Orpanc Business Solutions for Radio Sales

Orpanc brings Radio Sales organizations new ways to generate value for customers and revenue for the station.

A radio station web site can be a cost center, a revenue center or a profit center. Without Sales in the equation, the last two options are not possible. Interactive media offers new channels to generate and capabilities revenue, although selling interactive media properties remains the largest challenge radio stations face. Orpanc built its entire set of offerings to support augmentation of radio station sales through a complete offering of a technology platform for radio and business consulting to ensure its success. Be it online, terrestrial, or a combination of both, Orpanc's solution set addresses it.

Advertisers are changing, and demanding more than coverage. Interactive media brings two-way accountability to media, and advertisers are demanding more accountability for their ad spend overall. With these benefits, companies are shifting dollars to the online medium. As an example, GM announced in 2008 that half of their ad budget over the next 18 months would be shifted online.

While dollars are shifting place, the decimal place seems to have shifted to the left. This apparent shift dissuades many organizations from investing in their online initiatives. Many large brick-and-mortar institutions are struggling with how to increase the top-line from translating traditional advertising models to the online channel.

Money has not followed directly to online because the business model is different. To be successful in sales, a radio station needs to focus on the traditional wants of the prospective advertiser and translate that to the offerings online. Advertisers buy spots to increase traffic to their business. In doing so, they seek coverage, transparency, and ultimately revenue and a good return on advertising.

When added to part of an advertising package, online media provides a substantial benefit to advertisers. Radio spots cover part of the equation for initial coverage, where the online channel can provide additional coverage and value to the buyer in terms of online transactions, visual branding, and additional product information. Additionally, more transparency and return can be understood with the bi-directional nature of interactive media. Radio stations need to integrate the uniqueness the online channel brings and articulate the value of the benefits to prospects.

The key to online sales success is an investment in a technology platform and a shift sales culture. First, a web technology platform needs to exist in order to offer additional channels of revenue. This serves as a barrier to entry in that many organizations don't have the online business skills necessary to design it, let alone the technical skills to create it.

Interactive media revenue generation has progressed from simple banner ads to newer models. Online brings new revenue generation opportunities in addition to spots. Here are some examples of how Radio Stations generate additional revenue online:

Visual Inventory in the form of pre-roll and video advertising
eCommerce Options to sell client product directly on site
Mobile Advertising options to take advantage of cell phone pervasiveness
Music Stores for listeners to purchase favorite tracks

Additionally, once a platform is in place, the next barrier presents itself in the form of the sales organization itself. To be successful, account executives need to understand the benefits of the new platform and parlay that to their prospects to show real business value. Additionally, compensation plans need to be in place to support the online sales initiative requiring senior executive support.

These challenges are real, and have been the stumbling block for many radio stations in their online initiatives. Orpanc's commitment to the industry and client success results in a sales accelerator package to assist radio stations of all sizes in implementing a profitably interactive media program that positions the station for long-term success. This offering includes:

Business Consulting to help plan out technology capabilities and investment
Organizational Consulting to help the sales force, station management, and additional departments into the online transition.
A Turn-Key Technology Platform built specifically for Radio that removes the need for costly, ground-up customization.

Sample calculation table showing operating P&L for web site.

Selling interactive media is the biggest challenge for a radio station's profitability online. A combination of technology investment, executive commitment, and sales training needs to be put in place to succeed. Orpanc's 360 degrees of technology, business, and organizational consulting can help your organization succeed online and outpace your competitors. Contact an Orpanc Pre-Sales consultant to learn more about how Orpanc can help your organization.

Tidbit: Spend shift, % of reach, 11% CQGR of non-spot revenue.
Sales blog entries and whitepapers

Technology Solutions for Media Business

Orpanc Business Solutions for Radio Sales

Orpanc brings Radio Sales organizations new ways to generate value for customers and revenue for the station.

Learn more about what Orpanc can do for you