Here’s how you get it…
It’s not revolutionary.
It’s not even new.
It’s simple supply and demand.
NBC cut two full stop sets an hour out of Saturday Night Live, a 30% reduction in the number of spots they can sell.
That basic decision allowed them to raise rates on SNL up to 40%.
It’s the opposite of what consolidated radio in America is doing.
To hit the monthly — or weekly, or even daily — number, we increase the number of units, and sometimes even stop sets.
We play more spots at a lower rate than we did 20 years ago!
I’m not an economist and I can’t use a slide rule, but I’m pretty certain that’s stupid.
First, it’s the content on your station that creates demand by attracting huge numbers of listeners.
Then, that demand helps set the rates.
The more we clutter up our content by adding more spots and longer stops without any content listeners want, the more likely it is they will go somewhere else.
And that somewhere else will increasingly be Sirius/XM, Pandora and Spotify, or any other option that isn’t over-commercialized.
I realize many markets compete with technically insolvent consolidated companies who will under-bid everyone to get $1 on the books today.
But we’ve got to find a way to fix that.
First, by creating more proprietary content listeners actually want to listen to and engage with daily.
Then, by using that demand to offer fewer spots at a higher rate.
There’s no better time than right now, especially for stations playing Christmas music 24/7.
Every market needs a content and rate leader.
Can it be you in your market?