"Radio is Dead" - Chapter 37

[SirRoxalot]

Some interesting viewpoints - and statistics - here for the "radio is dead" crowd.

Perception Vs. Reality: Eight Things Brands Have Completely Wrong About AM/FM Radio | Westwood One

The perception of media audiences is skewed by prevalent myths in the ad community. Using data from research leaders Nielsen, the Federal Reserve, and Edison Research, we disprove eight of the biggest perceptions brands hold about AM/FM radio.

www.westwoodone.com

 

[CTListener]

Some interesting viewpoints - and statistics - here for the "radio is dead" crowd.

Perception Vs. Reality: Eight Things Brands Have Completely Wrong About AM/FM Radio | Westwood One

The perception of media audiences is skewed by prevalent myths in the ad community. Using data from research leaders Nielsen, the Federal Reserve, and Edison Research, we disprove eight of the biggest perceptions brands hold about AM/FM radio.

www.westwoodone.com

So how does radio go about convincing the all-powerful, all-knowing advertising industry -- or the suits behind the brands themselves -- of the errors of their ways? In the end, if Corporate America and Madison Avenue abandon radio, radio dies, no matter who was "right."

 

[b-turner]

Even before Covid-19 there was a perception among some potential advertisers I call on that radio is dead. Somebody has created a good smear job along the way. Radio does reach the masses and does perform well for advertisers because I have clients that find for the dollars spent on the station I sell for, 9 times out of 10 radio outperforms other media options.

The tough sale is the business that believes radio is dead and has put all their money in digital and their website. I ask them how potential customers find them. They answer they pay for 'positioning' in geographic searches. I say your competition does too. I tell them radio and TV are still the best venue for getting people to your website. Keep in mind those businesses that have only invested in digital and their website do get results, so the biggest hurdle is convincing them those visitation numbers can be much better when they look beyond just digital.

From research I have seen, radio is no longer just a radio receiver, but online and phone listening is primarily to local over the air radio stations that stream because the on the air radio station reaches the masses that gets those people to tune in on those devices other than the traditional radio receiver. Without that outside promotion these over the air station streams would have listening numbers akin to the typical online only station in almost every case. In other words, it's the ability for on air stations to promote themselves beyond just online that creates the reality much of online listening is to local over the air stations.

 

[boombox4]

If revenues for radio have been dropping the past two decades -- and there are indications it dropped considerably in many metros since 2005 -- like CTListener says, how do you convince the advertising industry to change their perception? Perhaps radio needs some sort of PR campaign, aimed at the big advertisers?

 

[TheBigA]

So how does radio go about convincing the all-powerful, all-knowing advertising industry -- or the suits behind the brands themselves -- of the errors of their ways?

With results. This is why I've been saying the answer for radio is to go beyond just the air signal. There is no barrier to entry in the digital space. No license required. No ownership rules. It's wide open to anyone with ideas or great content. So why wouldn't radio stations get involved in other advertising platforms and let them see the differences?

Perhaps radio needs some sort of PR campaign, aimed at the big advertisers?

This article is part of an ongoing campaign. There's an organization known as the Radio Advertising Bureau that uses this kind of information in their presentations, and makes it available to local sales staffs to present to advertisers. So the PR campaign is ongoing, and happens every time a salesperson makes a pitch to an advertiser.

 

[Mikey Radio]

Does anyone know if the "Radio Avertising Bureau" or RAB is still alive and what they actually do? They used to produce PSAs and publish items that highlighted radio broadcasting's importance and effectiveness as an advertising medium, but I've not heard of the RAB in a few decades now.

 

[TheBigA]

Does anyone know if the "Radio Avertising Bureau" or RAB is still alive and what they actually do?

As I mentioned in my post (the one directly before yours), yes the Radio Advertising Bureau is very much alive, and continues to provide information to station sales staffs for use in their direct presentation to advertisers.

RAB.com

RAB is the not-for-profit trade association representing America's broadcast radio industry.

www.rab.com

 

[Mikey Radio]

As I mentioned in my post (the one directly before yours), yes the Radio Advertising Bureau is very much alive, and continues to provide information to station sales staffs for use in their direct presentation to advertisers.

Sorry, I missed seeing that. I was asking because, at one time as I mentioned, the RAB was even producing PSAs that were airing on some stations, highlighting the effectiveness of advertising on radio, but I've not heard those kinds of spots in several years. The RAB may be more critical than ever with so many platforms competing for both listeners and advertisers. It'd be great if they'd become more visible and more assertive with getting the message out.

 

[TheBigA]

It'd be great if they'd become more visible and more assertive with getting the message out.

If the issue is advertisers don't think anyone listens to radio, attempting to reach those advertisers with PSAs on the radio might miss the intended audience. If the intended audience is big advertisers, then you make your best presentation directly to them, in their face. That's what radio sales staffs do every day. The RAB provides facts and data to assist those people in making their presentation. At the same time, the RAB staff attend industry conventions and are visible whenever this subject is being debated. Radio listeners aren't the intended audience for the RAB information, so using platforms aimed at listeners isn't very useful.

 

[CTListener]

Sorry, I missed seeing that. I was asking because, at one time as I mentioned, the RAB was even producing PSAs that were airing on some stations, highlighting the effectiveness of advertising on radio, but I've not heard those kinds of spots in several years.

