The 1.4 Billion Dollar Mystery -- Walter Sabo

Today, radio turns down $1.4 billion in revenue that goes to TV because it has no place to go on radio. The 1.4 billion is specific dollars that are invested in daytime television aimed at women: Talk shows for women on TV.

The TV shows winning these dollars are “Judge Judy,” Live with Kelly and Michael,” “Ellen,” “The View,” “The Chat,” “The Chew,” “Extra,” “TMZ Live,” “The Talk,” “Maury Povitch” and “Jerry Springer,” plus a few game shows and daytime dramas like “The Price is Right” and “General Hospital.”

The highest paid performer on daytime TV is Judge Judy earning over $40 million a year (for one month of taping!). She has 7.5 million viewers. What does she talk about? Relationships!

“No sir, you are not a good husband or roommate and you owe her the money,” Judy bellows from the bench to the delight of all.

Most of the programs, such as “Live with Kelly and Michael,” have fewer than 2.0 million viewers -- less than the cume of most top 5 market radio stations.

Despite tiny audiences, advertisers embrace daytime TV talk. The shows discuss: How to get along, celebrity gossip, diet, exercise, how to get a better job, money, taking care of the kids, dealing with job and kids, getting along with coworkers, relatives, what to get for Christmas, etc.

Lever Brothers, P&G, Colgate Palmolive, Pfizer, Bristol Meyers and numerous local retailers buy time on day time TV because the topics on daytime TV appeal to their clientele made up of young women. Radio will not make an efficient run at TV dollars unless it builds-out shows like “Marilu” from Sun Group that cover the subjects embraced by daytime TV talk shows.

Revealed: Daytime TV’s Programming Model

TV learned how to do talk shows for women, by women, from another medium. Talk radio for its first 50 years of success dominated advertising and audience alike by airing talk shows that appealed to women. It’s a proven, safe, well understood strategy. It is not new, different or scary. Media buyers for Lever Brothers, P&G and Colgate have put in writing to Sabo Media that they would buy this type of programming if it was available on the radio.

Let me suggest a Christmas gift to give to yourself. It details how a radio talk host was so hot that their 10th broadcast anniversary was celebrated in a packed Yankee Stadium. Their 15^th broadcast anniversary was held in a sold out Madison Square Garden. Here’s the road map on how to take talk programming to a much broader advertiser base.