A recent article in Ad Age, "GM Roars Forward Into Digital Ad Channels," is a game-changer. GM is the third largest advertiser in the U.S., so the news that they will split half of their $3 billion ad budget over to digital on one-to-one marketing ought to grab our attention.
And they’re not talking about just banner ads. The plan is to integrate gaming, search, mobile, and other interactive applications. Part of the GM strategy is to use traditional media for new car launches, but then shift to digital for branding and sales events. Of course, much of this is driven by the role the Internet is now playing in the way that consumers search and research vehicle purchases.
This is a difficult piece of news for radio, especially because GM’s Vice President of-Field Sales, Service and Parts reveals that GM will also try to nudge its regional dealer ad groups "to shift their focus to digital versus spot TV" this spring. And the other quote in this article is from Joel Ewanick, vice president/marketing for Hyundai: "Online is getting to the point where it may be more important than the 30-second TV spot."
These are strong words, and they should be posted in the sales, interactive, and programming departments of every radio station. In theory, radio has the ability to deliver multi-platform campaigns to advertisers like GM or Hyundai. The combination of radio’s strong cume reach and its personality loyalty, in concert with digital/web tools that include strong databasing, could be packaged to provide the best of both old and new media worlds.
The operative words, however, are "in theory." Because as we’ve been saying for more than a few years now, radio must transform its advertising, programming, and marketing departments to think differently. It underscores the importance of content – on-air and online, because when one of our industry’s most important advertising segments undertakes a major shift like this, it should send shock waves all the way up to the top.
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’s…personality loyalty…”
What personality loyalty? The powers-that-be are firing great air talents at a record pace, replacing them with voice track DJs or going jockless. Can’t anyone see the industry is shooting itself in the foot to make CEOs and their stockholders happy?