The new generation of radio revenue specialists PART I
(from RBR/TVBR's February Solutions Magazine available in Digital reading. By Carl Marcucci)
There's a quiet revolution underway in radio sales. A new generation of radio revenue "specialists" is challenging the way business is done in 2006. These new companies are filling a need in a time of change. Each has a different way of getting to the same place. There are at least four unsold inventory specialists out there accomplishing similar objectives, but with different ways of getting to it and some very different bells and whistles: dMarc Broadcasting, Bid4Spots, Marketing Architects (which declined to be interviewed for the story) and Soft Wave Radio.
Now revenue can be created by letting your computer do the work of a salesperson. It solves many of traditional radio's needs-it's low cost; interactive and provides new revenue streams from non-traditional sources including direct response.
Google has agreed to acquire dMarc Broadcasting (the FTC already cleared the deal) with plans to integrate dMarc's RevenueSuite inventory buying technology into the Google AdWords platform, "creating a new radio ad distribution channel for Google advertisers."
The companies put the cost of the deal at $102 million in cash. Google says the acquisition will close in Q1. dMarc had acquired Scott Studios 10/04. Through its RevenueSuite product, dMarc currently offers the Scott Studios and Maestro studio automation systems via bartered, networked spots. RevenueSuite fills open avail opportunities after the logs have closed for the day. It inserts paid advertising through dMarc's national network of advertisers. RevenueSuite spots are delivered, scheduled, played, validated, and billed by dMarc.
The deal with Google may be an 800-lb. Gorilla in the making-Google sees radio and television as 14,000 candy stores spread out all over the country. The thinking may be there is no reason to have a national sales organization like Interep or Katz. And this can all be automated. Advertisers/agencies may go direct for their buys. You go onto Google, you find WRQX midday. How much can I buy it for? Here's your audience delivery. All automated. So a buyer in NYC wants to make an 18-34 Women buy. Show me all the stations that have a 1 rtg. or better throughout the 300 counties surrounding Washington, DC.
However, don't most stations have agreements in place with companies like Interep and Katz for much of their inventory? It certainly looks like Google will bring the transactional business beyond dMarc's remnant inventory abilities with its AdWorks platform and host of online advertisers.
Chad Steelberg, dMarc CEO, insists, "We're not about and we never have been about remnant inventory. For us, we look at this as more of a yield management and automation function bringing much-needed technology to the radio broadcast industry. And really embracing a segment of advertisers that heretofore have not had the capability to advertise and participate in the radio world because of the existing sales channels that are there. Rather, we're building a technology solution that can help manage all of that inventory and be complimentary with the existing sales forces that are out there."
He adds the advertisers that may jump on board spans the entire gamut-from micro-local advertisers who heretofore have never advertised on the radio because of "not having enough budget to warrant a phone call back from a radio station sales rep all the way to the national advertisers who are looking to manage their radio buys in a more efficient and automated manner. Advertisers can go directly to the stations now. It will be much easier."
Good Morning - Gain a personal edge on today's business day. Are you reading this from a forwarded email?
