“Mass” vs. “Me”
It’s important to note, however, that new media is not simply the Internet alone. Ivan Braiker with HipCricket had an excellent article in this area of RBR a few weeks back (How to gain a competitive edge: Start building your mobile database). This article is a blueprint for a very important lesson for all traditional media – stop focusing solely on trying to play catch-up, and start to find ways to get ahead of the curve.
While Ivan outlined some incredible radio success stories using new media, another station we know of found an imaginative way to use the station’s online rewards program to create a powerful, triple-win success story. This station had the foresight to begin building an online database years ago, and has slowly begun to create ways to maximize that investment.
The problem presented itself when a start-up pizza café began to inquire about advertising rates to promote their new business on the radio – they wanted to create buzz by giving away free pizza for a month. The advertiser was stunned by the spot rate (more expensive than he thought), and concluded that if he were to buy the suggested schedule – coupled with the free pizza give away, he’d be out of business before he ever got off the ground.
The station countered with a different “idea” – they would use the station database through the rewards program to extend value to their database members. The offer would be revised to just one slice of pizza over one week – and the client agreed to pay-per-action based on the number of coupons redeemed. The twist that tied it all together – when the coupon for a free slice of pizza was presented at the client store, the customer received a bonus code to earn additional points from the station’s rewards program.
700 people redeemed the coupon and collected the bonus points. The majority of the customers spent dollars with the client (buying a soda, or an additional slice of pizza, a whole pizza, a pitcher of beer, etc) and the station picked up $3500 from the new client from a one-time email extending value to their members… without ever airing a single spot or on-air promotional mention.
BIG Picture
Those that immediately jump to concern over the station earning $3500 and losing the spot buy are missing a more important lesson in mass vs. me. The station didn’t lose anything. The client made it clear that the spot package was too expensive, so he either would have purchased far less frequency (spots) to accommodate his budget – or the station would have had to lower the value of their spots to make it work. Alternatively, the advertiser could have sought a cheaper solution elsewhere (a competing station).
What the station did was proactive. They found a way not to lesson the value of their on-air product, while delivering what the client truly wanted – customers, not spots. BUT – the station wins far beyond that:
It was the station brought the concept to the advertiser – not a competitor.
The station revised the advertiser’s vision, saved him money, and delivered measurable results.
The station earned money without wasting or cheapening valuable on-air inventory.
The station presented real “value” to their rewards club members – in a “me” media way.
The station grew its rewards club membership, as others shared the reward story with friends and relatives.
The station now has a client that wants to repeat the success regularly. (Even more non-spot revenue, even more value for the station members).
Grow The Concept
While $3500 may have made the traditional sales manager roll his eyes, keep in mind that this truly was research and development for the station. The $5 cost per action was based on nothing more than “that sounds reasonable”. What if the concept were pitched at a $10 cost per action? Is $7000 a fair number for an advertiser to pay to get 700 customers through his doors?
How many of these campaigns could a station sell – in how many categories? As you can see, the dollars can build quickly.
The lesson here is that there is more than one way to reach your station audience. The station in the example above used it’s “mass” media reach to build an interactive platform (the rewards program) to reach the audience in a “me” media way. They then maximized that platform to deliver what they had promised the listeners (value & points) while helping a client achieve results.
Foresight At The Forefront
As with Ivan’s example, the station above had the foresight to get out in front of where consumers and advertisers were going. When they began building their rewards club online a number of years back, the goal was viewed more as a programming benefit (communicating and recycling listeners to the station) than a sales benefit. However, over time – and with some creative application, the program is now a powerful vehicle for delivering dollars to the station, benefit to the listener, and results to the client. Lather. Rinse. Repeat.
(source: Chuck Francis is VP New Media Strategies at Remerge Media. Remerge Media is a multi-media consulting firm, specializing in new media integration and simultaneous media solutions. Remerge works with radio (as well as other legacy media) clients to help them understand, integrate and generate revenue from new media by building and implementing custom online sales solutions, and providing traditional sales staff members with highly specialized training. Remerge can be found online at www.RemergeMedia.com)
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