Stations Dial In Discount Deals

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Those superpopular daily deals that have been popping up in e-mail inboxes look like they’ll soon come to a radio station near you.

Under a new arrangement, listeners who hear of a discount deal, perhaps from a disc jockey, can go to the radio station’s website and make a purchase.

Broadcasters are hoping to cash in on the popularity of these local deals to draw advertisers and transact more business on their websites, which are notorious for being behind the times.

Triton Media Group, a Sherman Oaks company that provides digital products to the radio industry, has begun offering daily deal software that will let its 750 station clients operate deal-of-the-day discounts a la Groupon. Two L.A. stations have already signed up.

Country music station KKGO-FM (105.1) and newly revived classical station KMZT-AM (1026), both owned by Mount Wilson FM Broadcasters Inc. in Beverly Hills, signed up for Triton’s daily deal product last month and will launch their first deals in June.

Michael Levine, manager for both stations, said the deals should help the company boost its revenue by attracting clients with smaller budgets and giving advertisers already with the stations a new way to showcase their products or services.

“It’s a good opportunity to expand to new advertisers who don’t have the budget to have an ad on the radio,” Levine said.

Chicago startup Groupon pioneered the deal-of-the-day model in 2008. The company began by offering a local deal each day, such as 50 percent off at a restaurant, that would only go into effect if a minimum number of people bought the coupon in advance.

Triton’s software, developed by Deal Current in San Diego, will allow radio stations to showcase deals from local businesses on their websites and take customer’s credit card information to complete the presale transaction.

When KKGO and KMZT begin offering deals, they will send e-mails to listeners and advertise the discount over the air. People who want to purchase the deal will have to visit the stations’ websites. They will then have a set period of time to use it.

Deal Current does not charge Triton for the software and Triton offers it to stations for free. Triton and Deal Current share a 5 percent cut of revenue from the deals that a station offers. The radio station then splits the remaining 95 percent with the business offering the deal. Levine said his stations will likely take 45 percent of revenue and give the remaining 50 percent to the advertiser.

The advantage for the advertiser is that it does not have to pay anything other than the cost of selling its product or service to end users at a steep discount. The company’s name and its deal is promoted by the e-mails that go out from the radio station and perhaps by deejays who mention the station’s deal of the day on the air.

In addition to KKGO and KMZT, Triton has more than 25 stations around the country signed up for the daily deal program.

Chris Bell, president of Triton Loyalty, the division that is offering the deal software to clients, said the daily deals are a good fit for the radio industry because stations already have connections with local advertisers and listeners.

“Success in the space is predicated on having access to a consumer,” he said. “Radio has a strong natural advantage because they’ve already got relationships with consumers.”

Levine is offering current advertisers on his stations, including car dealerships and local retailers, the opportunity to offer deals. He’ll also approach smaller businesses that can’t afford on-air ads. (In the L.A. market, a 60-second ad during a weekday primetime hour could range from $300 to $1,500 depending on the station.)

Web effortshave already signed up.

Country music station KKGO-FM (105.1) and newly revived classical station KMZT-AM (1026), both owned by Mount Wilson FM Broadcasters Inc. in Beverly Hills, signed up for Triton’s daily deal product last month and will launch their first deals in June.

Michael Levine, manager for both stations, said the deals should help the company boost its revenue by attracting clients with smaller budgets and giving advertisers already with the stations a new way to showcase their products or services.

“It’s a good opportunity to expand to new advertisers who don’t have the budget to have an ad on the radio,” Levine said.

Chicago startup Groupon pioneered the deal-of-the-day model in 2008. The company began by offering a local deal each day, such as 50 percent off at a restaurant, that would only go into effect if a minimum number of people bought the coupon in advance.

Triton’s software, developed by Deal Current in San Diego, will allow radio stations to showcase deals from local businesses on their websites and take customer’s credit card information to complete the presale transaction.

When KKGO and KMZT begin offering deals, they will send e-mails to listeners and advertise the discount over the air. People who want to purchase the deal will have to visit the stations’ websites. They will then have a set period of time to use it.

Deal Current does not charge Triton for the software and Triton offers it to stations for free. Triton and Deal Current share a 5 percent cut of revenue from the deals that a station offers. The radio station then splits the remaining 95 percent with the business offering the deal. Levine said his stations will likely take 45 percent of revenue and give the remaining 50 percent to the advertiser.

