[cma-l] Community Radio Spot Rate

[David Duffy]

As you point out, Eddie, it’s not straight forward.  If it was then we’d all be laughing.

I have two comments/observations regarding newspapers and print media in general.  

Firstly, smaller business who have a legacy of advertising in print may have a preconception that advertising on the radio is a) expensive and b) complicated (comprod is a black art compared to sketching a print ad out on a blank sheet of paper).  If you want to stimulate demand/lead generation then you need to address both of these in any marketing you do.

Secondly, print traditionally carries a bigger cost of manufacture and distribution. However, what their investment has bought them is readership/audience.  As they switch to a digital business model the costs will fall and they will be able to drop prices or use the Optional Extra Pricing strategy - occasionally giving away the digital in return for commitment to a print campaign. This is where you need to lasso your listening audience and driving them at you digital platforms with valued and compelling content. Get their email address and their engagement with yours and their social media presence.  Then monetise that. Radio is a personal medium and that’s the battleground where print has a fight on its hands.

Regards

David



T:  @theradiopeople <http://www.twitter.com/theradiopeople>
F:  facebook.com/theradiopeople <https://www.facebook.com/theradiopeopleuk>
L:  linkedin.com/in/davidgduffy <http://uk.linkedin.com/in/davidgduffy/>
W: theradiopeople.co.uk <http://www.theradiopeople.co.uk/>
> On 3 Feb 2015, at 00:21, Eddie Stuart <eddie at kcr.fm> wrote:
> 
> David,
> 
> Interesting to read "the 6 pricing strategies".
> 
> We've had 17yrs as a Community weekday evenings only opt-out from the local ILR station and the agreement with them only allowed limited sponsorship, no advertising.
> 
> Once we were running on our own licence (& transmitter etc) in 2014 the situation changed. Several people in the industry advised us to take advantage of all the "go-live" publicity and for a while to charge "Rate card + a premium" - exactly the opposite of the "Penetration Pricing" strategy!
> 
> As regards some people saying that "that's too much" - you will always get that. One that we had - I bought all the various local papers in our broadcast area one week.
> 
> I phoned several firms that week where I knew people well enough for off the record enquiries to see if it had been a busy or quiet week for the papers - ie had adverts been booked a long time ahead or were they last minute ones, were people paying full rate to the papers or was there much discounting to sell white space (appeared not so that week - not 100% accurate, I know, but.......)
> 
> I know that white space affects papers rather than radio but we wanted to guesstimate how much the firm was spending a week.
> 
> We were then able to decide that if the firm were paying that much, even a half-decent campaign with us would still cost far less than they were paying the papers, & that we shouldn't/wouldn't devalue our product. They had admitted that being on KCR had increased their footfall and were, frankly, having a laugh......
> 
> There are times to turn down business!
> 
> In contrast, we have had several non-commercial organisations happy to take a block of adverts at what they felt was a very reasonable rate compared to the ILR / newspaper charges - "No-brainer" was one comment..... (That's not charities etc BTW - we have free Community Corner / Community Announcements slots for them)
> 
> Regards,
> 
> Eddie
> 
> 
> On 02/02/15 18:14, David Duffy wrote:
>> 
>> I've done a lot of work on product and service pricing over the years and it often bears no relationship either to worth or value. We have this simple table <http://www.theradiopeople.co.uk/pricing> which you might find useful.  It shows the 6 pricing strategies <http://www.theradiopeople.co.uk/pricing> that are most commonly used in radio.  Enjoy!
>> 
>> All the best
>> 
>> David
>> Senior Partner - The Radio People
>> 
> 
> _______________________________________________
> 
> Reply - cma-l at commedia.org.uk
> 
> The cma-l mailing list is a members' service provided by the Community Media Association - http://www.commedia.org.uk
> Twitter: http://twitter.com/community_media
> http://www.facebook.com/CommunityMediaAssociation
> Canstream Internet Radio & Video: http://www.canstream.co.uk/
> _______________________________________________
> 
> Mailing list guidelines: http://www.commedia.org.uk/about/cma-email-lists/email-list-guidelines/
> _______________________________________________
> 
> To unsubscribe or manage your CMA-L mailing list subscription please visit:
> http://mailman.commedia.org.uk/mailman/listinfo/cma-l

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.commedia.org.uk/pipermail/cma-l/attachments/20150203/5106667b/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: 240 x 240 copy.jpg
Type: image/jpeg
Size: 20547 bytes
Desc: not available
URL: <http://mailman.commedia.org.uk/pipermail/cma-l/attachments/20150203/5106667b/attachment.jpg>