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Archive for the ‘Advertising Trends’ Category
This article about JCPenney blows me away. The company is pioneering a mobile advertising strategy that is the future of traditional radio. Don’t miss it!
…it Spells More Opportunity for Multi-platform Radio Operators
eMarketer is reporting time spent with all media along with the gains and losses of each. Then it compares where ad dollars are going compared to where media use is. They are reporting some loss in TSL for radio but advertisers are still under spending on radio compared to media usage. Not a big surprise, but look at where magazines and newspapers are. Advertisers are way over spending compared to eyeball/ear delivery. This spells big trouble for print. Advertisers are significantly under spending on digital given the eyes and ears it is delivering.
This means there is a great opportunity for the operator that can successfully develop and deliver advertisers a multi-platform ad service combining radio and digital Internet services. Read the eMarketer article here.
Rick Ducey, chief strategist at BIA/Kelsey, will speak again at the Future of Radio Conference, March 14-16, 2012 in Hilton Head. Rick and BIA/Kelsey have developed retail ad forecasts for years, and the latest findings indicate that the growth opportunity for radio through the next 5 years is clearly in digital. From 2011 to 2015 online radio revenue will grow 58% while traditional spot dollars will only grow 17%. What’s really scary for broadcasters are the number of digital sales people from new companies invading their markets going after small and medium size retail businesses to capture their online ad spending. Rick will give participants insight into strategies new competitors are using and will also share video interviews with typical retail advertisers reflecting how they feel about radio sales reps and others pursuing local ad dollars. He’ll outline a number of tactical steps broadcasters should consider to protect their turf and go after those incremental digital ad dollars.
To reserve your space for this year’s conference, complete the form on the registration page and indicate your desire to participate. Participation is limited to 35 attendees. Fees for attending are shared among all participants and range from $350 – $500 plus accommodations and meals.
Jim Brewer sent me this link to a USA Today article describing how radio’s retail customers are using Social to drive holiday sales. Using these creative steps retailers are hoping to get consumers to recommend deals to their friends using Facebook and Twitter. What are you doing to engage both your listeners and advertisers via these Social strategies? At our Conference (March 14-16, 2012) next year we’ll be talking about how to build your Social strategy.
The core of what we reflect on at the Future of Radio Online is our Scenario Option Development Model. Look at the data presented by Jeff Haley regarding radio revenue.
Spot revenue is flat but “Off Air” and “Digital” revenue are up by double-digit percentages. Our model tracks advertiser attitude/behavior along with listener behavior and technology. This report says advertisers are not willing to commit any more dollars to spot but will increase their budgets for other offerings from radio stations. The trends toward 2016 are beginning to take shape. Building a multiplatform business looks like the only way to sustain the medium of radio. Rick Ducey will be presenting more compelling data about where your retail customers are going with their dollars and their confidence in getting customers in their front doors at the Future of Radio Conference March 14-16, 2012. See the latest agenda here.
If you are not familiar with our Scenario Option Development model as it applies to the Future of Radio, you should read our white paper. We identify three drivers of the future. Advertisers’ confidence in radio, or lack there of, is one of them. Here is another discouraging story from MediaPost about radio dropping in advertiser favorability. It’s one more reason that stations who are transitioning to a multiplatform digital model will sustain or grow their revenue while those that subscribe to the mantra, “If I can’t monetize it today, I’m not going to do it” will find themselves on the short end of the digital media stick. We’ll be exploring this trend with ideas to turn it around at our conference in March.
Here’s an article from Ad Age Digital about the short supply of people with skills in selling digital. What’s interesting to me is that they are talking about the same issues radio has confronted for years in finding effective sales people. They start by looking for people with experience and find there just aren’t enough candidates available. Then they decide to hire rookies and train them in the digital skills. They find out that tech oriented people sometimes work and sometimes not. Why? Because at the end of the day successful salespeople have to have that trait SRI (Selection Research) defined as “courage,” that unteachable trait that kicks in when the prospect says “no” and the rep gets energized to carry on with the sales process until the deal is closed.
OK, I realize this may not be a news flash for many of you but it underscores Arbitron’s desire to shift their business from measuring only terrestrial radio to answering Tim Westergren’s desire to have Pandora measured with the same metrics as terrestrial radio.
Terrestrial operators who continue to ignore digital platforms proceed at their own peril.
Here’s a link to an article in Media Daily News.
My friends in the search world tell me posting video to You Tube can significantly increase you search standings. Here’s a great article about using You Tube for telling your brand story to listeners and to advertisers.
Here’s a link to an article from Ad Age Digital interviewing Tim Westergren about his feeling that until Pandora can express their numbers in average quarter hour and cume, they won’t fully monetize their audience. Arbitron wants to help them.