Why This Recession is Different and Ways Radio Sales Can Navigate It.

 

Nobody likes the “R” word, especially those of us in radio. Recession has meant clients cut back on marketing in order to stay alive, hoard cash, or look for more liquidity.

 

By textbook definition, we are not yet in a recession. However, 35% of Americans believe we are already in a recession. Another 36% feel we will see recession by late this year. Two-thirds of America’s leading economists predict we will be in recession in 2023.

 

Here’s the irony.

 

The labor market still has twice as many jobs as there are people looking for them. Even though housing transactions are down, prices are up 5% from what they were this time last year. And the demand for housing remains strong.

 

This recession, textbook or otherwise, is unique from those in the past. For many of us, this is new territory. The strategies for navigating this economic downturn are different from those in the past.

 

And that’s not bad, especially here at SummitMedia. We’re already equipped. It’s just time to recognize our tools and use them to our full advantage.

 

Inc. Magazine recently published Why This Recession Will Be Different From Any Other. The economists they source recommend several ways businesses can mitigate risk. Three key things that benefit radio are Nurture Relationships, Diversify, and Take Share.

 

Nurture Relationships: Strong brands and business operators stay close to their number one resource –their client base. These are people who need to feel that the brand operators are enduring the same economic circumstances. Not since World War II have we seen this kind of supply crunch on goods, services, and personnel. It’s a life with more cost and less choices. Now more than ever, clients appreciate vendors and suppliers (in our case, marketing pros) who are transparent, even to the point it’s uncomfortable (offering logic-based guidance based on knowledge of the local marketplace for the sake of results. Not being a “yes man.”) We are now in a time where loyalty can be as strong –and in some cases, stronger –than profit. Radio and its digital assets are an industry of wonderful intangibles that always offer great solutions. Our product and service is creating and executing those solutions. There’s no supply crunch on that.

 

Many of us already have strong relationships with long-term clients. It’s the ability to develop new business in this economic environment that may seem daunting. This can be overcome by starting off with a well-designed presentation that identifies unique challenges and offers feasible solutions. Even if it’s a first introduction, create something that feels like its researched and strategic with only that client in mind. The speculative campaign audio will reflect that. It gives you a sense of credibility in the client’s eyes they are less apt to see with mass dispersal of spec spots in a storm of drive-by cold calls. It won’t take long for you to see an improvement in closing ratio.

 

 

Diversify: For decades, all of us in radio have known this is no time to be a one-trick pony. The days of just selling air time went out with cargo pants and mullets. We’ve had digital assets for quite some time. And the acronym NTR is well-known acumen. Put no limit on any of these in your presentations. Just make sure they are unique to that’s client’s needs. Even if during close, the client chooses only one idea, they’re still left with the impression you are a seemingly endless resource of marketing solutions. You’re not just another radio ad sales person.

 

If it’s a personnel recruitment campaign, think of it like a business-to-business campaign. Let’s say an HVAC firm is looking for technicians. Build your entire presentation –not just your spec spot –around something that feels like it hyper targets the exact people that firm is trying to reach. HVAC is unique. The people who earn a living in it speak a specific language. Reflect that in your digital proposal, banner ads, streaming audio/video, or text. (i.e. Be the start-up kit that keeps our compressor and our loyal clients reciprocating. Let your accumulator reap great pay and benefits!) That acumen means nothing to anyone but the desired target. The prospect will immediately pick up on that. You will look like a giant in their eyes.

 

As far as NTR, what about a Keep It Cool Party. Nobody needs just another generic job fair with folding tables for booths in a Motel 6 meeting room. Make it feel like it’s a fun party with goal achieving benefits. Reach out to the various HVAC manufacturers, invite them to demonstrate their latest innovations. Obviously, invite your HVAC clients and any others you’re hoping will advertise. They can set up their recruitment booths. Reach out to other industries that supply HVAC. A good one would be a local tool retailer. And, don’t forget local trade and technical schools. Get your local soft drink distributor to come and offer free soft drinks. Every town has a gazillion local bands. Find a semi-decent one for little money or maybe barter a few spots for their booking endeavors. Have local food trucks on site. Do the Keep It Cool Party on a Friday or Saturday evening so members of the industry can bring their families. Focus your digital and on-air messaging toward technicians and those interested in becoming one.

 

Take Share: It’s to be expected that many companies will reduce their marketing budgets during an economic downturn. However, the smart ones will see an opportunity. As the competition herd thins, they are able to garnish even more market share. Very quickly, they attain the top of mind awareness that their competitors either once had or were fighting to get. Our job is to create unique and creative opportunities for them to do just that.

 

There are a number of industries that are touted as being recession proof; healthcare, food, consumer staples, basic transportation, just to name a few. Yet, each of these is still affected by the supply chain crunch. Automotive retail has been hit especially hard. After speaking with several local dealership operators, I’m given a very dismal picture. Supply of new inventory is way down. To make matters worse, they’re still expected to maintain quotas, but with only half the marketing budgets they had before the pandemic.

 

What kinds of opportunities can we create for them?

 

Obviously, we can’t influence supply and factory or dealership incentives. But, we can influence perception with fun packaging.

 

It’s rare to find a dealership that’s exclusive to one brand. Most are several brands under one roof. Why not create a campaign that packages all of those brands but is targeted at a particular buyer. For instance, we’ll call this automotive group Theron Chrysler, Dodge, Jeep, Ram, Ford. My proposal would be to create a campaign; Theron Mom dot com.

 

 

Theron Mom dot com would feature mom targeted vehicles from each of those brands. They would tout the things most important to Mom; safety ratings, usable space and all those neat compartments for storing coloring books, crayons, the teddy bear, etc. On-air inventory, social media, and other digital assets would help drive traffic to Theron Mom dot com. But, we’d add something outside of traditional radio. We would partner Theron Automotive with a local sign and banner creator. Then, help Theron Automotive place that signage along the fences of little league ball parks.

 

“Don’t pick your nose. Love, Theron Mom dot com.”

“Are you wearing clean underwear? Love, Theron Mom dot com.”

 

This would also apply to other primary targets: Theron Work Truck dot com and Theron Grad dot com for the high school graduate needing their first car for college.

 

Even if your ideas don’t take fruition, you’ve at least left an indelible impression upon your prospect. Word will get around. And you’re more apt to be branded the go-to person for all-things problem solving, especially in a down economy.

 

If you’d like a brainstorming session with you and or your client, please feel free to schedule. Start by contacting your market’s production manager. And we’ll go from there.

 

Sincerely,

Mike –The Reel Architect.