amtrak (5 minutes from the station).
Invest one day – Wednesday April 5 -- and you will come away with strategies that make a difference to your bottom line.