radio.com
radio com $
how smart radio stations
leverage interactive assets
online revenue strategy
& business model development
june 2009
MelTaylorMedia.com
267-625-5313

radio.com $
This report is a collection of observations, realistic recommendations and tough love
for Radio it’s
f R di & it’ emerging online b i
i li business models.
d l
Radio currently garners about 2% of local online expenditures. We can fix that.
By adopting what is contained within, Radio can substantially grow it’s share by
smartly leveraging it’s unique portfolio of assets.
Mel Taylor is a Philadelphia-based consultant, specializing in online revenue
strategy & sales training for local media.
Mel is a highly-rated and often provocative speaker/trainer, with a 13 year
background in Radio that includes on-air, sales & web management.
In 2002, Mel reluctantly exited the Radio industry to spend more time with TV &
Newspaper, who were more advanced with online revenue at the time.
h d d ih li h i
“I’m incredibly happy to finally return to Radio, sharing what I’ve learned about
online revenue strategy from those online market leaders”
www.MelTaylorMedia.com

mel taylor
background
• radio • newspaper • sales management • talent, reporter
• internet • television • content, production • sales training

radio & web
nowhere to go…but up
2008 local web revenue shares

reality check
your radio website business plan
from past 2 years…
may not work over next 2 years
you may need a local web sales
d l l b l
‘crisis intervention’

reality check
any of this sound familiar ?
you invested in platforms, software & manpower
but… h
b t where’s the money?
’ th ?
you spent on research to help you sell
how do you consistently monetize this data?
consultants helped you close quick, web revenue
eventually, this easy money went away
radio execs follow other radio execs for web ideas
some say: blind leading the blind ?

simple solution
sounds too easy…. huh ?
> look outside of radio for help
> select t ti from web revenue leaders
l t tactics f b l d
> mix with radio’s unique strengths
radio s

old thinking
g
radio & web
web revenue primarily from:
• in-stream spot sales
• banner ads on website

new thinking
g
radio & web
g
grow overall revenue:
• leveraging all assets to grow share
• digital playing major role

culture change
job descriptions
no longer
a radio company
• now: local content & marketing co.
• aggregate distribute & sell multi-platform
aggregate, multi platform
• reps as mini-agencies
has HR updated this yet ?

mandatory re think
re-think
step #1
programming/content
must think revenue too

radio’s oppo u y
ad o s opportunity
newspaper’s fast decline
• circulation decline
• ad revenue decline
d d li
• may charge for website
y g
• massive overhead

newspaper revenue
worst year: history of industry
Recruitment 67%
Real estate 46%
Online
Automotive 43% 13%
Nationall
N ti 26%
Retail 24%
* newspaper assn of america

forces hurting current
g
radio business model
• music & news as commodity
• listener & advertiser has more choices
• internal conflicts
• reduced staffing & resources
• erosion of barriers to entry
• economy pushing advertisers to web

core radio
business
• radio
• audio
• entertainment
• websites
• enabling commerce

core radio business
local assets
• reach approx 90% local consumers
pp
via news, music, talk, audio formats
• sales force & support staff
pp
• advertiser relationships & brand trust
• traditional & digital distribution
• on-air, online, on-site
, ,
notice the omission of ‘radio’ & ‘website’ ?

slaughter these
g
sacred cows
• programming fully controls site
• build content, dump off to sales
• your brand is enough to win online
• cpm banner selling
• over-reliance on ad networks
• over-reliance on streaming

radio web revenue
strategy assessment tool
Questions to assess your online revenue strategy
Does your corporate Interactive VP have a sales management & proven
revenue-focused background?
f db k d?
If not, you’re likely building ‘cool’ sites filled with commodity content. The
financial returns on these types of efforts are typically weak or limited.
Does your local webmaster, PD or marketing director run the site? If so, you
DON’T have a web revenue strategy….you have resource hog that makes
little
littl or no money. O h
Ouch.
In order for your web assets to be an integral part of revenue growth, you
need someone running your digital portfolio like a business. Hire someone
gy g p
with a proven sales background, an entrepreneurial mind, a passionate
interest in digital, and a deep understanding of both of traditional & new
media.

radio web revenue
strategy assessment tool
Questions to assess your online revenue strategy
Is your Web commission structure similar or better than your new biz
commission? Are you sure the sales reps are not just moving spot dollars to
the Web line?
th W b li ?
Can your sales staff comfortably sell Web and overcome common
objections? Do y
j you know what these common objections are?
j
Do your managers have strong grasp of Web, and the competitive online
environment? If not, how will they effectively manage the effort?

radio web revenue
strategy assessment tool
Questions to assess your online revenue strategy
What kind of training are you providing to your staff? Is it ongoing?
Is staff being trained by someone with proven online sales experience?
g y p p
Are you doing more than just selling banners and streaming spots?
Do you know that video, search, email, directories & promotions are
video search email
some of the fasting growing revenue streams in 2009 and beyond? Do
you know which of these opportunities is best suited for Radio?

Is your website listener & advertiser friendly?
Or is it a train-wreck of marketing/programming content?
Is your site full of non-proprietary content that users
can easily get on other online properties?
How much hi-value, advertiser-friendly, proprietary content is on your site?

• dumping g
p g ground
• cluttered
• no content
• station looks bad ?

