When you work in radio, sometimes it’s easy to feel like you’re Charlie Brown – reliving a “Groundhog Day”-like nightmare year in and year out. As the broadcast medium continues to skew older, all the economic data show the same thing: upper demo consumers are the biggest spenders. But the ugly contradiction is that the media buying world continues to focus its attention – and its dollars – on a considerably younger audience.
Charlie Brown’s futility is a reminder to those of who continue to believe the media world will one day wake up to this reality – only to have “the ball” pulled away again and again. Lucy Van Pelt is like the media buyer queen from hell – a metaphorical example of cognitive dissonance. She knows the truth about the demographic strength of 55+ consumers – and she seemingly doesn’t care.
Logic suggest that advertisers and marketers are smart enough to connect the dots, and realize that today’s 50+ consumers are the most reliable – and have the most money. And every year, prognosticators (I was once one of them) maintain that as Baby Boomers age, their marketing strengths will become in vogue once again. But like clockwork, Lucy keeps yanking the demographic football away from radio broadcasters.
It has been said the definition of insanity is doing the same thing over and over again, and hoping for a different result. The Charlie Brown/Lucy football analogy strongly suggests the outcome will be the same – until perhaps there’s a dramatic change in strategy and tactics.
These days, long-time consultant John Sebastian is proudly trumpeting a new 55+targeted format, guaranteed by him to rocket to the top of the 6+ ratings rankers. And he may, in fact, be truthfully advertising his format. Sadly, its 25-54 year-old rank will most likely be challenged to finish in the top 10, making it arduous for radio salespeople to convert its ratings into revenue.
I’ve been in this movie before. In fact, I’ve starred in it. It’s the story of the Classic Rock format. And as I’ve (somewhat) kiddingly suggested, I inadvertantly discovered the best 55+ format in radio – without intending to do so. While Classic Rock continues to excel in the coveted 25-54 rankings, it also skews above that AARP watermark. As my wise friend Ted Ruscitti often reminds me even when good Nielsen books arrive, the format has long gone over the “demographic cliff.”
Many stations in the various Classic formats have been punished in sales and revenue by media buyers and planners who just don’t get it. As KQRS programmer Scott Jameson reminded me earlier in the year, a one year shift to include 55 year-olds moved his station’s ranking, average rating, and share significantly in the latest rating survey. In that mathematical Kabuki dance, KQ is not alone – most stations in the Classic Rock and Classic Hits lanes would be substantially helped by even a 5-year shift in emphasis. But in an advertising mindset where demographics trump audience behavior – and results – this is the world in which we live.
But maybe there’s a change afoot. In just the past few weeks, we’re witnessing an onslaught of Breeze stations signing on, re-exposing a Soft AC playlist of hit songs that have been relinquished to Spotify, 
Pandora, SiriusXM, and personal music collections for the last couple of decades. It’s been some time since Lionel Richie, Air Supply, and Whitney Houston have seen the light of day on FM radio. Until now.
The biggest companies in radio – iHeart and Entercom – are both embracing the “new” format, signaling that a barrage of similarly programmed stations will begin to emerge throughout the U.S. and Canada.
I wish them all well – especially their sales department. Because if women 55 and over become a desirable audience (again), surely their male partners, husbands, boyfriends, pool boys, and relatives should be treated with equal value even though they’ve aged out of radio’s so-called “money demo.”
And by the way, this demographic pattern doesn’t just match consumer spending habits (more on that in a moment), it overlays perfectly with actual radio listening. A recent story in the Indianapolis Business Journal – “Radio stations embrace older audiences, rather than be millennial-obsessed” – by Anthony Schoettle notes the five highest rated stations in the market focus their attention on listeners 45 years of age and older.
Indy ratings leaders, including Classic Rock WFBQ, Country WFMS, and the news and talk programming of WIBC. all benefit from appealing to so-called mature audiences.
As the story also points out, this pattern is totally congruent with the audience currently spending time listening to broadcast radio. Nielsen data reveals the majority of radio usage occurs among those in this middle-aged – and older – demographic.
If you think of the many challenges facing radio revenue generation in 2018 (and don’t forget the election was not a normal occurrence), a quantum improvement in the industry’s fortune would take place with a concerted effort to establish 50+ radio listeners as being not just viable – but desirable.
In the same IBJ story, investment banking consultant, RTK Media’s Robert Unmacht, refers to targeting Millenials and Gen Z as “a fools errand.” And Promotus Advertising’s Bruce Bryant points out “The 40-plus demographic still drives the market. Advertisers are often more willing to pay for the older audience because statistics show they have simply more disposable income.”
Not always. In fact, the disconnect between spending and demographic chronology couldn’t be more apparent in today’s media environment.
