In the last fiscal year, Google Adwords generated over $16 Billion in revenues. During the same period, the Radio Advertising Bureau reported that ALL commercial radio stations in America collectively posted just over $21 Billion.
While Google Adwords is just one product line, from one internet company, radio revenues DO include such “non-traditional” categories as not-spot promotional programs, event marketing and, yes -- Internet revenues.
One difference: Google does not typically give away a free radio schedule with an Adwords buy. Sadly, many radio stations remain in the ‘value added’ trap when utilizing web assets.
Three tips for today:
1.) Don’t Give It Away
If your sales team already ‘gets it’, bravo! If not, work will need to be done to change some mindsets – among your staff and clients alike. Back in the early days of FM, stations would bonus FM spots to close a buy on “the AM”. Now the industry is taking the same approach to web assets
2.) Establish Fair Pricing Standards (for YOU and the CLIENT!)
What will your market bear? FIND OUT. Many of your competitors, including Newspapers, TV and yes, even Google have their Media Kits posted online. Do you? If not, why not? Typically, ‘commodity’ (bulk) buys are placed on a CPM (Cost per Thousand), CPC (Cost per Click), or CPA (cost per action) basis. Specialized web solutions such as custom contesting, video ads and streaming/podcast pre-roll can and SHOULD garner premium rates.
3.) Don’t Kill the Goose Laying the Golden Eggs
Just as broadcasters have learned the hard way that too many commercials can hurt ratings. Especially when the creative sucks.
The same is true in the online world. The best websites have limited, premium ad avails, following ad standards set by the Interactive Advertising Bureau (IAB). Having standardized ad sizes will help make your site more attractive to web savvy buyers and create good internal discipline for your web team.
In upcoming posts, we’ll explore way in which the best and the brightest are winning friends, influencing listeners, and monetizing web assets.
(Hint: they don’t GIVE IT AWAY!)