The health, welfare, and efficacy of the AM/FM radio industry is much debated – by advertisers, consumers, trolls, and among broadcasters themselves. There’s evidence on both sides of the ledger – radio’s history, its reach, its seamless and simple technology, and its ubiquitous presence on the one side, and its declines in influence and relevance due to the torrent of digital and on-demand competition permeating the media landscape on the other.
To ensure a happy, prosperous future, most radio broadcasters are engaged in new, exciting, and risky initiatives designed to connect the business with the fast-moving media train. As consumers rapidly gravitate to digital gadgetry, platforms, and customizable content, radio’s top leaders have jumped in – in recent years, with both feet.
And here at Jacobs, we have and will continue to encourage this activity. It’s essential broadasters make their content easily available on digital platforms, ensure its programming is competitive, and embrace younger consumers who bring a different mindset to the media world. These are all imperatives if radio is to live to fight another few decades.
But these are all heavy lifts. Starting podcasting initiatives, developing mobile and voice strategies, investing resources in auto industry projects, purchasing and providing training in video content, and social media marketing are all expensive and complex endeavors, both in terms of human and financial resources.
Both our companies – Jacobs Media and jacapps – are heavily involved in these activities, and we support broadcasters who embrace them. But we also acknowledge the degree of difficulty that success in these spaces carries. There are no guarantees.
That’s why we don’t see commitment and investment in digital as a binary choice, leaving the terrestrial product behind. And in fact, we strongly embrace a balanced attack – aggressively developing digital assets and skills, but also maximizing radio’s inherent strengths as a reach medium that’s thoroughly ingrained in millions of consumers’ media menus.
So when I read “Hollywood Is Embracing the 50-Plus Crowd, And Marketers Need to Take Notice” in AdWeek a few days ago, I simultaneously cheered and screamed in anguish.
Written by Patricia Lippe Davis, VP of marketing for AARP Media Sales, the story details how the TV industry is successfully cashing in on the 50+ audience.
Tomorrow night, it’s the debut of “Roseanne” – the reunion of the original cast that made ABC gazillions in the ’90s. Its stars, Roseanne Barr and John Goodman, are now Medicare recipients – both are 65 years-old.
These reboots are becoming more common, as old standbys like “X Files,” “Murphy Brown,” and “Will & Grace” are all making comebacks, too. The TV networks must believe that reviving an old hit is a smarter and less risky move than attempting to develop new concepts and new shows. Or maybe they see a way forward in doing both – focusing on reality TV on the one hand, while serving their traditional aging audience with blasts from the past.
But what about those Baby Boomer demographics? As radio veterans of Classic Rock and Classic Hits stations, along with the ill-fated AC, Jazz, and Oldies formats, will tell you, it’s impossible to successfully market demographics that fall out of the 25-54 year-old sweet spot.
Don’t tell that to the TV networks. Davis reminds us that 50-plus consumers in the U.S. spend $3.2 trillion (that’s with a T) every year – higher than the GDPs of the UK, Russia, and France.
Add that to the fact these Boomers control over 51% of all consumer spending, and you’ve got a compelling case to take to advertisers. 
That is, if you’re in television.
Not so much in radio where stations that skew past the dreaded “54 line” are flirting with disaster, forcing researchers and programmers to alter their brand strategies to better conform with what agencies want.
But somehow on the TV side, they’ve effectively sold through the value of a graying audience, taking advantage of their demographic strengths. As more Millennials cut the cord and rush to streaming sites like Netflix and Hulu, television demographics will skew even older. After all, who’s still out there watching television in real time – even tuning in local newscasts? Yes, all those 50+ consumers.
And so it goes in radio. We can tout reach metrics all we like, but radio’s natural demo trajectory is decidedly older – including both public and commercial stations.
