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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
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 ??