RADIO INK, Friday, October 31, 2008
Analyst: No Ad Recovery Until 2010
NEW YORK -- October 30, 2008: BMO Capital Markets analyst Lee Westerfield said in a note Thursday that a severe recession is "unavoidable," and predicted, "A deeper, wider, and more severe slump is upon us, pressured by discontinuous auto and retail marketing, and lapsing business investment."
He revised his ad-growth forecast to down 1.1 percent in 2008 and down 1.9 percent in 2009, with a recovery of plus 5 percent in 2010. Ad spending recovery before 2010 is "unlikely," he writes.
For radio, Westerfield sees an 8.2 percent in ad revenue for this year, a 7.6 percent decline in 2009, and a 0.2 percent uptick in 2010. He projects Internet ad growth of 13.1 percent this year, 12.9 percent in 2009, and 20.5 percent in 2010 -- slower than the recent five-year trend.
RICK’S RESPONSE, October 30, 2008
A dark prediction, indeed, in terms of the declining ad revenue for radio. But how about the good news? A prediction of growth of almost 54% (compounded) in internet revenue through 2010? Hey, how do we, as broadcasters, get our fingers into that fast growing pie?
Selling discount gift certificates through your websites is a promotion whose time has arrived. Stations are adding this exchange based revenue program to their sales kits every week. As your sales people begin to experience more “no’s” from local advertisers due to cutbacks, this gift certificate program gives them another weapon in their arsenal to turn those no’s into a close. Wow! You can do it yourself, experiencing the trail and error system to get you through the myriad of details required to solicit, sell, process and deliver the gift certificates. You can use the services of a fulfillment house, taking some of the work out of your hands. Or you can use a turn-key system, like ours, that take all the detail work out of your hands, saving you time, energy and money! And you’ll see cash through your website the day you launch.
Your listeners pay for your client’s advertising by purchasing discounted gift certificates through your website. The discounted gift certificate program gives your sales staff an extra tool to close a deal (no cash from the client!). It rewards your listeners for tuning in (buying certificates at a 30-50% discount!) It brings cash in through your website (from day 1, guaranteed!) Clients benefit, listeners benefit and radio stations benefit. Finally, a win-win-win system that really works.
Friday, October 31, 2008
Thursday, October 23, 2008
RBR.com Article, October 23, 2008: Restaurants caught in a squeeze play. Radio to the rescue!
As consumers cut back on entertainment costs, restaurants are among the first items to be crossed off the list. According to a recent article in the New York Times, this is especially true for mid-priced full-service chains caught in the middle of high-end standalone restaurants with the kind of clientele less likely to bail on their favorite eateries, and the bottom dollar fast food chains.The current economy even has the high-end shops scrambling, however, and both full-service categories are bracing for a bleak holiday season.The standalones have another advantage over the chains, however, which is their relative ability to turn on a dime in making adjustments to new market realities. They can change policy and menu at will, whereas the big nationals often need considerable lead time to make even simple changes. On the other hand, the nationals can marshall their size in the form of advertising increases and negotiating power with suppliers.The fast service shops (literally down the food chain) can unlock their doors and accept the business coming from those who have at least temporarily abandoned their pricier competitors. If you need proof, just look at McDonald’s Q3 2008 results, during which they celebrated an 11% increase over Q3 2007.
RBR/TVBR observation: This is information you can use. Broadcast outlets are a great place on which to advertise restaurants, and the unique situation each of these broadly inclusive restaurant categories faces should go a long way in helping your sales staff tailor a pitch. Whether it’s a great new feature at a standalone, a new price-friendly option at a chain or a new reminder that one fast food restaurant is better than all the others, an appropriate message can go out over your station soon, to help these troubled businesses – and yours – prosper in troubled times.
Rick’s Observation: As the economy continues its unsteady course, restaurants aren’t the only business that’s experiencing difficult times. As those businesses, like restaurant customers, look to trim expenses, we all know that advertising is the first thing cut and the last thing paid. What if your radio station had the ability to offer a no-cash advertising program to your clients that literally had your listeners directly paying your client’s advertising bill?
Selling discount gift certificates through your websites is a promotion whose time has arrived. Stations are adding this exchange based revenue program to their sales kits every week. As your sales people begin to experience more “no’s” from local advertisers due to cutbacks, this gift certificate program gives them another weapon in their arsenal to turn those no’s into a close.
