iHeartMedia is the 600-pound gorilla in the broadcasting room; we all know it. When they fully invest in new technology, all sales reps must learn as much as possible to compete with or complement it. Welcome to the radio ad sales auction, where sales reps aren’t invited for the most part. Let’s delve deeper into how this can work to your advantage.
Recently, iHeartMedia CEO Bob Pittman and President/COO Rich Bressler spoke at a Goldman Sachs investor conference and pitched their new direction.
The Real-Time Bidding Revolution
iHeartMedia’s biggest challenge isn’t attracting new listeners; it’s selling what they already have in-house. Enter real-time bidding to sell the inventory, not the daypart.
Real-time bidding is a subset of programmatic media buying that enables ads to be bought and sold on a per-impression basis in an instant auction. This move is meant to satisfy media buyers who already purchase digital media in this manner and like it. Buyers don’t want to learn new tricks to do business with radio.
A BIG Shift to Impressions
This accelerates the trend of selling ads not based on rating points or dayparts but using audience impressions. iHeartMedia has moved away from traditional 25-54 demo selling to audience segments. Advertisers can choose from 800 pre-populated audience segments—think of people who intend to purchase a car in six months or women who have given birth in the last six months. It’s very similar to the sales techniques I have used for years with the Gold Digger RAB report. This shift capitalizes on advertisers who don’t necessarily care when somebody is listening but who is tuned in and how much it costs to reach them 24/7.
Pittman was clear in stating, “We sell impressions.” National and increasingly regional advertisers are no longer interested in specific time slots; they seek impressions throughout the day. Finally, there is a market to sell M-F 7p-6a and weekends at a price they are willing to pay.
Create Demand, Not More Supply
iHeartMedia’s top priority is monetizing its existing audience. We all have so much inventory on our shelves. We need more buyers. This digital auction will unlock some of that inventory. Pittman hopes that digital ad buyers will buy up the inventory you don’t sell.
Roll with the Changes
Here are a few ideas to stay ahead of the curve:
Embrace Real-Time Bidding: Understand the ins and outs of real-time bidding and programmatic advertising. Study it. Be able to show buyers how to use it if they want assistance. Perhaps they can buy cheaper ads elsewhere to lower the cost of your M-F 6a-7p inventory.
Impressions vs. AM Drive: Learn how to shift your approach from selling time slots to selling audience impressions. You may encounter a buyer who asks you to do that. Consider the Spots vs. Impressions pricing strategy to understand the concept further.
Diversify Your Portfolio: Incorporate more impression-based digital audio streaming, podcast advertising, and social media strategies into your packages.
In conclusion, the radio ad sales market is transforming profoundly, with real-time bidding and audience-centric approaches taking center stage. Learn about this or risk being labeled as part of “The Olds.” Adapt to these changes and embrace innovation. It will help you not only survive but thrive.
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.
