Although 2009 is predicted to be a year of great economic struggle for many in the advertising world, it could also be a year that provides the greatest innovation and opportunity.  Radio vendors are taking advantage of this time by selling new and unique opportunities.  Clients, agencies and vendors alike, are rethinking how they have done things in the past and are being even more creative to make sure the message is heard.

Radio has suffered one of the largest declines in revenue.  It reached an all-time low last November with a 20% decrease.  Things are not looking promising for a rebound in the first half of 2009, so radio groups need to be innovative by finding new ways to sell themselves.  With marketers recalculating how much they assign to their advertising budgets, agencies are rethinking how they spend those crucial dollars and cents. Retooling and condensing media plans could be standard practice in 2009.  Agencies are negotiating harder to get more for their client’s money - and more out of each medium. Radio stations are not only fighting with their “radio rivals” for a larger share, but they have to fight smarter to keep radio on media schedules. So how will radio groups sell themselves in a down economy? Very strategically.

Below are a few strategies we are seeing, or have initiated, in the current marketplace . . .

• Taking full advantage of the open inventory. Negotiated rates are down 15-30% from last year.

• Using rebate packages to put money back into a future plan, add a new medium or add to the bottom line.

• Leveraging buying power. We are buying fewer stations and asking stations to offer more added value and promotional support to be on the buy.

• Negotiating “no charge” promotions such as text messaging and online opportunities.

• Securing large ticket items as part of the buy. We were able to secure trip giveaways for a grand opening campaign, which would have previously required incremental spending from the client.

• Turning savings into opportunities. One buyer was able to negotiate and secure several Super Bowl packages for our client.

• Consolidating production costs. At no additional cost, we negotiated to have stations create a :10 spot for a client that only produced a :30.

• Securing added value and promotional support on sister stations. A station group in Michigan offered a school closing sponsorship on all 13 sister stations when only 4-5 of their top stations were on the buy.

Station groups are adapting to the changing environment and downturn by re-branding themselves. Station groups are structuring themselves differently and having one person to fully understand and sell all the arms and legs of their packages; radio, digital and mobile. The need to do more with fewer people has also inspired stations to develop turn-key packages that leverage all of the potential opportunities they have to offer to buyers.

We are being very aggressive as we continue to plan, negotiate and deliver high quality buys that are sometimes 15-30% below a year ago.  The key for 2009 and beyond is growing our partnerships with stations to produce stronger promotional support.  As we push the stations to be more innovative, we believe that our clients will be able to take advantage of some of the new opportunities that are presented in 2009.

By: Michelle Dietz, Local Broadcast Buying Director