Debunking the "radio is dead" theory.

[Salty Dog]

I don't know how much David knows about dMarc's Revenue Suite but I've seen this work and it's pretty slick.

I have a couple of observations. Unless contracts have changed a lot, stations violate the rep agreement with every direct piece of business we take from out of the market. It happens all the time and everyone knows it.

I don't think there is any short term impact on local business, but how about national? We are stuck in the 80's. Here' the process:

Buyer ----> inputs order ------> Rep Firm ------> Sales assistant reenters order into proprietary software-----> Faxes order to NSM at station -----> NSM passes order to Traffic Manager--- Traffic Manager reenters order into stations software package.

dMarc: Buyer places order with dMarc in coordination with traffic manager. Spot is sent via the Internet and plays in prearranged carts. Client logs onto control panel console and can sees when spots air. Gets affidavit untouched by human hands.

And beyond what this software is doing now, it's capable of eliminating layers of redundant human beings and taking a huge slice out of transaction costs.

Right now it might be used to sell un-used inventory at low rates. But tomorrow it might sell prime inventory at higher rates. The camel's nose is under the tent.

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SD

[DavidEduardo]

> David, I'm certain that you know more than me about this,
> but isn't there a clause in the station's contract with
> dMarc which prohibits dMarc from selling directly to local
> advertisers? This would mean that even in the rare chance
> the local car dealer did in fact find out about the
> situation, he couldn't buy from dMarc. But, he'd beat you up
> when you renegotiated his buy. Seriously though, what are
> the chances of a local advertiser finding out? Slim to none.
> Plus, I'm sure all dMarc spots can be preempted, so there's
> no way they can guarantee inventory probably.

I think the whole model changes with the Google purchase. The PR pieces talk about multi platform sales, etc. Some has got to be puffery, but part is real.

The idea is to have reach in markets across the US. These are "open avial" standing orders, and are medium-based buys rather than station based buys. To me, the real issue is that it converts radio into a commodity, not a targeted medium bought strategically.

On the other hand, this is very much like the way Metro Traffic sells... bulk on a dozen or so stations, with shotgun coverage at low cost.
>
> But just imagine how steamed InterRep and Katz will be when
> Google starts selling to Home Depot and McDonalds...

It violates existing rep contracts. In essence, these companies are selling tonnage, and not stations.
>