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

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

3. 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

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

5. 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

6. 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

7. Supply & Demand

8. Engine Theory

9. 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

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

11. The Answers is in Your Inventory

12. Bundling

13. It’s the Audience Stupid

14. Rate Card

17. Package Discounting

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

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

20. 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

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

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

23. Packaging Models Price Natural drivers Multi-media

24. 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

25. 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

26. Pricing Model

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

28. 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

30. 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 e-mail 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 (2 @ 3X6)Estimated value100%$1,0002 $2,000 Logo on mapDistribution2 cents per$0.0208000 $160 Insert in kidsfest bagDistribution10 cents pe$0.1008000 $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

32. 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

33. ?? Questions ??