You can do it yourself, experiencing the trial and error system to get you through the myriad of details required to solicit, sell and deliver the gift certificates. You can use the services of a fulfillment house, taking some of the work out of your hands. Or you can use a turn-key system, like ours, that take all the detail work out of your hands, saving you time, energy and money! And you’ll see cash through your website the day you launch.
Your listeners pay for your client’s advertising by purchasing discounted gift certificates through your website. The discounted gift certificate program gives your sales staff an extra tool to close a deal (no cash from the client!). It rewards your listeners for tuning in (buying certificates at a 30-50% discount!) It brings cash in through your website (from day 1, guaranteed!) Clients benefit, listeners benefit and radio stations benefit. Finally, a win-win-win system that really works.
Monday, October 20, 2008
STATION MANAGERS LOVE THE DOLLAR SAVER--Testimonials
Monday, October 13, 2008
"We've been running the DollarSaver since 2003. It's generated six figures of income per year and has led to spot sales from clients we would, otherwise, never have met. The best part is the fact that our viewers thank us for giving them the opportunity to send us their money! Turning unsold inventory into cash, developing new spot customers and having a product that our viewers appreciate is a trifecta in my book!"
Doug Finck
General Manager
WPXT TV and WPME TV Portland, ME
________________________________________
"We have been selling certificates to local businesses for years and fulfillment was always the big issue. How do you man it and how do you manage it? That, plus the lack of customer spontaneity always hampered the potential upside. Now the DollarSaver makes fulfillment a breeze, at a reasonable cost, and the customers can buy certificates to local restaurants and other businesses at the spur of the moment...right before they head out the door. No wonder WKZE's Hudson Valley
DollarSaver has really taken off!"
Will Stanley
GM and Owner of WKZE, Rhinebeck, NY
________________________________________
"The DollarSaver has worked great in all three of our markets. We had been running a program similar to the Dollar Saver but wasn’t as user friendly for clients and customers. This is a complete turn key operation with minimal work for the radio stations. It is a great tool for small to medium size local businesses that do not have the budget to effectively advertise on radio. We even have a few clients that use the DollarSaver in addition to their cash commitments to increase their overall frequency. I would recommend this program for additional revenue especially to small and medium size markets. "
Pete Detone
General Sales Manager
Nassau Broadcasting
Concord, NH
Posted by rick snyder at 11:39 AM 0 comments
"We've been running the DollarSaver since 2003. It's generated six figures of income per year and has led to spot sales from clients we would, otherwise, never have met. The best part is the fact that our viewers thank us for giving them the opportunity to send us their money! Turning unsold inventory into cash, developing new spot customers and having a product that our viewers appreciate is a trifecta in my book!"
Doug Finck
General Manager
WPXT TV and WPME TV Portland, ME
________________________________________
"We have been selling certificates to local businesses for years and fulfillment was always the big issue. How do you man it and how do you manage it? That, plus the lack of customer spontaneity always hampered the potential upside. Now the DollarSaver makes fulfillment a breeze, at a reasonable cost, and the customers can buy certificates to local restaurants and other businesses at the spur of the moment...right before they head out the door. No wonder WKZE's Hudson Valley
DollarSaver has really taken off!"
Will Stanley
GM and Owner of WKZE, Rhinebeck, NY
________________________________________
"The DollarSaver has worked great in all three of our markets. We had been running a program similar to the Dollar Saver but wasn’t as user friendly for clients and customers. This is a complete turn key operation with minimal work for the radio stations. It is a great tool for small to medium size local businesses that do not have the budget to effectively advertise on radio. We even have a few clients that use the DollarSaver in addition to their cash commitments to increase their overall frequency. I would recommend this program for additional revenue especially to small and medium size markets. "
Pete Detone
General Sales Manager
Nassau Broadcasting
Concord, NH
Posted by rick snyder at 11:39 AM 0 comments
AD AGE ARTICLE---Radio Gaining Audience -- but Not Ad Revenue
By Andrew Hampp
Published: October 20, 2008
NEW YORK (AdAge.com) -- Radio has been right behind newspapers as the old-school medium most adversely affected by digital developments. New research, however, shows that radio is actually gaining audience, even in spite of its closest competitor, the iPod.
