Most radio stations have added and expanded their advertising tactics. A big part of this is local digital advertising. However, some stakeholders in organizations have little knowledge about how it works and why it’s vital for revenue growth. Sellers can educate them on selling digital advertising.

This knowledge can turn radio staff into supporters of these tactics. With the right technology and strategies, everyone can have complete transparency and connect all types of advertising — airtime, digital and O&O (owned and operated).

These “lessons” are an excellent addition to any playbook.

Lesson 1: Digital Revenue Is Different Than Airtime Revenue

Radio spot revenue is pretty straightforward. There aren’t retail costs like there are with digital. Airtime ads often have a comfortable margin, but they typically have a smaller investment than digital.

Understanding the differences between digital and airtime revenue promotes transparency. It can help roles like traffic managers know why you want to sell airtime plus digital to every customer.

Here’s how digital revenue differs:

  • Tactics have retail fees associated with inventory and trafficking the ads. These fees vary depending on the channel. Display is usually the most cost-effective, while CTV and SEM (search engine marketing) are typically higher.
  • Operational costs, which are the costs of using technology, internal resources or third parties to execute the ads, can also be a factor.
  • Digital ad sales may have different commission models. Managers may vary them across tactics or do straight net or gross. The percentage may be lower or higher than airtime. It could be higher to incentivize sellers.

All these factors make digital revenue more complex than airtime revenue. Explaining the numbers behind it helps radio staff understand your pricing strategy and the opportunities for a greater share of wallet from customers.

Lesson 2: The Demand for Digital Advertising Is Rising

Digital advertising sales are growing because businesses realize they need these offerings to grow and meet customer needs. BIA Advisory Services forecasts that local digital revenue will exceed traditional in 2025. This is a business-driven outcome.

Most local advertisers use some type of digital media but don’t purchase it from radio stations. You can win this business by positioning your station as a local media expert specializing in radio plus digital campaigns.

Showcasing trends in your own sales and what the industry produces validates the demand. It can open radio staff’s eyes to the fact that advertising must have a multi-tactic approach for success. They’ll feel more positive about digital having a place in almost every proposal.

Lesson 3: Learning About Tactics Is Worthwhile for All Radio Staff

Most people know the basics of digital advertising, as they experience it every day as consumers. However, most don’t know the details of how it works. Having a quick digital advertising 101 session can be worthwhile.

Your sellers can explain tactics to staff regarding targeting, how they execute ads and best practices for performance. It can be good role-play for them while it enlightens the group.

You can start with this guide we created to explain digital tactics.

Lesson 4: Radio and Digital Campaigns Perform Better

There’s no doubt that radio and digital campaigns are stronger than those with only one tactic. Data from the industry and internal sources support this point.

Radio can give digital ads a lift, and digital advertising amplifies core messaging in audio ads. When a campaign has both targeting and reach, the results can include more website traffic, conversions and leads.

In this approach, you also don’t lose your roots as being radio-first. This advertising is a cornerstone of any media plan. Radio has the ability to engage, and people often retain it longer compared to other tactics. Complementing it with digital lets advertisers narrow in on ideal audiences.

This may be the key to buy-in from radio staff to be supportive of and excited by digital advertising.

Lesson 5: A Connected Airtime and Digital Ecosystem Supports All Operations

The digital sales process and execution are not exclusively separate from airtime. When they are part of the same campaign, you need to be aware of their combined performance. Building a tech stack that integrates traffic and digital streamlines operations, enabling efficiency and consistency.

The business intelligence from this connection offers deep insights into buying trends and overall performance. Reporting that can encompass both is valuable to all radio staff as they forecast and plan for the future.

Selling Digital Advertising: Make It a Cultural Shift

Radio has been around for over 100 years. It’s still a pivotal part of consumer listening and business advertising, but it cannot solely keep stations profitable. Embracing digital as part of ad sales drives growth and expansion.

Getting everyone on board matters to long-term success. Use these lessons to create a culture that supports radio + digital.

 

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