BLOG

Is Radio Waving its Future Goodbye?

From Bloomberg:

By early next year, Ford Motor Co. will be shipping Fiesta cars with software that operates Pandora via voice controls. Daimler AG’s Mercedes-Benz is promoting the radio service in vehicles, and Pioneer Electronics sells car stereos that include Pandora.

The advantage of Pandora is marketers can target users based on age, gender, home ZIP code and musical taste, letting them deliver more relevant ads than what’s possible on regular radio, said Scott Kelly, digital marketing manager at Ford, which is also advertising on Pandora.

“It’s very intimate,” Kelly said in an interview from Ford’s headquarters in Dearborn, Michigan. “Because Pandora knows so much about the user and who they are, where they’re listening and what artists they like, it really lets us hone in on that message.”

The smartphone will still be required to drive the service, but you will not have to reference the smartphone at all.  All the work will be done at the dash – just as it’s done for traditional radio.

Here’s a look at how it works:

This is the most vivid yet illustration of a theme that I and this blog have obsessed on for years now:  The rise of online radio effectively disconnected from clunky devices (mobile or otherwise) and integrated directly into the devices we drive to work in every day.  And with it the rise of precise targeting metrics which match individuals with messages (not to mention content) relevant for those individuals – no muss, no fuss.

Granted, this is not news – it has been coming for a while.  But I don’t think it is getting nearly the attention in the radio industry that it should. Especially when a major broadcasting group head tells me flat out:  ”Nobody is making any money in streaming.”

Anyone in the radio industry who doesn’t see this as both a tremendous threat and opportunity should have their heads examined, especially when the automakers and advertisers swoon over the prospects of a platform which both helps to sell cars and to sell advertising, all at once.

The issue is not whether mobile phones have FM receivers.  The issue is whether or not consumers can control their own content experiences in your presence, and whether or not you are capable of providing much richer metrics to the advertisers you claim to serve.

The radio industry has to get deadly serious about streaming and about accountability.

Or it needs to stop pretending that this, too, is their business.

8 Comments;
  • http://topsy.com/www.markramseymedia.com/2010/10/is-radio-waving-its-future-goodbye/?utm_source=pingback&utm_campaign=L2 Tweets that mention Is Radio Waving its Future Goodbye? | Mark Ramsey Media LLC — Topsy.com

    [...] This post was mentioned on Twitter by Jeff Brown and News Share, Mark Ramsey. Mark Ramsey said: Is Radio Waving its Future Goodbye? via Mark Ramsey Media LLC – From Bloomberg: By early next year, … http://tinyurl.com/2uu83r5 [...]

  • Burt Burdeen

    I was waiting for someone to focus some attention to even more on the road distractions. Voice commands are an improvement, but I still think we will find in the future, it too will be considered a distraction.

  • http://twitter.com/stevedinardo steve dinardo

    as always Mark… you are right on the money with respect to radio's lack of sufficient attention to the streaming space.

  • http://www.markramseymedia.com Mark Ramsey

    Thanks Steve! What a great pleasure hearing from you!

  • Gil Edwards

    This video is incredible. As I said to a friend yesterday, Pandora is effectively re-inventing the Radio dial… yes, the DIAL. Big props to Ford too, an American car company, for recognizing and leaning on innovation to advance their product. There is a lesson to be learned there. As we know, the medium and platform to which “Radio” is delivered to the consumer is changing, and it will continue to evolve. Collectively, Radio from the top down needs to stop worrying about FM Chips and HD nonsense… band together, as some of the best content minds on the planet, invest in interactive vision, and be smart about what is happening here.

    The technology has already advanced past how stations are currently streaming (just re-purposing the on-air product), and consumers are already embracing more engaging and social platforms to listen to music content online… so we are already at a point where terrestrial radio is behind the 8-ball. I would love to see a group create new branded interactive and social extensions of streaming, and then lead the space and push the limits even further.

  • http://twitter.com/russhillmedia Russ Hill

    Great piece Mark. Couldn't agree more. Many in radio don't grasp the magnitude of the media revolution we're experiencing. There would be a different level of urgency otherwise. Keep preaching…

  • http://www.markramseymedia.com Mark Ramsey

    Thanks Russ! I'll try! :-)

  • Antubert

    While this does seem nifty, in my opinion Pandora is just a fancy CD collection. Let's not forget why folks listen to radio, and why they don't. Internet radio will replace most means of transmission, but we don't need a service like Pandora to get there. Simply, a car media player that can play an audio stream via a URL allows anyone to choose from thousands of net stations already broadcasting. People can choose to listen to a local station or a station from the other side of the world. It seems to me that Pandora is just making some big deals so they can shape the media revolution and serve us ads. Let's not hand the keys to our revolution over to another targeted marketing scheme that wants to be the keeper, or worse, define what internet radio is. Just give us internet in the car and a media player and we can figure out what we want to hear.
    Antubert
    TalkRadioX

Sign Up For Blog Email Updates

About

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