Radio Execs Assess Pros And Cons Of Impressions-Based Sales.

While the television industry is moving at full throttle to shift from a traditional cost-per-point business model to one based on audience impressions, radio is taking a more measured approach to what would be a fundamental change in the currency advertising is bought and sold on. Top executives at major radio companies see potential benefits to such a switch but also worry about a possible “race to the bottom” in pricing.

Townsquare Media CEO Bill Wilson says there are pros and cons for changing the way radio transacts business. “On one hand, if migrating radio to the common buying currency of our agency partners makes radio easier to buy, and therefore ad spend moves towards radio, that’s a very good thing,” Wilson told Inside Radio. “On the other hand, some I have spoken to believe a move to impression-based buying could spark a race to the bottom CPM mentality that we have seen and we all obviously do not want to see that occur.”

Impressions would move the industry from the current cost per rating point model to a cost per thousand impressions (CPM) approach based on AQH persons. That would flip the currency from the percentage of the population reached by an ad campaign to the projected number of viewers or listeners. Talk in radio circles about making the transition quickly heated up after the Television Bureau of Advertising (TVB) announced Sept. 18 it is spearheading an industry charge to convert to an impressions-based system by 2020. The topic was the top agenda item during the NAB’s Committee on Local Radio Audience Measurement (COLRAM) meeting at the Radio Show in September.

Beasley Media Group CEO Caroline Beasley has mixed emotions on the issue. “I’m somewhat skeptical that this impression transition is a net positive development, however, I believe it is something that should be done,” Beasley says.

Even those most bullish on making the switch have expressed reservations. “I don’t think this is a decision of whether to convert, but rather when and how,” says Cumulus Media CEO Mary Berner. “That said, there are executional issues that warrant careful consideration.”

While Entercom has been closely watching as TV prepares to make the move, COO Weezie Kramer says the company has yet to finalize its strategy. “We are being very thoughtful and strategic in our approach,” she says.

Radio executives see a number of potential upsides to impressions-based currency:

Packaging Analog And Digital Assets

Having the flexibility to package and sell all of their offerings using a common metric is appealing to some broadcasters. “The immediate short-term benefit could be the ability to package our streams and digital capabilities, along with our AM/FM assets,” Beasley says. “The longer term benefit that I can see is that it might hasten programmatic buying, which ultimately will enable us to streamline our structure, allocate fewer resources against transactional and focus on business development and deeper client relationships.”

Kramer agrees impressions-based sales would be good for companies that offer multi-platform solutions for advertisers. “It will allow us to easily sell across all our platforms and we believe that we should get value for all the impressions that we generate, whether they’re over the air or on smartphones, desktops and smart speakers.”

Common Metric Could Help Boost Revenue

Proponents believe that using the same metric as digital would make radio easier for advertisers to buy and could lead to more money flowing into the industry. This would create “more value across dayparts and allow for a more elegant bundling of cross platform impressions, such as over the air, streaming, on demand and podcasting,” Berner says.

iHeartMedia CEO Bob Pittman believes impressions-based sales could benefit radio at a time when media planners look to buy more holistically. “What this is leading to is the advertising industry, instead of planning media in silos, they’re beginning to do cross-media planning, which means they’ll be able to take all the media players regardless of the sector they’re in and plan as one,” he said on the company’s third quarter earnings call.

Kramer too sees an upside from speaking the same lingo as digital media. “Our ability to sell just like TV or digital we think can bring more business to the table for us,” she says. “It has the potential to bring more revenue into radio as a result but we need to be thoughtful about it.”

Monetizing Non-Prime Dayparts.

A move to impressions could help radio better monetize dayparts that have less demand, advocates say. To boost impressions in campaigns, advertisers could buy across dayparts. “It will allow us to sell through all of our dayparts to get the impressions, which is the biggest opportunity we’ve got in broadcast revenue,” Pittman said.

But as with any change, there are also potential downsides to consider:

Downward Pressure On Rates

Some broadcasters worry that converting to a cost per thousand metric could lead to “race to the bottom” pricing mentality. They point to low CPM rates for digital advertising as an example.