A recent online study from Paragon Research polling more than 400 14- to 24-year-olds about their music-consumption habits found that the youth demo has increased its time spent listening to radio 11% this year, while its time spent listening to iPods has actually decreased 13%. The study coincides with the Radio Advertising Bureau's annual RADAR report, which shows that AM/FM radio listeners increased by 3 million in 2008, bringing the number of weekly radio listeners to 235 million.
But more listeners are not doing much to boost radio's fortunes. Industry revenue has been largely flat to down in the past five years due to the gradual migration of listeners to MP3 players and online radio -- not to mention advertisers' simultaneous migration to other niche media such as cable TV, web portals and, to a smaller extent, satellite radio. Its two core advertisers -- the automotive and retail industries -- are being slammed the hardest by the financial crisis, particularly at the local level, which is where radio makes more than 65% of its total ad revenue. Radio ad revenue was down 6.5% during the first two quarters of 2008, making it the second-most-declined medium next to newspapers, which suffered a 7.4% decrease in ad spending during the same period, according to TNS Media Intelligence's spending report on the first half of 2008. Internet spending was up 8%, a margin notably smaller than the increases it posted in recent years due to the stabilized growth of display advertising.
Jim Boyle, senior radio analyst for C.L. King & Associates, said although the iPod has had some affect on radio listening, its impact on radio ad revenue has been minimal at best. "It's not as though you have to compete with the iPod to go to the local auto dealer in Ohio for an ad," he said. "Even if they chew into your listenership, the pie is still a much bigger pie. You may only lose a very small percentage of your cost-per-thousand point."
Self-inflicted wounds
And as the industry's highest-ranked executives have readily admitted in recent years, radio hasn't done a good job of embracing new media. As Frank Flores, chairman of the New York Market Radio Association and VP-general manager of the Spanish Broadcasting System, put it, "We've let everybody brand us and put us in different places. The internet branded us as slow and a dinosaur, iPods and streaming just made us seem like your father's brand of communicating, and we've done nothing to dispel that."
RICK’S RESPONSE
Published: October 20, 2008
Radio is a survivor, still going strong after predictions of its demise to TV, satellite radio, internet radio, and portable music players. It’s great to hear about audiences growing as radio attracts them. But as Andrew Hampp’s article points out, radio ad revenue was down 6.5% during the first two quarters of 2008 and “listeners are not doing much to boost radio's fortunes.” Except for those stations that are adopting new concepts to monetize their audience. Expanding new revenue streams through their web sites is already being endorsed by the growing number of stations selling discounted gift certificates from local merchants. Done right, this new initiative brings in immediate cash to the radio station while creating an ongoing no cash promotion for the client, thanks the audience for listening to your station, and literally, has your listeners paying the client's advertising bill! A win-win-win situation. Cash flow starts the day you launch your first sale and continues to grow as your online store stocks up with local merchant's gift certificates. This program won't replace your cash business but, as stations promote their discount certificates program, traffic to their website increases, sales of certificates increases, and many of their new, non cash clients, impressed by the results will turn into cash customers. Help in making this program a success is available through fulfillment houses or with “turn key operations,” like ours, eager to set you up and get you rolling. It's local, provides solutions in a tough economy, and invents a new revenue stream for stations to build on, cash from the listeners.
Published: October 20, 2008
NEW YORK (AdAge.com) -- Radio has been right behind newspapers as the old-school medium most adversely affected by digital developments. New research, however, shows that radio is actually gaining audience, even in spite of its closest competitor, the iPod.
A recent online study from Paragon Research polling more than 400 14- to 24-year-olds about their music-consumption habits found that the youth demo has increased its time spent listening to radio 11% this year, while its time spent listening to iPods has actually decreased 13%. The study coincides with the Radio Advertising Bureau's annual RADAR report, which shows that AM/FM radio listeners increased by 3 million in 2008, bringing the number of weekly radio listeners to 235 million.
