Pending Business: Price = Value
By Steve Lapa
Lapcom Communications Corp
President
Think about the concept for just a minute. Manhattan Island for $24? Peter Minuit knew value.
Two of my favorite sales training exercises are the Timex vs. the Rolex and the Bic vs. the Monte Blanc. In each role play we pit price against value with intangibles like prestige, self-esteem, peer recognition and good old Sam Walton-style common sense surfacing in the role play.
Sales managers reading this column should try those exercises to help develop and sharpen the skill sets necessary for success in radio-audio sales.
Price theory is now faced with two variables that may redefine value: inflation and meta-data, two distinctly different forces that can test our tolerance of price in the value equation. Stay with me, this gets simple, fast.
Assume almost everything costs more, you can pick your favorite reason. Mine is the price of men’s haircuts. I always wonder why the less hair I have, the price still goes up. Less hair, less time to cut, lower price? I have tried, but the price goes up every year. Why? The answer is the most important variable in current price theory, mastered by the airline-tourism business and it is about to be tested at a quick-serve restaurant near you. It is called demand, or in the Uber-driven currency, “surge pricing.” Eventually, you will be hit, even shocked, with the demand curve surge-pricing model.
The theory is simple: when just a few seats remain on the airplane or the hotel is heavily booked, the price goes up. When you desperately need Uber for a ride from the airport during rush hour, the price for that ride is different from the ride during non-rush hours. How about tickets to your favorite event? Sports and concerts have been in the demand-pricing business as long as someone was willing to pay. Surge pricing is a newer twist but has historic roots in tipping the maître d or the valet.
Now comes the latest price model. Just how hungry are you? Imagine your favorite dining spot changing menu prices by variables such as time of day, day of the week, number of orders waiting, even the number of cars in the drive-thru lane. Imagine watching the prices on the digital menu board change before your eyes based on the number of people waiting in line. This is not speculative price theory; it can start tomorrow or not.
Pricing has one variable we all take for granted. The customer, or in our case the advertiser. What is tolerated and what is rejected? We are privileged to operate in a market-driven economy. What variables will go into your pricing model today?
Steve Lapa is the president of Lapcom Communications Corp. based in Palm Beach Gardens, FL. Lapcom is a media sales, marketing, and development consultancy. Contact Steve Lapa via email at: Steve@Lapcomventures.com.
Sell a local advertiser a promotion – a contest which awards a major prize from the advertiser’s inventory – to the winner who creates the best commercial for the advertiser.
increased approximately 1% compared to last year. Saga says net income for Q4 of 2023 was $2.5 million, compared to net income of $4.3 million for the fourth quarter last year. For the full year of 2023, net revenue was $112.8 million, a decline of 1.8% from the full year of 2022. Net income rose year-over-year to $9.5 million in 2023 from $9.2 million in 2022. Saga says its balance sheet reflects $40.2 million in cash and short-term investments as of December 31, 2023, and $30.4 million as of March 4, 2024. It expects to spend approximately $5 million to $5.5 million for capital expenditures during 2024. As previously announced, Saga has entered into an agreement to purchase stations serving the Lafayette, Indiana radio market for $5.3 million. This acquisition is expected to close during the second quarter of 2024. Also announced today is Saga’s paying a regular quarterly cash dividend of $0.25 per share on March 8, 2024. The aggregate amount of the quarterly dividend will be approximately $1.6 million.
Twitter. In the 2024 Infinite Dial, 19% of the total population in the U.S. are using X – a 30% drop. Edison says, “While The Infinite Dial has recorded many incremental changes over its long history, a 30% change in any metric year-over-year is incredibly rare and noteworthy, acknowledging that in 2022 and 2023 the survey referred to the service as ‘Twitter’ and in 2024 it referred to the service as ‘X (formerly known as Twitter).’ Keep in mind this is not a measure of subscribers or Twitter/X accounts, but a measure of people who say they are ‘currently ever’ using the service. In addition to this overall usage drop, Twitter/X saw declines in monthly and weekly usage.” 
been serving as assistant program director and executive producer. iHeartMedia San Diego market president Noreen Ippolito says, “Mary has been a part of our cluster for many years and is more than ready to take the lead role of our talk stations. She’s smart, experienced, and incredibly detailed with her work.” Ayala comments, “This is an exciting time to be taking over the program director position for these brands. Each station has its own distinct flavor, and all of them are filled with great talent I’m looking forward to working with.” 
Original ideas are golden and rare. Here are five ideas worth stealing because of their novelty, success and oh-wow factor!
Reynolds fell from his bed, head-first onto a hardwood floor where remained in various stages of unconsciousness for more than 20 hours before being found by his landlord. Vuolo will travel to New York in two weeks. Well-wishers may send cards for Reynolds to: PO Box 55 Walled Lake, MI 48390. Emails are being collected by Vuolo at 
filed by Albert Adam David, who claimed the changes would create interference for other licensees. Good Karma proposes to relocate the WMVP facility approximately 31 kilometers to the currently licensed nighttime transmitter site of WCPT-AM, Willow Springs, Illinois. Good Karma proposes to retain WMVP’s Class A designation, operating frequency (1000 kHz), and 50 kW daytime operating power, but reduce nighttime operating power to 37 kW while diplexing nighttime transmissions with WCPT (WCPT broadcasts at 1.5 kW on a different frequency).
other content he creates with the station’s partnership with A to Z Sports. Cumulus Nashville VP and market manager Allison Warren says, “In the heart of Middle Tennessee, where sports pulse through our veins, we proudly announce the contract extension for our dynamic midday host, Buck Reising. Our airwaves resonate with the thrill of victory, the agony of defeat, and the unwavering passion of fans. As the must-listen sports station, we’re more than a frequency; we’re the heartbeat of every game, every play, and every championship.” Reising comments, “I’m so grateful to ‘The Zone’ and Cumulus for believing in and investing in Lucas, Jackson, and me. We could not be happier to continue to do the show for such an incredibly supportive audience and the city that we love. We’re just getting started.”
