You have to feel a little sorry for brands trying to make a major impact in the mobile space.
First, it costs a lot of money to develop an app, and as we know, there are two platforms that really matter: Android and Apple’s iOS.
But the biggest challenge facing companies, personalities, and brands of all shapes and size in mobile is the sheer amount of apps being developed. App stores are filled with millions and millions of apps, thus making it difficult to get the word out to target users.
Thus, many brands have to resort to marketing in order to generate awareness and ultimately an actual download on a smartphone. And oftentimes, the expense of getting the word out about apps overshadows their actual revenues.
In fact, the latest estimates for April of getting an app downloaded (or CPI – cost per install) is rising. According to Fiksu, on Android devices, it’s $1.31 per download; on Apple, downloads are a relative bargain at $1.24 a pop.
For radio, however, these costs are negligible to nothing because stations have the power of their own air to generate downloads. And of course, self-promotion for apps (and just about everything else) on the radio almost always works. This was a consistent them last week at Convergence, stated by several presenters on stage – most of whom were not directly working in radio. That says a lot about one of radio’s most overlooked assets: its own air.
Bob Pittman would tell you that the growth and expansion of the iHeartRadio brand since he joined Clear Channel has been driven by promotion on his company’s hundreds and hundreds of radio stations, using their influence to spread the word about this platform.
And for companies that develop their own apps, of course, the same is true. Want to amp up downloads in a market where smartphone and tablet acquisition continue to grow? Start running promos for your app, an asset that will only become more important over time.
Brands are being taught by the big boys to “Think mobile first.”
Sadly, radio often takes the philosophy of “Think mobile last.”
At a time when smartphones are becoming the most powerful, exciting, and fun devices that people own, the power of the radio station megaphone has never been more important.
Advantage radio.
Use it.
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Billy Craig says
Very good read, seems to be analogous to business itself…..
Fred Jacobs says
That it is, Billy. Thanks for writing.
Robin Solis says
Now you’re getting it 😉
Robin Solis says
Now, you want to have an install that is relevant to your station and not annoy listeners with a lot of app talk. It would be nice if there was a company that was designing, customizing and making these installs for all radio stations. I’m not that familiar with Jacapps myself but (my company)synchronicity will shortly be gearing up for just that. We are on the side of radio too (as I imagine Jacapps is) but our own technology is way ahead of everything out there now and because we are efficient *and* we don’t make money unless the stations make money, our software is very cheap. Look for us to be making noise this year.
Fred Jacobs says
Best of luck & thanks for reading our blog.
Robin Solis says
Wasn’t I a little wiseacre. After 22 years of flogging this thing, I was really using all my energy to make it happen. Thank God, it did. Whew! Thanks for putting up with me, Fred.
Paul Goldstein says
Smart piece. Broadcast radio’s megaphone can be used to develop its online audience as Pandora, Apple, Google, Microsoft, Spotify and Amazon aim to convert FM/AM listeners to their current and soon to be launched streaming services. Except, if broadcast radio isn’t innovating on the content front, creating enticing original ONLINE content/stations/channels, that megaphone will have been wasted. Throwing up a stream of your stations is nice but not enough. iHeart is using CC’s massive megaphone to drive iHeart usage. The problem is iHeart is barely growing (compare most recent month-month growth for iHeart vs. Pandora April: https://goo.gl/qDzGgF March: https://goo.gl/srDGIz ). The four pillars of their product: 1. A “Pandora” like service. 2. A “Songza” like service. 3. Streams of their broadcast stations 4. Podcasted/on demand content. …aren’t generating the mass audience which will allow it to compete with Pandora’s 77m ACTIVE users, iTunes 40m, & Spotify’s 40m actives not to mention many others. Without dazzling original content/stations, despite hundreds of millions spent in megaphoning iHeart on their FM/AM stations, the audience development problem will persist. Their debt handcuffs original content investments creating an opportunity for their online competitors.
Fred Jacobs says
Paul, thanks for the thoughtful comment. Clearly, content is at the foundation of everything and always trumps distribution. That megaphone doesn’t mean much if the content strategy isn’t in place. Good to see you at Convergence and thanks again for weighing in.
Robin Solis says
Hi Paul! We just connected on Linked-In 🙂
Kim Carson says
I’m not sure radio owners, or those really making the decisions, care about investing in what’s on their radio stations. I think the objective nowadays is all cost effective based. I think it might be too late anyway. So much of the talent has been eliminated already. They have either left the business, are working for one of the better companies or doing their thing independently. An app will only help a station that has something worth listening to on it. An app should be developed, for a real talent, advertised, and partnered with someone similar. I’m not sure it matters if you have a loud megaphone (radio stations). When there is nothing on it worth listening to, an app won’t help much long term. Remember there will be lots of choices when there are lots of apps, much more than there are radio station frequencies. More options for a listener. Talent and connection are and always will be key. That’s when you really need an app. Enjoyed the read very much!
Fred Jacobs says
Kim, thanks for the note. And your reminders about the importance of talent in this process are important. Radio broadcasters need to continue to invest in talent or face the rapid reality that infinite choice is available to a growing number of consumers. Radio continues to have the ability to drive ears (and eyes) as iHeart Radio proves. But without that great content, stations face a predictable loss of yank. Appreciate you taking the time to comment.