From the Corner Office
This
Month's Topic:
Interactive Media is NOT Value Added
Hello Everyone,
I've just finished meeting with several of our directors of sales, and they've reported an alarming trend in the radio marketplace. More and more, avail requests are coming into our stations with interactive, internet-based components requested as "value added". As I told our sales managers, I certainly hope that each and every one of those requests is politely but firmly declined.
Why? Can't we use new media efforts to increase share and value?
Yes, we could, if all we cared about was the short-term pop. But if we believe that there is a long-term advantage and impact to establishing a parallel, internet-based dialogue and community with our listeners, then we will stop short of giving it away while it's now in its infancy. And if we believe that our relationship with our listeners can be used productively for both the audience and the advertisers, then we'd better believe in and price that value to our clients.I believe that this surge of requests is predominately from advertisers who do not understand internet-based media. I have to reach this conclusion, because if they understood the power of internet advertising, they would never expect us to give it away for free. Interactive media is the perfect enhancement to on-air advertising. Now, we can provide a concrete, measurable feedback loop for advertisers that will validate the effectiveness of their on-air message. A carefully constructed broadcast and interactive campaign, integrated in the proper fashion, will be more impactful and cost effective than any other media pairing.
As a young salesman, I was told that radio was "cost-efficient and we merchandize"...code words for cheap. Why? Because for so long, we did nothing to convince buyers of the value they get when they form a partnership with a radio station. Now, as an older salesman, I can emphatically say, "I don’t sell value-added; I'm in the value-building business." We're done with fighting for a couple of additional percentage points of a shrinking pie. I want to grow the pie. But to grow it, we need to dramatically change how we think about selling radio. We need a new attitude in our sales departments, along with continual education about what's in store in the new chapter of radio that we are writing today. The marriage of radio and the internet is here to stay, and if we look around us, we can see the signs of change. It's time for us to change our way of valuing and selling our business.
Internet-only websites and portals are spending large dollars on broadcast media. Why? Because they know that we can drive the traffic to the site and get people to participate! Radio has the whole package: research, targeted reach and relationships. We know from experience with our station websites that we can develop a much more significant relationship with a listener on an interactive platform. When we learn some of his or her likes and dislikes, we can further deepen and expand our relationship in both directions. Smart radio stations know not only what music is a listener's favorite; we also know what kind of car they're considering; whether they're looking for a home and mortgage, or what kind of financial planning they use.
Radio is able to provide to advertisers much more targeted involvement with members of our audiences, all the while remaining focused and local in our audience delivery. That's a lot more valuable to a marketer than a shotgun nationwide approach. We at Greater Media are going to continue to build out our capabilities in this area and continue to deepen and widen our online relationship with our listeners. When and where it's appropriate, we'll certainly consider selling opportunities with advertisers, but we're not going to clutter our websites or share access to our databases for spare change.
So, buyers want all of this value as bonus add-ons to their radio schedule? These are exactly the types of opportunities that the buyer’s new media department is paying big bucks for...and getting results. And we know it, so don't expect it for free. Radio needs to just say no to every new media request that isn't willing to pay for the access.
Please feel free to e-mail me by clicking on the "Ask Peter" icon posted below. I would love to hear your feedback or answer any questions you may have.
I hope you and your family have a safe and happy
holiday season!
Best regards,
Peter December 2006