A great guest blog today from Paul Jacobs:
The constant drumbeat of negativism in the press about radio is apparently beginning to seep through to advertisers. Despite the fact that radio’s total share of listening (though down a tick) is way ahead of viewing levels on network television and newspaper readership, GMs and GSMs are beginning to hear some real negative comments from their core clients.
In annual negotiation meetings, stations are hearing new demands, along with complaints that have nothing to do with high cost-per-point. Instead, advertisers are questioning the viability of the medium, and rather than asking for the typical "value added" throw-ins (club nights and giveaways), they’re seeking technology-based solutions.
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It’s quite possible that your station will be spending less time in clubs, and more time in cyberspace to make the goal. |
In other words, some advertisers are concluding that consumers are shifting to the Internet and iPods for entertainment, and are expecting their media partners to do the same. Requests are coming in to sponsor audio streams and podcasts, appear in listener emails, run video and banner ads on station web sites, and participate in the creation of online promotions.
Is this a problem or an opportunity for radio? For stations that have diligently built up the quality and content of their web sites, along with growing their databases, developing solutions should be easy. And stations that have been streaming and have built up an Internet presence with their audiences can actually charge a premium for sponsorship positions on their media players.
On the other hand, stations that have taken a pass on investing in their web presence because of the cost are now potentially in a position of actually losing buys because of these advertiser perceptions. The old paradigm that you can’t make money with your web site is as outdated as Windows 95 computers. Our industry is undergoing rapid change. Much has been written that it’s just the listeners gravitating to new technology. Now it’s the advertisers.
This is a no-brainer. Perhaps when putting together 2006 budgets, station managers should think about reducing a promotion position and adding a web position. And the days when a part-timer is handling web duties for the entire cluster have come to an end. It’s quite possible that your station will be spending less time in the clubs and more time in cyberspace in order to make goal.
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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