5-16-2014
While technology has reinvented the radio busi?ness, good old terrestrial isn?t dead. In fact, it?s still the largest vehicle for reach, as it continues to be the most dominant audio platform, reaching over 93 percent of the population. From 1962, when the audiocassette player was introduced, to 2011, when Spotify launched service in the U.S., terrestrial listening ? one of the many strengths of audio, regardless of platform ? retains its ability to reach consumers across a multitude of devices. Even so, agencies still have trouble proving audio?s value. They need better metrics and research to further demonstrate its contribution to ROI.
Audio?s role in the marketing mix needs to evolve. Media agencies must consistently edu?cate their clients on the ever-changing audio landscape and its myriad capabilities to convey that audio is an invaluable medium that has massive reach, is highly targetable, and is cost-effective compared to other media channels. The industry also needs holistic measurement across all audio platforms to keep up with con?sumption trends that are fueled by new and emerging technology.
In order to reach its fullest potential, the audio industry should follow the following roadmap:
1. Realize that higher-quality programming will yield a more effective response. Since the introduction of PPM electronic measurement in 2007, programmers have been able to react more quickly based on monthly data releases, making adjustments to their content to ensure stronger audience and ratings deliveries. PPMs have changed the way we plan and make investments in terrestrial radio; we know that people are listening to more stations, and for shorter periods of time ? and it?s essential that we increase frequency to effectively reach a station?s potential audience.
2. Broadcasters must continue to embrace and invest all assets beyond terrestrial to keep up with evolving consumption habits. In 2011, Clear Channel acquired Thumbplay, creating the now wildly popular digital audio platform iHeartRadio, offering both local station streams and a pureplay custom sta?tion option. The launch of this platform was enhanced with the creation of a two-day music festival in Las Vegas where top artists performed, giving advertisers an opportu?nity to reach and engage consumers through multiple touchpoints: on air, online, on site, and social.
3. Stations must work with advertisers to use the medium in creative ways to give advertisers unique positioning opportunities and increase the impact of the campaign. We partnered with Clear Channel Media + Entertainment, developing a contextual spot placement and fixed-position media campaign across multiple markets and sta?tions. That meant that we could marry brand messaging to other relevant advertisers and relevant desired fixed positions at peak radio slots, such as morning drive time.
On a much larger scale, we recently negotiated a $100 million multi-year first-of-its-kind alliance with Clear Channel Media + Entertainment. This deal enables both companies to leverage Clear Channel?s assets ? including out-of-home, broadcast, mobile, digital and events ? to provide our brand partners with exclusive opportunities across key events and promotions, world premieres, and customized content and special events.
We also recently partnered with WestwoodOne (the official network radio partner for the National Football League and exclusive national radio home of Super Bowl XLVIII) to deliver ?7 Days to Sunday? events across New York City and beyond. Creating a customized event capitalizing on the massive reach of audio during a high-profile sporting event gave brands an opportunity to surround and engage the consumer on-air, online, on-site, and through social media, and provided a creative opportunity to activate and connect brands with millions of football fans during the highest-profile sporting event of the year, in a unique and exciting way.
Our approach to buying audio is decid?edly different today than it was five years ago. The industry is much more receptive to creating and developing campaigns utilizing DJ live reads, DJ chatter or banter in content, first- or last-in-pod positioning, roadblocks, takeover hours, and multiple unit lengths. Over the last several years, terrestrial radio stations have embraced online content and social media, and have worked to expand their product, which, for most radio stations, is now easily accessible through multiple devices, including smartphones, tablets, desktop computers, and laptops.
Radio is here to stay, as it has evolved into a ?listen everywhere? medium and redefined itself as simply ?audio.? For as long as media agencies exist, audio will remain one of their most valuable assets for reaching mass audi?ences and delivering ROI.
LAUREN RUSSO is SVP and managing director of audio and promotions at Horizon Media.
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