After a recent trip back east, I was reminded of what started a few years back: paying for checked baggage.
To combat high fuel costs and spiraling revenues, the airlines turned their gaze to recouping what was once free. Years later, we may grouse about having to pay to get that bag checked, but it’s not something that prevents us from flying now, does it? At radio stations, creative and production are that nice, extra “add-on” that clients have been getting for years and stations are more than willing to give it up.
Here’s a little hypothetical math on what it takes to create a simple, straight-forward radio commercial (using a fairly low rate):
1. Concept/Copywriting (with two rewrites): $300
2. Studio Time: $150
3. Talent (local rate, mid-market, AFTRA): $200 per voice
4. Post-Production: $200
5. Music Drop/Sound Effects: $200
These numbers may be a little low, but a one-voice spot can cost around $1,050. A two-voicer gets you up to $1,250 per spot. This doesn’t include alternate versions with other music, tags, etc. Imagine that your station (or group) does ten of these a week. By this (low) estimate, you’re leaving $504,000 on the table. Half a MILLION dollars of money that can be put to better use (i.e. – bottom line, better comp for your creative people, hiring qualified freelancers). And I haven’t even touched on the other content (on-demand audio, alternate programming, etc.) that could bring more revenue in the door.
Have you really sat down and thought about your creative/production department other than figuring out where to cut? Your production department is VITAL and it can be a VIBRANT piece of your business. It can also be profitable if you just make the bold decision to change course and decide that this “freebie” is too valuable to just give away. Creative/production is your lifeblood. It always has been and it always will be. You MUST give them all of the tools in your power and you must give them a chance to do their jobs well.
And you MUST stop giving it away for free. It will hurt at first. But, if you’re very good at what you do (and I suspect most of you feel this way), it won’t hurt for long and you’ll be able to keep chugging along.
Just ask the airlines.