Chapter 4: Sales
Overview
This chapter discusses all aspects of radio time sales, including the history of commercial radio,
the ratings and the rate card, commercial scheduling and packaging, contracts, pitching clients,
compensation, and collections. The medium of radio serves as a tool for connecting target
demographic audiences with the appropriate set of sponsors, who want to market their products
Student Objectives
On completing this chapter, the student will have gained understanding of the following points:
xHow to use ratings as a sales tool;
xHow to work with a sales rep firm to obtain national agency business;
Discussion Topics
xHow are salespeople compensated?
xDiscuss why dayparts affect advertising rates.
xDiscuss why sales managers and program directors need to work closely together.
xExplain the basis for establishing rate card daypart classifications (AAA to C).
xDifferentiate among retail, local, and national sources for radio sales.
xExplain what advertisers are buying when they select ROS, BTA, TAP, and flights.
xView the PowerPoint presentation and discuss the Dos and Don’ts of pitching clients.
Class Activities
xIf possible, have a sales manager from a local station describe the realities of competition
for advertising dollars.
xStudents form work groups and develop a presentation. The pitch is for your radio station
to a local retail business and includes promotional material, rate cards, ratings, special
NOTE: If obscene language is not a problem, the students may be enlightened by viewing the
motivational speech by Alec Baldwin from the film Glengarry Glen Ross.
QUIZ: Chapter 4: Sales
1. In addition to selling advertising on traditional terrestrial radio, radio sales people now have to sell ads
on:
__ a. Television
__ b. Digital media
__ c. Newspapers and magazines
__ d. Trade publications
2. Selling air time is what kind of product?
__ a. Intangible
__ b. Tangible
__ c. Abstract
__ d. Concrete
3. :KDWLVFRQVLGHUHGWREHWKH¿UVWDQGPRVWLPSRUWDQWTXDOLW\LQDQDFFRXQWH[HFXWLYH”
__ a. Prior experience in sales
__ b. A knowledge of news and current events
__ c. Awareness of popular culture
__ d. The innate ability to sell
4. Deejays can make better sales people because:
__ a. They are desperate for a higher salary
__b. They are used to “selling” products on the air
__c. They have more out-going personalities
__d. They are better-known by the audience
5. The head of the sales department usually is responsible for maintaining close contact with the station’s
rep company as a way of generating income from:
__ a. Regional sales advertising
__ b. Local retail sales advertising
__ c. National advertisers who are handled by advertising agencies¥
__ d. Co-operative trade advertising
6. The position of general mDQDJHULVPRVWRIWHQ¿OOHGE\SURPRWLQJZKRP”
__ a. A popular DJ
__ b. The program director
__ c. The sales manager
__ d. The tUDI¿Fmanager
7. Which part of the day is usually a station’s prime selling period, designated AAA?
__ a. Morning drive: 6 a.m. to 10 a.m.
__ b. Mid-days: 10 a.m. to 3 p.m.
__ c. Afternoon drive: 3 p.m. to 7 p.m.
__ d. Evenings: 7 p.m. to midnight
8. Which sales plan is designed to distribute a client’s spots among the various dayparts for maximum
audience penetration?
__ a. ROS
__ b.TAP
__ c. BTA
__ d. OES
9. On the lists of Dos and Don’ts, which is the most important “do”?
__ a. Criticize the client’s previous advertising efforts
__ b. Research the advertiser, have a plan prepared
__ c. Lie, exaggerate, or make unrealistic promises
__ d. Bad-mouth the competition
10. Which source of advertising accounts for the largest percentage of radio advertising?
__ a. National agency
__ b. Local or regional agency
__ c. Co-op buys and trade outs
__ d. Retail or local non-agency advertising
11. A fully produced sample commercial to be used in a sales presentation is called a:
__ a. Live spot
__ b. Donut spot
__ c. Spec spot
__ d. Sponsor ID
12. What is the primary goal in establishing a schedule of spots for a client?
BBD$VXI¿FLHQWQXPEHURIFRPPHUFLDOVVSUHDGRYHUDVSHFL¿FSHULRGRIWLPH
__ b. A large number of commercials over a short period of time
__ c. A schedule of spots that will run only during spHFL¿FKROLGD\V
__ d. A few spots scattered over a very long period of time
13. When an inexperienced salesperson is hired by a station, what sort of client list will he or she
customarily be given?
