Forums » Friday Polls

Friday Poll: Does Your Station Have "New Advertiser" Plans?

    • 1036 posts
    July 13, 2017 10:49 PM PDT


    What special packages does your station offer for new businesses or for smaller advertisers who don't have the budget to compete with larger accounts? How are they structured and what makes them special?

    The question stems from a story I heard about one station that offers a "Sponsor of the Day" plan, where the advertiser receives 10 :30-second ads and 10 promotional mentions on his sponsored day. Other stations have radio auctions and shopping shows that allow cash-strapped advertisers to trade merchandise or services for ad credit. What does your station do for these businesses?  Look forward to hearing your stories in the comments below.


    • 13 posts
    July 14, 2017 4:56 AM PDT

    For new businesses, we offer discounts for thier initial campaign on radio ads, live remotes, texting chat and an LED billboard we operate here in the city. This is a one-time package and must be used within a fixed time-frame. For smaller businesses with very limited budgets, we have 2 other options... we have a team that ONLY sells 15 second radio ads via phone. The Telesales Dept. focuses exclusively on this type of client and generates revenue that our core sales representatives don't have access to because of price-point. The other option is called Shopico. This is a website we own and operate, offering our listeners (general public, really) a discount on products/services from our clients. Our clients give us product to sell, we keep the revenue from the sale of these products, and the client gets the value of the products they trade with us towards radio advertising. For the client, the main investment is time (if it's a service-based busniness) or the cost of the product on thier end from the distributor or manufacturer.

  • July 14, 2017 7:19 AM PDT

    We have a "New Business Plan" for businesses that have NOT been on our stations in 13 months.  Minimum 4 month Agreement and we give them 50% bonus ads for the first 2 months.


    Small businesses/budgets is different:  We work with them to try to determine a cash budget that they are comfortable with. If we don't think it is enough to accomplish their goal; then we will make them a "BIG Deals" client. Cash & Trade; to get the job done. They can't say "No" to it. Makes too much sense.

    • 51 posts
    July 14, 2017 8:40 AM PDT

    I was not in sales, and I have no recollection of anyone in any of our station groups ever talking about a special for new advertisers. I would also be reluctant to ever recommend such a package, as it creates a problem: it makes the subsequent, regular-priced advertising feel too expensive.

    That said, we did have something called a Blitz Package. Some reps would use these as a way to lure new and hesitant advertisers onto the air: 40 spots over the course of a week for a thousand bucks. This package was a double-edged sword. It would get new and reluctant advertisers onto the air--but creating advertising for a one-week blitz is a completely different strategy than a long-term campaign. To be effective, such a spot always has to have a big offer and urgency, which is unsustainable over the longhaul. That said, it did prove the efficacy of radio to some advertisers.

    We even had one advertiser, a flooring guy, who kept pushing back against our strategy recommendations--which included NOT saying "Tell us you heard this ad on this station." He was finally told, "Look, you have to trust us." So he did. At the end of a week, he said, "Of every station I've talked to about advertising, you're the only ones who didn't yes me, and you told me how it had to be. In a week, I got a dozen calls, I made six appointments, and we asked eveyone where they heard the advertisement. Not one of them mentioned you. They all said it was on [the biggest station in town], and I've never advertised there."

  • July 14, 2017 8:59 AM PDT

    Nope. Not true. Doesn't create a problem at all.  Not for a real Salesperson who knows how to represent the Stations and the pricing and how to present the plan and work with the client.  


    We do NOT run "Tell them you heard it on WXXX" ads either.  We just say "We don't run those kind of ads". No explanation necessary. It's our radio station.  I've been in radio sales over 40 years and we've been asked to do that maybe 5 times; always when:  a) salesperson has not done his/her job working with client or b) client thinks he/she is so much smarter than we are and wants to put us on the defensive.   

    • 63 posts
    July 14, 2017 9:00 AM PDT

    Of all the stations I worked we never had a "New Advertiser" plan. Instead we simply took in proposals that addressed the specific needs of the client matched to the amount they felt could be allocated to advertising on our station. 

    At one station we would note this was a first time advertiser and ask traffic to bonus them some spots, especially in hours and on days where the extra plays would be more effective. Generally we did not tell the client. If the business was a restaurant or some other business where we might show some quick results, we might suggest some certificates for giveaway in addition. Depending on the number, some were for giveaway on the air, but more often than not, they were doled out on other clients. The thinking was the recipient would use the certificate, showing instant results to the client. In addition, it's a nice little thing to be the media rep that might buy your lunch for simply talking to them or for being a customer.