But more listeners are not doing much to boost radio's fortunes. Industry revenue has been largely flat to down in the past five years due to the gradual migration of listeners to MP3 players and online radio -- not to mention advertisers' simultaneous migration to other niche media such as cable TV, web portals and, to a smaller extent, satellite radio. Its two core advertisers -- the automotive and retail industries -- are being slammed the hardest by the financial crisis, particularly at the local level, which is where radio makes more than 65% of its total ad revenue. Radio ad revenue was down 6.5% during the first two quarters of 2008, making it the second-most-declined medium next to newspapers, which suffered a 7.4% decrease in ad spending during the same period, according to TNS Media Intelligence's spending report on the first half of 2008. Internet spending was up 8%, a margin notably smaller than the increases it posted in recent years due to the stabilized growth of display advertising.
Jim Boyle, senior radio analyst for C.L. King & Associates, said although the iPod has had some affect on radio listening, its impact on radio ad revenue has been minimal at best. "It's not as though you have to compete with the iPod to go to the local auto dealer in Ohio for an ad," he said. "Even if they chew into your listenership, the pie is still a much bigger pie. You may only lose a very small percentage of your cost-per-thousand point."
Self-inflicted wounds
And as the industry's highest-ranked executives have readily admitted in recent years, radio hasn't done a good job of embracing new media. As Frank Flores, chairman of the New York Market Radio Association and VP-general manager of the Spanish Broadcasting System, put it, "We've let everybody brand us and put us in different places. The internet branded us as slow and a dinosaur, iPods and streaming just made us seem like your father's brand of communicating, and we've done nothing to dispel that."
RICK’S RESPONSE
Published: October 20, 2008
Radio is a survivor, still going strong after predictions of its demise to TV, satellite radio, internet radio, and portable music players. It’s great to hear about audiences growing as radio attracts them. But as Andrew Hampp’s article points out, radio ad revenue was down 6.5% during the first two quarters of 2008 and “listeners are not doing much to boost radio's fortunes.” Except for those stations that are adopting new concepts to monetize their audience. Expanding new revenue streams through their web sites is already being endorsed by the growing number of stations selling discounted gift certificates from local merchants. Done right, this new initiative brings in immediate cash to the radio station while creating an ongoing no cash promotion for the client, thanks the audience for listening to your station, and literally, has your listeners paying the client's advertising bill! A win-win-win situation. Cash flow starts the day you launch your first sale and continues to grow as your online store stocks up with local merchant's gift certificates. This program won't replace your cash business but, as stations promote their discount certificates program, traffic to their website increases, sales of certificates increases, and many of their new, non cash clients, impressed by the results will turn into cash customers. Help in making this program a success is available through fulfillment houses or with “turn key operations,” like ours, eager to set you up and get you rolling. It's local, provides solutions in a tough economy, and invents a new revenue stream for stations to build on, cash from the listeners.
Monday, October 13, 2008
RBR.COM INTERVIEW WITH JEFF SMULYAN AND RICK'S RESPONSE
LINK TO VIDEO INTERVIEW (CUT & PASTE TO BROWSER) http://www.rbr.com/media-news/wall-street/canary_s_mineshaft_song_not_pretty.html
Canary’s mineshaft song not pretty
But the Q3 lead-off conference call from Emmis (discussing what for them are Q2 results) was not entirely devoid of optimism. Jeff Smulyan continues to insist that radio is suffering from a perception problem, and still can claim 260M very real listeners.
Overall, the company posted net revenue was $94.2 million, compared to $95.7 million a year earlier. Pro forma publishing and domestic radio net revenues dropped 6.6% and 8.4%. Operating income was flat at $17.1M, and station operating income came in at $26.4M, a mere $100K below the previous year’s results.
Smulyan noted that it was an extremely challenging economy, unlike anything anybody in any industry has seen ever. “Where it goes, nobody knows,” he observed. “Through all of this, radio listening has held up…I think it’s not lost on major advertisers that this is a business that reaches 260M people a week.”
Emmis execs noted that ad placement cancellations are up – automotive and motion picture accounts were cited as examples – but at this point they said it’s only slightly above the norm, but bears watching.
Rick Cummings said the scariest part of the situation is that radio is already fighting a recent history full of setbacks, even before the current situation developed.
Smulyan said, “The question is the fundamental viability of the sector.” He said people were writing off radio as dead before the Wall Street meltdown, but the fact remains that people still tune in – that wouldn’t happen if the content was as lackluster as some claim. He said the upside is that tough times may cause many key advertisers to rethink moves into other media and return to radio, which Smulyan believes is still capable of delivering excellent results.
