Staying afloat in student radio

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Staying afloat in student radio
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Michael Brooks
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CUR1350s history of financial independence

• In 1979, CUR1350 was established using an initial
  university grant.
• Since then, the only support offered by the
  university was waiving rent and an 8,000 loan
  for our LPAM transmitter.
• In late 2002, the then CUR1350 committee
  predicted the demise of SBN, and in 2003
  terminated the contract with SBN.
• Since 2003, CUR1350 has relied on advertising
  (40), sponsorship (35) and membership fees
  (25) to meet all expenses.

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Staying afloat, not just good sales

• Staying afloat increasing revenue streams to
  meet all outgoings and prevent cash-flow
  problems. Sales is only part of the complete
  solution. Sales, cost-cutting and delaying
  outgoings / accelerating incomings are all
  involved.
• Broadcasters (vicious) Circle

advertising revenue
programmes / services
listeners
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Cost-cutting

• Publicity big fund drain. Often too short-term
  to be good value for money, plus can be done
  effectively for almost no cost.
• Unnecessary costs (e.g. luxury studio upgrades
  for items only in use by one presenter) should be
  chased out.
• A good way is to ensure EVERY expenditure is
  cleared first by whole committee.

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Cost-cutting Publicity on the cheap

• Students receive hundreds of flyers throughout
  the year, 50-60 are never read before ending up
  in the bin.
• Most students ignore the adverts in student
  papers 79 will never read a full page advert.
• Outside broadcasts, press-releases to student
  papers outlining inventive on-air competitions,
  publicity stunts are better.
• The best publicity is inventive, original and
  done at low cost.
• E.g

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Cost-cutting Publicity on the cheap

• Outside broadcast tannoy tent for spectators at
  the bumps

• 2,500 extra people heard the station cost 110,
  income from event sponsorship (see later) - 700
  590 net income

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Cost-cutting Publicity on the cheap

• Bike sticker campaign

• Planted stickers around front wheel spokes of
  2,000 bicycles parked in Cambridge.
• Printed on Avery A4 sticker paper, with colour
  Laserjet.
• Total cost 35.

• Articles in both student papers, 16 increase in
  listeners.

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Other non-advertising income streams Membership
Fees

• Membership charging membership gives a station a
  second, more stable income stream.
• Charging membership is a great way to
  differentiate talent implementing a cost ensures
  only the more enthusiastic people join the
  station.
• Already charging membership and still need more
  income? Consider improving your services to your
  members and upping membership in exchange. (e.g.
  CURlink)
• 15-22 per annum is reasonable depending on
  station size, facilities (with no studio usage
  limits imposed).

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Selling airtime - Making your station attractive

• Before launching a sales team, work on making
  your station attractive to advertisers.
• Radio advertisers number one concern is value
  for money.
• Therefore you need to quote actual listener
  figures (website hits are NOT good enough).
• To obtain figures, log online listening and send
  out a survey.

• When sending out a survey
• Make it little effort fill in
• Aim for 7 of student population and offer prize
  draw entry on return

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Selling airtime - Making your station attractive

• Aim to obtain these ultimate figures
• Coverage absolute number of students who are
  within your coverage area.
• Reach Number of different individuals who
  listen to the station, weekly / termly.
• Reach Hours Total number of listener-hours
  each week
• Dont lie about it. If your figures are a bit
  low, take the hint and work on improving the
  station to attract listeners.

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Selling airtime - Creating realistic advertising
packages

• When determining a suitable price, compare
  yourself to other forms of advertising (student
  papers / flyering)... because your advertisers
  almost certainly will.
• Ideal advertising packages
• Fix a fair price given your listenership
• Offer a small range of packages to suit a range
  of budgets
• Keep it simple (stupid). 3-4 packages in total,
  easy to understand
• Make advert delivery method feasible
• If you are starting out, attract advertisers by
  underpricing by 10 rather than confuse matters
  by throwing in freebies.

