Too many solos for advertising bookings
Advertising marketer Radiotele calls on customers and broadcasters to adhere to rates.
When a customer books radio advertising through a marketer, the price always includes an agency commission (AC) - the margin for the marketer. Depending on the station or pool, the commission is between 5 and 20 percent. Some broadcasters are now asking their customers to book directly with them instead of via the marketers. "They prefer anything that doesn't come via the marketer," says Felix Kilchsperger, Head of Radio Sales at Radiotele. Some customers go for it because it saves them the sales costs. "And they usually also get free space," says Kilchsperger, adding that there are clear indications of such business practices. It happens, for example, "that national customers ask us not to include one station or another when booking radio pools because they have concluded a 'mega deal' with them," says Kilchsperger. "Such agreements are almost always made a state secret to us." Kilchsperger estimates that around eight radio stations in German-speaking Switzerland and four in French-speaking Switzerland make such deals, i.e. around a third of all stations. He does not name names.
The measure is full
Now, however, he has lost it. In an email to radio stations and customers, he calculates that this behavior will become more expensive when it comes to pool bookings at the latest. "Because if a customer or a media agency demands that we book a pool recommended by us without station X or Y, then we are forced to convert the pool booking into solo bookings," says Felix Kilchsperger.
However, solo bookings are 23 to 45 percent more expensive (see table). Kilchsperger's conclusion: "If a customer does not get at least 25 percent from a broadcaster, they are making an extremely bad deal. In French-speaking Switzerland, it should even be 50 percent freespace." But even that is often not enough. The difference between individual and pool bookings at City Pool, for example, is 22,000 francs - almost exactly the value of Basilisk. In other words: In this case, Basilisk would have to offer itself to the customer free of charge or add 100 percent Freespace so that the customer doesn't pay more.
No wonder Kilchsperger's warning is starting to bear fruit. "We've spooked a horse. Some customers have already reacted because they have realized that their deals are less attractive," he says.
Markus Knöpfli
The measure is full
Now, however, he has lost it. In an email to radio stations and customers, he calculates that this behavior will become more expensive when it comes to pool bookings at the latest. "Because if a customer or a media agency demands that we book a pool recommended by us without station X or Y, then we are forced to convert the pool booking into solo bookings," says Felix Kilchsperger.
However, solo bookings are 23 to 45 percent more expensive (see table). Kilchsperger's conclusion: "If a customer does not get at least 25 percent from a broadcaster, they are making an extremely bad deal. In French-speaking Switzerland, it should even be 50 percent freespace." But even that is often not enough. The difference between individual and pool bookings at City Pool, for example, is 22,000 francs - almost exactly the value of Basilisk. In other words: In this case, Basilisk would have to offer itself to the customer free of charge or add 100 percent Freespace so that the customer doesn't pay more.
No wonder Kilchsperger's warning is starting to bear fruit. "We've spooked a horse. Some customers have already reacted because they have realized that their deals are less attractive," he says.
Markus Knöpfli