RBR/TVBR observation: There is something to be said for tough times working in radio’s favor. Just as fast food restaurants benefit from consumers being priced out of the casual full-service dining market; and discount retailers benefit from troubles at mall boutiques; radio’s relatively inexpensive rates compared to other media, coupled with the fact that it is doing a better job of holding its audience than is the newspaper industry, could fuel somewhat of a renaissance if general economic indicators continue to trend down.
RICK’S RESPONSE
Comments (1 posted):
Rick Snyder on 13 October, 2008 08:15:49
Jim, great video interview with Jeff Smulyan. I was delighted to hear him say "...we've got to reinvent this business..." Jeff also said that broadcasters have to "focus on the business in your marketplace (LOCAL) and provide a solution to advertisers, not only on the air but, obviously on the internet!"
I've got an idea; why not let your listeners pay your client's advertising bill? It's now being done with a discount gift certificate program managed through stations' websites! Cash flow starts the day you launch your first sale and continues to grow as your online store stocks up with local merchant's gift certificates. This program won't replace your cash business but it's a great way to 1) supplement lost cash flow, 2) attract new advertisers with a cash free promotion, and 3) prove that radio gets results! It's local, provides solutions in a tough economy, and invents a new revenue stream for stations to build on, cash from the listeners.
I'm now a partner in a broadcast consulting company that creates a revenue stream through stations websites selling discounted gift certificates. Our system absolutely brings in dollars. We're consulting successful programs at stations from Maine to Arizona. We couldn't agree with Jeff Smulyan more when he says, "...we have to demonstrate that we move the cash register!" Ask any station selling discounted gift certificates if they're hearing those cash registers ring both at their stations and for their clients.
Rick Snyder
General Manager, Florida
The DollarSaver Program
561-635-0413
rickdollarsaver@bellsouth.net
www.dollarsaverprogram.com
www.dollarsaverprogram.blogspot.com
Jim Carnegie on 13 October, 2008 10:51:37
Rick Thanks for the comment.
Yep, all media, especially Radio has to reinvent themselves. RBR/TVBR has had to reinvent four times in the last 3 years.
What I have learned speaking with and sitting down with all broadcasters across the board is they seem to Fear this took called Internet. Getting started is the hardest part. It was for us too.
There are companies right now that call themselves Digital - but - that are no where near the internet digital spectrum. They are just perceived as digital because they put the word digital on their letterhead.
Generating additional revenue streams will only happen when Radio and TV learn to use the internet as an additional tool in conjunction with their station operations.
Jim Carnegie
Publisher & Editor/Broadcaster
RBR / TVBR / MBR
www.RBR.com
Canary’s mineshaft song not pretty
But the Q3 lead-off conference call from Emmis (discussing what for them are Q2 results) was not entirely devoid of optimism. Jeff Smulyan continues to insist that radio is suffering from a perception problem, and still can claim 260M very real listeners.
Overall, the company posted net revenue was $94.2 million, compared to $95.7 million a year earlier. Pro forma publishing and domestic radio net revenues dropped 6.6% and 8.4%. Operating income was flat at $17.1M, and station operating income came in at $26.4M, a mere $100K below the previous year’s results.
Smulyan noted that it was an extremely challenging economy, unlike anything anybody in any industry has seen ever. “Where it goes, nobody knows,” he observed. “Through all of this, radio listening has held up…I think it’s not lost on major advertisers that this is a business that reaches 260M people a week.”
Emmis execs noted that ad placement cancellations are up – automotive and motion picture accounts were cited as examples – but at this point they said it’s only slightly above the norm, but bears watching.
Rick Cummings said the scariest part of the situation is that radio is already fighting a recent history full of setbacks, even before the current situation developed.
Smulyan said, “The question is the fundamental viability of the sector.” He said people were writing off radio as dead before the Wall Street meltdown, but the fact remains that people still tune in – that wouldn’t happen if the content was as lackluster as some claim. He said the upside is that tough times may cause many key advertisers to rethink moves into other media and return to radio, which Smulyan believes is still capable of delivering excellent results.
RBR/TVBR observation: There is something to be said for tough times working in radio’s favor. Just as fast food restaurants benefit from consumers being priced out of the casual full-service dining market; and discount retailers benefit from troubles at mall boutiques; radio’s relatively inexpensive rates compared to other media, coupled with the fact that it is doing a better job of holding its audience than is the newspaper industry, could fuel somewhat of a renaissance if general economic indicators continue to trend down.
