That’s quite a headline. The big question is why. It’s not that radio listening has fallen off a cliff or that radio’s reach has diminished. In fact 92% of Americans listen to radio on average 12.3 hours a week.
One has to read between the lines. First, the big national chains have proliferated. Online shopping has increased dramatically. Radio has always seen the locally owned business as their bread and butter for revenue. Some locally owned businesses have shut down as consumers opted for the national chain or online shopping. Those that stick around often see lower sales volumes now. In other words, they have fewer dollars to allocate to advertising. National chains and online companies advertise on a national level, typically never spending a dollar on local radio.
Radio has always struggled with ‘results’. Radio is not alone in this. Television and print options also struggle. The typical consumer does not know what got them to call or visit and if asked, they typically guess and guess wrong.
Online options like Google, Facebook and even websites, offer exact numbers. When the phone rings and you answer at your business, you might hear ‘this call generated by Google’. People will recall seeing something on Facebook or other social media. Websites allow actual counts for visitors and you know where the inquiry came from. Is it any wonder faith in radio, TV and print has waned?
The facts are radio still reaches the highest percentage of America daily. Radio, second to television, has the highest ‘time spent’ with the medium than any other option. Radio has always enjoyed the lowest cost per thousand.
Perhaps radio needs to tell our story better. Maybe we need to encourage businesses to look at their cost per thousand to generate customers. Radio is free or minimal in production fees. How much does it cost to revamp a website, change an ad with an online service and how quickly can your message change when needed? If you look at all of that, the flexibility of radio, low production cost, if any, and radio’s ability to do things like target your audience, restrict your message to hours you’re open and target peak hours when buying decisions are being made, radio wins hands down. And, radio can guarantee every listener is in your trade area.
Your online options can claim that and even claim they’re real people in those numbers but do you have your computer setting to allow your location and share your search history? I have a website or two. Bots are out there everywhere, perhaps gleaning information for marketing purposes or looking for weak sites to overtake (if we think negatively). If you consider the substantial number that do not allow their internet surfing to be traced to a location, it’s telling. In fact it is a default for some programs like one I use. It allows no demographics or geographic location to be shared. If I click on your ad or post or website, do I not register as a part of that total even if I’m many states or even an ocean or two away?
So, if you want to gauge your marketing results, what matters? It is not the proof of how many you reach (known or unknown) or how many calls Google can get you. The only thing that matters is what happens at the cash register. Focus on that. Radio might not be able to say we can produce X number for $X like the online counterpart. Big deal. What is a big deal is what makes your cash register ring for the fewest dollars invested. I believe with my decades in radio, that radio is the lowest cost and best suited for most businesses especially when bundled with station websites, the station’s Facebook and other social media pages and any online newsletter or mailings the station offers in addition to over the air messages.
Radio is in virtually every vehicle, available on handheld devices, via an actual radio and for most via computer. No matter the device used radio reaches 92% of Americans weekly and radio bends their ear 12.3 hours a week.
For the record, in 2005 Radio Advertising Revenue was about $20 billion dollars. Adjusted for inflation, that would be approximately $27 billion. In 2019, Radio Advertising Revenue was $12 billion dollars. There are about 15,330 radio stations.
One has to read between the lines. First, the big national chains have proliferated. Online shopping has increased dramatically. Radio has always seen the locally owned business as their bread and butter for revenue. Some locally owned businesses have shut down as consumers opted for the national chain or online shopping. Those that stick around often see lower sales volumes now. In other words, they have fewer dollars to allocate to advertising. National chains and online companies advertise on a national level, typically never spending a dollar on local radio.
Radio has always struggled with ‘results’. Radio is not alone in this. Television and print options also struggle. The typical consumer does not know what got them to call or visit and if asked, they typically guess and guess wrong.
Online options like Google, Facebook and even websites, offer exact numbers. When the phone rings and you answer at your business, you might hear ‘this call generated by Google’. People will recall seeing something on Facebook or other social media. Websites allow actual counts for visitors and you know where the inquiry came from. Is it any wonder faith in radio, TV and print has waned?
The facts are radio still reaches the highest percentage of America daily. Radio, second to television, has the highest ‘time spent’ with the medium than any other option. Radio has always enjoyed the lowest cost per thousand.
Perhaps radio needs to tell our story better. Maybe we need to encourage businesses to look at their cost per thousand to generate customers. Radio is free or minimal in production fees. How much does it cost to revamp a website, change an ad with an online service and how quickly can your message change when needed? If you look at all of that, the flexibility of radio, low production cost, if any, and radio’s ability to do things like target your audience, restrict your message to hours you’re open and target peak hours when buying decisions are being made, radio wins hands down. And, radio can guarantee every listener is in your trade area.
Your online options can claim that and even claim they’re real people in those numbers but do you have your computer setting to allow your location and share your search history? I have a website or two. Bots are out there everywhere, perhaps gleaning information for marketing purposes or looking for weak sites to overtake (if we think negatively). If you consider the substantial number that do not allow their internet surfing to be traced to a location, it’s telling. In fact it is a default for some programs like one I use. It allows no demographics or geographic location to be shared. If I click on your ad or post or website, do I not register as a part of that total even if I’m many states or even an ocean or two away?
So, if you want to gauge your marketing results, what matters? It is not the proof of how many you reach (known or unknown) or how many calls Google can get you. The only thing that matters is what happens at the cash register. Focus on that. Radio might not be able to say we can produce X number for $X like the online counterpart. Big deal. What is a big deal is what makes your cash register ring for the fewest dollars invested. I believe with my decades in radio, that radio is the lowest cost and best suited for most businesses especially when bundled with station websites, the station’s Facebook and other social media pages and any online newsletter or mailings the station offers in addition to over the air messages.
Radio is in virtually every vehicle, available on handheld devices, via an actual radio and for most via computer. No matter the device used radio reaches 92% of Americans weekly and radio bends their ear 12.3 hours a week.
For the record, in 2005 Radio Advertising Revenue was about $20 billion dollars. Adjusted for inflation, that would be approximately $27 billion. In 2019, Radio Advertising Revenue was $12 billion dollars. There are about 15,330 radio stations.
