Revenue and yield management for radio

Under the current procedure, the seconds for radio spots on FM and DAB+ stations are generally priced according to reach - i.e. the respective number of listeners at different times of the day. The results of market-relevant studies such as "ma Audio" or Funkanalyse are used as a basis. Many stations still vary their hourly prices according to the day of the week, for example because listeners get up earlier on weekdays and listen to the radio than on Sundays and public holidays. However, the extremely important factor of demand (from advertisers and agencies) is only taken into account by some of the stations when setting prices.

For example, months with higher demand, such as the pre-Christmas period, are given a premium, while months with lower demand are given a discount. Despite these differentiations, however, the majority work with fairly rigid price lists for individual spots, combination packages etc. according to the respective media data.

The advantage: all market participants already know what a 20-second radio spot on station X or Y, for example, will cost on a certain day of the year. For advertisers and agencies in particular, this simplifies budget planning and distribution throughout the year.

For publishers, however, this practice is by no means always the best and most profitable option. Today, revenue and yield management relies on more modern methods for revenue-optimized dynamic pricing on electronic trading platforms according to supply and demand.

Although both terms are often translated identically as yield management, the former refers more to the maximization of total revenue, while yield management specifically pursues yield optimization with the highest possible capacity utilization.

In the travel industry, for example, online flight and hotel prices have long been automatically adjusted to current availability and demand (in addition to other criteria such as vacation periods, public holidays, mobile devices used, etc., which are incorporated into pricing). Applied to media companies, this means that available advertising inventory is automatically identified, evaluated within a defined corridor and sold "programmatically" at the best possible price. Of course, this is only possible on digital platforms and online marketplaces.

We will be happy to explain whether and how you can modernize your sales strategy and use revenue-optimizing yield management in its entirety or in addition to conventional sales (hybrid) in the course of a consulting assignment.

Mehr über die Möglichkeiten der Ertragsoptimierung durch dynamische automatisierte Preisgestaltung finden Sie hier:
Hybrider Vertrieb: Nur Notwendigkeit oder echte Chance?