RICK’S RESPONSE
Comments (1 posted):
Rick Snyder on 13 October, 2008 08:15:49
Jim, great video interview with Jeff Smulyan. I was delighted to hear him say "...we've got to reinvent this business..." Jeff also said that broadcasters have to "focus on the business in your marketplace (LOCAL) and provide a solution to advertisers, not only on the air but, obviously on the internet!"
I've got an idea; why not let your listeners pay your client's advertising bill? It's now being done with a discount gift certificate program managed through stations' websites! Cash flow starts the day you launch your first sale and continues to grow as your online store stocks up with local merchant's gift certificates. This program won't replace your cash business but it's a great way to 1) supplement lost cash flow, 2) attract new advertisers with a cash free promotion, and 3) prove that radio gets results! It's local, provides solutions in a tough economy, and invents a new revenue stream for stations to build on, cash from the listeners.
I'm now a partner in a broadcast consulting company that creates a revenue stream through stations websites selling discounted gift certificates. Our system absolutely brings in dollars. We're consulting successful programs at stations from Maine to Arizona. We couldn't agree with Jeff Smulyan more when he says, "...we have to demonstrate that we move the cash register!" Ask any station selling discounted gift certificates if they're hearing those cash registers ring both at their stations and for their clients.
Rick Snyder
General Manager, Florida
The DollarSaver Program
561-635-0413
rickdollarsaver@bellsouth.net
www.dollarsaverprogram.com
www.dollarsaverprogram.blogspot.com
Jim Carnegie on 13 October, 2008 10:51:37
Rick Thanks for the comment.
Yep, all media, especially Radio has to reinvent themselves. RBR/TVBR has had to reinvent four times in the last 3 years.
What I have learned speaking with and sitting down with all broadcasters across the board is they seem to Fear this took called Internet. Getting started is the hardest part. It was for us too.
There are companies right now that call themselves Digital - but - that are no where near the internet digital spectrum. They are just perceived as digital because they put the word digital on their letterhead.
Generating additional revenue streams will only happen when Radio and TV learn to use the internet as an additional tool in conjunction with their station operations.
Jim Carnegie
Publisher & Editor/Broadcaster
RBR / TVBR / MBR
www.RBR.com
Sunday, October 12, 2008
SEATTLE RESTAURANTER LOVES THE CERTIFICATE PROGRAM...HE REALLY GETS IT!
This comment was a reply for information on the discount certificate program in Seattle, Washington. It was written by Steve (no last name available), president of Arnie’s Restaurant and appeared in FohBoh.com, a restaurant business networking website.
Comment for: Roy MacNaughton Added by Steve at 2:25pm on March 17th, 2008
Steve Radio Gift Certificate Promotion
1. Win – Win for both us and the radio station
a. This is a huge potential steady bread and butter market.
b. Great vehicle to build traffic to your web site.
c. Unique performance based advertising – Radio station gets paid upon sell of gift certificates.
d. Downside risk minimized for us – If it doesn’t work it doesn’t cost.
e. Results are immediately measurable! Combining air time schedules with the live gift card sales data you can see immediately what is working and what is not. Both parties can use this information to maximize the effectiveness of the program. Changes to the program can be made in stride to make it more effective. Detailed purchasing analysis can also be completed with the available purchasing data.
f. Develops a relationship for future business. There is a buy in from management that this is a valuable program and not just a little bit of money for nothing! I am purchasing a block of advertising even if the gift cards sell out.
g. Use unsold radio time inventory to accelerate slow sales or promote the program b. Combination of live and recorded testimonial style spots works best. I. Is there an announcer that knows and likes us?
h. Email blast just before the program launches and video streaming piece during program should be included in the program. e. Approve all recorded ads before airing. Approve of all printed materials Email or Website. 3. Sales are done through your website on a count down page.
