Shrinkflation or skimpflation in media – new pricing strategies
Think about the long-term future
Bad tongues will say: it’s like chocolate or baked cookies, we reduce certain components, it’s better for your health. Lol
In general, radios are at this time not in a position of profit growth. Comparing spot costs and costs per thousand over time is difficult to achieve because it often reflects changes in the number of listeners. Indeed, advertising price adjustments especially of local radios are often made with a large time lag, which creates opacity.
In a video conference a radio station presented a new strategy that consists of reducing the duration of spots from 30 seconds to 20 seconds while maintaining almost the previous price. This advertising agency thus achieves two advantages: reducing the duration of advertising breaks for the benefit of listeners and, according to sales representatives, maintaining turnover. It is important to note, however, that this station benefits from a leading position in its market.
In a context of inflationary profits, such as shrinkflation and skimpflation, it is recommended that media and businesses in general adjust their accounting to future developments. This includes renewing technical, real estate, licensing, and personnel costs.
#MichelColin #MediaticConseils #RadioSalesWeekly #faznet #FataMorgana #BarbaraWeissenberger