__ a. A current list of active clients
__ b. A list of inactive or dormant accounts
__ c. A list of national agency accounts
__ d. A list of accounts in collection
14. How many in-person calls should a salesperson make on average a day?
__ a. 3 to 9
__ b. 15 to 20
__ c. 20 to 35
__ d. 75 to 100
15. What is one way that a small market station can sell advertising without ratings, or “numbers”?
__ a. You can use the Arbitron ratings as long as you don’t get caught
__ b. You can pursue business with the national ad agencies, as they have access to the ratings
__ c. The station sells itself on a more personal level, focusing on unique features and music
__ d. Sell off the rate card and put together cut-rate deals
16. Advertising agencies place the largest percentage of their client’s budget on what medium?
__ a. Radio
__ b. Television
__ c. Newspapers and magazines
__ d. The Internet
17. $UDGLR³UHS´¿UPZLOOGRZKDWIRU\RXUVWDWLRQ”
__ a. Handle all local retail sales
__ b. Handle only co-op buys
__ c. Handle national ad agencies
__ d. Handle your sales staff
18. How can a station’s website enhance the station’s advertising business?
__ a. It improves the station’s reception
__ b. It provides tangible imagery for the advertiser
__ c. It makes it easier to renew their contract with the station
__ d. It provides instant access to the HD channels
19. A spot buy in which the cost is shared by the manufacturer and the local retailer is called a:
__ a. Trade out
__ b. Straight pitch
__ c. Special program sponsorship
__ d. Co-op arrangement
20. If, instead of cash, the client provides goods and services to the station, this is called a:
__ a. Co-op buy
__ b. Seasonal buy
__ c. Trade-out
__ d. Promotional package
ANSWER SHEET
Chapter Review: Chapter # 4 Sales: ESSAY QUESTIONS
Chapter 4: Essay Questions
1. Selling air time is what kind of product?
2. What are some of the most desirable qualities an account executive should possess?
3. The position of general mDQDJHULVPRVWRIWHQ¿OOHGE\SURPRWLQJZKRP”
4. The highest rates on a rate card are usually for which day part?
5. On the lists of Do’s and Don’ts, which is the most important “Do”?
6. When an inexperienced salesperson is hired by a station, what sort of client list will he or
she customarily be given?
7. How many in-person calls should a salesperson make each week? What are some of the
ways these calls should be organized?
8. What are some of ways that a small market station can sell advertising without ratings, or
“numbers”?
9. Advertising agencies place the largest percentage of their client’s budget on what
medium?
10. $UDGLR³UHS´¿UPZLOOGRZKDWIRU\RXUVWDWLRQ”
11. How can a station’s website enhance the station’s advertising business?
12. A spot buy in which the cost is shared by the manufacturer and the local retailer is called:
13. Describe a trade-out for advertising.
Chapter 4: Essay Question Answers
1. Selling air time is what kind of product?
Airtime is intangible. You cannot see it or hold it in your hand. It is not like any
other form of advertising. Newspaper and magazine ads can be cut out by the
advertiser and pinned to a bulletin board or taped to a window as tangible evidence
2. What are some of the most desirable qualities an account executive should possess?
The innate gift to sell, without which all the schooling and training in the world
3. The position of general mDQDJHULVPRVWRIWHQ¿OOHGE\SURPRWLQJZKRP”
Statistics continue to bear out the fact that sales managers are most often recruited
4. The highest rates on a rate card are usually for which day part?
MorQLQJ’ULYH7KHEURDGFDVWGD\LVGLYLGHGLQWRWLPHFODVVL¿FDWLRQV10 a.m.
weekdays is typically a station’s prime selling period and therefore may be
5. On the lists of Do’s and Don’ts, which is the most important “Do”?
Research the advertiser, be prepared, and have a relevant plan in mind. This means
6. When an inexperienced salesperson is hired by a station, what sort of client list will he or
she customarily be given?
When a salesperson is hired by a radio station, he or she is customarily provided
Chapter Review: Chapter # 4 Sales: ESSAY QUESTIONS
7. How many in-person calls should a salesperson make each week? What are some of the
ways these calls should be organized?
A radio salesperson should make between 75 and 100 in-person calls a week, or on
8. What are some of ways that a small market station can sell advertising without ratings, or
“numbers”?
An outlet in a non-survey area relies on its good reputation in the community to
attract advertisers. In small markets, salespeople do not work out of a ratings book
9. Advertising agencies place the largest percentage of their client’s budget on what
medium?
The business generated by agencies constitutes an important percentage of radio’s
revenues, especially for medium and large market stations. However, compared to
10. $UDGLR³UHS´¿UPZLOOGRZKDWIRU\RXUVWDWLRQ”
Handle national ad agencies. Rep companies are given the task of convincing
national agency media buyers to place money on the stations they represent.
11. How can a station’s website enhance the station’s advertising business?
Website presence is another way to add value to traditional commercial buys. Radio
DFFRXQWH[HFXWLYHVFDQEHQH¿WIURPWKLVVRXUFHE\VHOOLQJDGGLWLRQDOH[SRVXUHWR
advertisers. Streaming allows local clients who previously could not afford a
12. A spot buy in which the cost is shared by the manufacturer and the local retailer is called:
Co-op advertising, and it involves the cooperation of three parties: the retailer
whose business is being promoted, the manufacturer whose product is being
13. Describe a trade-out for advertising.
Stations commonly exchange airtime for goods, although top-rated outlets, whose
time is sold at a premium, are less likely to swap spots for anything other than cash.