In today’s blog from Paul Jacobs, he advises radio about what it must do to increase revenue by focusing on new digital strategies:
While radio revenue continues to struggle to stay even year-to-year, online expenditures by the auto companies are expected to rise more than 21% this year, surpassing $3 billion. The Detroit 3 (they’re not The Big 3 anymore), along with all of the foreign companies, are slashing their budgets for electronic and print advertising, and replacing them with auto focused and research-oriented web sites. They have determined that casting a wide net to hopefully snag a few buyers isn’t as efficient as the more targeted approach they can get online.
So, what can radio do? Continuing to sell "commercials" isn’t going to cut it. In place of the traditional way the industry sells to clients, radio needs to take an approach that best suits their needs, because if stations can develop effective digital solutions, we still have something that standalone web sites wish they had – cume and personality.
Here’s a different approach – Classic Rock radio stations could create a micro-site dedicated to Classic car collectors. It could be a gathering place for car enthusiasts – an attractive market for the auto companies. Younger Rock stations could create pages dedicated to car customization and new car technology. These platforms might not contain bios of jocks and Rock Babes, but they will generate the exact kind of traffic the car companies want.
And what about HD-2 channels? How about an entire channel dedicated to cars – talk shows, swap meets, and auto experts talking about this huge category that affects us all?
The bottom line is that the entire revenue foundation of our industry has changed, and radio must adapt. Dollars are moving away from radio’s core competency of selling advertising, and instead are shifting into more targeted digital endeavors. It’s time for radio to take its biggest assets – audience reach and relationships – and invest in new platforms that fit the life group, while satisfying the new marketing needs of key client categories. The same old selling techniques will leave radio in the dust, wondering what happened.
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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Get back to local – personality Radio
(I’m a 43 year vet of Great Radio)