Frank Kavenik “Growing Stations and Networks with BroadcastMetrics”

BroadcastMetrics is a Strategic Planning and Decision Support System that serves and supports Christian radio executives as they grow revenue, audience, and coverage for their radio stations and networks.  

Using AI and Data Science, BroadcastMetrics creates brand new strategic data and information that supports leaders as they grow their stations and networks.

The overall BroadcastMetrics system is made up of two subsystems:

• BroadcastMetrics-A (Analog) for growing Analog Over-the-air broadcasting, including HD Radio
• BroadcastMetrics-D (Digital) for growing all forms of Digital content distribution, except HD Radio

This article exclusively covers BroadcastMetrics-A, the Analog Over-the-air version.   For simplicity, the term “BroadcastMetrics” in this article always refers to BroadcastMetrics-A for over-the-air Analog and HD Radio.

To maximize growth, the leadership team of a station or network should implement both BroadcastMetrics-A and BroadcastMetrics-D.  

The BroadcastMetrics Growth Cycle is shown in Figure A below:

 Figure A – The BroadcastMetrics Growth Cycle

Supported by BroadcastMetrics, leaders of major networks have achieved rapid growth.  The chart below compares the actual growth of two major Christian radio networks over five years.  

• Leaders of Network A, supported by BroadcastMetrics, increased revenue by 50%.
• Leaders of Network B, not supported by BroadcastMetrics, decreased revenue by 5%.

Figure B – Revenue Growth with and Loss without BroadcastMetrics

This article is a top-level Executive Summary of the 5 primary ways that leaders can grow their Over-the-air radio station or network using BroadcastMetrics.   Additional information on BroadcastMetrics is provided in previous HisAir.Net articles by the author.

Network leaders, supported by BroadcastMetrics, have increased annual revenue by 10% and more.   Figure C below shows that in 5 years, at 10% average annual growth, revenue increases by 46%.

Figure C – 10% Annual Revenue Growth Yields 46% Total Increase in 5 Years

INTRODUCTION

BroadcastMetrics uses Data Science and Artificial Intelligence to create new, high-value strategic data and information. Leaders use this new information to increase their donor revenue, listening audience, and signal coverage. Figure A, at the beginning of this article, illustrated the BroadcastMetrics Growth Cycle.

A key benefit of BroadcastMetrics is that it helps leaders quantify the best use of scarce resources.  At any point in time, investing in one of the five growth areas will produce the greatest return. BroadcastMetrics identifies which area presently offers the strongest growth opportunity.

Using BroadcastMetrics leaders can:

• Emphasize short-term revenue growth,
• Emphasize long-term revenue growth, or
• Balance both short-term and long-term revenue growth.

The five summaries below explain how BroadcastMetrics helps leaders allocate scarce resources to maximize growth.

Each of the five areas is covered in more detail in previous HisAir.net articles by the author. 

1. SIGNAL DEVELOPMENT

The primary purpose of Signal Development is to convert Capital Dollars Invested into Target Listeners Covered.

• Input = Capital Dollars Invested
• Output = Target Listeners Covered

Figure 1 – Map of a BroadcastMetrics Signal Development Analysis

Signal Development methodologies have evolved through six generations.

Newer, higher-level, and more accurate methodologies help leaders grow their stations and networks more effectively.

The first-generation Signal Development algorithm is the most common, but it is also the least accurate. More advanced algorithms give users a major growth advantage.

The six generations of Signal Development algorithms are:

1G – Population-based, single-contour

2G – Population-based, multiple-contour

3G – Demographic-based

4G – Psychographic-based

5G – Donor Data Science-based

6G – Donor Artificial Intelligence-based

Higher-level and more accurate Signal Development algorithms help leaders grow their stations and networks faster and generate increased donor revenue.

Signal Development is foundational to the other four BroadcastMetrics growth areas. Success in Signal Development leads to increased success in the other four growth areas.

The CEO of one of the largest and fastest-growing Christian radio networks called Signal Development his “Secret Weapon.”

2. MARKET DEVELOPMENT

The purpose of Market Development is to convert Target Listeners Covered into Cumulative Listeners Sampling.

