[cma-l] National Advertising

Sat Apr 23 20:56:46 BST 2011

Clive

Radio advertising
sales have fallen through the floor for a variety of reasons.  One of the big problems with the whole
commercial sector is that consolidation and quasi networking is undermining the
value overall. On top of that, some companies like GMG are selling below the
rate and thereby forcing prices down to compound the problem.

In real
terms, national revenues fall well short of the potential local rate, perhaps
by as much as 10:1. In other words, many stations are selling spots at say
£1.20 nationally; when the spot could sell for say £12 (depending on size) locally.
I have never understood why the industry chose this method of business but I assume
it is because local sales have high overheads, in terms of salaries, commission
and cars.

In any
event, all of national advertising is sold based on RAJAR data, in other words,
no RAJAR no interest.

I
understand the logic, as on the face of it you sign up and free money rolls in.

Money would
be better spent on a sales person representing the ‘generic’ pitching in the
supportive role, 

--- On Thu, 21/4/11, Martin Steers <martin at martinsteers.co.uk> wrote:

From: Martin Steers <martin at martinsteers.co.uk>
Subject: Re: [cma-l] National Advertising
To: "CMA Discussion List List" <cma-l at commedia.org.uk>
Date: Thursday, 21 April, 2011, 19:09

Clive a couldnt agree more, only together can community stations get the big national campaigns (and maybe even lobby for more council and coi money) almost a RAB equiv for community stations..

I ran a trial project with student stations on the same concept, that as a collective group they can get better deals and access to different advertiers.. It worked in the whole and learnt alot about the process and concept. I was considering moving the project into community radio advertising, if there was will and desire from community stations.

Things that need to consider is that you need a critical mass of stations for it to be effective.. and you might struggle with a chicken and egg situation (advertisers wont buy until you have the stations, and stations may not join unless they can get the adverts)..

Also to make it easier to sell (and for advertisers and agencies to buy into) you need a generic type advertising package and concept.. covering..
cost per spot (now this can vary by tsa / station / audience size but not disproportional)

pattern, length of ads (30sec spot, once per hour, for 6 times a day for example)consistent audience data.. (targeted population, demographic, listener numbers where we have it)
Ironically due to a change in my situation I might be able to move this project on.. if anyone is interested please let me know.. we could just start the ball rolling and see how we get, or run a trial project in a region or area.

Martin
On Wed, Apr 20, 2011 at 11:52 AM, Clive Glover <clive.glover at lineone.net> wrote:

I wonder if anyone has had any recent contact with any of the radio advertising agencies about trying to run any national advertising from major retailers who have branches in their local areas?  We did this some time ago but were effectively told it was not a viable option either for the agencies or for ourselves.

But now with 200 CR stations on air and a potential total CR coverage of 18 million (think that was OFCOM's figure!), should we perhaps be trying this again all together?

In our local area - as I am sure in yours - we have multiple outlets for all the major supermarkets, various car dealers etc who are major national advertisers. We would be happy to run current national ads, perhaps with a local addition of "your local *** store is at 24 High Street" if it produced some income for us. We have already done exactly this for our local Sony Centre (they are franchises so the local manager can make decisions!) and we think it helps demonstrate our credibility to other local potential advertisers.

Apologies to those stations that do not take advertising, but this does seem to me to be an idea whose time has come now we have a large number of stations on air!

Thoughts please!

Clive Glover

Radio Verulam 92.6 FM

St Albans

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