“Prediction is very difficult, especially if it’s about the future.”
Niels Bohr
Bohr was a Danish physicist who worked toward a better understanding of atomic structure and quantum theory and he gave us this quote about the difficulty of making calls about what will happen next year…or ten years down the road.
But that didn’t stop Gordon Borrell in his recent presentation celebrating the 20th anniversary of digital advertising. It was a prediction that has rocked the radio world, and has caused a great deal of dialogue and consternation in radio circles. Not to be outdone, yesterday a new Borrell analysis showed that for the first time, more than half of automotive ad spending will go to digital media. (Borrell spoke at a Jacobs Media Summit many years ago, and his reports can be purchased and accessed here.)
Gordon’s dire prediction dovetailed with a similar one that Strategy Analytics’ Roger Lanctot made just a few days later, claiming that both Pandora and SiriusXM have bright futures in the music, entertainment, and information space, while broadcast radio will see its fortunes diminished over time. You can read Roger’s entire article here.
Of course, the car is a big part of the challenge. As we know only too well, it’s the #1 broadcast radio listening location as well as the #1 radio revenue category. But both of those realities are becoming shakier.
So what happens on four wheels impacts everyone in radio.
And yet, the industry has been slow to learn and understand the new challenge that is the “connected car.” Our DASH conferences are efforts to shore up the gap, bringing broadcasters and automakers together to discuss issues that range from electronics to content creation to revenue generation. And Paul and I continue to take our “connected car” presentations on the road, updated every year at CES and other telematics conferences.
Just last week at the Massachusetts Broadcasters Association’s “Sound Bites” conference, I asked my required question, “How many of you drive a connected car?” And of the 70 or so people in the room, only one hand went up. That’s not a New England thing – it’s a radio thing. We’ve been so busy creating more listening occasions and making Q4 revenue goals that we’re missing the bigger picture that is the expanding media landscape.
It’s why our Techsurveys – now in their eleventh year – are even more important now. This may be the only opportunity that many broadcasters have to determine how their audience is evolving and what they can do to better serve them in this fast-moving media ecosphere. From gadgetry to social media to mobile to “connected cars,” our Techsurveys don’t just provide national data – they give stations the tools they need about local listenership habits and tastes that can help broadcasters strategize their way out of these profound challenges.
Whether we always realize it or not, if you’re working radio in 2014, you’re being tested unlike any generation of broadcasters since the advent of television. And I would argue that because of the Internet and mobile, today’s challenges run deeper than what those radio guys were experiencing in the ’50s. That’s because they are very cultural and more complex tectonic shifts in behavior.
So do you have the tools you need to better understand how your station or your company can thrive in your local marketplace? Having the data – or the statistical radar – to maneuver, create, innovate, and problem-solve goes to the heart of giving radio a fighting chance to make itself over and reprove its value proposition to changing consumers.
For a few hundred bucks, you can learn what your digital competitors already know, and get started on carving out a viable strategy for 2015…and beyond.
Sign up before January 9th, and if you bring in your cluster mates and/or other stations in the company, we’ll make it a better deal for you. Register here.
And that brings us back to Borrell and Lanctot. Will their predictions about radio’s eventual meltdown come true? Is there anything you can do to bulletproof your brand to ensure it’s still a popular dashboard choice a decade from now?
In every industry, only the best in their categories will survive the intense scrutiny created by the onslaught of technology. Radio is no different. Only the brands that matter in people’s lives will make the cut – whether it’s in mindshare, the dashboard, or an app on a smartphone.
Be one of those brands.
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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