Several years ago, iHeart began searching for ways to annihilate their local competitors by drastically dropping rates and generously upping commissions.
It was a nuisance that competitors had to suffer.
Now, Entercom has gone all in with iHeart in a “price fixing monopoly” of sorts unlike anything ever seen before.
The price is not fixed by agreement, it’s fixed by greedy competition to drive radio rates down at all costs until one of the two predator radio groups is left standing and any third parties are effectively kept out of major buys.
How are they able to do this – burned market managers know exactly.
Why increased agency commission is becoming the new “trade”.
The three buying services leading the race to the bottom.
More shocking is what these three buying services do with the extra commissions that are the highest ever offered.
The actual year to year metrics that show the disastrous downward effect rate dropping is having on radio comparing big advertisers such as USAA and Cox.
What radio operators not named iHeart and Entercom are doing to push back.
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