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GIFF: Radio CAN Expand Client Base

March 7, 2011


Dave Gifford is back. In this piece Giff details why advertisers must use radio giving salespeople the tools they need to explain that fact to clients. Giff also explains why salespeople should know how and be ready to sell a mix of media. It's the way successful salespeople are making money these days. This is an article you are going to want to make copies of and pass out to your salespeople for your next sales meeting.






ByDave "Giff" Gifford


Sixty-one years ago, there appeared in Look magazine an article by Deac Aylesworth titled "Radio Is Doomed.” Didn't happen, did it?


If TV couldn't kill radio in 1949 -- at a time when, in massive numbers of small- and medium-sized markets, the price for one radio commercial was one dollar -- neither will Pandora, CBS' Last.FM, Clear Channel's iheartradio, Slacker Radio, iTunes, Facebook, Twitter, or Groupon!


If, that is, radio finally influences media selection, and if radio sells radio differently!


Radio in 2011? Bad news and great news!


Bad news first.


Today, with 46.5 percent of total media revenues unmeasured (direct mail included) and new media undermeasured, radio's true market share is probably 5 percent, if that. Obviously, there is something very wrong with radio's "sales format."


Worse, Magnaglobal's 2011 Advertising Forecast predicts that during 2011-2016, radio's compound annual growth rate will be only 4.1 percent vs. a core media average gain of 6.3 percent. If that's correct, radio will lose more of its revenue share in 2011 -- nationally, regionally and locally!


Fact: Since the advent of TV, radio has done a lousy job of selling radio. Radio's growth potential today is more dependent on the 95 percent of business radio is not getting than the 5 percent of business radio is getting. Unless you're an AE working agencies at the media selection level, please don't tell me you "sell radio" when the decision to buy radio has already been made!


History lesson!


First, circa 2000-2004, there was a convergence of two interrelated trends: 1) a seemingly never-ending influx of dozens of new ad media for consumers to interact with -- everything from social networking to advertising on the back of wedding announcements; and 2) escalating TV rates and commercial production costs that led to significant losses in television’s reach and frequency against prime demographic cells. Consequently, the sales figures for national brands revealed that TV no longer predictably moved the brand-share needle the way it once did.


Next, on the heels of a DeutscheBank study documenting that advertising, primarily on TV, lacked ROI for most mature package-goods brands, the "Era of ROI Marketing" was launched. National advertisers demanded a greater return on investment from their agencies. Procter & Gamble and Coca-Cola -- fed up with agencies pushing TV down their throats -- revised their agency compensation policies from a fee and/or commission basis to "proof-of-performance" measurement.


Result? ROI marketers quickly adopted Media Mix advertising as their marketing strategy of choice. Which, in turn, gave birth to a subset ROI marketing strategy, "Lifestyle Marketing." That is, the use of selected media to engage, involve, and interact with advertising's most difficult-to-reach consumers. These "Lifestylers" are on the go, out of home, out to lunch, out shopping – they are the activity-driven "moving targets" advertisers initially weren't contacting.


Enter "Micro Marketing Research," to the extreme. What were those Lifestylers' driving forces -- needs, wants, preferences, and values that affect purchases of everything from tampons to Hummers -- all in an attempt to "box" LifeStyle consumers into identifiable, cookie-cutter consumer molds.


In summary, the "Mass Marketing Era" gave way to the "Micro Marketing Era," with a laser-beam focus today on portable digital visual communication.


Prior to ROI marketing, and to this day, most agencies perceive radio as a non-visual, low-attention-level support medium to be used primarily to primarily to strengthen reach and frequency against selected demographic targets. But there's great news! Great news? Yes! ROI marketing has changed the way radio will be bought and sold forever -- for the good!


What if I told you radio now has a bigger budget than ever before? True! Thanks to ROI marketing, today's advertising budget is the Media Mix budget. Radio has its best opportunity ever to tap in to the missing 95 percent of the advertising pie.


To explain:


Media Mix translates to adding more and different ad media. Adding more ad media increases reach. Increasing reach increases advertising's cost. And overspending on reach media at the expense of driving commercial messages home re-peat-ed-ly represents the biggest mistake in advertising today.


Witness: Whereas Procter & Gamble can afford reach, effective reach, and frequency, even with its $8 billion global ad budget, P&G can not afford "effective frequency” without radio. Inasmuch as radio is advertising's primary frequency medium, Media Mix campaigns need radio!


With advertisers becoming increasingly aware of the importance of Media Mix in all size markets, radio's obvious imperative is to get included in as many Media Mix campaigns as possible. Growth money!


