1 of 1- Andy McNabb
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What Our Advertisers Think Vs Spend
Most clients spend more on advertising than they put into their RRSP or 401(k) pension plans each year. They'd fire their financial planner if they didn't get a monthly statement showing in the lower right hand corner how much money they made or lost.
Yet, we continue to expect our advertisers to throw more dollars our way without giving them full accountability.
We (radio) need to provide clients with what they want in the first place - a sustainable construct to measure and attribute results. As good as "ROI Selling" is for increasing advertising sales by lowering advertisers' expectations, it does nothing for maximizing and documenting sales at our advertisers' cash registers; and therefore does little to maximize our own long-term returns.
In our media-saturated, focus-fractured, attention-deficit disordered advertising sales industry, measurement and attribution are financially foundational to faster growth. While broadcast, print, and digital sellers talk ratings and readers and users and viewers, all we need to do to grow sales faster is deliver a documented result. Radio's literally done it for advertisers tens of thousands of times before; yet never before has it been more important to our clients' and industry's revenue and profitability.
Last edited by Andy McNabb (July 20, 2016 12:48 pm)
Andy McNabb
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- geo
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Re: What Our Advertisers Think Vs Spend
Andy McNabb wrote:
we continue to expect our advertisers to throw more dollars our way without full accountability
Advertisers sit down regularly and decide whether broadcast (or print or flyers) "worked" or didn't work
Bin Dere, Done Dat
- Old Codger
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Re: What Our Advertisers Think Vs Spend
My point of view on this remains steadfast. You want to be accountable to your advertising clients? You want to deliver BANG for their bucks? You want them to stay with you and not only endure your rate increases but, hopefully, give you a better % of their advertising budget in the next fiscal?
Work on the product.
No product? No listeners. No listeners? No advertisers. You want local advertisers? Don't be regional. Be local. They are. Joe Blow from Bala ain't going to Dorset for dock rings...even if Robinsons DOES 'offer' to 'pay the tax'. Moor the concept of big annual management bonus incentives. That drives up your costs and your rates needlessly...and offers no tangible benefit to the client...or the audience. You think the mid day jock has risen above what that time slot pays? Your cost of doing business [for yourself] has risen above what advertisers should have to pay. Your business plan doesn't work.
Pay for a real programmer. Hire some ears for the music department. 'Man' the on-air staff with talented people. Have them participate on an on-going basis with the community...and then talk about the community. THAT will improve the product...then the numbers...then the sales...then the profits and bonus money. Just remember to bonus the folks who made it happen too. Audience first...advertisers second...YOU last. Unattended jukeboxes are available in vast profusion. YOU can't compete with them unless you go commercial free. That gonna happen? No.
So? Do it right. In the long run that'll pay dividends. And at THAT point you'll have finally, at long last, earned your bonus.
Last edited by Old Codger (July 19, 2016 1:53 pm)
- the original hank
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Re: What Our Advertisers Think Vs Spend
some advertisers do everything possible to shy away from accountability (although they know if a campaign worked or didn't) for fear of the station gaining the upper hand.
as for what is more important, programming or sales, i would say neither. each one couldn't work without the other. you have to get the best programming team and the best sales team to maximize full potential (it also helps if each department fully understands this... yet many don't).
Last edited by the original hank (July 19, 2016 1:59 pm)
- the original hank
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Re: What Our Advertisers Think Vs Spend
as for the original post, selling an intangible makes things tougher. i also doubt an accountability gauge could ever be done when it comes to media buys. if someone is touting "a new way" then i would beware, especially if they want you to pay to find out.
you always could base a buy on reach and frequency but that has nothing to do with being accountable after the flight has aired. let's face it, grps were invented so agencies could substantiate their buy... but grps aren't exactly based on an exact science and at best they gauge "probability" and not the end result.
- Old Codger
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Re: What Our Advertisers Think Vs Spend
as for what is more important, programming or sales, i would say neither. each one couldn't work without the other. you have to get the best programming team and the best sales team to maximize full potential (it also helps if each department fully understands this... yet many don't).
But Hank old man...You can have the finest grocery store in captivity esthetically speaking. You can man it with people to help out at every aisle. Your check-out can be the fastest. most efficient in captivity but if there's NO PRODUCT on the shelves and in the coolers and freezers the customers won't be back a 2nd time.
Try a car dealership with no autos on the lot. How's that gonna fly? How about a library with no books? A bar with no booze or mix? Product first. Sales 2nd. It's as plain as the nose on a plane.
That little out of the way/off the beaten path butcher shop which sells the finest steaks in town is gonna attract a clientele. The radio station with no audience but a great sales team will only be successful for a few months. [Unless they're the ONLY game in town...then they'll be like the Toronto Maple Leafs...no effort required...we'll sell out anyway.]
- geo
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Re: What Our Advertisers Think Vs Spend
Advertising works half the time but we just don't know which half
- the original hank
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Re: What Our Advertisers Think Vs Spend
but old codger, i said a station needs both. i agree with your scenario but remember, that car dealership can have the best cars around but if nobody knows how to sell them you've got a problem. programming isn't easy but neither is sales. you might say, hey we have the listeners so we'll get the sales automatically. not necessarily. a knowledgeable sales department (at a station that doesn't have tremendous ratings) will know how to combat a successful station, when it comes to getting advertisers (i can tell you how but i don't want to have people zoning out). again, imho, programming and sales are equally important (btw, i've worked successfully on the front line and in management on both sides of the fence).
Last edited by the original hank (July 20, 2016 1:06 pm)
- the original hank
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Re: What Our Advertisers Think Vs Spend
geo, it's kind of like the probability of precipitation. if you stick with 50% you can't go wrong.
- ig
- Iain Grant
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Re: What Our Advertisers Think Vs Spend
Aploooove
Okay that made me laugh.
But I don't know the name of the mortgage company. The only one I could name is Butler.
Madness takes its toll. Please have exact change.
- geo
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Re: What Our Advertisers Think Vs Spend
geo, it's kind of like the probability of precipitation. if you stick with 50% you can't go wrong
Vehicle marketing in Toronto: 50% print (Globe Drive, Nat Post Driving, Star Wheels) + 50% broadcast, mainly radio. The CLIENT knows what works. If the radio sales rep marches into Bob Redinger's office and tells Bob he shd go 100% AM-740 & Classical 96.3 because they'll add "free" overnite spots to the package, the radio sales rep will soon be out on his arse. Deservedly so
- StevieB
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Re: What Our Advertisers Think Vs Spend
Aploooove
Okay that made me laugh.
But I don't know the name of the mortgage company. The only one I could name is Butler.
I can Iain.
Alpine Credits...with an "s"
They have had some really ridiculously funny ads over the last year or so.
If these ads weren't effective, I'm gonna say we wouldn't hear them anymore.
The last campaign of Ads from them was funnier to me, but the run was WAY shorter. This run of the same ads is at least 2x, maybe 3x as long. I know nothing about advertising effectiveness, But I'm a Conservative. A scant Minority.
I am Here, just not all there.
- geo
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Re: What Our Advertisers Think Vs Spend
If these ads weren't effective, I'm gonna say we wouldn't hear them anymore
EXACTLY