Last week we discussed how to evaluate a third station coming into the sports format from a programming perspective. When a third station moves into your format, things can get crowded. We looked at the situation in Dallas-Fort Worth with an anticipated third all-sports station, iHeart’s 97.1 The Freak joining market leader KTCK from Cumulus and Audacy’s The Fan 105.3. As it turns out, The Freak is explaining on-air that they are a Lifestyle, not ALL SPORTS talk station, even though most of the on-air talent came from the other two sports stations in the market. And that includes Mike Rhyner, credited with co-founding The Ticket in 1994 and winning afternoon drive for most of his 26 years on the air.
To help with the sales strategies, I asked Alec Drake to lend his insight. Drake is President of Drake Media Group, a sales consulting company. In his radio career, Alec was most recently DOS for Cumulus Dallas and managed The Ticket from 2009 to 2021. He is a regular writer for Radio Ink Magazine.
How would a market leader with a new format competitor handle this with clients?
That #1 station has been a premium buy and choice in the market for years. The ongoing process of building value with clients, being confident rather than arrogant, and not taking business for granted should sustain them. The best approach is to be “aware” but not reactive to a new player in the format.
Your narrative with clients should acknowledge the change and, at the same time, reinforce what has made you the strongest station for many years. There will be clients who want to take advantage of the new circumstances, and in the short term, you might have some turnover in clients that are not preventable. Terms and conditions in your existing business agreements should afford some stability and be revisited with key clients on potential changes. For example, rates on any station are always in motion due to demand shifts, seasonality, and ratings.
Longer-term clients are protected with predictable pricing, preferred treatment on schedule clearances, and access to top-tier assets on the station, like endorsements and event and content sponsorships. These are sticky connections and will give everyone time to see if the new entry in the market has staying power. There is a big difference between buzz and sustainability. Anyone in radio has seen the ups and downs due to circumstances, and the professionals in the business always look out six to 18 months with strategic planning. Lastly, do not negatively sell or trash talk anyone who is a competitor.
What strategies can the new competitor take when approaching its former clients and clients on the competition?
What impact does the format change have on current agreements? You can offer incentives to stay if they want to leave, but you must be careful not to give away the farm, or your upside from the change will get eaten up in concessions. The proof of your decision to change and the positive results will take some time, so do not be hasty to touch every order and client with options. Again, what terms and conditions are in place with your existing business?
Regarding approaching clients across the street, watch out for overpromising something and then under-delivering on what the outcome might render. Creating a buzz and being shiny and new only lasts for so long.
Let me give you an example regarding a pricing strategy that backfired for KEXL when they came after us at KISS in San Antonio. KEXL came in with very low pricing, which was 15 to 20% of the rates on KISS. We knew that competing on price was not an option, so we encouraged bottom-feeder businesses that wanted to jump on their station for low rates to go ahead. We made sure our better clients knew that the rates were very low and they should take advantage of using funds outside of commitments to us and buy up some “cheap” spots during the initial hype. This sold out KEXL in short order and did two things to their plan; they were stalled in coming after us since they were sold out for a month, and they had to start raising rates earlier, which was not part of their short-term strategy. They also looked unorganized in managing their business. We showed confidence in our position and our commitment to our clients’ longer-term success.
What if you are #2 in the format and get a competitor? How is that response different?
Each station in a Sports/Talk format will have its unique characteristics regarding show lineups and strength of personalities, PXP affiliations, and a core of P1 listeners. Anyone might sample something new because they are curious about what the new station will sound like, what is the chemistry of the new lineup, and do they offer anything that was missing from existing choices in the market. This is a natural process and will happen regardless of what you do. The key is how you react, what you project in confidence, and keeping an even keel in the middle of some choppy water.
Depending on the gap between you and your previous competitor, you might consider becoming a follower of the dominant station instead of a competitor. If you were number two already, your goal is to keep that ranking and not drop to #3. You should watch carefully how the leader handles the new competition and take notes. You want to associate some of the same principles in your narratives, like heritage, relationships, and established research that supports your value vs. the unknown. In pricing, you also want to follow the leader and not try to discount your way into saving business and look like a station that does not know its own value.
Alec Drake offers insights 24/7 in his free Sales Success Library at Alecdrake.com. I recorded a pod with Alec about this topic. Listen to it here.
Jeff Caves is a sales columnist for BSM working in radio and digital sales for Cumulus Media in Dallas, Texas and Boise, Idaho. He is credited with helping launch, build, and develop Sports Radio The Ticket in Boise, into the market’s top sports radio station. During his 26 year stay at KTIK, Caves hosted drive time, programmed the station, and excelled as a top seller. You can reach him by email at jeffcaves54@gmail.com or find him on LinkedIn.