"Radio is red hot!"

 

[Mikey Radio]

If the issue is advertisers don't think anyone listens to radio, attempting to reach those advertisers with PSAs on the radio might miss the intended audience. If the intended audience is big advertisers, then you make your best presentation directly to them, in their face. That's what radio sales staffs do every day. The RAB provides facts and data to assist those people in making their presentation. At the same time, the RAB staff attend industry conventions and are visible whenever this subject is being debated. Radio listeners aren't the intended audience for the RAB information, so using platforms aimed at listeners isn't very useful.

Agreed, which is why I said they should be more visible and assertive in getting the message out, not just "speaking to the choir" who are already listening to radio. Curious, does anyone know how RAB makes their $$ to employ staff and create literature and content?

 

[TheBigA]

Curious, does anyone know how RAB makes their $$ to employ staff and create literature and content?

It's a membership organization. Radio stations and other users of their material pay a membership fee.

 

[davideduardo]

Agreed, which is why I said they should be more visible and assertive in getting the message out, not just "speaking to the choir" who are already listening to radio. Curious, does anyone know how RAB makes their $$ to employ staff and create literature and content?

RAB is a membership organization, just like the NAB and state broadcast associations. They have a rate based on station and market size and provide lots of resources for local sales as well as, themselves, working with national and regional agencies to enhance the image of radio.

RAB.com | Radio Advertising Bureau has a "tour" and descriptions of member services.

 

[CTListener]

Speaking as a career mid-level newsroom employee at a few newspapers, I can say that the prevalent attitude around the copy desk when banner ads and such started appearing on the still-nascent World Wide Web was that advertisers would never abandon print. After all, those internet ads were ephemeral, disappearing with a click or even not appearing at all after the advent of ad blockers, while newspaper ads stayed right there on the pages, always in the peripheral vision of the reader, forever ready to be noticed and read.

Of course, our users made the advertisers' decision easy: Internet users were younger, more gullible, more eager to swallow a sales pitch, susceptible to flashing lights and weird graphics. When they started abandoning print entirely, the decline was on. When the internet went completely mainstream, it was game over for newspapers. Glad I got out last year; better to have stayed a few years too long than to be stranded midcareer.

 

[TheBigA]

When they started abandoning print entirely, the decline was on. When the internet went completely mainstream, it was game over for newspapers.

I read several newspapers a day. Not cover to cover, but I browse the web version of the paper. By doing so, I miss those full-page ads, the advertising inserts, and of course the classifieds. So I wouldn't say it's "game over," but the budget has changed dramatically. Which is why newspapers have to do what radio stations have to do, which is use the same content over multiple platforms to maximize views of the ads.

 

[gr8oldies]

Agreed, which is why I said they should be more visible and assertive in getting the message out, not just "speaking to the choir" who are already listening to radio. Curious, does anyone know how RAB makes their $$ to employ staff and create literature and content?

Membership dues?

 

[davideduardo]

Membership dues?

Yes, I posted that three hours ago. It is a trade association, sustained by the stations that use its services directly and support its work with ad agencies to promote radio.

 

[landtuna]

I am continually amused by the radio insiders who dwell on the income (advertising) side of radio. You know, the one that listeners don't care about. When I was growing up I listened to lots of stations both local and distant and the ones that seemed to be doing a land office business were also the ones who pleased their audiences the most. I always assumed that the stations who put out a popular product (whatever the genre) would also reap the best advertising income. Not in every case of course but in most.

Not once have I heard a similar opinion on this forum.

 

[TheBigA]

I always assumed that the stations who put out a popular product (whatever the genre) would also reap the best advertising income. Not in every case of course but in most.

It depends. You might have a popular product that attracts a large audience that advertisers don't care to reach. The difference between radio now and in the 60s is the number of radio stations in a market. So the pie is sliced a lot thinner.

 

[davideduardo]

I am continually amused by the radio insiders who dwell on the income (advertising) side of radio. You know, the one that listeners don't care about. When I was growing up I listened to lots of stations both local and distant and the ones that seemed to be doing a land office business were also the ones who pleased their audiences the most.

...or the ones that sold the cheapest. Counting spots has nothing to do with income.

I always assumed that the stations who put out a popular product (whatever the genre) would also reap the best advertising income. Not in every case of course but in most.

Not true and never true in the last half century since we have had ratings that showed more than just total listeners.

There is an Alternative Rock station in Philadelphia that for years was in the top 5 or 6 stations in ratings, but around 15th in billing because that format is not as well liked by agencies. Still, even today, Spanish language and Urban stations tend to do 20% to 25% lower billing per share point in most markets than general market stations just because of the perception of the buying power of the audience.

Not once have I heard a similar opinion on this forum.

Because it is not true.

Another example: When I did a project for a new format for an FM in Buenos Aires for Emmis (a market a bit bigger than New York's metro) we researched format holes. We found that the biggest hole was in a kind of music that appealed mostly to the lower income part of the "working class". That would have gotten a huge share, but advertisers would have kept away from it. We picked classic Argentine rock (all local artists and only local artists) which was the second choice, but was far more well received by agencies.

I can name lots more examples, such as why it's hard to have a country station in Miami, etc., etc., even when the numbers are significant.