Archive for the ‘Radio Industry Drivers’ Category
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.
Here’s an article from Tom Taylor’s newsletter “Taylor On Radio-Info” commenting on the willingness of consumers to pay for online radio services. For about $36.00 per year you can listen to as much Pandora as you like with no commercials. Why not? And with Livio Radio’s Bluetooth Internet Radio Car Kit you I can get Pandora on your car radio.
New Gartner study shows consumers becoming more willing to open their wallets to pay for online radio.
The enthusiasm is mostly because of the growth of mobile devices – “mobile phones capable of playing back music files and/or accessing online streams”, according to the Gartner list of “topline assumptions.” It says “download-to-own services are more mature and still deliver more revenue than other online or mobile music models.” But that’s going to change – “their growth will begin to slow down as more consumers begin to turn to subscription services that are leveraging the popularity of consumer smartphones, media tablets, and in the future, devices such as TVs with Internet connectivity built in.” (Download the Gartner report here). Kurt Hanson’s RAIN newsletter says “subscription services (e.g. Spotify, MOG, Rdio, Pandora) alone will take in $532.1 million this year, growing to $808 million next year.” In other words, the psychology’s shifting in favor of consumers being willing to pay for what they’ve been getting for free from over-the-air radio – because they’ll gain more control over it.
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.
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.
Google is coming to your SMB’s with help for your client’s digital strategy. What are you doing to position your station as the digital resource in your market? You can earn that responsibility or cede it to Google.
GoMo: Google Helps SMBs Go Mobile
from Local Media Watch – BIA/Kelsey, November 1, 2011
During our DMS conference in September, we held a session on the “starting line” tools for SMBs to establish a mobile presence. This is step 1, before the higher frequency discussion of targeting mobile ads.
It’s what I like to call the “art of the landing page”… where does the click “go”? Indeed, fighting to get clicks — or building any strategy to do so — is a moot point if you don’t have an optimized landing page.
And like we heard from Duda Mobile’s Itai Sadan (at DMS and in a past post), a low single digit percentage of online sites are ?optimized for mobile. Google has separately reported 79 % of its top advertisers’ sites aren’t optimized.
That’s why today Google officially launched a program to encourage, educate and assist in getting businesses to optimize mobile landing pages. This includes tips, quality ratings (”gomometer”) and samples of what your mobile site currently looks like.
Interestingly, Google isn’t directly monetizing this effort. In fact, the SMB- facing page to learn more has links to third party services that specialize in mobile website development and optimization (including Duda).
Google will benefit in lots of ways from the effort though; the more user friendly and optimized the mobile web is, the more users will be compelled to the browser. This is opposed to Apple’s app-centric worldview.
This is one flank in the longstanding apps vs. mobile web battle. Google is very much interested in a world where mobile experiences are accessed through the browser, simply because the that’s where it owns search.
So far Google has made other moves such as announcing that mobile search rankings and quality score will be influenced by whether or not sites are optimized. Today’s move is another step in the same direction.
More than that, it will benefit the entire ecosystem, including SMBs, vendors, and users. But make no mistake, this is a move to accelerate Google’s $2.5 billion mobile revenue run rate, for which search is the biggest driver.
Given Google’s gravity and promotional ability, this will certainly help. But though we’re bullish on the mobile web, apps aren’t going away anytime soon.
Check out this info being reported by eMarketer here . Their headline is about digital vs. TV but look at the spot radio number. Attention paid to Internet is 34% with radio dipping to 10%. That’s a scary Halloween story.
eMarketer is reporting on research conducted among online radio listeners and their preferences relative to buying songs. Bottom-line is that music listeners prefer free streaming sites for finding new music. The fact that researchers are considering online radio users as a separate category from terrestrial radio is significant. Online listening continues to attract large numbers. The trend cannot be ignored. Here is the link to eMarketer’s story. What are your conclusions from this study?
This morning I had the opportunity to have breakfast with a friend who is also the CEO and founder of a large company in the retail electronics business. I asked him what he thought about the announcement last night that Steve Jobs was stepping down from the top spot at Apple. His reaction was similar to that of many of us who believe that the loss of Jobs innovative leadership and stewardship of the Apple brand could threaten the future of the company. But he then went on to comment about the fact that Jobs replacement, Tim Cook, was a great operator but unproven as an innovator with similar brand leadership skills as Jobs. He said it was similar in his company where he has great operations people who really know how to “turn the cranks” but don’t have his skill at protecting and growing the brand through enhancing and caring deeply about the user experience.