Concerns About Posting And Weighting

Another concern is that agencies would expect stations to post at 100% of impressions. Posting refers to the practice of comparing the ratings that an ad schedule was purchased on to the actual audience delivered. When the campaign delivers less than what was promised, make goods are typically required. Day and time of exposure aren’t usually part of the equation for streamers like Pandora and Spotify but they’re important in radio buys. That means CPMs vary by daypart at radio and not all impression are valued equally. “These agencies are not applying the same rules/guidelines to radio,” Beasley points out. “Judgement and data should be utilized to ‘weight each media channel’s impressions,” she argues. – Paul Heine

Link to Original Source

Related posts

The team at 94.9 KLTY has served the Dallas/Fort Worth community for over 35 years. In 2020, the need was never greater. Through their local campaigns, Christmas Wish and Speak Love, they were able to assist many families who were impacted by not only the pandemic, but by hard times in general. The Speak Lovecampaign helped first responders, teachers, servers, food service staff, and many more within the community throughout the year. In 2020 94.9 KLTY’s Christmas Wish campaign brought Christmas joy to hundreds of families in the DFW area. They provided vehicles, food, toys, and other forms of relief to families in their community. They could not have reached any of these needs if not for their listeners and their generous donations to 94.9 KLTY’s nonprofit programs. In total, Speak Love and Christmas Wish raised more than $160,000 for those in need in Dallas/Fort Worth. They also recognized those sacrificial front-line workers and first responders who keep our community safe. Each week, 94.9 KLTY honored them, raised funds throughout the summer, and then presented each first responder with a check as a token of their gratitude. With countless families in need because of the pandemic, 94.9 KLTY also helped the Tarrant Area Food Bank distribute food essentials on multiple occasions in September, October, November. It is 94.9 KLTY’s sincere honor to serve our listeners in Dallas/Fort Worth.

×

LIFE 96.5 seeks to empower and serve the Sioux Falls area by reaching out in faith to help make it a better place to live and work. They want to lead their listeners to Jesus and help them grow in their faith through opportunities to love and serve others. In January 2020, LIFE 96.5 listeners donated over 950 brand new baby items during the Sioux Empire’s Largest Baby Shower. The Baby Shower grows every year, demonstrating their community’s love and support of the couples who are choosing life for their unborn children. LIFE 96.5 listeners, in partnership with Dacotah Bank, provided gift cards and cash donations to the Sioux Falls School District social workers to meet the needs of 1,000 homeless students. LIFE 96.5 also invited listeners to participate in a city-wide prayer parade, where they prayed for health care and government officials while driving past hospitals, schools, and city government offices. During the months of September and October 2020, LIFE 96.5 listeners provided over 250 twin sheet sets and 100 mattresses to the Sioux Falls Sleep in Heavenly Peace organization for children who are sleeping on floors. Through LIFE 96.5, listeners also made a difference in the lives of patients spending Christmas at Avera Behavioral Health Hospital. Each patient received a Christmas stocking filled with gifts and a note of encouragement. In addition, each Saturday morning LIFE 96.5 staff host Life Connection, a program featuring community leaders and discussing the needs and concerns of the Sioux Falls Community.

×

89.5 KVNE exists to glorify God by encouraging people, connecting their community, and pointing people to Jesus Christ. When their community was turned upside down by COVID, they knew they had to jump into action and mobilize their listeners to make a difference for Christ. To best serve their local community, KVNE held multiple drives to support local ministry partners and those most impacted by the pandemic. They collected 1,500 gift cards (totaling more than $15,000) to benefit those in need because of shutdowns, gathered over 12,000 diapers for foster families, and collected 150 care packages for senior citizens. They also collected 1,032 fans for the Salvation Army and over 1,000 pairs of shoes for kids heading back to school. Additionally, listeners donated 1,512 care packages for the homeless in East Texas, and KVNE hosted two blood drives to help those fighting the coronavirus. People across East Texas needed connection during the pandemic, so they organized a social media outreach, called Praise Defeats, a coordinated time where listeners shot videos of themselves singing “Raise A Hallelujah.” The videos were shared thousands of times, as they deepened their community’s connection. In addition, KVNE launched a Hispanic Christian music station (Fuzión), started a worship station (Lift Worship), and began a Bible Teaching Station (The Well) – all to help people grow in their faith. God allowed them to impact His Kingdom in profound ways and serve their local community powerfully during an unprecedented time when people needed hope like never before.

