wgliradio said:
DavidEduardo said:
You have probably heard that thing about having the wisdom to know what you can change and what you can not.
The obvious answer is for agencies to use other forms of media other than radio to get their message across. If I were P&G, I know I wouldn't be wasting my time in a medium where the only audience I am reaching is one demo, fragmented between 15 stations and has the attention span of a gnat on speed... that is, those who still use radio and have not regulated it to the 2nd and 3rd choice for entertainment (after their MP3 player, the internet, a video game system, DVD player, TV etc...)
You are missing the point that practically all agency clients specify the demos for their campaigns based on consumer data obtained from their own marketing department's research... research which may have gone back to the design of the product or service, and which also determines where advertising is effective. They seldom, except for products that sepcifically appeal to older consumers, ask for 55+ in any medium, not just radio.
Radio delivers 55+ about as well as under-55, with many formats that are still on the air, like country, news / talk, oldies, and AC having significant 55+ audiences; usage of radio by 55+ is comparable to the under 55 demo sets, too.
Only part of the consideration in a buy is the age; the other is what audience segment buys the most with the least advertising. This is why beers do not specify any female demos, and look mostly at 21-44 or even 21-34 male delivery alone. The amount of sales generated in the beer category against women or older men is significantly lower than in the core target, because the core buys and consumes more and the ROI on advertising against any other demo is poor or non-existent.
Picture this... a 27 year old.... just spent $200 on an IPOD, $400 on that nice new Alpine IDA-X001 Media Center (!!) stereo that interfaces with the IPOD... nice Rockford Fosgate subs... $200... all this time to upload music to the device and I'm going to listen to KLVE after all this.
Hmm. In Spring of 1997, 1.7 million was the average number of persons using radio in LA. Today, it is 1.68 million. In 1997, 95.1% of Angelinos listened to radio in a given week, today it is 94.7%. Each person listened an average of 22:45 hours a week, and in Winter, 2007 it was 20:45. 1997 was prior to iPods, most of the advanced video gaming, HDTV, satellite, the wide acceptance of the Internet etc.
The usage today of radio is nearly flat in reach (people who use radio, 12 to death) and only off about 8% in the amount of use, despite all those things you describe. Given the competiton for listening, viewing and entertainment sources in general, that is amazingly good for a medium that is nearly 90 years old.
And, specifically thinking of KLVE, which on a 4-book average is the #1 station in LA, the reason people listen, irrespective of their personal music collections, is that KLVE is more than just a juke box with an antenna. There is entertainment, a morning show with news and traffic and weather and interesting feature, there are artist specials, specialty shows, and a blend of music that is hard for a consumer to match on an iPod.
Uhhh.. No. P&G... message... NOT HEARD.
The issue is that for most P&G products the advertiser has no interest in reaching 55+ because they do not make a profit on that demo. These advertisers specifically limit the ages to exclude 55+. Were they to suddenly have an epiphany and decide that 55+ is highly desirable as a target, a number of stations would go after that target. So far, that is not happening. Could it? Sure, as boomers age, and if they are "convincable" consumers over 55, advertisers will follow the money. But for the moment, there is no revenue for a station to only go after 55+.
But I guarantee that a radio station marketing to the 55 year old who's driving around with the stock radio, would have his/her radio tuned in and would hear that message LOUD AND CLEAR... since that station would be the ONLY station vying for THAT set of ears in the market. As the only station catering to THAT demo, I have probably a good rating (12+, 35-64) and a high TSL.
WDUV in Tampa is almost 100% 55+ with a traditional EZ / standards format. It is #1 12+, but 14th in billings. It's source of revenue is almost entirely the group of direct accounts catering to seniors in the Tampa Bay area; no full market FM bills less. The problem, again, is that there are not enough advertisers interested in this market segment, even in one of the largest retirement areas in the nation.
And again, there are plenty of stations that straddle the 55 barrier... news talk is typically half under, half older. If anyone wanted to reach 55+, they have many options.
But since agencies won't buy that demo, what do we have?
Agencies only buy what the client asks for. Don't blame the agency.
Radio as a dying business model.
It's a really slow death... as I showed with the today vs. 1997 figures. In other words, we will have radio for longer than you think.
Because I can tell you the next generation doesn't care. Anyone under 35 is proficient in an MP3 device and the younger you get, the further away you get from radio useage. Nobody is buying car stereos for AM.FM radios anymore. Nobody hooks up the antenna on the home stereo system.. do you think anyone USES the tuner on a Yamaha 5.1 stereo system?
Most people do not have big home stereos anyway... they have bedside clock radios, kitchen radios, boom boxes, etc. And it is pretty conclusively seen that as people move out of the 12-21 demo, they have less time to spend programming and downloading and use radio more and more. In '97, 96% of 18-34's used radio, and today it is 95%. Even teens... 96% in '97 and 92.4% now (a loss? Sure... but not an abandonment)
If radio was so great, 100,000,000 IPODS would not have been sold, we would not NEED to be thinking about HD or worrying about alternative media. PEOPLE WOULD NOT BE LOOKING FOR IT! It's sad, but it's reality.
If radio were so great, every home would not have had a record player. If radio were so great, every home would not have a TV. If radio were so great, every home would not have multiple cassette players. If radio were so great, every home would not have CD players, even in the clock radio!
Memo to Chicken Little: The sky is not falling.