What would happen if right before the Super Bowl, you cut your star quarterback and started the third stringer to save money? Or deactivated your All-Pro wide receiver? Or just fielded 10 men? Ridiculous? But isn’t that what we are doing in the broadcast industry right now?
It is unquestionably true that what we focus on we achieve, that it is impossible to focus on more than one thing and that we achieve less when we are unable to focus.
What is your station focusing on?
In these harsh economic times, it is clear that most TV stations are focusing on cost containment, and that’s a big mistake.
Let’s look at some of realities of cost containment versus revenue generation.
Focusing on cost containment will:
- Lower expenses and costs.
- Lower revenue potential.
- Lower staff morale.
- Assure that your enterprise will be among the 80 percent doing 20 percent of the available business.
- Belie what we tell advertisers (one should promote/advertise more aggressively when business is bad) and make us into hypocrites.
- Create short term as well as long term market share declines.
- Lower profit or increase loss.
Focusing on revenue generation will:
- Increase expenses and costs.
- Increase revenue potential.
- Improve staff morale.
- Assure that your enterprise will be among the 20 percent doing 80 percent of the available business.
- Strengthen our case to advertisers that they should be promoting and advertising more aggressively.
- Create short-term as well as long-term market share increases.
- Increase profit or decrease loss.
What would happen if right before the Super Bowl, you cut your star quarterback and started the third stringer to save money? Or deactivated your All-Pro wide receiver? Or just fielded 10 men?
Ridiculous? But isn’t that, in essence, what we are doing in the broadcast industry right now?
We are going into a tough game with a focus on cost containment. We’re cutting out outside vendors who have made us money, we are taking a passive, not proactive, role in developing business and we are expecting to increase dollars by pinching pennies.
A director of sales in a major market told me he couldn’t even get money to buy presentation folders for his sales staff. Is that going to save his station group? Is that a message you want out in your sales department? Is that a signal of defeat to our employees?
Those who invest wisely in aggressive, pro-active revenue generation will see their market share grow in hard times and explode in the good times.
Mike Rosen in the principal of Media Revenue Systems is in the business of helping our broadcasters generate ratings and revenue with two promotions: a direct mail sweepstakes promotion and a mobile phone promotion called Txt-4-Deals.