Revenue Models for Underwriting Packaging Presented by: Jim Taszarek Kirk Nelson

Revenue Models forUnderwriting Packaging

Presented by: Jim TaszarekKirk Nelson

PRP Client StationsPhoeni

xPhoeni

x

Seattle

Seattle

Nashville

Nashville

Austin

Austin

DenverDenver

Sacramento

Sacramento

St. Paul MinnesotaSt. Paul Minnesota

Cincinnati

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 & Demand2. Engine Theory3. 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

$25

$50

$50

$175

$275

$3,200

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500

Broadcast

Print

Events

Web

Specials

Other Values in thousands

Value of Inventory by Genre

Prime News Kids How-To

Broadcast$1,400

$1000 $600 $200

Print $150 $100 $25

Events $75 $75 $25

Total$1,625

$1,175 $625 $225

Values in thousands

Sales Department Capacity

Number of salespeople 4

Average revenue of successful reps $400,000

Total revenue capacity $1,600,000

Create Focus with Sales ToolsMedia 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$10,00

0$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 Plus26 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

Sum

PromotionLogo and voice recognition in on-air event promotion messages - prime

Percent of rate card

20% $200 60$2,400

 Logo and voice recognition in on-air event promotion messages - kids

Percent of rate card

20% $65 60$780

 Logo and voice recognition in on-air event thank you messages - kids

Percent of rate card

20% $65 25$325

 Logo in event promotion ad in June and July issues Percent of rate

card10% $2,610 2

$522

 Logo in e-news promotion of event for six weeks prior to event (6 at 20,000 each)

Percent of cpm 10% $20 120$2,400

 Logo in KidsFest e-mail promotion blasts prior to event (2 at 20,000 each)

Percent of cpm 10% $20 40$800

  Logo/name on RMPBS homepage event promotion Percent of cpm 10% $15 433 $650

On-siteSponsor supplied signage on outdoor stage (2 @ 3X6) Estimated

value100% $1,000 2

$2,000

  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

value100% $500 1

$500

  booth with canopy 10x10Estimated value 100%

$500 1$600

Underwriting 15-second underwriting messages - kids Rate card 100%

$65 50$3,250

Total          $15,1

87

Price $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 ??