USA: IBA, united we stand

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The logo of the Independent Broadcasters Association, a new association for American radio stations: 2.700 have already joined and the target number is 3.000
The logo of the Independent Broadcasters Association, a new association for American radio stations: 2.700 have already joined and the target number is 3.000
Source

IBA (Independent Broadcasters Association) is about to be set up in the United States. The aim is to increase the impact of thousands of member radio stations when communicating with record companies, selling airtime for advertisements (from the radio and social network to smart speakers like Alexa) and negotiating savings on services (from accountancy to putting programmes on air). We put three questions to Ron Stone, the promoter of the initiative.

Ron Stone, President and CEO of Adams Radio Group, is about to launch IBA that already has 2.700 member radio stations
Ron Stone, President and CEO of Adams Radio Group, is about to launch IBA that already has 2.700 member radio stations
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RR: IBA not only offers its members the sale of commercials that will be broadcast on 3.000 radio stations, on as many apps and Facebook pages, but also to reduce the fees for music rights by negotiating royalties as a group of broadcasters. What difficulties did you encounter when explaining your proposal? Wasn’t getting 3.000 “heads” to agree a problem? Or has the prospect of earnings (and savings) made prospective members more willing to listen? 
RS: The goal is to represent the stations that become members as an unwired network, offering this network to clients that have a national presence. In addition, we will create a digital platform for all the members to participate in that will allow for the first time, a true digital sale opportunity by radio on a national scale to compete for digital spending.

RR: Could this model also work in other countries? Associations usually do lobbying or offer services, but none of them have thought of taking such an active role.
RS: I really cannot answer this as I am not familiar with broadcasting in other countries. We will not be a lobbying group. We will leave that to the NAB, unless we find that there is a particular issue that we are being harmed by and not fairly represented.

RR: In order to sell advertising for 3.000 radio stations, are you going to create an independent advertising agency or rely on existing structures?
RS: With an unwired network, it becomes fairly easy. It is an all or none sale. Clients cannot cherry pick stations.

The objectives of the Independent Broadcasters Association

This is not only an association, but an organisation offering services. This could start a trend that may be followed in other countries in order to achieve economies of scale, which are essential after the collapse in advertising due to the Coronavirus crisis
Here is the form to request information
This is not only an association, but an organisation offering services. This could start a trend that may be followed in other countries in order to achieve economies of scale, which are essential after the collapse in advertising due to the Coronavirus crisis
Here is the form to request information
Source
Excerpt of the program of the association, from Radio IBA

The concept is to serve independent radio stations in ways we are NOT being served by existing organizations and provide independent operators with ways to drive revenue and achieve cost benefits from scale that cannot be achieved alone.

Below reflects my thoughts on what the organization would focus on right away and during the first two years.

Group employee benefits Better coverage and lower prices, and potentially add additional benefits for our employees.

Revenue generation An unwired network & digital platform supported by a national sales team to monetize for us.

Digital services group This would enable continuity across independent stations giving us the opportunity to accomplish double digit digital revenue through Web, Mobile, Alexa, & Streaming

Shared resources A system that allows sharing of that talent in non-competitive situations and reduces our dependence on national syndication that requires cash, barter and sometimes both.

Proprietary systems and services Under the umbrella of a member owned association, we can create proprietary systems that we control and eliminate some of the costly monthly per station fees for traffic, accounting, CRM, Yield Management, even automation and music scheduling.

This will of course take time, like eating an elephant, one bite at a time. But as independents, we are 7,000 stations strong, and multiply what each of us pay for any one service, it becomes crystal clear that through a membership owned organization, we would have the wherewithal to accomplish this, and the revenue growth and savings would be astronomical.