Did you take Gordon Borrell’s advice to BSM last year on how sports radio salespeople can increase business with the tools they already have? No? Well, here is another chance.
Do you know who the best targets to go after for new business are in 2023? Think SMALL!
Recently, Corey Elliot, the Executive Vice President of Local Market Intelligence for Borrell and Associates, posted a video about who was looking to increase radio budgets in 2023. Borrell does an annual Fall advertiser survey with thousands of businesses and releases the results. One of the 2022 survey questions was about whether radio budgets will increase, decrease, stay at the same level, or be killed in 2023. Here are the response percentages:
- 67% level
- 18% trim
- 4% KILL
- 11% increase
Borrell also determined what percentage of the radio budget increasers/trimmers were independent businesses, not franchises or corporate owners. Seventy-nine percent of those who wanted a budget cut were independents, and eighty-five percent of those who wanted to increase their budgets were also Indy. 73% of those who wish to increase radio advertising have fewer than 50 employees, while 63% of cut backers are also under 50 workers.
Here is the bottom line. Small independent businesses under fifty employees are the best targets to find a radio budget on the increase. That is good news for local radio ad sales.
Elliot points out that many small business start-ups have launched over the last few years since the pandemic. I would add that this has happened specifically in medium to larger cities where corporations have big footprints. Once they were sent home, some workers realized they were ready for change and started their own businesses.
It’s important to remember these types of clients will need both the basics of how radio can help them today and the rest of what we have to offer can continue helping them tomorrow. They are likely turning to the radio because they listen and are probably over 35 years old, maybe even closer to 45.
Get them talking about their listening habits and pin down their target market. Of course, a digital companion makes all the sense in the world for these advertisers but don’t forget what brought them to you. They believe in radio and understand its reach. Show them how frequency can ring their register and get appointments for them.
Remember the Borrell Miami Local Advertising Conference March 5-7 at the Miami Marriott Biscayne Bay. For more Borrell strategies on boosting local radio ad sales watch this. Sometimes it pays to think SMALL when it comes to new radio clients.
Play the percentages and happy hunting.