Television has unlocked this Rubik’s revenue cube, and now the nostalgia ideas are flowing as marketers and advertisers cash in. Imagine if radio could tap into this same opportunity by re-expanding its content menu by appealing to 50+ consumers, not to mention the 35-64 demographic. And think about what formats like Classic Rock and Classic Hits would sound like if they wouldn’t have to superserve the 25-54 arena. The Beach Boys would return to radio, along with Lionel Richie, Kenny G, Kenny Rogers, and maybe even Mozart. Those nostalgic acts would all find an affluent audience waiting to spend money on businesses that advertise on their favorite stations.
So what’s the tougher task? Building a podcast platform, courting automakers, and developing a robust mobile strategy? Or reminding national ad agencies that radio is more efficient at reaching seniors than TV – and we can do it for less ad spend?
Maybe it’s a matter of matter of radio companies hiring one less digital whiz and bringing in a DSM – Director of Senior Marketing – a pro trained to speak to media planners and advertisers at the highest levels.
Radio execs have been talking to advertising executives – account managers, planners, and buyers – since before Don Draper was born. We know how to connect with, charm, and sell these people. It’s easier than writing code and algorithms, simpler than stitching together a podcast network, and less clunky than communicating Alexa invocations to audiences rushing through their busy lives.
So for radio, is it about building complex and expensive digital platforms or making the case for high-spending seniors?
Here’s the good news. This isn’t a binary choice like in “The Matrix,” where you could take the blue pill or the red pill – but not both. It’s the classic either/or question.
But for radio, there’s a more logical and simple solution.
Swallow them both.
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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“Radio is more efficient at reaching seniors than TV – and we can do it for less ad spend!” BINGO. Multiple opportunities. The radio folks who built FMs in the ’60s are in their ’60s and know how to do it right. Vintage maturity won’t cost much….but will promptly make a ton!
Appreciate the comment & the sentiment, Clark.
As someone who sold radio, and was also a GSM, for nearly 20 years the idea that once someone turns 55 they don’t matter always confused me. In fact, the whole 25-54 demo never made sense to me as a 25 yr old doesn’t have a lot in common with a 54 yr old. Of course, sales reps should be going above the buyer and talking to the agency rep who is working with the client…AND also talking to the client directly whenever possible. Don’t rely on the agency RFP and the buyer to dictate how your station is perceived….go straight to the person cutting the check..the CLIENT. As agency money dwindles, the key to revenue growth for radio is DIRECT business, which provides more freedom to tell your stations story and why the older demo makes sense.
Spot on, Doug. Clients know who’s walking into the store. Thanks for the comment and the observations.
Great piece Fred. I read the Ad Week story as well, and, in my opinion, many radio formats should ignore the call for 25-54. If you’re an older station that is ranked, say 14th, in 25-54, how much more money can you actually make if you program that station to be 10th? I’d argue the difference is negligible. I’d prefer to own my core demo which may be 35-64 or it may be 50 plus. Then I’d work with my sales department to sell smarter by going after more clients that fit the profile of the listeners to that station. Forcing 25-54 is simply not a winning strategy any more. Older stations can still attract younger listeners by creating a vibrant social media and digital strategy, but when it comes to revenue, they have to modify the approach by narrowing the focus.
Jason, good points. You know, Classic Rock got its start out of that same mindset. The world was very focused on new music in the early ’80s, thanks to the rush of artists like Michael Jackson and Madonna, as well as the debut of MTV. So why would a new station compete against that – only to become the 4th AC or 3rd Rock station – when you could become the #1 Classic Rock station. It’s the same basic dynamics today. Thanks for commenting.
I can only hope radio companies are listening, Fred. I don’t know anyone who has loved everything about radio–from as early as I can remember–more than me. But even I find myself listening to more and more online stations as little on the dial is terribly appealing anymore to this north-of-54 listener. There’s one all-Beatles online station in particular I listen to a lot. In a given half-hour I can hear “Day Tripper,” “Penny Lane,” “Paperback Writer,” “Ticket to Ride” and “Nowhere Man”–more songs I love than I might hear in a month tuning across the dial. (And lest you wonder how long before I tire of that, they also play all the solo music from the the boys as well as a substantial number of alternate versions the band apparently recorded as well. I’ve been listening for probably a half year and haven’t tired of it yet.) And it’s not that I don’t like newer music, I do. It’s that it would be nice if some of these stations would drop that 6th Journey song for the day for one of these timeless classics. We are out here. We are spending money. The question is will anyone program in such a manner to capture our attention?
