Radio Sales Café

Chopped liver, meet the Big Dawg.  

Radio advertising salesperson, meet the professional media buyer.

The following is reprinted with permission from the August 22nd issue of SMALL MARKET RADIO NEWSLETTER.  I'd very much like to know your thoughts after reading it.  -Rod

From the Other Side of the Desk

By Les Boyle

Introduction by Pat Bryson

One of my dear friends owns a large media buying company in the United States, ROI Media. When I managed radio stations, Les Boyle and I locked horns many times over rate, rotation, “added value,” etc. He’s one of the best negotiators I’ve ever known. Recently he copied me on a letter he had written to radio and television sales people. He agreed that I could share it with you. He knows what he’s doing, and I believe he speaks for many of the buyers in our business. It’s important that we understand the world of the buyers with whom we deal. We need to understand their buying motivation. Les says it better than I ever could. Here are his words of wisdom:

Nothing in this world ever turns out to be as easy as it is perceived to be before you get started.

The thought of having to “deal,” to most neophyte sales people, is a producer of acid reflux at the least, and enough to strike fear with some of the older “hanger-ons” who have been around for years and never quite gained an understanding of the dynamics of the business world and how deals are done and undone.

The first “negotiation” goes back to the Garden of Eden and that went badly because the couple in residence were not listening. As we relate negotiating to the business at hand, broadcast media, I think it of some importance to point out a couple of salient points:

Negotiations:

We did not start it. Negotiations are a fundamental business practice, even more precisely, a part of life. They are everyday occurrences with just about everything we do. So, we accept that.

Next, of key importance, no one ever did a deal that they did not want to do. Factors motivating the decisions may vary widely, but the end result is a simple “Yes” or “No.”

Broadcast time is a commodity, a very perishable commodity. If you do not sell the commercial time, the cash flow opportunity disappears. You can’t make it up later. You cannot do anything but bemoan the loss. It comes down to inventory management, and there are as many opinions on the best way to maximize cash flow as there are professional managers managing cash flow. We see commercial inventory management as one of the reasons that our “buying” business is viable.

Historically, the total population of both radio and TV stations has exploded over the past twenty plus years. The days of yore, where a moderately-sized market had six or seven go-to radio stations and three network affiliate TV stations, is long gone. No one station has the clout that they think they do. You may say “No” to certain pricing today, but in a couple of days come back ready to deal. It is a fact of business life.

That moderate sized broadcast market now has forty or fifty radio stations and formats. On the TV side, a minimum of six network affiliates, plus multiple cable systems, selling ads. As a planner and buyer, this is a true challenge. A challenge and motivation to bring the client the most effective and efficient communications plan, and that is what we are in business to do: help our clients build sales success utilizing the most demographically and psychographically efficient communications outlets.

The efficiencies are the result of our negotiations based on our determination of the value of the audience in a competitive marketplace. You can call me mean and a rate chiseler all you want. I am doing my job, and that does frustrate you. Maybe you are not doing yours as well as you could and that is the real seat of the frustrations.

The essence of effective negotiations leading to money-making transactions is simply stated; “being prepared” and “working toward the client’s actual benefit.” Remember, I said our determination of the value, not yours.

Being prepared is, in effect, just that. Know your market, know your competition, know what they are doing and what they are not doing. Know what you are doing better and, obviously, know the competition’s shortcomings. Know the alternative communications mediums and what you are doing better than they do. Who skews to what demographic? Who makes promises and rarely delivers on them? Know the client, the client’s business and how you can help them. If you do not know the business problems, how can you solve them?

Yes, you are SELLING SOLUTIONS!

Are you looking for a one-time sale or are you in for the duration?

You cannot be over prepared in my way of thinking. The more you know, the better prepared you will be. Your knowledge and communications skills will be tested. I will look for ways to challenge you.

Trying to coast through with a winning personality and a politician’s handshake only gets you in the door. We never say “No” to the first visit.

Your performance is measured with every question, your knowledge tested.

Maximizing client’s results is my job. It is a challenge I take very seriously.

If you show up unprepared and winging it, I begin to question your work ethic and potential to give the type of support that I know to be needed. Your seriousness of intent? How you present yourself, what you are wearing, and promptness on keeping the meeting time? Chewing gum snappers and those with sunglasses on the top of their heads...beware! No more “Howdy Calls.”

Have something of value to discuss and make an appointment. Be prepared, I AM going to test you, to find your weakness and exploit it.

If you really want to be successful, do not show up at a gunfight with a knife.

This is good business, not show business. If you are not winning the business you think that you deserve, analyze what could possible be going wrong? The bottom line will always be preparation, personal motivation and dedication to succeed. It is an everyday, every hour, every minute commitment. Short cuts eventually lose business. If you want to take my money, do not attempt to take me for granted.

* * * * * * *

By the time I'd reached the end of Mr. Boyle's letter, I was shaking my head in disbelief (and sending up a prayer of thanks that I don't have to deal with media buyers). 

What are your thoughts and experience dealing with media buyers?  

Are they as prickly as this one seems to be?

Later that day I sent a note in response to SMRN publisher Jay Mitchell:

Jay,

Mr. Boyle makes it apparent from the outset of his letter that he's expecting a fight.

You can call me mean and a rate chiseler all you want. I am doing my job, and that does frustrate you. Maybe you are not doing yours as well as you could and that is the real seat of the frustrations.

I will look for ways to challenge you.

Be prepared, I AM going to test you, to find your weakness and exploit it.

Hi Rod,

Great reply! I'd much rather work directly with the person who writes the check myself.

Jeff Wilson

Although Mr. Boyle seems to be a little more hard lined in his approach, we must face a reality that the majority of buyers out there have pretty much the same feelings. I think he has made it more of a ME WIN-YOU LOSE negotiation, he is right that if it is accepted then apparently the media outlet is alright with the beat down rates that were negotiated. One of the problems that I see with the article is that he clearly has no respect for for most media salespeople nor the radio or tv stations they represent. These stations have been lowered into the category of nothing more than a commodity, I am sure institutional radio stations that put their whole entire efforts into making their stations great just love to hear that they are no more than a commodity. I have decided to accept his philosophy and convert everything in my life to the commodity model, I informed my wife this morning that these were the new rules, I am now off to tell our Minister the same thing, my Doctor and Dentist will sure be happy with this new negotiation strategy of mine.

I think that calling this piece of advice wisdom, is way off. Mr. Boyle has a good sense of what he has to do for his clients and I admire his wanting to get as much as he can. The problem I have is that he starts his article discussing new people incompetence, older salespeople who are clueless. he is defiant, wanting to pick a fight and am sure he is not getting the best deal for his client with his thought pattern, the media understands him and makes sure they give him as much as it takes to get the deal and that's it, getting the great promotions, the better schedule, the make goods done right, he will get what he deserves.

But my friends, pay attention to his words, learn from them.

I understand media buyers because I've been on both sides of the buying selling table.

The truth is the majority of ad agency revenue comes from creative work and there is very little to be made off of the creative for a radio ad. As a matter of fact, many agencies will not even place media buys because they deem it not worth their time. When they do place media buys they tend to give a much greater priority to those things that generate the most $$ on the creative side...leaving radio at the bottom.

My only problem with some media buyers is the tendency to not return calls or emails. This is just not good business.