Tag Archives: Cost Per Point

Radio – America’s #1 Mass Reach Medium

radio-reaches-245-million-americans-2015-2This was certainly true in the first golden age of radio, that period of time from its birth in 1920 through the mass takeover of television in the 1950s. Once TV came along, radio had to reinvent itself.

 

That reinvention came in the form of Rock ‘N’ Roll, the transistor radio and the car radio. Radio was portable, TV was not. TV took over the living room, but radio took over every other place.

 

In my life, I’ve lived through every new form of technology that was going to be the death of radio. The 8-track tape, the cassette tape, the CB radio, the CD player, the CD changer, the cell phone, the MP3 player, and most recently, the World Wide Web, Internet streaming and wireless broadband.

 

So you might be surprised to learn that at the 2015 annual meeting of the Association of National Advertisers Masters of Marketing Conference in Orlando, Florida attendees learned that when it comes to adults 18+, RADIO reaches 93% of them every week. That’s more than TV, more than smart phones, more than PCs and more than tablets.

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I remember when I got my first GM position. It was a daytime radio station that featured Al Ham’s “Music of YOUR Life” format, big band music for those not familiar with the programming. Yes, my audience was old. But only according to the calendar, but not the way they thought about themselves. Nampa and his corvette

It was always a tough putt with new advertisers, getting across this concept that you are as young as you think. So I wasn’t surprised to learn that one of the sessions talked about “APT.” APT was all about the “Age People Think” not demographics.

 

I’m not sure that lumping people by demographics was ever a sound marketing idea, but like a lot of bad ideas (buying radio on a Cost Per Point basis) in advertising, people do what’s always been done and ignore if it’s a sound way to place advertising.

 

A lot of my radio stations over my career have focused on an older demo. When Ken Dychtwald’s book “Age Wave” came out in 1990, I read it with enthusiasm. Dychtwald told of the massive population and cultural shifts that would be taking place because of the Baby Boom Generation. He put forward how the boomers would shift the epicenter of consumer activity from a focus on youth to the needs, challenges, and aspirations of maturing consumers. Those predictions are playing out today.

 

So again, I wasn’t surprised to read that at the ANA gathering attendees were told that old people were a growth market. In light of the trillion dollars in student loan debt, the millennials are cash challenged in a way that the Boomers are not.

 

I grew up in a Chevy family. Remember those days of yore? Chevy families and Ford families competing for bragging rights as to which drove the better cars?

 

Many marketers would have you believe that we are now stuck in a rut with our product choices and only the young are pliable enough to be swayed to try or change brands. So let’s see how that plays out in my family. I have two older brothers; one drives a Honda and the other a Toyota. How about our kids? Well we have a BMW, Mercedes Benz, Hyundai and Honda. In my case, I drove a Hyundai for the past eight years before switching to a Honda Accord; so much for that concept that once you are stuck in a brand, you stay there for life. Even my toothpaste is not the brand I grew up using.

 

Everything has changed about the world with the exception the way marketing is created and advertising is bought.

 

One of the big changes is that RADIO is back! It’s the massive reach medium that advertisers seek to expose their products and services on, except that they don’t know it.

 

Radio needs to use some frequency and repetition to get the word out.

 

Willie Sutton said he robbed banks because that’s where the money was.

 

If you’re an advertiser, you need to advertise where the people are and that’s today’s RADIO.

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Filed under Education, Mentor, Radio, Sales, Uncategorized

Are We Losing the Next Generations?

Growing up in western New England, the transistor radio would impact my life and career. Radio has been in my blood as long as I can remember, but it would be my Zenith transistor radio that would first allow me to explore new stations, new music, new personalities and new ways of delivering content without the supervision of my parents. My transistor radio and ear piece would make me the master of my own radio dial.

Growing up, it seemed like most radio markets had two radio stations battling for the teenage ear. WPTR and WTRY out of Albany, New York’s capital district would be mine. Each of those radio stations would bring their mobile studios to our county shopping center and broadcast LIVE. It was such a thrill.

Hartford had WDRC and WPOP. Boston had WMEX and WRKO. Philadelphia had WIBG and WFIL. Chicago had WLS and WCFL.

New York City would finally be a battle between WMCA and WABC for the Top40 crown in the Big Apple.

What made traveling around in my folk’s car so exciting was that each of these radio markets and radio stations were special and different. The personalities, the promotions, the station jingles and yes, even some of the music was unique to each station and market. Local and regional bands could be heard hoping to be discovered and go national with their music.

Radio stations all did music research back then and printed weekly surveys charting how the hits were doing from week to week with local listeners.

That was then, this is now. Larry Rosin at Edison Research says that today “virtually no radio stations perform formal research for music among teens nor target teens directly in their marketing strategy.”

I’ve sold “old people radio formats” where the presentation was quick to point out that what advertisers should be focused on is not the age of the audience but the amount of money they control and have as discretionary to spend as they wish.

I’ve also sold “young people radio formats” where we pointed out that kids are the masters of convincing their parents and grandparents to get them anything they wanted, so please don’t focus on how young they are. I mean once my boys were out of the house, I no longer went to Mickey D’s and ordered “Happy Meals.” (That made me very happy!)

Radio has always focused on the “family reunion demo” aka 25-54 adults; though that demo is shifting upwards with the aging baby boomers to 35-64 adults.

When Radio Disney was born and focused on little tykes, it appeared there was now a radio operator ready to pick up the torch for young people listening to radio. But then radio was shocked the day Disney announced it was selling all but one of its owned and operated Radio Disney stations. Radio Disney basically operated on AM radio. AM radio is no longer used for music listening by the public and so was Disney just abandoning AM radio for FM radio? No. Radio Disney had established a strong beach front on two audio delivery mediums; SiriusXM and online listening. (It also benefits from the Disney TV Channel on cable, satellite and streaming via the Net.)

It should also be noted that around the time Radio Disney was coming into existence that the radio ratings company known at that time as Arbitron began to measure listening audiences down to age 6+ with their new PPM device where as the diary previously only measured “adults 12+.” When Nielsen bought Arbitron and rebranded the radio ratings service Nielsen Audio it kept the 6+ listening metric. Nielsen also now is trying to establish a listening service that will measure all audio listening consumption across all platforms. Can you see where this is going?

Radio listening is a habit. My father never acquired it. I was raised on it. My sons were raised on it. But I see my grandchildren are holding iPad-like devices and easily navigate their parents’ iPhones.

You would have thought that with more radio stations on-the-air in America than at any time in history there would be more variety than at any time in our history, but that’s not the case. There’s actually less variety.

After launching two Smooth Jazz formatted radio stations and falling in love with the artists and their music I now can only hear this music streamed online. So like my grandchildren, I’m forming a listening habit that doesn’t require a radio; just my iPad or iPhone.

I believe the future is going to be all about being the best at something, not necessarily garnering the most people. Radio was always about getting the most ears. Everything was based on CPP (cost per point), but in a world of infinite choice, the best will dominate.

Radio can play in this world if programming is turned back over to people who program their passions to others just like themselves.

Steve Jobs made Apple into the world’s most valuable company by focusing on design (in radio, that’s programming) and making products that he and his team wanted to have for themselves (building a radio station that you not only own, but love to listen to yourself).

Radio is either going seize the day or have a seizure.

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Filed under Education, Mentor, Radio