• Input = Target Listeners Covered
• Output = Cumulative Listeners Sampling

Figure 2 – Analysis Map of One Market Development Strategy

Market Development investments may include:

• Local promotional events
• Targeted outdoor advertising
• Targeted direct mail campaigns
• Other promotional investments and activities

Market Development is discussed in more detail in previous HisAir.net articles by the author.

3. PROGRAM DEVELOPMENT

The purpose of Program Development is to convert Cumulative Listeners Sampling into P1 Listener Fans.

4. PLEDGE DEVELOPMENT

The purpose of Pledge Development is to convert P1 Listener Fans into Dollars Pledged.

• Input = P1 Listener Fans
• Output = Dollars Pledged

Figure 4 – A BroadcastMetrics Analysis of Pledge Development

The key to maximizing dollars pledged is to ask for:

• The right pledge amounts,
• In the right combinations,
• At the right times,
• In the right manner.

K-LOVE founder Dick Jenkins authored a comprehensive HisAir.Net article titled “Increasing Revenue 18 Ways with Data-Driven Pledge Drives.”

Dick’s article is available at:

https://www.hisair.net/?s=jenkins

5. GIFT DEVELOPMENT

The purpose of Gift Development is to convert Dollars Pledged into Total Gift Dollars Received.

• Input = Dollars Pledged to be given
• Output = Total Gift Dollars Received.

The key to the success of Gift Development is:

• Communicating with the right segments of donors,
• In the right manner,
• At the right time
• Using the right techniques,
• At the right frequency.

Figure 5 – The Donor Development Process

Classic donor segmentation relied primarily on only 3 donor segmentation characteristics: Recency, Frequency, and Monetary.

Identifying a larger number of unique donor segmentation characteristics increases gift revenue.

• Using Data Science, donors can be segmented by 100 or more unique
• Using Artificial Intelligence, donors can be segmented by 1,000 or more unique characteristics.

Services like DonorSearch AI support sophisticated Donor Development strategies, which generate increased revenue.

More information about DonorSearch AI is available at:

https://www.donorsearch.net/donorsearch-ai/

THE FIVE BROADCAST METRICS KEY PERFORMANCE INDICATORS

The five BroadcastMetrics Key Performance Indicators (KPIs) help leaders to allocate scarce resources to optimize station or network growth.   Figure A is repeated below:

Figure A – The BroadcastMetrics Growth Cycle

In chronological order, the five Primary BroadcastMetrics Key Performance Indicators are:

1. Signal Development: KPI1 = (Target Listeners Covered)/(Capital Dollars Invested)
2. Market Development: KPI2 = (Cume Listeners)/(Target Listeners Covered)
3. Program Development: KPI3 = (P1 Listeners)/(Cume Listeners)
4. Pledge Development: KPI4 = (Pledged Dollars)/(P1 Listeners)
5. Gift Development: KPI5 = (Gift Dollars)/(Pledged Dollars)

At any given point in time, an incremental investment in one of the five KPIs will produce the highest Return-on-Investment.  BroadcastMetrics identifies which KPI maximizes growth.

Detailed analysis of 5 Key Performance Indicators helps leaders to maximize donor revenue.  Increased revenue can then be reinvested into high-growth opportunities.

Each of the five BroadcastMetrics KPIs is discussed in more detail in previous HisAir.net articles by the author.

SUMMARY

BroadcastMetrics is a Strategic Planning and Decision Support System that supports radio leaders as they grow revenue, audience, and coverage for their radio stations or networks.  

Using AI and Data Science, BroadcastMetrics creates new strategic data and information that leaders then use to

rapidly grow their stations or networks.

Previous HisAir.Net articles by the author about BroadcastMetrics can be found at:

https://www.hisair.net/?s=kavenik

Frank Kavenik is a Strategic Planning radio consultant and the inventor of the BroadcastMetrics Strategic Planning and Decision Support System.   Frank has over 25 years of experience serving founders and leaders of large and fast-growing Christian radio networks. 

BroadcastMetrics utilizes AI and Data Science to create new strategic data and information for use by Christian radio leaders.  Leaders utilize their newly created BroadcastMetrics data to grow signal coverage, listening audience, and donor revenue.

Frank has completed over 900 BroadcastMetrics projects for Christian Radio network leaders.  He has also been a radio station founder and owner himself.  He holds degrees in Law, Management, and Engineering.

Frank’s e-mail is: frankk@data-sci.biz