SiriusXM Advertising

[Stuart]

I have been listening to SiriusXM for about 15 years now. I thought about this question many times. To increase profits, why do they not advertise with "major" companies?????? A few come to mind. McDonalds, Walmart, Target, Kohls, etc... These places (along with many others are available everywhere)

For the past 15 years, these have been my friends,

1. "Big Lou"......... Lou is on meds just like me!
2. Mark Spain .......He wants to give me an all cash offer on my home! (a good friend to have!!!)
3. Caudill and Caudill .......Unfortunately, they are not licensed in my state.
etc...............

Please help with this question!!!

 

[AbrahamJSimpson]

There’s a question in there?

 

[davideduardo]

I have been listening to SiriusXM for about 15 years now. I thought about this question many times. To increase profits, why do they not advertise with "major" companies?????? A few come to mind. McDonalds, Walmart, Target, Kohls, etc... These places (along with many others are available everywhere)

For the past 15 years, these have been my friends,

1. "Big Lou"......... Lou is on meds just like me!
2. Mark Spain .......He wants to give me an all cash offer on my home! (a good friend to have!!!)
3. Caudill and Caudill .......Unfortunately, they are not licensed in my state.
etc...............

Please help with this question!!!

Do you mean "why don't they take ads from famous large companies?"

Obviously, it's because those companies don't want to buy in the talk channels on satellite radio.

And we are talking about the talk channels only. The music channels don't sell ads becuase those channels are non-commecial. They derive revenue from their subscribers. So no ads.

Most of the talk channels on SiriusXM have ads, but they are sold to fill the ads spaces on the main product coming from the content supplier. For example, the Fox News SiriusXM channel carries the audio of the Fox News cable channel. SiriusXM blocks those out and inserts ads that they sell for those channels. The Fox advertisers don't buy the satellite service, just TV. So, the advertisers that are attracted to those "filler" ad spots are different from those on the TV channel.

The same goes, to some extent or another, for all the talk channels that carry their own ad buys on their main distribution channel.

 

[kwthom]

Wait...

Major companies (McDonalds, Walmart, Target, Kohls, etc... ) have to be willing to buy advertising time on SXM.

If they're NOT doing it, there must be a reason why they don't.

Colloquially, it's known as "not enough bang for the buck".

 

[davideduardo]

Wait...

Major companies (McDonalds, Walmart, Target, Kohls, etc... ) have to be willing to buy advertising time on SXM.

If they're NOT doing it, there must be a reason why they don't.

Colloquially, it's known as "not enough bang for the buck".

Or, even more simply, they don't buy controversial talk radio at all.

 

[Don CT]

Or, even more simply, they don't buy controversial talk radio at all.

You won't get Kohl's or McDonalds advertising on Stern.

 

[CTListener]

Do you mean "why don't they take ads from famous large companies?"

Obviously, it's because those companies don't want to buy in the talk channels on satellite radio.

And we are talking about the talk channels only. The music channels don't sell ads becuase those channels are non-commecial. They derive revenue from their subscribers. So no ads.

Ads are also sold for sports play-by-play, but some between-innings breaks are filled with unfiltered ads directly from the originating team's network. Most of these are ultra-local (hospitals, car dealerships, supermarkets) and of no value at all to most of SXM's subscribers, so why does SXM do this instead of plugging the loan scammers/diet scammers/etc. ads into all the breaks, along with the in-house promos for other channels?

 

[TheBigA]

Or, even more simply, they don't buy controversial talk radio at all.

In fact it sounds like they run a lot of the same spots you hear on broadcast talk stations for basically the same reason.

A big problem for satellite is providing metrics on audience size and demos. From what I understand, they don't subscribe to Nielsen.

 

[CTListener]

In fact it sounds like they run a lot of the same spots you hear on broadcast talk stations for basically the same reason.

A big problem for satellite is providing metrics on audience size and demos. From what I understand, they don't subscribe to Nielsen.

Has anyone at SXM (or formerly there) ever opened up on just how they measure audience size and demos for their many channels, or is this one of the most successfully guarded corporate secrets in broadcasting?

 

[davideduardo]

In fact it sounds like they run a lot of the same spots you hear on broadcast talk stations for basically the same reason.

A big problem for satellite is providing metrics on audience size and demos. From what I understand, they don't subscribe to Nielsen.

Back in the Arbitron days, they did a couple of test studies with diaries. They did not continue the practice.

They do research their own subscribers, but that data is more for channel decisions and format fine-tuning. Since the channels that accept ads are not the prominent music ones. Talk consists of news, political stuff, the BBC and Stern and some ethnic services.

I don't follow Stern, so I don't know if they accept ads in that show. The news channels do have a lot of "I'm Lou and I have high blood pressure, too" stuff.

 

[CTListener]

Talk consists of news, political stuff, the BBC and Stern and some ethnic services.

BBC World Service has no ads or even SiriusXM promos. News and politics (except for C-SPAN, offered only online) channels all have advertising. Don't know about Stern or ethnic.

