LIFE AFTER GOOGLE IN TALK RADIO

Keyword Search can now be used by large, well-known brands to freeze their upstart
competitors out of the on-line market. If you are an upstart competitor, this
page will help you understand how Google, Yahoo!, and Bing earn some of
their profits at your expense. You’ll also learn how you can recoup those
profits many, many times over on Talk Radio.

Hundreds of search engines debuted in the late 1990s. They gave newbie
web surfers a Free way to find neat stuff on “optimized pages”
just by typing a few “keywords” into a “search bar.”

Twenty years later, GooHoo!Bing spiders visit millions of landing pages every day, including
yours. They note the meta tag mentions and content densities of the same
handful of Category Key Words you and your competitors use to describe what
you sell. But when a dozen or so generic CKWs must support hundreds
of e-commerce operators, the price per keyword click must rise. Supply and Demand

CPI/ Conversaion = MCPs

$0.25 2.0% $12.50
$0.63 2.4% $26.50
$1.56 2.9% $54.25
$0.25 2.0% $12.50
$3.91 3.5% $113.03
$9.77 4.1% $235.48
$14.56 5.0% $294.39

PPC Auctions, SEO/SEM fees… Alexa Bugs, Facebook Spyware, and all manner of Artificial (or is it Superficial?) Intelligence all drive the cost of a site visit higher. Can on-line CONVERSION rates keep up with CPI?

CPI/C=X

Add up all the GooHoo!Bing and SEO/SEM fees you paid last month. Divide by total search engine clicks. That’s your real Cost Per Inquiry. Divide CPI by overall conversion. That’s your real Media Cost per Sale.

Yikes! Who can afford to lose money on every sale? Well, your larger well-known, heavily advertised, nationally distributed competitors gladly pay exorbitant CPI fees for top position clicks if only to keep active shoppers off your website.

 

Talk Radio Media/Revenue: 17 to 22.5%

Every week radio attracts a national audience of 228 million adults – more than any other media. Of them, about 70 million listen to News/Talk radio. 1,860 N/T terrestrial stations deliver about 60MM; Sirius XM and streaming kick in another 10MM or so.

Most corporate advertisers and their Madison Avenue agencies, are terrified of “controversial” programming. So Talk Radio hosts such as Rush, Sean, Laura, Mark, Michael… et al have learned to live on Direct Response Advertising.

Their listeners have also learned to pick up the phone or type in a URL when an advertiser piques their curiosity or suggests a plausible solution to an on-going problem. Cherry Time is 10a-7p Eastern.

If 1% of the N/T audience needs Your Thing and half of them are willing to buy on-line, you have just under 1,000 extra orders a day just waiting for you to get into gear.

N/T 70,000,000
1% NEEd 700,000
50% D.R 350,000
52 WEEKS 6730
7 DAYS 960

We get sixty seconds to open a sale. You get about three minutes to close it. That means whatever emotions, facts, prices or incentives we use to attract Impulse Shoppers must be paid off by your home page (or in-bound TMs) .

If we both do our jobs properly we can easily generate 10 to 20 times more orders than you now squeeze out of CKW search, and achieve an M/Rev of 17% to 22.5% . That’s what we shoot for, anyway.

 

MCPS

Media Cost per Sale is a dollars and cents number. Average Sale times M/Rev. But it can also be a very frisky number. We use Arbitron data, Google Analytics, TM/CSR reports, etc. to track the 20 or so independent variables that affect MCPS. Some of those variables, such as competitive activity, are beyond our control. We can usually tweak the others.

GM/C=X

Before launching any national campaign, we always run 3-week tests on network newsfeeds, or a top rated talk show, to measure the three most critical variables:(G) Response rate, (M) target CPM, and (C) your overall Conversion rate.

  • G = 000’s of GIs (gross impressions) per inquiry
  • M = Media cost per 000 GIs
  • C = Conversion Rate (Orders/Inquiries)
  • X = Media Cost per Sale

WHAT AFFECTS MCPS?

Talk Radio G

Response Rates – are much higher among destination program Listeners, compared to commuters jes’ playin’ tunes. I’ve never made a nickel on Adult Contemporary Album Radio (AKA “slush”).

Talk Radio M

Cost Per Thousand – is the lowest in radio, because of the corporate fear of “controversial” anything and the inherent stinginess of DR guys, like me. Local stations charge P25+ CPMs up to $35.00 . I can buy the same ears on Rush, Sean, Laura, Mark, Michael…nationwide, for $.95 to $1.45 per thousand.

Talk Radio C

Conversion – can be higher among radio-driven Impulse Shoppers than among deal-seeking KW Searchers. They’re more open to terse exposition, testimonials, and upscale graphic presentation. You should bounce 40-45% of sessions and convert 18-22% of multipage visits to orders.

Speaking of Conversion Rates, I may need another ten minutes to convert you to your own cause. They begin when you do what you want your own best prospects to do.

Pick up the phone.

(407) 895-3092

Peter A Burkhard

Principal

BurkhardWorks, Inc.

1229-8 Mecaslin St. NW

Atlanta, GA. 30318