Now that the Thanksgiving holiday has passed and you hopefully had a chance to share some quiet time with friends and family, we start the final stretch of 2013. It’s a great time to think about the hyper-rate of speed in which our business is changing, and what it means as we head into the new year.
A couple weeks back – in perhaps the understatement of the year – BIA/Kelsey pointing to faster local ad revenue increases than anticipated, noted that digital is and will be the engine of that growth.
Their announcement was like one of those AT&T commercials where the guy sits around the table with these little kids, and asks “What’s better – bigger or smaller?”
And in this case, the correct answer is most definitely “BIGGER.”
That’s because on the one hand, traditional local ad revenue is projected to increase a whopping .1% through 2017. You read that right: one tenth of one percent.
And in contrast, digital revenue is expected to grow by a whopping 13.8% during that same period.
The news isn’t as positive for local radio (or TV) where BIA/Kelsey’s chief economist, Mark Fratrik, projects that digital spending increases will only be in the 4-7% range during this period, while newspapers will actually see their digital revenue grow at a much faster clip. Why the difference? Because newspapers were forced to confront the digital issue long before it was even on broadcasting’s revenue radar screen.
So what’s your digital strategy?
If you’re working for one of the bigger companies, chances are good there are lots of people thinking about that question, attempting to aggregate the company’s digital and traditional assets.
But if you’re with a smaller company, there’s a better chance your digital strategy may be in flux. And the good news is that you have the power of ability and flexibility, allowing you to take a Ninja-like approach to creating and refining digital models.
That’s the potential, but it will not be realized without locally focused broadcasters digging in and committing to solutions. Many years ago, recognizing that digital was about as important to most stations as the overnight guy (I told you it was many years ago), our company came up with the idea of distributing wristbands with the initials:
W.T.D.A. or “What’s the digital application?
The idea was to motivate radio professionals to think about how digital could be woven into promotions, on-air events, contests, and yes, even sales initiatives and proposals.
Today, I’d make a slight change in the acronym to ask:
W.T.D.S. or “What’s the digital strategy?
It was a good question back then – it’s an even better question now.
As the saying goes – with apologies to Bob Dylan, “You don’t need a weatherman to know which way the digital wind blows.”
BIA/Kelsey, for all their math and science, has reached the same conclusion that most of us feel in our collective guts every day – digital is, in fact, rapidly becoming the center of the advertising universe.
If your brand, station, show, or company is still searching for answers, get help. There are agencies, consultants (yes, like us), and other guides that you can tap into or employ. It’s why we have radio’s leading mobile app development company down the hall, and radio’s smartest social strategist in the office next door.
It’s also why we continue to grow our Techsurveys every year – to help stations and companies better understand their audiences to help design smart, viable digital strategies.
One of the best quotes of the ‘70s was uttered by Deep Throat in All The President’s Men as he encouraged struggling investigative reporters Woodward and Bernstein to continue their efforts:
“Follow the money.”
That’s really what BIA/Kelsey is advising.
And so are we.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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