Slices of Pie
More brilliant insight from InsideRadio.com...
Are :30s destroying radio's pricing power?
One CEO says yes. Cox Radio's Bob Neil says it is teaching buyers they can get the same ratings point and pay 75% of a :60 second rate. Making matters worse he says it's allowed advertisers to take their savings and reinvest it - in other media.
DUH.
Yes, this article is from the 8/2 edition -- but, so what? Is it LESS obvious this week than it was last week than it was how ever many years ago radio geniuses start dividing their inventory into smaller sections and offering it up for a fraction of the price?
Think of it this way guys -- you can sell a whole pie for $20 or you can divide it into slices and sell them for less. BUT, it will take you longer to sell the slices because instead of selling one thing you'll be selling many things. And everyone else in town is selling the same slices of pie for less than your slice of the pie.
If one station would get ballsy enough to say "buy the whole pie or get lost" someone would buy the pie. They would. Simply because it would be the single differentiating factor between all those other guys hawking slices of pie.
And ironically, that means YOU (Radio) would be getting the biggest slice of the media budget pie.
Are :30s destroying radio's pricing power?
One CEO says yes. Cox Radio's Bob Neil says it is teaching buyers they can get the same ratings point and pay 75% of a :60 second rate. Making matters worse he says it's allowed advertisers to take their savings and reinvest it - in other media.
DUH.
Yes, this article is from the 8/2 edition -- but, so what? Is it LESS obvious this week than it was last week than it was how ever many years ago radio geniuses start dividing their inventory into smaller sections and offering it up for a fraction of the price?
Think of it this way guys -- you can sell a whole pie for $20 or you can divide it into slices and sell them for less. BUT, it will take you longer to sell the slices because instead of selling one thing you'll be selling many things. And everyone else in town is selling the same slices of pie for less than your slice of the pie.
If one station would get ballsy enough to say "buy the whole pie or get lost" someone would buy the pie. They would. Simply because it would be the single differentiating factor between all those other guys hawking slices of pie.
And ironically, that means YOU (Radio) would be getting the biggest slice of the media budget pie.
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