Creating Ad Revenue from Local companies

[andrewzarian]

I was wondering how many IAIBer's out there have been successful with local Ad programs on their Internet Broadcast/Podcast. Generally Internet Broadcasts and Podcasts target nation wide companies (Godaddy, Hover, Gotomeeting,Audible) but is there a place for local ads?

I think Local companies could be a great source for revenue

[BradShoemaker]

We've had Limited success. I am not a huge fan of whoring out the business via my facebook and twitter accounts, yet one of my partners is big into it. It has worked in terms of them thinking they are getting a lot for their money, but I personally think that whoring them out creates user turnoff and will eventually backfire.

Local companies aren't always internet savvy (when it comes to how they are performing) therefore can be talked into paying more and not getting their monies worth (not something we do nor do we promote this... but I have seen it done via working in radio for years).

They are also quick to pull ad money when their resources become scarce.

[Donovan]

We do one podcast that centers on local high school sports and we're trying to get local companies interested in support that show. So far, however, we've fallen flat on our faces. I also have a site dedicated to the town that I live in and I've tried to tie the site and the show together for a better "bang for the buck" package, but no takers on that so far either.

I'm starting to realize that unless you do something very controversial or you happen to be at the right place at the right time, it's very difficult to make any money with this. Sorry for being a downer; it's doesn't mean I'll stop trying.

[jamesdelfresco]

I tried this a few times. charged about 25 to 50 bucks for a live read. I was able to make a few 100 bucks from it but its hard to convince many local companies that the podcast will target who they want. might be good for more local brands

[andrewzarian]

Its an interesting concept. Many local companies here pay anywhere from 200- 1000 dollars a week for a penny saver ad.

[BradShoemaker]

Its an interesting concept. Many local companies here pay anywhere from 200- 1000 dollars a week for a penny saver ad.

Penny saver ads are perceived as a good investment to them because Penny Saver can boast about their huge circulation... problem is, they are fooled into thinking that circulation means people actually read it. It would be interesting to see what their pickup rate is and even then how many of those people are truly reading it or grabbing it to read later only to throw it away, or just grabbing it to use for gift wrapping, moving, etc...lol.

Only reason we have had success is because we are known in the city from our past lives (or current lives) in radio and TV.They are the connections we've personally built up with these business owners, or if we haven't personally known them, they know us and certainly know the companies we used to work for... so we have an edge on those who are trying to get sponsored without being in the corporate broadcasting world first.

[RichardCleveland]

We have sold some spots on Between The Pages but we haven't had a great success with local advertisers. Part of the problem with local advertisers is they are stuck in the old Radio, TV or Print mind set. It is hard to sell a ad that reaches a world wide audience when the local company is only available to a local audience. We recently lost an account for a local t-shirt retailer due to the fact that they had no web presence and felt they weren't seeing a return on investment. At the end of the day if the local company you are selling doesn't have a global reach all the hits to your website or show will have little benefit to your advertising customer.

I think the better question to ask is: How can we get more local advertisers to see the benefit of advertising on our internet broadcasts?

[andrewzarian]

I have spoken to a few people that have done penny saver ads for their business and they have never seen a turn over from any ad they have placed in it. the issue with print is that you need to keep your ad going for months before you see any business from it. Its mind blowing that small businesses give 100s of dollars for nothing

[Donovan]

We have sold some spots on Between The Pages but we haven't had a great success with local advertisers. Part of the problem with local advertisers is they are stuck in the old Radio, TV or Print mind set. It is hard to sell a ad that reaches a world wide audience when the local company is only available to a local audience. We recently lost an account for a local t-shirt retailer due to the fact that they had no web presence and felt they weren't seeing a return on investment. At the end of the day if the local company you are selling doesn't have a global reach all the hits to your website or show will have little benefit to your advertising customer.

I think the better question to ask is: How can we get more local advertisers to see the benefit of advertising on our internet broadcasts?

Along with what I stated earlier, I've tried to start bundling a variety of services into one package. I point out to a local company that 54% of small businesses in my state (Georgia) do not have a website, not to mention any type of social media presence. I've offered to build their site and get them going in social media (for a fee) in hopes that I can roll them into being an advertiser for my sites and shows. I'm in the very early stages, so I'm not sure how well this is going to go, but I thought it was worth a shot. I feel like the point is to show them what they are missing because they haven't embraced online advertising.

[BradShoemaker]

I have spoken to a few people that have done penny saver ads for their business and they have never seen a turn over from any ad they have placed in it. the issue with print is that you need to keep your ad going for months before you see any business from it. Its mind blowing that small businesses give 100s of dollars for nothing

You have two types of local advertisers... those who get it online and those who don't. Look for the ones that are already getting into Social Media, have them out to watch (or even participate) in the shows. Show them what it's all about they are the ones that will take the chance more so than the ones who have no idea what's going on and think old school. The clients who are old school thinkers are the ones who will continue to pour money into a bucket of holes (like the Penny Saver, Thrifty Nickel, and any other ad based free newspapers).

I would suggest knowing your audience well and targeting those businesses that will see the benefit from your audience. Radio does a lot of cold calling to find businesses that may or may not fit a stations' demographic, but they can play the numbers game. So instead of targeting the clients actual audience, they are targeting the amount of listeners they have at any given minute...

You will need to convince a potential client that you are bringing them their exact audience. You may not be able to compete with a radio stations' Cume (total number of different persons who turn into the station at any given time) but you can certainly compete with them on targeted audience. Those who are perfect for your potential client to advertise too. You can also come in under the price of radio (radio goes anywhere from $75 - $1000 per spot depending on the ratings, Cume, etc)...

As an added bonus you can say that your listeners are most likely active listeners instead of radio's passive listening. Most people have the radio in the background... they are listening, but not very intently. Internet Broadcasts are people who make it a point to listen and participate. They have to make the effort to listen in since it's not as easy as turning on a radio and dialing the favorite station in. Which means they are actively participating and more apt to hear the sponsor, especially if it is a live read over a produced commercial.