 

[davideduardo]

Has anyone at SXM (or formerly there) ever opened up on just how they measure audience size and demos for their many channels, or is this one of the most successfully guarded secrets in broadcasting?

It's not broadly mentioned, but they do survey subscribers. I have gotten several surveys over the last 12 to 15 years (before that I had an "employee subscription" so did not qualify) and they asked which channels I listened to and a few general questions.

The most recent was an online survey, and whatever I answered as to channels I used triggered questions about those channels. On music, asked to grade overall song selection, how often did I hear a song I did not like (on the 60's channel and 70's channel I said "about one out of every 3 was too minor a hit) with opportunity to insert a verbatim.

On talk and news, they asked about "reflects my views" and what "is missing".

On the "any comment" I mentioned the dreadful audio quality

 

[davideduardo]

BBC World Service has no ads or even SiriusXM promos. News and politics (except for C-SPAN, offered only online) channels all have advertising. Don't know about Stern or ethnic.

Yeah, I forgot that the BBC channel has no ads. That's one of my favorite cable channels, too.

I can't listen for more than a few moments to the two Hispanic channels and I never noticed ads... but I just can't listen long enough to tell.

 

[Stuart]

Thank you for your answers. I guess I phrased my question wrong...

Why doesn't SiriusXM have advertisers like Chain Restaurants, Major Stores, Amazon, etc... These advertisements would be for establishments all over the country. Instead, they advertise Big Lou, Manscape, etc...(nothing wrong with these places).

 

[TheBigA]

Why doesn't SiriusXM have advertisers like Chain Restaurants, Major Stores, Amazon, etc...

What channels do you listen to?

 

[davideduardo]

Thank you for your answers. I guess I phrased my question wrong...

Why doesn't SiriusXM have advertisers like Chain Restaurants, Major Stores, Amazon, etc... These advertisements would be for establishments all over the country. Instead, they advertise Big Lou, Manscape, etc...(nothing wrong with these places).

Since the only channels that have ads are talk, you need to know that the kind of advertiser that you mention almost totally avoid issue-based talk. You won't hear them on KFI or WLW or WSB or KOA, either. And many of them don't buy radio at all.

 

[Stuart]

I listen to 70s, 60s, Fox Headlines, Patriot, Urban View, (mostly talk)

Wait...

Major companies (McDonalds, Walmart, Target, Kohls, etc... ) have to be willing to buy advertising time on SXM.

If they're NOT doing it, there must be a reason why they don't.

Colloquially, it's known as "not enough bang for the buck".

I understand this point. I guess I would need to know on average how many people are listening to SiriusXM at one time.
This is not to be funny or disrespectful.... What I read about SOME shows on CNN or MSNBC are averaging less than a million viewers. (of course, some are doing better). During the low rated shows there are still advertisements for popular brands. I am almost possible there are more than 1 million people listening to SiriusXM at one time. Why would major brand companies not want to capitalize on this untapped market, terrestrial radio sure does.

 

[b-turner]

The way it was explained to me, the music channels are non-commercial. Many of the remaining channels (ethnic and talk) are leased. You can lease a channel from Sirius/XM if you fit their criteria. If you lease, you pay them and keep your commercial inventory.

For Sirius/XM to enter the advertising sales realm is adding another division to the company that did not exist. It is costly, has to be carefully planned and then you need the sales force which is not easy to find.

And just because they're a national company does not mean they are easy to sell. In fact, you are facing the biggest and best in the business for a piece of that pie and many more that tried for a slice will walk away without a crumb while a few will get their slice. It is not "okay, we sell ads now" and the heavens open.

There was a lot of wisdom in the comments of one guy I worked for in small town radio. He wanted a place with small businesses, the smaller and more numerous the better. He said no media came to see them because their packages targeted to bigger businesses and what little they spent, they spent every month and didn't need the attention a bigger account required. And when one quit they could be replaced in a day or two without hurting the bottom line. Literally, the smaller business is the low hanging fruit.

 

[Stuart]

I probably do not understand how advertising works. I hear a lot of ads for "Big Lou", "Optima Tax Relief", etc...

Even when I listen to Fox News (114) when Fox takes a commercial break, instead of letting the television commercials, SiriusXM inserts their own commericals.
I remember back in the day when there were several "Clear Channel Stations" I used to love WLW (Cincinatti) and "Real Radio" 104.1 WTKS (Cocoa Beach-Orlando). When "they" went to commercial breaks, we would hear the stations feed for commercials. Most were local, however there were many from companies with stores/restaurants, etc..everywhere.

I think I understand about leasing. Here in Raleigh-Durham, 106.1 carries "The Ramsey Show" and I believe every commercial is about the Ramsey Company.

 

[b-turner]

Stuart says there are surely more than a million folks listening to Sirius/XM at any given time. I agree. Aside from demographics and the fact the low rated show might be a bonus or cheap spot to match or beat cost per thousand to get the buy, the question is how many are listening to the many options offered by Sirius/XM at one time? A million divided by 100 channels isn't much.