That’s why everyone in braodcast radio should be getting to know media researcher Charlene Weisler (pictured below right). She’s a frequent contributor to Media Village, as well as a strong proponent of the power of upper-demos
in media advertising and planning.
Last summer, her story “It’s Time to Welcome the 55+ Demo ino the Media Mainstream,” makes the case that today’s AARP members are more modern, luxury focused, and focused on a better quality of life than their counterparts did back in the 1960s.
She subsequently wrote “Losing Money By Missing the Demo Target,” quoting Forbes, media ecologist Jack Myers, and former iHeart research maven, Radha Subramanyam, all of whom see missed revenue opportunities by ignoring senior spenders. Now the Chief Research and Analytics Officer for CBS, Subramanyam asserts:
“Audiences that have been left out of media plans are often the most affluent and the most likely to drive spending across a range of categories, including auto, fine dining and travel.”
But no one is going to bat for thie over the hill, high-spending older audience. Nielsen, the RAB, and other organizations maintain their demographic agnosticism and neutrality. After all, radio broadcasting is a melange of interests and tastes, from music to talk, designed to appeal to a broad audience.
Not just seniors. Right about now, a little bit of upper-demo advocacy would be desirable as radio heads into the new year, especially as more and more stations target them.
And perhaps in 2019, marketing them will become a Breeze.
That is, if Lucy doesn’t yank the football.
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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Effective Spending. With a Happy Ending!
This has actually been true for the past 30 years or so. The 55+ demo has had more spending power than it’s younger counterparts for years. Are we seeing a 21st century “Music of Your Life” format?
Creating formats have never been a problem. Marketing them successfully? A whole other story. Thanks, Scott.
Not sure when/if the agencies will go after the 55+ demo-but I’m pretty sure they will respond if radio does. There was a time when “hits” that were forgotten hit the air and spawned success for “Oldies”. The “breeze” format as you point out is hitting its stride these days..but the question is how long will it last without advertiser support. That was the case for our station as it transitioned from “Smooth Jazz” to “Easy” to “Classic Hits”. We’ve had a lot of success in the “demo”-and as of today no one we know of in our market is clamoring for the 55+ demo-yet. For radio, going where the “fish” are is good. Will the advertisers follow?
I hope it happens during my radio lifetime, Dave. I expected it would’ve happened by now, especially given the massive size and spending power of Boomers. We will see. Thanks for the comment.
As you said…
Appreciate that.
It’s easier to fill a hole than dig one.
Moniter, or run a monitor in any market and a number of holes will appear…
The biggest one?
The one being avoided by programmer prejudice and sales paranoia.
I’ve created format solutions and personally slid the templates and playlists across a number of desks.
They always got pushed back by a guy with a tie who thought I was crazy.
I’m crazy?
Nope…
You’re the one trying to have six statons all be number one 25-54.
That’s fighting the math…
That’s crazy.
Sadly, cluster programming has led to format sameness, rather than providing the one (or two?) stations in the group that can afford to try something new and different. And ultimately, the failure to lead and experiment often dies in the sales cubicle where new and different is often treated with questions like: What does it sound like and where is it workiing, accompanied by the fear of selling demos that fall outside the “sweet spot.” Thanks for the note, Marty, and the diagnosis.
Fred, first off, congratulations on the well-deserved Hall of Fame honor. Paul’s induction speech was wonderful, and I can only imagine what it meant to your whole family.
Secondly, your observations are spot on, but we’ve been fighting this (25-54) battle for 30 years. It’s possible that, despite all of the psychographic evidence, the notion of “55 PLUS” is a bit intimidating for some advertisers. “Plus what?” I know whenever I hear about a “55 plus lifestyle community,” I run as far and fast as possible. ‘Nothing against 80-year olds–I hope to be one someday–but I don’t want to hang with them right now.
I recommend a simple baby step. How about Nielsen gives us a 55-59 demo? Those five years can make a big difference perceptually and perhaps crack open the door to some different thinking. They’re already in the sample, so there’s no additional costs, and “25-59” might be a bridge to future change.
I love this 5-year idea, Phil. It gives us a chance to kick that can (or football) down the road, while generating results for radio’s many advertisers.
Thanks for the kind words. The HofF honor was special, and one that my entire family appreciated.
Lemme get this straight. Let’s take an idea that’s never worked and try it again – exactly the same way its never worked. Will anyone sell me a short position on that?
The ad world has focused the boomers since they were kids and the thought of pop culture and marketing irrelevance is just more than they can take. This won’t work, at least not in the “build it and they will come” framework that seems to be the plan -specially if what results is a Pandora station with worse sound a lot more commercials.
If radio wants to sell the knee replacement/stent/Botox generation to advertisers, it should find a specific marketing challenge for a specific advertiser or two and address it head on with a step by step plan to solve it. And that plan has to be more than:
The Breeze: M-Fri 6A-8P – 18X.
