Happy Friday, everyone!
This week's poll question comes from James Young of Prince Albert, SK, who writes, "I work in a small-medium market station where we run local newscasts hourly throughout the day. From 7am-5pm, our newscasts are 100% sold out (one sponsor per newscast) and there is almost never any openings for new clients that would like to buy in.
"Short of raising rates to make some sponsors fall off, or increasing the number of newscasts we air daily -- are there any creative ways to increase revenue from news sponsorships?
"Has anyone allowed multiple sponsors to the same newscast, and if so has that created pushback from advertisers or listeners?"
Looking forward to reading your answers!
You probably already do this but I would run 3 spots before and 3 spots after the news cast. You could probably run 5, 30 second spots before and after.
Well, one of the "turn off's for listeners is too many commercials. Having one sponsor per newscast to me is an excellent way to not only keep your audience, but best-serve your sponsors. But if you are sold out, it is time to raise your rates. A conservative approach with that will pay off for you. Perhaps if you already aren't doing this, have a news package that bundles X number of ROS commercials during the week or month. This would generate more revenue, and with more ads, generate even better results for the sponsor who buy into that concept.
You don't have to raise your rates.You didn't include your method of packaging and selling your newscast. I count 11 per day. Do you have the same schedule for the weekends?Does the sponsor have the same time everyday?I can help you, but I would need a idea as to how you do it now.
Vic
If the avails are always sold out.... well that's a great reason to create a sense of value for anybody who wants to pay the freight. Radio is supposed to be priced on a sliding scale or grid that results in rates going up as inventory starts to get tight. Supply and demand should drive your rates. For all of your existing contracted clients that have news adjacencies; communicate to them that the rates will be going up upon renewal.... don't ask them ... tell them.
In addition,, co sponsorship of features is quite common. So set it up that way. just keep the categories non-competitive. The incumbent sponsor's position and the way it broadcasts will not change... just add a new avails for an adjacency after the news cast or when ever is opposite to the existing client.
Pretty simple fix for a very desirable feature position... and you are totally justified in raising the cost of the avails.
as far as too many sponsors being a tune out factor.... if your brand fans enjoy your content, studies have shown that 97% will sit through spot sets or adjacent commercials.
One thing we do is sell a number of sponsors (not sure how many) and place them on a rotating basis rather than an exclusive. You don't want to water that down too much but 3 sponsors on a rotating basis may be something to consider and still give your advertisers good exposure.
At WOWO, we sell sponsorships for News, Weather, and Traffic. One newscast has a different sponsor for each of those features.
We also have raised our rates for these from a low of $15 before I started to $50 when inventory is tight. Our regular price is now between $30 and $40. As a News Talk Station we have 475 available each week between 5am and 6pm Monday-Friday. We always have 350 sold each week. These are just the live 10 second mentions. Clients pay extra for 30 and 60 second ads
but why not raise rates Vic? it's a perfect reason to do so?
Electric rates go up. Cable rates go up. Why not you?
You could sell rotating adjacencies. In other words, if you have newscasts from 6:00 a.m. to 8:00 p.m., clients get 3 per day. So Monday they get 6:00, 11:00 and 4:00. Tuesday they rotate to 7:00, noon and 5:00. Wednesday it's 8:00, 1:00 and 6:00. This helps sell everything, not just drive times.
We do something similar, but we do a Sports update instead of Traffic; it increases the number of available sponsorships, but the content is different enough to make it worthwhile to the listener. We also give our sponsors three options: Monday - Friday, Mon/Wed/Fri or Tue/Thu. This enables businesses to get their foot in the door with our listeners without breaking the bank while allowing us to maximize the dollar potential for these slots and creating relationships with a higher number of businesses.
Increasing the number of available sponsorships while ensuring the content of those sponsorships is unique is a viable option; they don't all need to be News updates.
I work in a smaller market- Juneau has 31,000 people and we own the 5 commercial radio stations in town- we have NO competition. Radio is the most effective advertising in Juneau. Our news run from 6 am to 6pm we have our sponsors rotate- and we do not sell exclusive. We have 2 sponsors per break. We are very full and this is a very demanded position. One thing you could do to remedy this is sell time specific spots so they play right after the news break, or close to. We also sell National News sponsorships, local news sponsorships, and weather sponsorships that all air at the top of each hour.
