NAB Panel Looks At Alternate Revenue Possibilities
April 21, 2009 at 12:03 PM (PT)
A panel at the NAB SHOW in LAS VEGAS TUESDAY morning examined the ways radio can find new revenue streams as its business model is transformed by economic factors and changes in technology.
BIA FINANCIAL NETWORK Chief Strategy Officer RICK DUCEY and CEO TOM BUONO noted that broadcasters are experiencing the "disruptive" effects of the Internet, which can do what broadcasting does and is easier to implement, requiring broadcasters to "either partner with (Internet concerns) or watch out for" them. BUONO recounted the BIA/KELSEY GROUP study showing radio's share of the advertising pie shrinking; he pointed out that radio is similar to the Internet and mobile phone industries in that consumption share far exceeds its share of revenue, as opposed to newspapers, which take a far larger share of advertising than they do media consumption.
GAP WEST BROADCASTING Pres. ERIK HELLUM said that he sees pacing "getting better," although still negative. He said that advertisers in the small and medium markets in which GAP WEST operates are "confused ... overwhelmed. But we see this as a huge opportunity" for AEs to "educate" the advertisers on their options. HELLUM said that his company's goal is to become the "dominant local audio company" and the "dominant local digital company" in all of its markets.
He discussed the stations' MASS2ONE loyalty program, saying that the company has built up a database of 125,000 members (85,000 for GAP, 40,000 for GAP WEST) and has seen page views on its sites rise since SEPTEMBER 2008. The company has also purchased SAVEONTHELOT.COM, a national auto sales site, and promotes the site on its radio stations, and has purchased DALLAS lifestyle news website PEGASUSNEWS.COM, which it plans to roll out to most GAP and GAP WEST markets, and which has its own iPHONE application.
JIM BREWER II, VP of CHATTANOOGA media company BREWER BROADCASTING, noted that his company was radio-only just a few years ago and facing steadily declining revenues; his company launched its first website, CHATTANOOGAHASCARS.COM, in 2007, cross-promoted on the company's radio stations. In JANUARY 2008, CHATTANOOGAHASTRAVEL.COM was added, although "it doesn't make money," BREWER joked; event showcase CHATTANOOGAHASFUN.COM was added in APRIL 2008 and "it's done well," BREWER said. BREWER also bought alternative weekly THE PULSE and says that "it's worked well." Using the radio, web and print properties for marketing, BREWER has launched several events, such as a women's expo and an "eco expo," and is launching BOGONOOGA.COM, a "buy one get one" site.