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Friday, January 20, 2017
January 20, 2017
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True Inventory Optimization.
The goal should be to use less inventory on a percentage basis than the percentage of budget ... meaning: Reach 105% of revenue budget by using 97% of the commercial inventory and you are geometrically improving the operation.
Play a few more songs and overachieve against the revenue budget at the same time. This is optimizing inventory! Not selling every last spot to some remnant business that clutters up the station to deliver 95% of the budget with 110% oversell of the inventory.
Sloppy -- bad for the industry. Call out these folks and get them on the right path to create great radio that beats the budget. At the same time, the audience gets a little more from each hour....
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