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Why Radio Is Not Embraced By Advertisers

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(12/11/2012 8:36:34 PM)   Flag as inappropriate content
Mr. Dardis ends his comment with the statement: "Advertisers are buying response. Branding campaigns aside, it's that simple."

Branding campaigns aren't subject to the same gumball machine metrics as commodity transaction ads. But, as Ken's inclusion of them implies, they have (immeasurable) value. Motel 6, Coca Cola, McDonald's, etc. know this.

So do the most successful local advertisers in your market.

- Rod Schwartz - Radio Sales Cafe
(12/11/2012 8:29:51 PM)   Flag as inappropriate content
Mr. Skotdal's proposal is worth considering. He suggests "...we reconsider...whether 25% agency commissions can gain us another $5 billion in advertising." They're providing the creative which (at least in theory) is worth something. Stop throwing in "value added" at their whim, charge a fair rate across the board, and pay them 25%. This would require a discipline sadly lacking in some quarters, but has potential. Definitely worth a discussion.

- Rod Schwartz - Radio Sales Cafe
(12/11/2012 2:56:40 PM)   Flag as inappropriate content
While I have an appreciation for Ken's position (and who is going to argue?), it can still be said that radio is never going to sell a car - unless it's a 40k vehicle "on sale for 20 minutes only at the low, low price of just $1995.00."

Radio (when it is used appropriately) can be a powerful motivator, generate emotional responses and unconscious recall and can drive traffic - either to a location or a website.

Radio has a two-fold challenge - the one Eric describes and Ken articulates so well and the one where we have failed to take advantage of the innate properties of our own medium by generating programming and creative that works for an audience and an advertiser.

The latter we can address immediately and for relatively little cost to the stations. The former....? Hoo-Boy!!

- Ronald T. Robinson
(12/11/2012 2:52:09 PM)   Flag as inappropriate content
I am surprised there is a moment in time where I agree with Charlie Ferguson, but there is a significant point to be made about how agencies make margins. An agency can make a big margin on producing video. An agency can make a big margin on developing beautiful ads with photo shoots. When it comes to using the most efficient medium in the history of advertising, there's no value proposition in it for the agency. Maybe we simply need to reconsider whether 15% agency commissions are the way to go, or whether 25% agency commissions can gain us another $5 billion in advertising. Radio works. We know it. They know it. We should be using our own air on a far more regular basis to promote our advertiser success stories because at some point in their week, all of those buyers use radio.
- Andrew Skotdal
(12/11/2012 2:21:49 PM)   Flag as inappropriate content
Bravo to Eric for stating this as a must-do for radio. I can imagine the thoughts running through this panel's minds seeing the top radio executives showing that input from agencies isn't important enough to hear.

What's incredulous is that here you have agency leaders spelling out what it is they want radio to deliver - handing out a road map for business to radio - against scowls from radio folks trying to sell what isn't being requested. Agencies see this: "Pandora can not only give targeted data by neighborhood, it can tell you how many listeners clicked in response to an ad and how many of those went on to make a purchase."

Pandora also changes copy in mid-campaign to improve response. Whether radio execs care to embrace these concepts is not important because agencies are buying this technology from others.

Technology-served advertising that I've been associated with has focused on what's best for the client. Sellers of radio seem intent on convincing advertisers that they must appreciate the value of radio more.

Selling impressions is a thing of the past. Advertisers are buying response. Branding campaigns aside, it's that simple.

- Ken Dardis
(12/11/2012 2:11:57 PM)   Flag as inappropriate content
I have only one question for Charlie - an acknowledged and respected supporter of local radio: What great ads, Charlie?

The other questions I have for agencies are: What? Your folks can't make great ads for radio? Or, is it that there just isn't enough profit in radio creative? Huh?

- Ronald T. Robinson
(12/11/2012 1:57:17 PM)   Flag as inappropriate content
They (agencies) have a small audio department, the creatives don't embrace Radio and you (Radio people) need to prove to us that it works. Translated, I think he said "Radio just isn't a solid profit center for our agency."

Did the "econometrics report" that proved TV works show some 40% of prime demos time shift viewing - and skip the ads? Audience engagement comes from great content - including great ads. Live Local Radio does that - every day.

- Charlie Ferguson

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