Warning! If radio's sellers fail to create more radio dollars -- selling radio as indispensable to Media Mix -- there will be fewer radio dollars to go after. And, no, the RAB cannot do it alone. As it is, the RAB's most powerful sales tool -- its breakthrough Radio Ad Effectiveness Laboratory --is what selling Media Mix is all about!


A proactive, radio-driven Media Mix campaign might include a spot radio schedule, promotions, and/or big event sponsorships, texting and Twitter, website tie-ins linked to prospects' websites, direct mail to your listener database, point-of-purchase merchandising, and partnering with outdoor to help advertisers reach those active Lifestyle consumers when they’re out shopping.



Sell MORE Advertisers! Sell Advertisers MORE!


1. Target the largest non-radio national/regional/local advertisers who can afford Media Mix.

2. Ask direct non-radio advertisers and media planners if they're open to learning about a new breakthrough approach for media planning.

3. Teach the concept of Media Mix advertising (see below to qualify which ad media apply).

4. Sell ideas and solutions to make that happen.


Years ago I created a new paradigm for planning Media Mix campaigns -- planned best by a combination of the following Media Mix options.


Mass Reach Media: Radio, TV/cable, and newspaper to create the buzz for products and

brands with lower market shares ... new products ... new brands ... new businesses ... branding ... repositioning ... major story campaigns ... name changes ... services ... products and brands with long purchase cycles ... campaigns for dominant players who can afford “effective reach.”


LifeStyle Target Media: Radio, special-interest, and micro-targeted magazines, social media and direct mail to make contact with advertising’s "moving target" Lifestylers, the activity-driven, aware, involved, multi-responsive people who influence other consumers. Market segmentation by psychographics: motivations, attitudes, behaviors, opinions, interests, political, philosophical, religious, humanistic ideologies, and life-stage influences.


4 Interactive Media: Radio and combinations of two-way, online, portable, digital, visual communication and entertainment consumers use to interact with brands. This means that through blogs and such social media platforms as Twitter, Facebook, Linkedin, and YouTube, consumers and brands can communicate in real time -- all based primarily on the primal need to communicate and be a part of something.


  Last Word Media: Radio and interactive intercept advertising's most difficult-to-reach consumers immediately before they make a purchase. Lifestylers are out of touch with static, "hide-and-seek" media that require consumers to find their ads: newspapers; FSI; network, cable and satellite TV; direct mail; Yellow Pages; micro-targeted magazines, etc. Whereas radio is advertising's primary medium for finding customers wherever they go.


High-Frequency Media: Radio and interactive for lower-budget campaigns ... new products ... new brands ... new branding ... repositioning ... new businesses ... name change ... major story campaigns ... complex messages ... short-purchase-cycle marketers (package goods, pharmaceutical drugs, retail, political candidates, etc.) through recency campaigns designed to drive home messages repeatedly to consumers in the market to buy today. What you say times how many times you say it, is the only thing that works in advertising today! Repetition builds reputation! Repetition builds reputation! Repetition builds reputation!


Spreading ad dollars too thin by buying too much Media Mix, and overspending on reach media at the expense of failing to drive ad message home re-peat-ed-ly (Registration, Retention, Recall), are the two most common mistakes in advertising today! Which is precisely why ROI marketers consistently add radio to their Media Mix campaigns.


Why does radio need to sell Media Mix? Because without Media Mix, advertisers cannot reach enough people, enough of the right people, with the right message, at the right time, enough times!


Radio's core values?

1. Target marketing!

2. Radio is advertising's primary medium for reaching people wherever they go!

3. Radio's enviable reputation for traffic-building promotion!

4. Given that almost everything in the world is sold by the human voice, radio is the best word-of-mouth advertising in advertising!

5. More than any other ad medium, radio increases the number and repetition of your ads in a far more cost-efficient and cost-effective way!


STOP! Radio sellers have been selling what radio is and why advertisers should buy radio since 1920. What and why is not working! Every radio presentation should begin with the word how!


How Radio Shack Can Expand Its Customer Base By Dialing Radio Into Its Media Mix!


Now take action by scanning the five Media Modes (minus the first two paragraphs), and distribute same to every major direct account and media planner in your market today!


Going after the 95 percent of ad dollars radio is missing -- by aggressively selling radio as essential to Media Mix Advertising -- is radio's greatest opportunity for growth ever!


Excerpted from "An Advertiser's Guide to Attracting More New Customers."

Giff can be reached at 505.989.7007 or at



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