• primarily marketing & programming
• drive lo-value traffic via ‘chicks that rock’

do you have plan to
sell non-radio
non radio
clients too?
all
local business
in market
current newspaper current
advertisers radio
using advertisers
radio web assets
radio struggles to g clients
gg get
on their own website
can radio tap the REAL upside?
offer web solutions to entire business community

new competitors
offering web to radio clients
ff i bt di li t
Offering
Search Engine
• search engine marketing
Marketing
• search optimization
• enhanced directory listing
Directories >> video, graphics
video
>> webpage with SEO
resell search

Google just stepped up it’s efforts
to target local business

even cable sellers are offering web
bl ll ff i b
to local businesses.
27

local businesses are figuring out how to use
twitter, facebook & email databases

this pizza shop has 1800 ‘followers’ on twitter.
when the shop owner wants to drive immediate
business, he sends out a ‘tweet’ that says..
free toppings & soda 2nite 7p-mid

This gourmet food truck sends tweets to inform
customers where they will be parked that day
day,
and at what specific times

beware
search engine & display marketing for local business
g p y g
if you rely on ad networks:
reach local will feed these ads
(of your clients) onto your site
at low cpms
have a plan to deal with this
new reality ?
31

local business build
& buy
& buy
their ads
on national sites
using self‐serve
www.AdReady.com

recent findings
online spending trends
li di t d
• Banner ads down
• Email
• Search
• Video
• Directories
up
• Promotions

radio
di
king of promotions
web + radio + promotions = revenue
p

radio
di
targeted email
online promotion
integrated
radio campaign
radio campaign
build database download coupon
or watch video
data capture

what online content
should radio build ?
determine local content hole
>> local consumer need NOT being met online
>> of no interest to national pure-play
determine advertiser demand
i i
>> what categories want to advertise in this content?

best
b t VIDEO practices
ti
• it’s NOT pre-roll
it s pre roll
• video in banner
• sales-based video player
• search optimize video
h i i id
• online info-mercials

video micro site
micro-site
• online info-mercial
• ad-vertorial
• ez & cheap to produce
• your biz seen by more
• better search results
• never a wasted play
p y
http://essentials.baltimoresun.com/micro_clients/lifebridge/

online video
that pays

traditional media
specialty sites
determine online content & revenue hole in market, fill with separately
branded web site & URL
Metromix.com
Tribune Media’s entertainment site
LVBrideandGroom.com
Newspaper’s wedding site: using database collection strategy
ToastedRav.com
ToastedRav com
Bonneville Radio’s local entertainment portal in St. Louis
PHrequency.com
Philadelphia Newspaper’s local music website.

g
getting buy-in
g
from all staff
• overhaul compensation
h l ti
• update job descriptions
• consistent web training for ALL
especially top & mid-management
* how can top & middle-managers “manage”…what they don’t fully understand ?

overhaul sales rep
compensation
• compensation
heavily commission based
commission-based
• bonus & penalty
when selling web

sales team structure
hybrid approach ffor near term
t
• web specialists t
target new biz, web-only b
t bi b l buyers
• web specialists assist & train traditional reps
• mandatory web sales for reps
• convert all reps to ‘super sellers’ over time
‘super-sellers’

goal: integration
• reps become super sellers
• 1 point of contact for client
• able to offer many solutions
• reps as ‘mini agencies’
mini-agencies
• sell total reach/power of all platforms

radio web sales
best
b t practices
ti
• online only sellers
•t
target non-radio clients
t di li t
• education & consultation
• reps as mini agencies
• non-radio sites, separate url’s
• mandatory budgets

dumb practice
letting
ad networks
on home page
& section f
ti fronts
t

super dumb practice
protecting ‘rate card integrity’
@ $10.00 cpm
and th
d then…..
selling large amounts of unsold
amo nts nsold
inventory to ad networks
y
@ 75cent cpm

why do we call this
a LEADERBOARD?
call it what it looks like:
a TOP BANNER
it looks like a CUBE,
use vocabulary so call it a CUBE
that local advertisers & reps
STOP using
can easily understand
‘medium rectangle’

why do we
talk about this stuff?
STOP! • tech
• cpm
• pageviews
• uniques
• click thrus
click-thrus

really dumb practice
web sellers quote monthly,
instead of weekly rates
(broadcast & newspaper quote weekly)
sounds I can’t afford almost
can t
expensive
$2,000 per month !
sounds I can handle
reasonable
$475 per week

sliding billboard
• exclusive & limited supply
• ez for rep to sell
p
• ez for client to see value
• ez to design & execute
• see vendor: AD INTERAX
AD-INTERAX

another tactic
to drive web revenue
web advertising 101 seminars
for local business

why a seminar ?
local advertisers
want to buy web, but…
• confused / lack of knowledge
• don’t totally trust sales rep
• think Google or website is enough
• never been offered web

seminar benefits
• provide education to locall biz
id d ti t l bi
• taps consultative approach
• immediate web revenue
• sales rep training

case studies
& Cablevision
• $146,000 new quarterly business
• 26 new contracts
• $ 144,000 new quarterly b i
144 000 t l business
• 41 new contracts

radio.com
radio com $
how smart radio stations
leverage interactive assets
online revenue strategy
& business model development
june 2009
MelTaylorMedia.com
267-625-5313