Radio's Big Opportunity
By Eric Corwin
Radio is at the mercy of major advertisers if we are only “order-takers”
Each day we read in All Access, Radio-Info and other industry trade publications that radio revenues are up and then again down. We hear that more automotive ad dollars are coming back to radio and that this is not a political year and it will negatively affect radio’s revenue. I feel like radio is a little like Oliver Twist asking “Please, sir, can I have some more?” We’re at the mercy of major advertising categories. We always have been, but in today’s economy with far more media options this leaves radio in a tenuous situation. Advertising dollars are beginning to come back and that’s good but radio is still missing potential revenue opportunities.
We’re stuck in the mud
Let’s take a close look at the industry so we can figure out why we are missing these opportunities. Are we unaware of these opportunities or are we just not listening. Are we so focused on staying afloat that we don’t have the ability to seek out better ways of producing more advertising revenue? Is it that group heads are arrogant, believing they have all the answers; that by micro managing they can deliver their group’s short-term bottom-line revenue goals at the expense of the organization’s long term growth? Do they feel they are doing all they can with the limited number of resources available—time, money and a reduced staff? Some have embraced change in the form of well thought out digital initiatives while most are stuck on streaming as their number one digital accomplishment. Digital in 2010 is much more than banner ads and streaming audiences. Advertisers can now interact with smart radio stations on dozens of platforms, ie. Facebook, Twitter, YouTube, Digg, etc. If we’re going to monetize our brands we need to understand it all.
The energy for change exists outside the industry
Many former employees are working on new ideas to bring to radio. As is often the case, tough economic times push individuals to look for new and better ways of doing things. These people create the test labs for change. Again is anyone listening? This reminds me of the expression “if a tree falls in the forest does anyone hear it” or in this case “if a new revenue solution for the radio industry is created and no is willing to learn about it, does it matter?” My answer is no, not until one of two things happens, the agents of change work hand in hand with the financial institutions that control broadcast groups or a broadcaster takes it upon themselves to create a task force to investigate all of the potential opportunities.
Local media thought leader
I see radio as a local media thought leader. What is a local media thought leader? It is a person or organization that conveys information about all media; a resource to help support and educate the local business owner about the benefits of each advertising solution. I was reading a comment on the Social Media for Radio Facebook group, made by Walter Sabo, where he said “the best social networking has always been done on the radio. I quite agree. We have the listener’s ear; the same person who is a business owner. As a media thought leader we can be the organization that businesses look to for unbiased information about advertising. In turn, we can offer additional marketing solutions, like local search, integrated digital solutions, social media, web development and much more. The new broadcast company of tomorrow will not limit itself to selling radio or television and a limited number of digital solutions. It will offer all solutions by partnering with other media organizations and taking a percentage of every local media dollar spent. It is time for broadcasters to embrace a new company model to take advantage of the local media landscape. There is no other media organization better suited for this opportunity. It’s time for the broadcaster to start listening.
