US-based radio groups like iHeart Media and Townsquare Media are capitalizing on the fact that live events represent radio’s fastest growing revenue sector.   In fact, in its recently released second quarter revenue report, Townsquare, the third largest owner of radio stations in the US, reported that event revenues increased 50.4% to $29.7 million during the second quarter when compared to the same period last year.  In addition to multi-date music festivals, Townsquare has also invested aggressively in a number of what it calls non-talent-based events, such as a series of craft beer festivals that it hopes to bring to its 66 small to mid-sized markets across the country. 

 

The realization that live events can represent a significant revenue upside for radio stations is not unique to the United States.  In fact, across the globe an increasing number of broadcasters are jumping on to the live event bandwagon. 

 

Steve King, who was with Bauer Media in the UK for 10+ years, was most recently responsible for the development of the Bauer Radio event strategy, which now includes 10 multi-artist arena events in major UK cities.   The 2013/14 season featured some of the biggest names in popular music including Robbie Williams, Gary Barlow, The Script, Little Mix, and Jason Derulo.  Attended by over 50,000 people, these events are supported by some of the biggest radio brands in the UK including Kiss, Key 103, and Radio Clyde.

 

Steve has recently branched out on his own, heading up Steve King Consulting Ltd which provides strategy, management, programming and event consultancy services to radio stations.  Steve and I spoke recently about his experience and the importance of live events to the radio industry. 

 

Can you tell our readers a little more about why you feel it is important for stations to move into live events? 

 

I have always been a believer in the value events can bring to any radio station strategy. Throughout my 30 year career, I’ve been involved in the staging of almost every type of event, from fundraising and promotional activity at small stations to huge multi-artist arena events with some of the UK’s biggest radio brands. I don’t propose to cover every event type in this blog, but instead concentrate on the staging of multi-artist music events, as this is an area of particular interest to many local and regional stations.

 

In an increasingly competitive market, radio stations are constantly seeking to strengthen their relationship with listeners, effectively market the brand and introduce new revenue streams. Staging events can achieve all three. It’s a brand extension that helps build reputation and radio stations are ideally placed to benefit in this area. If you think about it, as an established provider of music, news and information to your market extending your brand into this area makes perfect sense. Don’t just play them the music--bring the artists to the area for listeners to enjoy in a live format as well. Think of the marketing value in that alone! Then there are the client entertaining and sponsorship opportunities as well as of course, event profit. The multi-artist format is a winner. A collection of two or three-song performances from up to 10 artists provides the radio station with a strong bill that is representative of their output.  It also provides artists with the opportunity to promote their material without damaging the sales of any tour they may be about to undertake.

 

In the process of staging your first set of live events, what were some of the key lessons learned?  Do you have any tips for radio groups who are seeking to launch their own live event/s?

 

I’ve learned a great deal in the last five years and I couldn’t possibly cover everything in this blog, but here are a few very important tips.  You need to have a clear understanding of what is achievable for your station. The event has to fit the brand, not necessary exactly, but it needs to be close. You need to be confident that you have enough listeners to make the event viable in terms of tickets sales. Here are some other important considerations:

 

Will it be indoor or outdoor? Outdoor is more expensive and there are additional licensing considerations, but there’s usually more profit potential. How good are your relationships with record companies? They need to be good if you are asking for promotional appearances. How long is your target list of artists? It needs to be three times the length of the eventual bill and you need to devote a considerable amount of time to negotiating appearances.

 

Is there a suitable venue in your area? Do you have a good relationship with that venue? What is the capacity and what is a reasonable ticket price? Consider sharing the risk with the venue. What costs are associated with the event? Remember, established artists expect a professional production.

 

Is the station used regularly used by venues and promoters to promote events? If it is, then that’s a strong indication that your listeners buy tickets, which is very important if you are intending to sell-out an arena. Although the radio advertising on your own station will be the main sales tool, it’s important to know what other marketing tools you have at your disposal. Station websites and social media can play an important part in the promotion of the event, as will artist social media.

 

Is there a similar event in your area already? If there is, how will your event be different or better or both?

 

Control the costs very carefully, remember that the profit comes from the sale of the final 10 or 20% of the tickets. Don’t over price the tickets and keep a close eye on prices for other events. Who will sell your tickets? I recommend negotiating with an established provider and thereby gaining access to their database. 

 

How important are relations with record labels in staging these live events?  Again, do you have any suggestions for stations that may want to proceed into staging their own live events?

 

Having a good relationship with record labels is very important to any station wishing to stage live music events. Most viable radio station events tend to be multi-artist and will feature acts that match the station format. Record companies will often supply artists on promo or for expenses only if they believe there is value for them in the arrangement. Your programme and/or music director will play a vital role in securing artists in this way.

 

How do live events serve as an extension of the radio station’s brand?  Did you see a positive correlation between live events in the UK and RAJAR ratings figures? 

 

Live events in general are a natural brand extension. If your station can bring live music to the local area that is representative of the brand/format, there are benefits to the stations. Your listeners will love it. Your clients will love it, particularly if you give them free tickets. Everyone will start talking about it and other local media will cover it. Will it help the ratings? It’s difficult to track with the UK system of measurement, but there is some evidence to suggest it does. A successful event definitely causes listeners to feel more positively about your station, whether they attend the event of not.  This has been indicated in a number of market studies untaken shortly after an event has taken place.

 

Clearly, there has been a lot of news about the upside that these events can have to the bottom line.  How significant was the revenue impact with these live events?  Was this impact felt immediately or did it take some time to see the upside?

 

Successful live events can add significantly to the bottom line, however all such events have a financial risk. It is easy to lose money as commitment to venues and production companies need to be made well in advance of the event taking place. The line–up is the primary driver of ticket sales. A good line-up will make money, an average line-up will probably only just break-even and poor line-up is likely to lose money. I’ve staged many events that have made a profit in the first year and an even bigger one in the second year, but it’s important to be realistic.

 

Now that you have ventured out on your own, are you seeing a demand among radio stations for help with staging their own live events?  How are you planning to service this demand?

 

A lot of radio stations want to take advantage of what can be a significant marketing benefit and revenue generator for the station. Having staged over 30 major multi-artist events and a significant number of smaller events for radio stations in the last 5 years, I have a good understanding of all the benefits and pitfalls of staging these events.  I can carry out a full assessment of the station potential in this area combining my knowledge of radio and radio events. A well planned strategic approach is essential, as is a good understating of the station event objectives. I provide advice on the pricing, venue selection, sales potential based on audience size line-up’s, timing and negotiations with record companies and artist management. 

 

An event programme needs to be planned well in advance. You need venues, local partners, ticket providers and solid promotional strategy. The station needs to be fully committed, as almost every member of staff will be involved in some way if the event is to be successful. I have been through the process many times and I have a good knowledge of the financials, timescales and commitment levels involved. Importantly, I also know what can go wrong and how to plan for these eventualities. I can also offer event project management services to help a radio station through the whole process for the first time.

 

If you want to learn more or get in touch directly with Steve, feel free to email him at stevekingconsulting@outlook.com.