He said outside of raising rates.
You might consider offering shorter contracts to allow clients to phase in and out.
Jeanne
James,
Some things you may want to consider: selling adjacencies to the newscasts; also, I don't know if you charge a premium for a newscast sponsorship or just regular rate, but if you don't charge premium, then you would be well in line to sell other sponsors...more than one, in a newscast. If the sponsors pay extra for the newscast, bump up the rate...its the old game of supply and demand...;if demand is high...you can justify the increase. If a sponsor balks at paying more for the newscast, remind him that if he goes off, it may be some time before he can get back on as you do have a waiting list to get on them. If the sponsor sees value in what they are doing, they should be able to justify the additional charge, and I would guess that additional charge may not be such a big jump anyhow. Another idea: sell teaser newscast. Its a promo for the next newscast such as: "There was a train derailment east of town this morning...fire departments from two area towns are on the scene, more details at 3" then have commercial. or: "Johnson Hardware reminds you that we will have complete details of all the local news happenings in our area including details about the big train derailment east of town this morning. This news update brought to you by Johnson Hardware (play commercial).
Also...think like a retailer. When they have a product that sells out all the time...they usually increase the price (supply and demand). Demand will justify the cost. Also...if a retailer is always selling out of a particular product, the make more space available and put in more stock (put on more newscasts...maybe teasers or headlines between the regular newscasts). If you get a sponsor that bucks at the increase, reply to them in terms they understand...just like a retailer...
Good luck.
Dale
i think putting a period cap to the sponsorship duration might work; say minimum period of sponsoring the news is 6 months...i think that can drop some of the sponsors and leave the big money and serious clients on...my 2 cents
I cannot agree with this idea. Why would you limit how long a client can be on the air or sponsor a program? It does not make sense. Your job is to seek out and sell more clients and keep them on the air, not to think of ways to get them off.
Well James is in a binder and he needs to ensure there is always revenue earned from News Sponsorship. So far what he's acted on is the norm, time to think outside the box;
- Raising the sponsorship rates works; i think this keeps out some clients just like my suggestion definitely would
- Limiting the sponsorship period actually doesn't have to affect the rate card in anyway since the clients currently on-air must know how much on demand that sponsorship property is so i think as a client given an opportunity to 'own' that property is an answered prayer...a win win for the client and the radio
Your right Dale.The best thing to do is increase the total number of sponsors and increase total revenue from news sponsors.It really is that simple!!
I believe radio listeners tune in to listen to the content of the radio...not to listen to advertisements - an interruption into a radio's flow to capture the listeners at his most conformable.
Increasing the frequency of the sponsorship could definitely bring in more clients and more revenue..,but i think it will be at the cost of loosing listeners. Not unless the radio station is purely a platform for advertisements...like those tv shopping channels....
There's something about managing a radio's brand as an 'exclusive club' that everyone would want to be associated with...i think raising the rate card rates, limiting sponsorship periods is a few of the things a radio's brand can be positioned from
It's too bad that Keturay has a negative attitude towards the industry and the sole source of income to the radio station which allows the station to issue paychecks. Advertising is content....telling the people and inviting the people that listen to the radio about their product or service. It is proven that advertising actually reduces the cost of products and services. It is obvious that Keturay is not in ownership or management ("limiting sponsorships") Branding has nothing to do with the amount of income a radio station gets.
Dale
lol Dale i think we have a difference in opinion and no negativity whatsoever. What i actually said is something that we use where i work...no animosity to wards anyone or the industry.
However i do think branding has a lot to do with positioning...anyway, it's not my place to say that as you just said, am not in ownership or management...good day Dale.
exactly my point too...i just added the fact that with such a high demand property, pegging a minimum duration for sponsoring the property for say 6 months will give client even more value. And in such cases, given the property is on demand, the issue of rate would not really be an issue cause for a client to 'own' a property is advertising haven...
this is really good Dale :-)....see I still keep an open mind
What we did in one market is sell the weather forecast following that newscast. We also sold a time and temperature check at the end of the newscast. In these instances the weather carried a 10 second live read and the time and temperature was business name and address or phone or website. We got no flack on this as we explained the news sponsor was the exclusive news sponsor. We just sold the weather right next to that newscast and a time and temperature check following the weather. We had 12 casts a day Mon. - Fri.
Share this page with your family and friends.