questions as it did answers about what young broadcasters entering professional media today should be prepared for in navigating the unpredictably turbulent waters of the next decade and beyond. Among the sweeping panorama of topics covered in his address, Harrison told the students, “When looking to the future, don’t be too sure that current events will follow a predictable script. There are always ‘black swan events’ that change the storyline and our expectations in an instant. Plus, there are multiple outcomes, possibilities, and forks in the road for almost every situation.” Regarding the current focus on artificial intelligence, Harrison advised, “All technology is a double-edged sword and AI will prove to be a particularly consequential one with both positive and negative implications. However, don’t fall into the age-old trap of thinking that productions and performances created or enhanced by new technology are necessarily ‘artificial’ or ‘fake.’ New tools not only create new art, they have an irrepressible influence on giving rise to new culture. The immediate years ahead are likely going to provide us with the challenging question of ‘what does it mean to be truly human?’” Harrison concluded, “As young broadcasting students in 2024 looking to make a difference in the world, be prepared to face the challenge of following your dreams, ideals and inspiration while confronting the harsh realities of making a living in a stressed environment of relentless change. We live our lives in this business at the dangerous intersection between art and commerce.”
best team in the industry to power our next chapter… A major area of focus is expanding our relationships with top podcasts as we look to grow both our exclusive content portfolio and support our successful advertising business. To help us achieve our goals, we decided to bring in an expert to champion SiriusXM in the marketplace. I am thrilled to welcome Sarah van Mosel back to SiriusXM in a new role as SVP of podcast strategy, reporting directly to me. In this role, Sarah will develop a targeted podcast acquisition strategy as well as source and attract up and coming new talent to the SiriusXM Podcast Network.” Greenstein says van Mosel will work with SVP of podcasting content Adam Sachs.
-2) at the Sheraton Times Square hotel in New York City. Harrison’s address titled, “The Next 10 Years of Media and Popular Culture is…?,” is scheduled to take place between 11:00 am and 12:00 noon on Saturday (3/2). Harrison states, “I have always believed that the future of broadcasting, for better or worse, brews on the campuses of America and this observation is truer now than ever before. I am very excited to bring an array of provocative and pertinent observations, predictions and possibilities, born of my perspective as a future-minded immigrant from the 20th century to such a vital and dynamic group of young communicators.” 
2022. iHeartMedia breaks down its operations into segments and here’s what it reports for the full year of 2023: Broadcast Radio revenue was $1.75 billion (down 7% from 2022), Networks revenue was $466 million (down 7.3%), Podcast revenue was $407.8 million (up 13.8%), and Digital (excluding Podcast) revenue was $661 million (basically flat). iHeartMedia chairman and CEO Bob Pittman states, “We’re pleased to report that our fourth quarter results were in line with our previously provided Adjusted EBITDA and Revenue guidance ranges. This quarter the Digital Audio Group achieved the highest Adjusted EBITDA and margin in its history, illustrating the success of this high growth business. We view 2024 as a recovery year in which the company returns to growth mode – we expect to see our Multiplatform Group performance improve quarter by quarter throughout the year, and we expect our Digital Audio Group, including our industry leading podcast business, to continue to grow and reinforce its leadership position in the segment.”
AM/FM, Dayton. The program aired in the 12:00 noon to 3:00 pm ET daypart and the stations are going to replace the show with “The Erick Erickson Show” based at CMG’s WSB-AM/WSBB-FM, Atlanta. The Erickson program is syndicated by Compass Media Networks. It appears that producer Hannah Guile is also exiting as a result of this move. TALKERS reached out to Mark Kaye who requested that all questions and inquiries be directed to his agent Heather Cohen at The Weiss Agency.
those living in suburban or urban areas. Rural listeners spend 43% of their daily audio listening time with AM/FM radio and radio streams, compared with urban listeners who spend 34% of their time with AM/FM radio and radio streams. Meanwhile, Urban listeners spend over twice as much of their daily audio time with podcasts as rural listeners. Urban listeners spend 13% of their daily audio time with podcasts compared with rural listeners who spend 6% of their daily time with podcasts.” Interestingly, if you combine the AM/FM listening and podcast listening numbers for Urban, Suburban and Rural listeners, these numbers are essentially the same – between 47% and 49%. Edison notes, “It appears that the ‘time budget’ for radio and podcasting combined is consistent across locations; it is just the apportionment of that time that varies.”
news/talk KOGO-AM, talk KLSD-AM, sports talk KGB-AM, and five music brands. iHeartMedia San Diego market president Noreen Ippolito says, “We are so excited to welcome Taylor into our San Diego cluster. Her knowledge of the audio business and track record speak for themselves. We are eager for Taylor to bring her skill set and big ideas from Miami to an already incredible cluster of stations.”
Communications’ WNOV-AM, Milwaukee; and Minority Communications’ KJMC-FM, Des Moines. SmileyAudioMedia owner and program host Tavis Smiley says, “Our show’s rapid and continued expansion into key media markets represents an exciting next chapter. As we move deeper into the 2024 election season, we’ll continue to provide our growing listener base with enlightening and empowering programming unapologetically geared toward African Americans and other citizens of color.” The program is heard in Chicago on Midway Communications’ WVON-AM; LEVAS Communications’ WURD-AM, Philadelphia; and Equity Media’s WBOK-AM, New Orleans and plans to announce more new affiliate stations later in the spring.