So there's a (newer) social media agency in town. They have been in business about 2 years. The owner, who I've gotten to know is very polished, knowledgeable, and passionate. What concerns me is that we're starting to see a LOT of small businesses who spend or have spent $500-$1,500 a month on radio spend upwards of $5,000 a month on this social media agency for their assistance in navigating their social platforms and "digital marketing strategy." This agency has been in the market for only two years and they now do almost as much if not a tiny bit more in revenue annually as our station. From where I'm sitting, that's a huge "RED ALERT" and screams a need for better strategy on our end.
My BIGGEST concern about this agency is that they do a lot of sessions/classes around town and I worry that they are convincing small/medium business owners that social media is a viable and more cost effective SUBSTITUTE for traditional media. Even some of the Media Planners in town are starting to feel squeezed by this guy.
I've read through the discussions about social media and I've told my clients as recently as this week... Facebook likes can't pay the mortgage and website impressions won't send your kids to college. And social media is a SOCIAL space not a RETAIL space. You can't convert social engagement (measurably) into sales. It's a legit platform for building PR... but not market share. It's frustrating because he's able to tell his story to 10-15 prospects in a room at a time whereas in radio, we do one to ones.
We are a Top 40 radio station so we engage some of the most digitally savvy consumers in the market. There must be a smart way to counteract this threat and bring a bigger chunk of the dollars in our market back to radio.
Would appreciate any and all input!
Alex, the best response I've heard to this is from Chris Rolando, in one of his 10 Minute Sales Meeting. Trouble is, I can't find it in my saved files. Chris? Over to you.
Hi Andy!
I refer to Chris's videos on YouTube a LOT and there's great info on the limitations of Social Media, such as the Pepsi Refresh campaign. Let me know if you find it!
Wow-and to think even 6 or 7 years ago, Social Media wasn't even on anyone's radar screen. Now everybody wants to jump on the band wagon. But let's be honest-social media is being used effectively by small businesses.
But here are a couple of ideas that might help in your situation. Back in about 2005 I think, the station group I was with hired a company out of San Fransisco to come in and conduct client seminars, with the goal of selling $250,000 in annual contracts in one week. Sorry-I do not remember the name of the company. But what we did together took about three months of intensive work. First, we identifyed every possible business in our trading area, well over 5000. Then we mailed, emailed, and phoned all of them with an invitation to one of 18 90-minute seminars we held that week...4 per day and 2 on Friday. It was pain-staking and took a lot of time, but we got over 100 to attend. The sessions focused on what works and what doesn't work in advertising (not just radio) and they we presented, with no pressure, a plan to utilize our stations on an annual basis to generate huge results. At the end of each session, the clients were asked to meet with their rep, also present of course, for just a few minutes. In some cases, a sale was closed on the spot, but in most cases, appointments were made for the following week. The close ratio was quite high, and we did manage to close about $300,000 in annual booked business. We had the sessions in a hotel meeting room and served refreshements. The entire event was rehearsed and scripted, and the presenter was a polished professional. In closing the sales we guaranteed that we would meet with clients no less than once a month (often as much as once a week), so over the course of the year some great relationships were built, and in may case, almost every one of the 20+ people that I signed renewed for the following year.
This approach might be a way to compete with your social media guy, who appears to be doing this kind of sell on his own. You might want to contact Paul Weyland (https://paulweyland.com) and see if he might be available to come up and help you with this. He's a first-radio consultant. Good luck....and Go Pack!
at February 24, 2024 7:32 PM PST
Hey Alex - for SO long, I could not find them, but here are the two links, the first from Chris Rolando, and evidence to back up his thoughts. Do read them in the following order:
https://ft15radio.blogspot.com/2013/10/inbound-marketing.html
https://www.usatoday.com/story/money/personalfinance/2013/04/16/small-business--social-media-facebook/2075123/
By the way, once you read these, given the size of your Berlin/Oshkosh market, if you and Marty want to budget an additional $225k in additional, premium rate, non-discounted radio advertising revenue that you're not getting now, that produces notarized sales results for your advertisers in the millions, without changing the way you sell, take a look at the two page strategy summary attached, complete with 8:57 video linked on p. 2. I've walked the talk on this four times in four markets, two in previous ownership.
Kind regards,
Andy McNabb
McNabb Broadcasting (Canada)
289-929-9770
at February 24, 2024 7:34 PM PST
Mike and Alex,
If I had to guess at the San Francisco company to which Mike refers, it would be ARIA, Inc. - successor to "Radio DCL" - a group of strong radio advertising presenters/closers, run by Michael Tate. Their "Revenue Generator" program sounds a lot like what Mike describes. Unfortunately, they may no longer be in business.
There are other companies around that offer similar services to stations wanting to bring in "outside experts" to help them prospect, analyze, and close annual deals with businesses not currently on the air (or on only minimally). Some charge a flat fee; others prefer revenue sharing. If I'm not mistaken, a few of them have at one time or another been active here at RSC.
Is this "Social Media Agency" to which you refer, Alex, also designing and hosting websites for local advertisers, providing SEO services, etc. in addition to their "work" (sorry) in social media? Ever been through their group program yourself to see their pitch in person? Know of any of your radio clients using them who might be willing to share with you the details of what they offer, how it works, and how he measures the benefits received? Just thinking about something Don Corleone once said...
at February 24, 2024 3:26 PM PST
Just my two cents, but can't you host an online meeting, or on the air meeting with call ins; something like "Ask Radio?" You could make it a commercial with people asking the questions about market share, ROI etc. and answer them. Have testimonials from successful advertisers at the end.
Or,
send an invitation out to your prospective customers, asking them to sign up to a GotoMeeting or similar, where you could present to many, vs. a few. (I'm not in radio ad sales so I don't know if this is workable.)
Alex, as for the bigger problem, it's here to stay. Years ago we said; "If you control their creative, you control the buy." Today it has become; "If you control their digital, you control the buy."
Here's the good news. Most social media marketing campaigns fail if it's not done as an authentic voice of the local business, versus paying someone to do it for them. Social media isn't the answer, content marketing is the answer. And it's content marketing via social media channels that is the magic. But, if it's not authentic, it won't work. So, after your prospects spend that 5k and fail. Be sure to be standing by to pick up the pieces and show them the success they can achieve for themselves if they spend that same money on radio.
Many radio groups (large and small) want to offer similar digital marketing/social media marketing services. I had a conversation with a mid-market radio group digital manager this week who has done it. This is a veteran radio guy who also knows the digital marketing game at a high level. Anyhow, their group bit the bullet and created their own in-house digital marketing services department (to offer services like the local social media agency you mention). They have 15+ employees and finally turned a profit after year two. I don't want to share his name, the market or the company; but that's how long it took them to turn a profit. And I consider their lead guy a player who knows what he's doing. So, if anyone's group is considering offering these kind of services, I thought I'd let you know the reality of what it will take.
Start by reading the book "The Ad Contrarian"
Read up on the Pepsi Refresh Project: http://www.marketingweek.co.uk/when-it-comes-to-social-media-coke-is-it/3025201.article
Then begin to GENTLY influence people you talk to about Social Media.. what it should do and what it can do. But be ready to hold yourself up to the same mirror. You need to be able to back up your BS by figuring out what the ROI on the schedule should be... in real $$ and sales... and what to track in social media to get the same.
What does a Click Through cost these days? Many insurance companies pay as much as $50 per click through which basically only gets someone from the opening ad, to about a half minute of copy. In radio, EVERY ad is a click through because people sit through the :30!
To beat social media, you need to talk their language and educate people you are calling on. TELL them how to use social media effectively! Buy them a copy of the book!!!