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Selling airtime - Pricing

• Fix advertising package prices based upon
  impressions numbers of listeners who will
  hear each minute of advert throughout a week.
• We recommend 0.06 to 0.12 per impression per
  minute

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• Vary the base rate according to current
  advertiser interest and also if they only want
  advertising at a particular time of day

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Selling airtime - Comparing to paper advertising

• Fact most advertisers willing to advertise in
  student papers as they are comfortable using it.
• Advertisers tend to misinterpret circulation
  figures as actual readership of adverts.
• Data shows that only 21 of readers will ever
  read a full page advert.
• Radio advertising is therefore better value for
  money...

475 buys you one advert buried amongst a page of
other adverts... ...or 5 weeks of a 45s advert on
the hour, every hour on the radio station.
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Selling airtime - Comparing to paper advertising

• 1000 buys you full page advert in a Cambridge
  student paper with a circulation of 10,000
  copies.
• 55 (5500) copies actually get picked up
• Only 21 of readers will read that advert (so
  1155)
• So for your 1000, 1155 people will read the
  advert
• Thats 0.87 per head!!!
• Advertising on CUR1350 is 0.08p per impression
• i.e more than 10 times (900) more cost-effective.

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Selling airtime - Sponsorship

• Major broadcasts and popular shows can attract
  sponsorship
• Exploit station events throughout the year by
  attaching a sponsorship option to them. Adjust
  fees according to listeners

Freshers Fair 2,000 extra impressions (300)
Bumps 2,500 extra impressions (350)

• Events that are ideal to sponsor include
  sporting coverage, most outside broadcasts,
  station club nights.

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Selling airtime - Hassle loses money

• Student radio advertising is only a very small
  portion of most companies advertising budgets.
• Most companies you deal with will want a quick
  purchase with little hassle. If it occupies too
  many person-hours to purchase airtime on your
  station, they will not be bothered.
• Steps to minimising hassle
• Keep packages simple to understand e.g. price
  what you get
• Each advertiser only deals with one member of
  your sales team
• Include advert creation in the quoted package
  prices
• Have strong links between sales team and
  production team. Aim to go from advert script to
  air in 48 hours.

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Selling airtime - Who to target

• Focus all efforts on advertisers aiming at a
  student market (18-24 year olds) .Companies will
  fall largely into two groups (e.g. some of
  the advertisers on CUR1350)

(local) companies with student focussed services
/ products
Graduate recruiters
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Selling airtime - How to target them

• Keep your eyes open, see which companies are
  advertising in the student papers and who is
  pinning up posters. Contact the ones who appear
  to be spending on advertising.
• Produce a rate-card. Rate cards must obey current
  station branding, must quote all packages on
  offer, must carry listener figures and must have
  clear contact details on.
• Produce a hit-list of student-relevant
  companies. Ensure each receives a copy of your
  rate card and a covering letter (preferably
  personalised). Follow up with a phone call /
  e-mail.
• Set up a clear website section carrying full
  rates, listener statistics, contact information
  and point them in its direction.

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Selling airtime - Sales technique

• Your aim is to communicate the cost-effectiveness
  nature of radio advertising and dispel any
  concerns of the advertiser.
• Some tips
• Remember that radio advertising is amazing value
  for money
• Quote the station name, the audience it serves,
  how many people can be reached by advertising,
  and how much itll cost to reach them
• If it appears as though youve thought about
  advertising from the companys perspective,
  youll get a warmer response
• Dont expect a decision on the first call, leave
  your name, e-mail and phone number, for questions
  / to book advertising.
• Conduct yourself with a can do attitude. Give
  the impression that you can cater for their
  particular scenario without a fuss

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Selling airtime - The process

• Closing a deal is only part of the process of
  airtime sales

Advertising Campaign
ROT
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Other tips

• Sales team 2-3 people are sufficient. Divide up
  a hitlist of companies. Focus on student-relevant
  companies, graduate recruiters, and companies who
  contact the station.
• Phone up your ILR and ask if your sales team can
  come along and observe the sales room and chat to
  some employees.
• Look how print / poster advertising changes
  throughout the year. Try to draw up a yearly
  roster outlining which kinds of companies
  advertise and when. Focus efforts accordingly.

Freshers advertising
Xmas products
Graduate recruiters
Travel services
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Any Questions?