There is a classic marketing tale about a major shopping center that experienced a failure in the elevators that took shoppers to their main floor.

It was costing them thousands of dollars a minute in lost sales.

The mall manager was panicking. She had called several service companies, but none of them seemed to be able to fix the problem.

Finally, she called somebody who was able to fix the problem in 60 seconds flat by simply pressing a few buttons…. then he invoiced her a whopping $10,000 fee “for services rendered”!

The outraged mall manager asked the service man, “How can you charge $10,000 for pushing a couple of buttons and one minute’s work?”

The service man replied by re-writing the invoice to say, “service charge for pressing buttons; $1.  Investment for knowing which buttons to press; $9,999”.

Do your customers understand the value of the knowledge you deliver in your value bundle?

In virtually every field, it is knowledge which allows you to ‘press the right buttons’.

Nowhere is ‘knowledge’ more important than in the rapidly-changing field of marketing and advertising.

The next time your prospect questions why your spot rate is $100 compared to the competitor’s spot rate of $90, you might suggest that your actual spot rate is only $20, the other $80 is for your expertise in capturing higher returns on their advertising investment.

I’ve solved the flat radio revenue puzzle!

For some time now I’ve been pondering why major market radio is crying the blues, but many small and medium sized markets are doing just fine, thank you.

Of course, soft major market revenues have a huge statistical impact on total radio revenues across the country, creating the impression the entire industry is hurting.

And this perception can actually cause complacency in the smaller markets that begin to believe that modest increases are a win when compared to flat national averages.

At the risk of offending some, I can tell you one of the reasons major market revenue growth pales compared to many small and medium sized markets.

For years, major market stations have been selling against radio. You know that’s true. Available major market radio budgets were so lucrative, that stations were content just selling against other stations…fighting for share of available radio dollars rather than generating new radio dollars or bigger radio budgets.

Some even measured their success by share of radio budget, rather than share of larger marketing budgets.

Now those same stations are opting to increase their sales by fighting for share of growing digital budgets. However fighting for share inevitably puts downward pressure on rates, and does not contribute to the health of our industry.

Small and medium sized markets have had no huge radio budgets from which to divvy up share. They’ve had to sell radio to advertisers who had no radio budgets and had no intention of using radio.

Imagine that, selling radio against other media instead of selling against radio. What a concept!

For those not yet ready to sell more radio, and who are content to pick up some left-over crumbs from digital budgets, I have a warning. My friends in digital media pure-plays are discovering, particularly in the last 3 to 6 months, that the digital media platform has become so crowded and confusing they are beginning to experience extreme downward pressure on rates, causing profits to sink faster than the Titanic.

Don’t misunderstand me. I think it makes perfect sense to capitalize on the relationships we have with radio advertisers to skim a share of their digital budgets as well.

Ultimately, we need more radio advertisers from which to leverage those relationships in order to sell more digital, more special events and sponsorships.

If your stations are eager to sell more radio, we should talk.

Reply to this ENS on Sales email and we’ll make an appointment to discuss how we can help you sell more radio.

Over 60% found designing a social media strategy, and making social media data actionable, to be challenging as well.

 

And these are the full time professionals!

 

Think how difficult it is for your local business owners to understand and use social media part time amidst renewing their leases, ordering their Spring merchandise, hiring and training staff, and fighting with the tax man.

 

In today’s media world, you can be a genius, literally. Alfred Einstein defined genius as “Making the complicated look simple.”

 

Radio account executives can offer simple turnkey solutions to local advertiser’s problems. All the advertiser has to do is say “yes”, and you do the rest.

 

You analyse the advertiser’s situation with your CNA (customer needs analysis), you create a strategy based upon that analysis, and implement tactics from creating effective schedules within the advertiser’s budget, to creating and producing messages to increase their sales.

 

So there you have it, genius. In the knowledge economy, knowledge is currency, and you are perfectly positioned to help your clients solve their advertising problems with simple turnkey solutions.

 

Never under-estimate the value of the solutions you deliver.

 

Click here to arrange a no obligation demo of how we can help you be a genius in your market in 2015 and beyond