×

Since 1986, The JOY FM has made community service a hallmark of its ministry to listeners – first in Sarasota, and then expanding to Tampa, other Florida markets, and most recently to Atlanta and Middle Georgia. Even with this growth, community outreach remains hands-on, with legacy events like T-Shirts for Turkeys, which helped feed more than 28,700 families in all markets served last year. 2020 created new challenges for serving, so The JOY FM innovated several service projects to accommodate contactless delivery and social distancing. JOY Drop and Restock, a brand-new outreach, collected 30 tons of food to restock local food banks hit hard by the pandemic. Partnering with Natalie Grant and Hope for Justice, Team Freedom approached a grand total of $1,000,000 in 2020 to fight human trafficking. As listeners faced political rhetoric and serious questions about race and justice, as well as practical challenges like hybrid classrooms, The JOY FM programming (on terrestrial signals, as well as its LF Radio and JOY Worship platforms) responded with a recommitment to our mission of “Helping You Find JOY.” Resources for listeners, such as the Off Air with Carmen podcast, was provided to help listeners wrestle with big questions like Christian citizenship. Possibly The JOY FM’s most relevant community service effort for 2020 was prayer. The JOY FM’s Prayer and Crisis Referral service interacted with 620,936 listeners in need of prayer or help. Of those calls and texts, 4,949 listeners reported praying to place their faith in Jesus Christ.

×

“Hope Starts Here” is more than The Light FM’s tagline. It’s their mission. In 2020, they were intentional in regularly offering community-needed resources and hope-filled encouragement. They hosted their 5th annual Make a Difference training to encourage listeners to share God’s hope and saw 14 people begin a personal relationship with Jesus. The Light FM also visited eight local Law Enforcement agencies to share words of encouragement and care baskets. They partnered with East Tennessee Children’s Hospital and artists of Winter Jam for a private concert and time of prayer with families battling pediatric cancer. The Light FM listeners from five different cities donated 258 wheelchairs, 262 crutches, 259 walkers, 71 transport chairs, and 66 canes to Wheels for the World, which brings mobility and the hope of Christ around the world. During stay-at-home orders, The Light FM began offering free monthly virtual events, including: a graduation ceremony, featuring artists and Bible teachers; a conference with Crown Financial on how to manage finances during the pandemic; Girl Talk LIVE, a women’s event with worship and Bible study; God’s Hope in Crisis training with chaplains of the Billy Graham Rapid Response Team; a pastor appreciation event for local churches, featuring Chip Ingram and Matthew West; and a Family Christmas Night with live music, games, and a devotion from The Light FM staff. Even throughout the pandemic, The Light FM also found ways to be out in the public, safely, with six drive-in events featuring movies and live music.

×

2021 Membership Exclusives

January – Your 2021 Radio Goals – Virtual Event
February – SURPRISE BENEFIT 
March – Radio Station Field Trip
April – A Webinar for YOUR Board
May – Virtual Mentoring Event
June – SURPRISE BENEFIT at Momentum
July – Salary Survey Webinar
August – Fundraising Webinar
September – Creative Images
October – Techsurvey Webinar
November – Radio Station Field Trip
December – Virtual Christmas Party

*subject to change

×

Paul Cameron began his career in radio prior to graduating from the University of Wisconsin Oshkosh in 1980, starting his first job in 1979 as part-time on-air talent at WMKC 96.7FM (an adult contemporary station). In 1980 Paul moved to part-time on-air talent for WHBY-AM 1230 (a news/talk station), and while still working there, began working part-time for WEMI 100.1FM. In 1981, he went full-time for WEMI and over the years served as program director, music director, station manager, and director of radio operations. In 2002 he assumed the role of executive director and general manager for Christian Family Radio, now known as The Family Radio Network. Since 2016 Paul has been chief operating officer and afternoon on-air host. He was part of the transition from one full power station to five full power stations and six translators, all in Wisconsin. Paul has given back to his community by serving on several local boards in various capacities, including The Emergency Shelter of Appleton, The Community Clothes Closet of Menasha, and Loaves and Fishes of the Fox Valley. He also serves on the Wisconsin Broadcasters Association Board of Directors and has been a fundraiser host with ShareMedia/Dunham+Company since 2002.

