3-13-2013
It's the same old story, only the faces of salespeople have changed. Radio has an abundance of inventory and salespeople have goals to meet because the home office has debt to pay. If money is on the table and a savvy client knows radio will buckle in the negotiation, that client will wait it out, knowing another radio seller is coming in the door and that cycle will start all over again. In turn, some sellers would rather walk through the sales managers door, with an order, try to explain the lower rate, rather than leave money on the table.
That cycle translates into slow (or flat) revenue growth for the industry and unbearably long stopsets on radio stations across the country. Saga CEO Ed Christian says this is a big problem that the industry has to do something about. Yesterday his concern was aimed at national business. "Agencies are testing the bottom. They are spending where the spots are cheap and they will continue to do so when there is someone willing to provide the supply." Christian also said national radio business is down and his company is focusing, even more, on local ad revenue. He said in Milwaukee the national cost per point has dropped from $68 to $45 and in Des Moines it's gone from $45 to $22.
Christian also said there was an expectation that when PPM came along more money would flow to radio as a result. That was an over-promise that has not delivered, he said. Saga does not subscribe to Arbitron.
Add a Comment Send This Story To A Friend
