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MARKET SHARE BY ARTHUR GREENWALD

In Lubbock, There's No Place Like Homes

By Arthur Greenwald
TVNEWSDAY, Nov 17 2008, 12:36 PM ET

Now is the time for all good sales execs to come to the aid of your country.

And your own bottom line, too, of course.

Story continues after the ad

So, here's a sales promotion that not only makes money, but arguably helps to rescue our beleaguered economy by offering a much-needed boost to the housing market.

Ramar Communications' KJTV Lubbock, Texas (DMA 143), has put together a winning multimedia campaign around a local housing development called Regal Park.

According to Ramar's Chief Revenue Officer Chris Fleming, the Regal Park campaign is an efficient marketing vehicle for the builders, vendors and service providers. "KJTV helps them to share the expense [as well as] the benefits."

The centerpiece of the campaign is the Regal Park Home Showcase, a weekly half-hour program that highlights new and existing homes, as well as all the custom-built goodies available from a wide range of designers and installers. And it also includes online and radio elements.

Each installment of Showcase is repeated five times a week on the Fox affiliate and again on Ramar's low-power My Network TV affiliate, KMYL-LP, and on three digital channels. "We've also got plans to create a Spanish-language version for our Telemundo station [KXTQ]," adds Fleming.

Complementing the show are short-form spots and vignettes featuring the builders, suppliers and the Regal Park community and residents. They turn up not only on the TV station, but also on Ramar's radio stations [KJTV-AM and KSTQ-FM] and local Web sites, giving the advertisers extra reach and frequency.

"We're able to deliver revenue across our group — TV, our sister radio stations as well as our production department and our Web site."

To ensure a range of affordable options, the station offers three different levels of sponsor participation. "As you might expect, the land developer is the top level," says Fleming. "After that comes home builders. Then comes suppliers ranging from the gas, electric, cable and phone companies followed by all the subcontractors."

To make this work in the marketplace, broadcasters need to find developers and builders that are willing to work together, says Fleming. A strong sales effort can convince them that collaborating "not only keeps their cost down but makes their message more effective."

Fleming is quick to admit there's nothing new about this concept. It's modeled on reliable vendor programs dating back to 1974. "It's the same as a vendor-driven supermarket circular except that the station does all the work," Fleming says. "The Web site makes it a bundled solution. And the bundle is more attractive than the individual pieces."

But while the Web adds reach, plus a convenient contact point for customers, Fleming considers broadcast TV to be the main driver. "There's a lot of power in the visual sell of television. And we often overlook the continued novelty and appeal of just being on TV," says Fleming, who points to the high percentage of non-traditional advertisers featured in the Regal Park Showcase.

So far, the Showcase strategy has paid off handsomely for Ramar, generating over $200,000 annually. And Fleming expects a 30 percent revenue increase in 2009. (Most Regal Park houses sell for between $300,000 and $500,000.)

But how can a broadcaster be making money from real estate when the National Association of Realtors is currently tracking a nationwide 9 percent decline in year-to-year home sales? One reason is that not all markets are affected equally by the housing slump.

"Even though permits for new construction in Lubbock are down 18 percent this year, home sales are up 8 to 10 percent." Fleming says. "This puts us second nationally to Peoria, Ill., for projected growth in housing values in 2009."

Although Lubbock benefits from its lucky location, location, location, the economy in DMA 143 is not without challenges. While employment remains strong, observes Fleming, "Everyone is facing the credit crunch, so ad revenues for automotive and furniture are down."

Fleming is confident that a similar promotion can achieve Regal results in almost any market. "When people can't afford new homes, they're motivated to fix up their current residence. You can take this same concept and apply it to home improvement."

Indeed, Fleming plans to follow his own advice and extend the vendor-driven concept to banks, mortgage brokers and financial planners.

Whoa! Back away from that ledge! Every Monday we deliver good news about successful advertising and sales promotions —- right here in Market Share by Arthur Greenwald. If you have a success story to share, let us know. Write to Arthur at greenwald@tvnewsday.com.

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