×

Rob Dempsey has been serving the HIS Radio Network listeners faithfully since 2000, currently working as operations manager and morning show co-host on the HIS Morning Crew with Rob & Lizz. Rob worked as a security guard at television studios for the Home Shopping Network before he was called into the radio ministry. Now, Rob’s personal stories of overcoming obstacles, walking through a long journey to health, and stepping out in faith and selflessness inspire his listeners. Some know him as the guy who lost 140 pounds to overcome obesity, others know him as the 16-year-old kid kicked out of his home to live in the streets, and others know him as being a foster and adoptive parent. Rob and his wife’s kids range from a 34-year-old war hero, 25-year-old social media marketing specialist, 19-year-old honors college student, a 12-year-old they adopted in November 2009, as well as many foster children throughout the last 9 years. Recently, Rob has been on a health journey which included two surgeries, one a major reconstructive surgery. These past two years have been a challenge for Rob, but he continues to show that through God, anyone can become an overcomer.

×

Since 1989, Mike Harper has faithfully impacted East Texas on-the-air at 89.5 KVNE, where he serves as VP Communications and morning show host. He began as a volunteer weekend DJ, driving from 90 miles away. Mike advanced the cause of Christian radio by serving several years on the steering committee for CMB, and he has taken part in every NCRS/CMB since 1999. According to Nielsen, Mike and Carrie in the Morning has been the #1 Morning Show for a decade (#1 Persons 12+) propelling KVNE as high as an 8.3 share and helping KVNE become the #1 rated station in the Tyler/Longview market. During that time, KVNE won 8 Station of the Year Awards (CMB & NRB). Additionally, Mike and his co-host Carrie Parsons have been awarded “Best Morning Show in East Texas” for 9 years in a row. Mike has shaved his head to reach a pledge drive goal, donned white tights and a cape “for the children,” and stood on top of a building during a remote broadcast. He has daily arrived faithfully at 5:00 am and braved ice, snow, hail, and tornados in an effort to keep his listeners safe, encourage them, and point them to Jesus.

×

Bryan O’Neal has spent a lifetime entertaining, encouraging, and spreading God’s love to millions over the airwaves, landing his first radio job in 1972 in mainstream Top 40 radio. In 1978 Bryan hosted and produced Portland’s first CCM’s 30-minute radio show on Top 40 62-KGW. He then teamed up with his good friend Bob Anthony to plan a full-time CCM station in Santa Rosa. Eventually that station became K-LOVE. After K-LOVE moved to Sacramento, Bryan became their full-time employee #13 in 1994. In 1998 Bryan worked as the program director for another CCM station, KPAM/Pamplin Media. In 2001 Bryan teamed up once again with Bob Anthony at EMF’s Air1. Bryan was instrumental in moving Air1’s entire Portland staff to the new building in Rocklin, where he worked as operations director and then program director. In 2005 Bryan worked a short stint at KTSL in Spokane, and then became the music director and afternoon host at 89.7 KSGN in Redlands, California. Bryan O’Neal has worked as the program director at KSGN and co-host with Brandi Lanai for nearly 10 years of Bryan and Brandi in the Morning. Bryan hung up his headphones for retirement in March of 2021.

×

Bill Scott is one of the founders of Vidare Creative, a fundraising consulting company which helps Christian radio stations, through their 365 plan concept, raise the funds they need to grow. Bill has been a part of Christian radio for 39 years. He’s worked at WCIE, The JOY FM, and WAY FM as a production director, on-air talent, program director, and station manager. Bill co-hosted Dawson McCallister Live, which aired on 500 radio stations each weekend. Bill began ZJAM, a syndicated show that aired on 350 stations in the USA, Canada, the UK, and Guatemala each weekend. Bill’s latest show was Xtreme Talk Live, airing each Sunday night on over 200 radio stations. Bill has hosted 700 fundraisers on Christian radio in the UK, USA, Canada, Australia, and New Zealand. Bill also runs Men of Radio, a Facebook group with over 600 men from Christian radio. For the past three years, he has hosted the Men of Radio Winter Retreat in McCall, Idaho, with the focus of getting to know other men on Christian radio so they can walk through life together. Bill Scott believes passionately in Christian radio, and he has dedicated his life to see it grow.

×