    At the first station I worked sales, the GM was dead set against a New Advertiser package. His thinking was it told the client we priced ourselves too high (per commercial) for the results they received. In his mind the price you charge sets the stage on pricing and even a one time deal is expected from there on. He felt a client always wanted a 'deal' that gave them more of an advantage. Instead we were to fine tune a perk specifically for that business if they'd sign an annual. For example if their kid was on the high school football team they got a football package if they'd sign for a year. I can see his point but I also realize a station is hard pressed to make their audience familiar with a new advertiser quickly so extra units through bonus or lower per unit price sure makes sense. 

    • 1036 posts
    July 14, 2017 10:34 AM PDT

    One of our local radio reps shared this one-sheet for "Sponsor of the Day," a package he sold at his previous gig in Wyoming.


    • 83 posts
    July 16, 2017 10:32 AM PDT

    Please don't do this.  Basicly you are teaching and training a new advertisier to buy discounts and to price shop instead of figuring out the return on investment needed.

    Not all advertising dollars are good dollars to take.  You want to build healthy relationships where the business owner gives you $100 and recieves $110 back in terms of increased business.

    Negotiate on what's needed to make money on the investment spent for advertising.  Be real.


    I worked for 10 months for a couple of stations that offered specials and then they always had to offer those specials.


    There are plently of ways to work with limited budgets if you are creative,  but ask yourself if you are willing to accept the "deal" you are offering today long term.


    Here's an example:

    I have a doctor who is going to be changing the focus of his advertising to strictly weight loss.  He and his wife are wrapping up the program themselves and then they will offer it to the public.  Instead of kicking it off August 1st, we are waiting two weeks so his staff is trained on how to handle calls and patients for this new weight loss program.

    He is spending $3375 per month.  He will be getting 45 commercials per month.  All he needs is 3 new patients from the radio ads to start turning a profit.  He will likely get 3 to 5 per week within a couple of months.

    Since he is starting 1/2 way through the month, do we run 1/2 as many ads in August? Nope.  We use it to our advantage and for the first couple of weeks that we introduce his weight loss program to our listeners, his campaign will get a high frequency comapred to successive months.  

    By the way, the doctor asked if this was the best price available and I told him, yes it is.  I appreciate him asking but we don't do out of the ordinary discounts, instead we ffocus on results.

    Also if your current loyal advertisers get wind that you are offering a better deal to their competition, you are at the risk of burning that relationship and you really don't want to do that, right?

    • 13 posts
    July 17, 2017 7:02 AM PDT

    I disagree. You manage expectations of the customer by presenting this offer as a one-time/first-time only "gift" from us to them on thier new business/initial advertising campaign. Our mandate is ALWAYS to do what is in the best interest of the client while obviously not forgetting the fact that we are in the business of being profitable. If you impliment thier first campaign properly and they see results, the rate vs. return scenario is far less of an issue as you and they are both profiting regardless of what the regular rates are. ESPECIALLY if you focus on the cultivation (we should be farmers... not hunters) of a strong relationship moving forward. BTW... Everything you said is sales/relationship building 101, not an epiphany.

  • July 17, 2017 8:19 AM PDT

    Exactly!  Call it whatever you want; a "gift", a "Welcome" to the station or business community; Use it to build a relationship and YES; be sure to manage those expectations. 

    WE very seldom have anyone bring up our rates because we don't sell rates, we sell results.  I can't remember the last time a new business came back and wanted the lower "New Busiiness" rate again; because that is NOT how we position it.

    • 83 posts
    July 17, 2017 8:41 AM PDT

    As long as you can stick to your guns about it being a one time offer as a welcome to the station then it could work and many of you say it does.  We all agree on building relationships and managing expectations.  When I worked with stations that had plenty of excess (unsold) inventory, we could offer things like this.  


    Usually I now reward our long term advertising partners with bonus ROS schedules to fill those extra openings as a way of overdelivering.  I don't tell them until after they've run and it can start a conversation about upselling if they saw an increase in results during the month those extra ads ran.

    Different approach perhaps than the original question and from a different perspective too. 

    By the way, I work for a news/talk station that has avails that have to be filled with either local spots or PSA's.  I'd rather run local ads for our clients.   If we were a music station, this would be different, we would just cut down the number of stop sets and give our listeners the gift of more music!

    • 13 posts
    July 17, 2017 11:17 AM PDT

    Now I agree with ALL of that!  :o)

  • July 17, 2017 11:43 AM PDT

    Yes; makes total sense.

    • 139 posts
    July 21, 2017 9:53 AM PDT

    As the person who typed up that Sponosr of the Day 1 sheeter... i can say that package sells very well for not just new clients but people with 1 day sales or events. Its one of our most popular advertising tools for clients.

    • 1036 posts
    July 21, 2017 10:16 AM PDT

    Jessica - Thanks for sharing your experience with the Sponsor of the Day. Would love to hear more about how and when you use it and any client successes you care to share.  Good job!