Revenue Models for Underwriting Packaging Presented by: Jim Taszarek Kirk Nelson

PRP Client Stations Phoenix Seattle Nashville Austin Denver Sacramento St. Paul Minnesota Cincinnati

Session Will Cover Packaging concepts - maximizing station inventory to revenue potential –Broadcast Underwriting Credits –Web –Member Magazines –Challenge Grants –E-Newsletter –Station Events Examples of how to evaluate stations underwriting potential through packaging

Concepts & Strategies 1.Supply & Demand 2.Engine Theory 3.Bundling Concept

Supply & Demand The theory of supply and demand describes how prices vary as a result of a balance between product availability at each price (supply) and the desires of those with purchasing power at each price (demand). Alfred Marshall

Supply & Demand The theory of supply and demand describes how prices vary as a result of a balance between product availability at each price (supply) and the desires of those with purchasing power at each price (demand). Alfred Marshall

Supply & Demand

Engine Theory

Identifying Station Engines The customer asks for it specifically Sell with little or no effort Can’t seem to raise the rate enough Sold out for months in advance Waiting list to support

Identifying Station Engines When underwriting manager says “we’re sold out”, or We need more inventory

The Answers is in Your Inventory

Bundling

It’s the Audience Stupid

Rate Card

Package Discounting

Public Television Value of inventory Sales department capacity Create focus with sales tools Packaging models

Value of Inventory Broadcast Print Events Web Specials Other Values in thousands

Value of Inventory by Genre PrimeNewsKidsHow-To Broadcast$1,400$1000$600$200 Print$150$100$25 Events$75 $25 Total$1,625$1,175$625$225 Values in thousands

Sales Department Capacity Number of salespeople4 Average revenue of successful reps$400,000 Total revenue capacity$1,600,000

Create Focus with Sales Tools Media kit: focus on audience and results Reach Quality audience Genres Marketing results Media options

Packaging Models Price Natural drivers Multi-media

Pricing Model Price broadcast inventory below market cost per point Discounts for larger purchase Discounts for 3, 6 or 12 month schedule Discounts for multi-media Use rate card to help client see how to buy

Pricing Model Discount5%15%25% Months3612 Dollars$10,000$18,000$25,000 Goals Increase number of months on air Increase average underwriter spending Discounts increase frequency and results

Pricing Model

Engine Theory Almanac priced individually at $700 Extra $285 get almost 100,000 impressions Discounts for volume of purchase and length of purchase

Engine Theory Almanac Production 52 weeks $500 per credit $26,000 4 available Almanac Plus 26 weeks Almanac Plus –26 NBR –26 News Hour –26 BBC –26 Charlie Rose –26 Tavis Smiley 156 credits $25,000 Eight available

RMPBS Family Fun Fest Presenting Sponsor Package ElementOur FactorValueCostMultiplierSum Promotion Logo and voice recognition in on-air event promotion messages - primePercent of rate card 20%$20060 $2,400 Logo and voice recognition in on-air event promotion messages - kidsPercent of rate card 20%$6560 $780 Logo and voice recognition in on-air event thank you messages - kidsPercent of rate card 20%$6525 $325 Logo in event promotion ad in June and July issuesPercent of rate card 10%$2,6102 $522 Logo in e-news promotion of event for six weeks prior to event (6 at 20,000 each) Percent of cpm10%$20120 $2,400 Logo in KidsFest promotion blasts prior to event (2 at 20,000 each) Percent of cpm10%$2040 $800 Logo/name on RMPBS homepage event promotionPercent of cpm10%$15433 $650 On-site Sponsor supplied signage on outdoor stage 3X6)Estimated value100%$1,0002 $2,000 Logo on mapDistribution2 cents per$ $160 Insert in kidsfest bagDistribution10 cents pe$ $800 space for sponsor inflatableEstimated value100%$5001 booth with canopy 10x10Estimated value100% $5001 $600 Underwriting15-second underwriting messages - kidsRate card100% $6550 $3,250 Total $15,187 Price$7,000

New Projects Before shift the sales team’s time: Will the new project be an “engine” Will the change in sales team focus generate additional revenue Is the value of the project revenue higher than standard sale Example: The Ralna Event

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