Radio Sales Café

I am in New York, and have worked in Washington DC/Baltimore as well.  I am really curious as to feedback from those in the top 20ish markets (but other are welcome to respond as well!).  I just know that the answers will differ for smaller markets.  I am wondering what categories you have had a lot of success developing new direct business. 

I work with education quite a bit...however, I am looking for some new ideas in which to branch out.  Thank you for your responses in advance!

Julie, Question from a small market guy: when you're talking about going after direct business in large (top 20) markets...what criteria have to be satisfied in order to identify a business as a viable prospect? What are the baseline requirements in your experience, that would qualify a business as a reasonable prospect for your station(s)? Are there certain types of businesses or business categories (e.g., "mom and pops," independent retail and service businesses, neighborhood stores, etc.) that you would tend not to approach, based strictly on the perceived size of the business? Reason I ask, Julie - in a small market nearly any business can afford to establish a significant, even dominant presence on one or more local radio station(s) and enjoy a respectable return on its investment in radio advertising. But I'm wondering if in a large market, where spot rates are often in the hundreds of dollars, a similar small business would be able to support an ongoing radio campaign with sufficient frequency to be effective. I'm glad you've broached this topic - it's something I've wondered about off and on for years, and I'm eager to hear what others have to say. Thanks, Rod

Hi Rod,
That is kind of a tough question...it is not an exact science. For smaller businesses you can find solutions such as participating in an event, or online advertising. However, I feel like the most success comes from medium to large businesses that have the finances to have a more long term, integrated campaign. But then again, it really all depends on their needs. A school can have one open house and advertise for 2 weeks effectively to get results...they don't have to be on every week or year round.

Julie,

Understood. Portland, OR - while not a NY, Chicago, or LA - is a "big market" relative to most in the Pacific Northwest. I might defer to the illustrious Phil Bernstein, still a member here despite having left the radio industry to work with Jim Doyle, helping TV advertisers spend their money more effectively. When Phil worked for Clear Channel in Portland, he had some notable success with clients in the health care field, including (if memory serves) as cosmetic dentist. I'll shoot him an email and perhaps he'll take a few moments to weigh in.

RS

Heard from Phil Bernstein via Facebook. Here's his reply, verbatim: Rod, Hello from beautiful Sioux Falls. I can't figure out how to log in to the Cafe page -- either my username or my password is wrong -- so I hope you can copy-and-paste this into the thread. Here goes: In general, you want to look for two things: 1. Businesses that sell big-ticket, high-profit products or services, or 2. Businesses that sell smaller items, but in very high volume. These are the people who would be able to generate enough money from a campaign to justify an investment. (An example of one to avoid: I took a call-in once from a guy who was trying to launch a personal-training business. His customers weren't paying a lot of money, and because he worked alone there weren't enough of them to generate the cash he'd have needed for a decent radio buy). Categories that could be good ones: 1. Elective health care -- especially the stuff that insurance won't pay. Aesthetic medicine (Botox, laser hair removal, etc) is a good one because it's a cash business -- and many of the treatments don't last all that long, so the lifetime value of a patient is high. Cosmetic or sedation dentistry are lucrative as well. In Kentucky I met with a one-day-denture place that was doing 300 patients a week. 2. Personal injury lawyers -- one good case could be worth hundreds of thousands of dollars. 3. Laser tattoo removal. I'm not kidding. In New York, there are thousands of people who got drunk and did something stupid back in the 90's. Take a walk through Lower Manhattan on a summer day and you''ll see them. The ink is holding them back professionally and/or personally. Getting it taken off can cost a few thousand dollars. These are just a few examples. Again -- either high-ticket or high-volume is the key. I'd be remiss if I didn't add a brief commercial announcement: the company I work for, Jim Doyle & Associates, has a coaching program for AE's called Achievers Circle. I was a paying customer for years when I worked in radio, and it was one of the most profitable investments I ever made. The Achievers Circle newsletter often has ideas for new, lucrative categories to call on. You can find out more at www.jimdoyle.com. Good luck! --------------------------------------- @Phil - thanks a million! -RS