Monday, April 13, 2009

A Tale of Two Strategies

The radio industry appears to be dividing into two distinct strategy camps:

1. "Leverage our National Talent"
2. "Live and Local"

Let's take a closer look at the two paths.

"Leverage our National Talent"

  • Syndicated big talent/national footprint
  • Big margins/low expenses
  • Smaller sales force
  • Hit the numbers or you're gone
  • "Ad Council" PSAs
  • Strict adherence to tried and tested format rules
  • "One to Many" programming strategy
  • Heavy reliance on national revenue
"Live and Local"

  • Talent involved in the communities
  • News departments staffed with news people
  • Good margins (but much lower than the first scenario)
  • Keep adding salespeople so long as the incremental revenue is greater than the incremental expense
  • Budgets are flexible; management is responsive to local opportunities
  • Local PSAs
  • Will break the format "rules" if prudent
  • "One to One" programming strategy
  • Heavy reliance on local revenue

Both strategies may work. But I'm betting on "Live and Local," especially in smaller and mid-size markets. Those are my thoughts; what are yours?

George

3 comments:

  1. I also think that a fully embraced and engaged interactive component would be a key addition on the successful "live and local" strategy list.

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  2. I agree that two models are emerging. Check out my blog at: http://www.imediastrategies.net/?p=584 for more.

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  3. I think a decent mix of the two are best in ALL markets. If a large market can stay in tuned with local stories and offer a talent pool that can foster community support, it brings in the local business revenue and helps to promote local organizations through PSA's. The National syndicated host draws in a large portion of listeners that obviously boosts the ratings.

    I think smaller markets with less money to pay for local talent can benefit with the national programming but at the same time still needs a local host too since they have a lifestyle dependent on community support.

    In my opinion, the challenge is finding the medium between ratings, revenue, and marketing and having a committed staff that really want to work together ALONG with a Broadcasting company that allows decisions to be made by the local market's management.

    The whole deal is a mess and it starts with people...All the many platforms of "content" come second. No amount of digital, podcasting, HD or anything else will matter if you don't have a staff that cares about eachother and the people who listen.

    That's my .02

    Christea

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