The advantage for the advertiser is that it does not have to pay anything other than the cost of selling its product or service to end users at a steep discount. The company’s name and its deal is promoted by the e-mails that go out from the radio station and perhaps by deejays who mention the station’s deal of the day on the air.

In addition to KKGO and KMZT, Triton has more than 25 stations around the country signed up for the daily deal program.

Chris Bell, president of Triton Loyalty, the division that is offering the deal software to clients, said the daily deals are a good fit for the radio industry because stations already have connections with local advertisers and listeners.

“Success in the space is predicated on having access to a consumer,” he said. “Radio has a strong natural advantage because they’ve already got relationships with consumers.”

Levine is offering current advertisers on his stations, including car dealerships and local retailers, the opportunity to offer deals. He’ll also approach smaller businesses that can’t afford on-air ads. (In the L.A. market, a 60-second ad during a weekday primetime hour could range from $300 to $1,500 depending on the station.)

Web efforts

Radio stations have struggled to keep up with the changing advertising landscape, and the daily deal software should help them tap into this popular new advertising model, Bell said.

“Radio is working hard to tap into these revenue streams with digital advertising,” he said.

Levine hopes to increase traffic to his stations’ websites by adding the deal feature. He would not disclose how much the stations make from on-air and web advertising, but said the sites don’t generate much revenue.

“The challenge is, because our radio stations are independently owned, we don’t have the same website traffic as Clear Channel,” he said of the industry giant. “We haven’t been able to monetize the web as much as we’d like.”

The KKGO website, GoCountry105.com, had 18,600 visitors in February, according to web traffic tracker Compete.com. KMZT, which has been on a high-definition channel at 105.1 HD2, had 1,800 visitors to its website, KMozart.com. Meanwhile, Clear Channel-owned oldies station KHHT-FM (92.3) had 38,800 visitors during that same period.

Jeff Haley, chief executive of trade association Radio Advertising Bureau in New York, said websites typically bring in between 3 percent and 11 percent of a station’s ad revenue. He noted that stations are still trying to find a way to use the web effectively.

“It’s an early stage for us,” he said. “Any kind of listener engagement you can get to drive to the website has a lot of value.”

Levine doesn’t know how successful the deals will be, but said he’ll be satisfied with the service as long as it brings in some additional revenue. Both stations have small audiences in the L.A. market. KKGO was 21st in Abritron’s February ranking with a 2.1 percent share of listeners; KGIL, which becomes KMZT this week, was tied for 48th with a 0.2 percent share.

Deal Current recently helped a small station in Tucson, Ariz., run an offer that got more than 150 takers in its first few days.

The daily deal program will be most successful for radio stations if they package it with existing advertising options, Haley said.

“Group couponing should be seen as an added feature, not a stand alone,” he said.

Radio stations have struggled to keep up with the changing advertising landscape, and the daily deal software should help them tap into this popular new advertising model, Bell said.

“Radio is working hard to tap into these revenue streams with digital advertising,” he said.

Levine hopes to increase traffic to his stations’ websites by adding the deal feature. He would not disclose how much the stations make from on-air and web advertising, but said the sites don’t generate much revenue.

“The challenge is, because our radio stations are independently owned, we don’t have the same website traffic as Clear Channel,” he said of the industry giant. “We haven’t been able to monetize the web as much as we’d like.”

The KKGO website, GoCountry105.com, had 18,600 visitors in February, according to web traffic tracker Compete.com. KMZT, which has been on a high-definition channel at 105.1 HD2, had 1,800 visitors to its website, KMozart.com. Meanwhile, Clear Channel-owned oldies station KHHT-FM (92.3) had 38,800 visitors during that same period.

Jeff Haley, chief executive of trade association Radio Advertising Bureau in New York, said websites typically bring in between 3 percent and 11 percent of a station’s ad revenue. He noted that stations are still trying to find a way to use the web effectively.

“It’s an early stage for us,” he said. “Any kind of listener engagement you can get to drive to the website has a lot of value.”

Levine doesn’t know how successful the deals will be, but said he’ll be satisfied with the service as long as it brings in some additional revenue. Both stations have small audiences in the L.A. market. KKGO was 21st in Abritron’s February ranking with a 2.1 percent share of listeners; KGIL, which becomes KMZT this week, was tied for 48th with a 0.2 percent share.

Deal Current recently helped a small station in Tucson, Ariz., run an offer that got more than 150 takers in its first few days.

The daily deal program will be most successful for radio stations if they package it with existing advertising options, Haley said.

“Group couponing should be seen as an added feature, not a stand alone,” he said.

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