Transcript Revenue Modesl for Underwriting Packages

Revenue Models for
Underwriting Packaging
Presented by: Jim Taszarek
Kirk Nelson
PRP Client Stations
Phoenix
Nashville
Denver
Austin
Sacramento
St. Paul Minnesota
Seattle
Cincinnati
Session Will Cover
Packaging concepts - maximizing station
inventory to revenue potential
–
–
–
–
–
–
Broadcast Underwriting Credits
Web
Member Magazines
Challenge Grants
E-Newsletter
Station Events
Examples of how to evaluate stations
underwriting potential through packaging
Concepts & Strategies
1. Supply & Demand
2. Engine Theory
3. Bundling Concept
Supply & Demand
The theory of supply and demand
describes how prices vary as a result of a
balance between product availability at
each price (supply) and the desires of
those with purchasing power at each
price (demand).
Alfred Marshall
Supply & Demand
The theory of supply and demand
describes how prices vary as a result of a
balance between product availability at
each price (supply) and the desires of
those with purchasing power at each
price (demand).
Alfred Marshall
Supply & Demand
Engine Theory
Identifying Station Engines
•
•
•
•
•
The customer asks for it specifically
Sell with little or no effort
Can’t seem to raise the rate enough
Sold out for months in advance
Waiting list to support
Identifying Station Engines
• When underwriting manager says
“we’re sold out”, or
• We need more inventory
The Answers is in Your Inventory
Bundling
It’s the Audience Stupid
Rate Card
Rate Card
Rate Card
Package Discounting
Public Television
•
•
•
•
Value of inventory
Sales department capacity
Create focus with sales tools
Packaging models
Value of Inventory
Broadcast
$3,200
Print
$275
Events
$175
Web
$50
Specials
$50
Other
$25
Values in thousands
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Value of Inventory by Genre
Prime
News
Broadcast $1,400 $1000
Print
$150
$100
Events
$75
$75
Total
$1,625 $1,175
Values in thousands
Kids
How-To
$600
$200
$25
$25
$625
$225
Sales Department Capacity
Number of salespeople
4
Average revenue of
successful reps
$400,000
Total revenue capacity
$1,600,000
Create Focus with Sales Tools
Media kit: focus on audience and results
• Reach
• Quality audience
• Genres
• Marketing results
• Media options
Packaging Models
• Price
• Natural drivers
• Multi-media
Pricing Model
• Price broadcast inventory below
market cost per point
• Discounts for larger purchase
• Discounts for 3, 6 or 12 month schedule
• Discounts for multi-media
• Use rate card to help client see how to
buy
Pricing Model
Discount
5%
15%
25%
Months
3
6
12
Dollars
$10,000
$18,000
$25,000
Goals
• Increase number of months on air
• Increase average underwriter spending
• Discounts increase frequency and results
Pricing Model
Engine Theory
• Almanac priced individually at $700
• Extra $285 get almost 100,000 impressions
• Discounts for volume of purchase and
length of purchase
Engine Theory
Almanac Production
• 52 weeks
• $500 per credit
• $26,000
• 4 available
Almanac Plus
26 weeks Almanac
• Plus
–
–
–
–
–
26 NBR
26 News Hour
26 BBC
26 Charlie Rose
26 Tavis Smiley
• 156 credits
• $25,000
• Eight available
RMPBS Family Fun Fest
Presenting Sponsor Package Element
Our Factor
Value
Cost
Multiplier
Logo and voice recognition in on-air event promotion messages - prime
Percent of rate
card
20%
$200
60
Percent of rate
card
20%
Percent of rate
card
20%
Percent of rate
card
10%
Logo in e-news promotion of event for six weeks prior to event (6 at
20,000 each)
Percent of cpm
10%
Logo in KidsFest e-mail promotion blasts prior to event (2 at 20,000
each)
Percent of cpm
Logo/name on RMPBS homepage event promotion
Percent of cpm
10%
$15
433
Sponsor supplied signage on outdoor stage (2 @ 3X6)
Estimated value
100%
$1,000
2
Logo on map
Distribution
2 cents per
$0.020
8000
$160
Insert in kidsfest bag
Distribution
10 cents pe
$0.100
8000
$800
space for sponsor inflatable
Estimated value
100%
$500
1
$500
booth with canopy 10x10
Estimated value
100%
$500
1
$600
15-second underwriting messages - kids
Rate card
100%
$65
50
$3,250
Promotion
Logo and voice recognition in on-air event promotion messages - kids
Logo and voice recognition in on-air event thank you messages - kids
Logo in event promotion ad in June and July issues
On-site
Underwriting
Total
Price
Sum
$2,400
$65
60
$780
$65
25
$325
$2,610
2
$522
$20
120
$2,400
10%
$20
40
$800
$650
$2,000
$15,187
$7,000
New Projects
Before shift the sales team’s time:
• Will the new project be an “engine”
• Will the change in sales team focus
generate additional revenue
• Is the value of the project revenue
higher than standard sale
• Example: The Ralna Event
?? Questions ??