Comment for: Roy MacNaughton Added by Steve at 2:25pm on March 17th, 2008
Steve Radio Gift Certificate Promotion
1. Win – Win for both us and the radio station
a. This is a huge potential steady bread and butter market.
b. Great vehicle to build traffic to your web site.
c. Unique performance based advertising – Radio station gets paid upon sell of gift certificates.
d. Downside risk minimized for us – If it doesn’t work it doesn’t cost.
e. Results are immediately measurable! Combining air time schedules with the live gift card sales data you can see immediately what is working and what is not. Both parties can use this information to maximize the effectiveness of the program. Changes to the program can be made in stride to make it more effective. Detailed purchasing analysis can also be completed with the available purchasing data.
f. Develops a relationship for future business. There is a buy in from management that this is a valuable program and not just a little bit of money for nothing! I am purchasing a block of advertising even if the gift cards sell out.
g. Use unsold radio time inventory to accelerate slow sales or promote the program b. Combination of live and recorded testimonial style spots works best. I. Is there an announcer that knows and likes us?
h. Email blast just before the program launches and video streaming piece during program should be included in the program. e. Approve all recorded ads before airing. Approve of all printed materials Email or Website. 3. Sales are done through your website on a count down page.
Friday, October 10, 2008
ENTHUSIASTIC ENDORSEMENT FROM THE RESTAURANT INDUSTRY
This endorsement of The DollarSaver Promotion was published in FohBoh™.com, a restaurant industry publication.
.
Steve on March 17, 2008 at 4:49pm:
Last year I participated in an extremely effective Radio program that involved discounts. For many years people have used trade as a method to be involved in advertising they couldn’t afford otherwise. But because there was little monetary value in the trade for the radio stations, the exposure promised, was usually delegated to filling spots that could not be sold. Read: Very, very early, very late or the middle of the night. Enter a new model where trade can be converted to cash for the radio station:
Here’s how it works: •You buy a weeks worth of advertising with gift certificates. The radio station promotes the heck out of you for that week and sends people to their website where their listeners can purchase a gift certificate for half price. The radio station doesn’t make a dime until the gift certificates are sold, so they have a vested interest in promoting your restaurant. That’s huge!
•The radio’s web site features your restaurant exclusively during the week of the promotion which includes several links back your restaurants web page resulting in positive SEO because of the additional relevant incoming links.
•The program is measurable both at the time of purchase and upon redemption. At the time of purchase, you can measure how effective each station is by the length of time it takes them to sell your certificates, you know who purchased them, where they live and whether or not they were a unique purchaser or not.
We sold all of the gift certificates, had an 85% redemption rate plus an additional 34% in sales after the discount!
We did not incur any out of pocket cost until the guest redeemed the certificate and then it was only the cost of the product.
Now for the best part! We were able to triple the success of two of our regular annual promotional events by tying them together with the radio promotions. And that was after the discounts were taken!
So, even though I hate discounts there are some that are worth considering. By the way not every station has this program. I had to sell this idea to several stations in our area to get them to participate in this model.
Steve
.
Steve on March 17, 2008 at 4:49pm:
Last year I participated in an extremely effective Radio program that involved discounts. For many years people have used trade as a method to be involved in advertising they couldn’t afford otherwise. But because there was little monetary value in the trade for the radio stations, the exposure promised, was usually delegated to filling spots that could not be sold. Read: Very, very early, very late or the middle of the night. Enter a new model where trade can be converted to cash for the radio station:
Here’s how it works: •You buy a weeks worth of advertising with gift certificates. The radio station promotes the heck out of you for that week and sends people to their website where their listeners can purchase a gift certificate for half price. The radio station doesn’t make a dime until the gift certificates are sold, so they have a vested interest in promoting your restaurant. That’s huge!
•The radio’s web site features your restaurant exclusively during the week of the promotion which includes several links back your restaurants web page resulting in positive SEO because of the additional relevant incoming links.
•The program is measurable both at the time of purchase and upon redemption. At the time of purchase, you can measure how effective each station is by the length of time it takes them to sell your certificates, you know who purchased them, where they live and whether or not they were a unique purchaser or not.
We sold all of the gift certificates, had an 85% redemption rate plus an additional 34% in sales after the discount!
We did not incur any out of pocket cost until the guest redeemed the certificate and then it was only the cost of the product.
Now for the best part! We were able to triple the success of two of our regular annual promotional events by tying them together with the radio promotions. And that was after the discounts were taken!
So, even though I hate discounts there are some that are worth considering. By the way not every station has this program. I had to sell this idea to several stations in our area to get them to participate in this model.
Steve
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