David, it starts with the agencies, and until we get that message across, you’re going to hear a lot of ’80s and ’90s music on the radio. And I have a feeling you’re spending a little money these days in spite of your “advancing age.” Thanks for the note.
Beautifully expressed, Fred. I trust the agency people who read your comments are willing to listen. I’m not sure, though, if they know that buying media genergraphically is more efficient & focused with lower cost-per-points.
Appreciate it, Dave. I’ve never heard an agency person give me a good explanation for why upper demos (and teens) are a valued target in television and not in radio.
After 46 years in the radio business and semi-retired, there’s little reason for me to listen to radio. The music choices are bleak-Rap, rock, screaming “new” country, “classic” rock from one end of the dial to the other. Same generic liners, same announcers talking about looking for things on-line.
There have to be others who would like to hear “I’ll Remember You”, Andy Williams, “Puppet on a String” from Elvis, “Real Live Girl” from Matt Monro, a broadway classic now and then, a Dr. Zhivago sound track cut, all mixed in with an adult making daily conversation with occasional call letters and weather info.
There are, Rick, and that’s the point of putting the 25-54 dictate under the microscope. Radio would be a better industry with the revalidation of a handful of formats that are now outside the “sweet spot.’ And I was thinking “Moon River” and “Jailhouse Rock.” Thanks for chiming in.
It would also be great to add some talent to the music mix. Gee,
Some personalities who actually played the music when it was new.
Imagine mature radio voices back on the air communicating.
Comments longer than liners.
Nah couldn’t happen
You’re right, Peter – not in the current environment at least. That’s another reason why a demographic shift would help loosen things up. Thanks for chiming in.
Older demos have money to spend. No one is going after them either because of laziness or a lack of knowledge on how to do it. Radio, AM & FM is starving for a good 50’s, 60’s & 70’s oldies format. We don’t have a station on the air like that right now. Sorry, satellite formats with no live D.J’s and small playlists just don’t cut it. Oldies fans are tired of them and no longer listen. I think one solution to this problem is to encourage more people or groups who are outside the broadcasting industry to buy radio stations and operate them independently. These people would not have their judgment clouded by what I would call “conventional radio thinking.” This would open the doors to new format ideas and or better takes on existing formats. I call it thinking outside the transmitter box.
Curt, perhaps that’s a solution. But the bigger fix is for the industry to put on the full court press with advertisers of all stripes. Success with 35-64s would open up the industry to new (OK, old) formats we haven’t heard in a while. Including Oldies. Thanks for the comment.
I think this article speaks much more about a healthy *present* than a healthy future. Not to denigrate the point that there FM listenership is still quite robust, but the trends are clear and the pace is accelerating. Millennials do not listen to FM in the healthy numbers Gen X and Boomer do and they are driving the trends – as the young always have.
The best path to the future shouldn’t be choosing between a blue pill and red pill, but combining them. We don’t know what would have happened if Neo took both pills, they didn’t make that movie. But we can.
To paraphrase our erstwhile president, stations should have to worry about a broadcast strategy and a parallel but separate digital strategy, there should be an integrated, synergistic content and marketing strategy.
Ideally, we’d have integrated (as well as non-integrated) platforms to present this on. I would love a smart speaker that had an FM receiver I could control with voice commands – one that moved seamlessly between RF and IP, that integrated social with both, with common look and feel.
David, very much appreciate the comment and your observations. Yes, we have to take them both, side effects and all. As for the integrated platform concept, I love the Alexa controlled FM tuner idea. Actually, Amazon (and Google Voice) are being built into a number of products and platforms. It may not be long before you get your wish.
So who’s gonna “grow a pair” to make it happen? 50+. Ready when you are! And, the folks who commented don’t seem to think it’s that daring. Remember, we grew up in times without seat belts.