I remember not that long ago when then Clear Channel had a station in West Palm that sounded great, had awesome 12+ numbers but lousy demos that sounded a lot like the Breeze. Perfect market for the concept and that station is now in another format.
I think radio would be better served by looking for ways to attract the current money demos that are spending less and less time with it. But if Charlie Brown insists on another kick, going micro and not macro is a better option IMO. A new station that’s #4 12+, # 11 25-54 and #1 55+ on its own, won’t change anything. A targeted approach might.
No arguments from me on this. And I’m convinced Charlie Brown will continue running up to the football.
Same story, different decade. It’s our un-sexy delivery system. Radio is a 45+ medium, period. Fish where the fish are. Looking forward to seeing Sebastions success stories. I’ve asked countless 20-45 year olds about radio usage. Most common response, I don’t own a radio. And in my car, I plug my iPhone in and listen to commercial free music.
We’re clearly heading down that road, Lenny – another reason to maximize the people listening to radio now. As for Sebastian, I don’t doubt he’ll create a format that will get ratings. My concern is whether anyone will be able to sell it.
Fred…you know I am a big believer in that format and that music. But, I am also a guy who programmed a station that lost 50 cents on a dollar playing it.
I also programmed the first “All 80’s” station in the country…the playlist of that station now closely mirrors what Classic Hits stations play, even though some are now pushing toward the 90’s and beyond.
I love how these writers make their assumptions, but never seem to ask people in the radio industry if we on the ground are seeing what they’re hearing.
Appreciate that, Kevin. Clearly, there’s too much emphasis on demographics and not enough on results.
Fred,
Great article and I’ve been “singing this song” since my first GM radio job back in the early 80s when I was marketing an Al Ham “Music of YOUR Life” formatted AM radio station. Then I would take over a 50,000-watt Bonneville Beautiful Music formatted signal. The good news is we made money programming to a 55+ demo. LOTS OF IT.
I recently wrote about this on my blog: https://dicktaylorblog.com/2018/10/28/radios-money-problem/
Radio doesn’t have to have a money problem, if it wakes up to where the money is.
Dick, thanks for the affirmation. Bloggers like you and me talk a lot about the things broadcast radio need to do in order to remind competitive and healthy. But when it comes to proving the efficacy of upper demo audiences, it may be the easiest task of all. And yet, most companies have simply thrown in the towel and play the 25-54 game. Follow the money.
In 1979, yes…. 1979, when Ted Dorf was GM at “Beautiful Music” WGAY-FM (99.5) in Washington DC (and I was his GSM), he started a “35-64” campaign to promote the value and benefits and “older” target audience to national and local agencies and clients.
His premise was the same… as the population continued to age, they had more disposable income and inclination to spend and therefore deserved more attention and advertising dollars of many products and services normally targeted to the then more popular 25-49 demographic.
Unfortunately, much of that effort fell on the deaf ears of media planners and buyers who were in the 20s and 30s and just didn’t “get it”. I wonder how much of that still holds true today?
In the meantime, I will be joining my other 55+ friends at the golf course, driving a luxury automobile, to a fine dining establishment as we pass the “younger” generation heading off to work just trying to make ends meet.
Spot on, Peter. And based on a Forecast interview with agency head, Colin Kinsella, the “young media buyer” problem hasn’t gone away. If anything, it’s intensified. And it may be exacerbated by the age of so many radio station reps as well. The demographics suggest otherwise – those over 55 are spending more money than any other age group. Enjoy your retirement – and keep supporting the American economy!
Fred I love the Blog and everything you’ve ever done! It’s been a while since I’ve scrolled down to see comments. Enjoyed doing this just now, catching up on your recent posts, noting with interest the opinions from several long time mutual radio acquaintances on this topic. Couldn’t agree more with your observation that ‘consolidation has lead to format sameness’. Everyone vying for 25-54. In a market with say 15 to 20 viable FM stations I would think someone could make more money being consistently Top 3 55-64 than consistently being #12 25-54 and a no show 55-64.
One observation I have as a radio listener (like on weekends or when I’m traveling) is that so many formats – current and library based – seem to be “forcing the tempo” playing songs and artists that to me seem to be fatiguing. Maybe it’s all of the processing everyone is using now with Voltair and HD. I remember reading a piece in one of your posts about how we actually hear in analog and that is why most audiophiles prefer LPs to CDs
Gary, thank you for the very kind words & the observations. I’m no engineer, but I think you’re right the processing is a conntributing factor to that fatiguee you often hear. Distortion will do that, and while perhaps it fosters PPM crediting, it’s aesthetically leaves a lot to be deisred. Always great to hear from you.