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