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Interactive marketers predict radio’s effectiveness will decrease

In a study of interactive marketers, Forrester Research asked how they think the effectiveness of marketing will change over the next three years in various media, new and traditional.

Forrester
Keep in mind, of course, that this survey was conducted among interactive marketers, not necessarily the traditional marketers and buyers that are only now awakening to the advantages of digital elements in their marketing mix.

Still, note that marketing's effectiveness is, on balance, expected to decrease for radio.  And only Yellow Pages and newspapers scored worse in terms of marketing effectiveness increasing.

This should chill you – if you believe that business as usual is the proper recipe for radio's revival.  

It is not.

The problem in my mind is that these marketers think of radio as "that thing over the air with all the interruptive, uninvited commercials" rather than the cross-platform marketing solution driven in part by the massive reach and easy utility of the broadcast signal.

How can we get them to think differently?  But understanding what we will become and communicating it accordingly.  By deeds, not simply words.  The right deeds – followed by the right words.

There is no shortcut.

7 Comments;
  • martin

    Although this survey is flawed at best, it does provide some insights that we should look deeper at. That social and mobile are increasing should be no surprise as it goes from zero (social) to something bigger. Radio’s share is spot-revenues based on the survey above, but radio also offers some of these high-growth elements.
    The key problem is radio station sales forces, their lack of interactive training (limited at best), and incentive plans put in place by corporate. Very few, if any, radio sales people can talk the talk to interactive agencies or local brands with some interactive experience. They need to be trained better by people with interactive experience. Instead, radio groups are sending radio veteran around the country to train sales forces on selling interactive.
    Radio is its own worst enemy. You have the reach. You have the tools. You have the relationships. You have a brand (locally). You have everything you need to grab a large chunk of the interactive dollars. But you lack training and you don’t see the true value of the digital elements. You commoditize the tenderloin that other industries are selling at a premium.

  • Dennis Gwiazdon

    Mark,
    I’m guessing you would probably agree that viewing the effectiveness of any media in a vacuum and disconnected from everything else is a slippery slope. What interactive marketers don’t have is that incredible loudspeaker called a radio station. When those stations (and the built-in consumer affiliation that comes with them) are combined with digital elements of any kind you have an extremely effective marketing message. That said, any radio operator who is NOT dedicated to figuring out how to use their loudspeakers in concert with relevant interactive marketing elements is on a slippery slope of their own design.
    Thanks for your insight and here’s to a mo’ better Twenty Ten!
    DG

  • http://profile.typepad.com/mramsey1 Mark Ramsey

    Martin, this is alarmingly well put.
    Thank you.

  • http://profile.typepad.com/mramsey1 Mark Ramsey

    You bet I agree, Dennis. But crowing about the loudspeaker’s strength is beginning to tire me, because I see more broadcasters retrenching to the loudspeaker as if that’s a defensible place.
    And while, arguably, it may be defensible, it is not likely to sustain – let alone grow – rates.
    The key is how it’s all put together and what the Big Picture is for radio. That big picture seems to be evading many.

  • Dennis Gwiazdon

    Agree with you completely on the fact that “loudspeakers” alone are not the answer. It will take much more than that to remain relevant. It will take intelligent integration of multiple marketing ideas to make a difference. And, as Martin noted in his reply, skilled representatives (salespeople) who are trained to know what that means. He’s right; many radio companies are underestimating the importance of that training process.

  • http://www.streamtheworld.com Vincent Grenier

    I agree with you Mark that these marketers think of radio as “that thing over the air with all the interruptive, uninvited commercials”.
    But the main problem is that Radio broadcasters don’t understand interactivity – so how can they sell it to their advertisers? How can they sell its value if they don’t even believe in its effectiveness?
    The only thing our clients are demanding right now is to cut their costs. I totally agree with them, but sooner or later, they will need to think about growing their business or they will just go under.

  • http://www.dontdrinkthekoolaidblog.com/2011-traditional-advertising-predictions/ 2011 Traditional Advertising Predictions | Don't drink the koolaid

    [...] – We are going to continue to see a decrease in actual radio commercials. The more people use their ipods or iphones to listen to music, the less people are listening to [...]

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MRM President Mark Ramsey has worked with innumerable television and radio broadcasters over his career, including all the biggest names, from Clear Channel, CBS, Bonneville, Sirius XM...

Mark Ramsey