Online Auctions

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Online Auctions

• A Balanced Look

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Issues KPBS Considered in Partnering with NKP

• We were looking for a new revenue opportunity to
  test in late FY 03 to then include in FY 04
  planning.
• Read about WAMUs success in Current, contacted
  NKP in February/March 03, planned KPBS auction
  for May 03.
• Had previously done small station-run online
  auctions with items offered throughout the year
  and specialty auctions focused on travel,
  arts/culture and KPBS personality experiences.

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Issues KPBS Considered in Partnering with NKP

• While wed had success with our travel online
  auctions, net profit was minimal, amounting to
  about 12,000 in FY 02.
• KPBS was willing to risk some capital to invest
  in this new venture, but it had to be minimal
  based on being so close to the end of the fiscal
  year.
• We considered high interest in the Internet that
  our listeners had, increased audience to our web
  site, success NKP had with WAMU, San Diego is a
  very wired market.

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Issues KPBS Considered in Partnering with NKP

• We wanted to keep expenses for auction services
  within 30 of the gross revenues expected from
  the auction.
• We negotiated an agreement that ensured NKP a
  base fee up front, a second payment tied to NKP
  procuring enough items of significant retail
  value to assure net revenue if the items were bid
  on in the auction and the final payment tied to
  an agreed upon minimum gross revenue goal.

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Issues KPBS Considered in Partnering with NKP

• The final payment would only be made if that goal
  was met. Finally, the internal budget for the
  auction was created as a break even proposition,
  with no expectation for net revenue this first
  time so the station wouldnt rely on the funds of
  an untested activity.

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Program-Related Focus

• Focus on NPR/PRI/PBS/KPBS experiences and items
  is consistent with what listeners/viewers expect
  from KPBS
• Trips to NPR in DC to watch Morning Edition, All
  Things Considered, Weekend Edition, etc.
• Visit to NPR West in LA to watch Day 2 Day
• The Lounge and These Days live in KPBS studio
• AudioBiography interview with KPBS reporter
• Trip to London to tour the BBC and watch BBC
  World Service
• NPR, PRI and KPBS gear, etc.

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• KPBS considers its annual online auction to be a
  special event - without the limitations and
  expense of an actual event.
• Although NKP handles most of the operational
  aspects of the auction, you need station
  management buy-in to be successful as the auction
  requires input and work from the marketing,
  communications, program promotion and corporate
  development departments as well as all station
  reporters and personalities.

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Listener-Friendly Auction Promotion

• Promotions do not preempt programming
• The auction uses KPBS promotional avails
• One week of pre-auction promotion in light
  rotation
• Ten days of live-auction promotion in medium to
  heavy rotation
• No promo is longer than 59 seconds
• Promos are no more frequent than twice per hour

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Response to On-Air Promotion

• When KPBS auction participants were asked in a
  post-auction questionnaire about your opinion of
  the on-air promotion
• 96 said great, fine, I like them
• 4 said I found them annoying

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May, 2003 KPBS Online Auction Statistics

• 871 people registered, 480 placed bids.
• 1,419 bids were placed on 280 unique items
  (exclusive of multiples)
• The average number of bidders per items was 5.5
• The average number of packages bid on per bidder
  was 5.8.
• Visitors spent an average of more than two hours
  on the site over the course of the auction.
• Travel Near and Far was the most popular
  category, followed by Dining Out, Local Outings
  and Live Performances.

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February 04 KPBS Online Auction Statistics

• There were more than 7,700 visitors sessions to
  the auction website.
• There were over 5,700 unique visitors to the
  site.
• More than 800 people registered to bid.
• Just over 450 users actually placed a bid on at
  least one of the 425 auction items.

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Revenue by Category 04
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Dollars and Good Sense

• 2003 Auction 88,246 gross
• 2004 Auction 134,820 gross (53)
• Net approximately 65

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KPBS Net

• May 03 55,000
• February 04 89,000

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KPBS Online Auction Donor Benefit Levels

• Items valued at 15,000 received 25 underwriting
  announcements independent of the auction to
  air over a six-month period following the
  auction.
• All items valued at more than 250 received
• One image per donation on the online auction web
  site
• Link to the companys web site through the online
  auction
• Post auction online donor thank you

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KPBS Online Auction Donor Benefit Levels

• All items valued at more than 250 received radio
  on air mentions during the auction. Frequency
  ranged from one mention for items valued between
  250 -499 to 40 mentions for items valued above
  10,000.
• Other benefits for items valued above 1,000
  include mentions in e-mail announcements and
  donor logo listed with the item on the auction
  web site.

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Summary of Survey Response

• What motivated you to participate?
• 58 Wanted to support KPBS
• What did you like best?
• 28 Variety/good selection/items up for bid
• Opinion of on-air promos
• 32 Good/great
• What items do you want to see more of?
• 23 Less expensive/local packages/overall
  travel

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Summary of Survey Response

• Rate the appearance (look/feel) of the site?
• 63 Very good
• Rate the ease of use (navigation) of the site
• 69 Very good/very easy
• Rate the bidding process
• 60 Very good/very easy
• Annual event/participate again?
• 98 Yes

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KPBS Listeners Like the Auction

• 100 of auction participants responded YES to
  these two questions on a post-auction
  questionnaire
• Should the auction be an annual event?
• Will you participate next year?