about the author...
Among the clients Daniel has consulted are Clear Channel Radio Interactive, Wall Street Journal Radio, recording artists Jewel and Jim Brickman, Mental Floss Magazine, The White House Commission on Remembrance, International Publisher Glencoe-McGraw Hill, Clear Channel R&D, Jones-TM, and broadcasting groups in the USA, Canada, and Europe.In 2001, Daniel was named the '#1 Young Entrepreneur' by Youngbiz (Young Entrepreneur) Magazine.
Daniel's experience includes stints as General Manager, syndicated Program Director, and various on-air stops. Daniel is also on the Board of Directors for Radio Conclave, a 501C(3) serving to grow the radio industry.
by Daniel Anstandig
In 2009, the difference between hitting your budget and not hitting your budget will be interactive advertising. This year, $25.7 billion will be spent across the USA in online advertising. Here are four keys to your interactive success in 2009:
1. Organize your team, set clear goals, and commit to success.
Many of our clients have rewritten job descriptions of key managers in the organization, revised bonus structures to include interactive audience and revenue benchmarks, and adjusted programming and promotions to include on-air and online elements together. Program Directors have been transformed into brand managers. Sellers have been transformed into Client Solutions Specialists,developing marketing plans for their clients that include on-air, online, and on-the-go (mobile) components.
The bottom line is that we are still in the business of selling access to audience,whether the audience is on the other side of a radio, computer screen, or mobile phone/PDA.
Set clear goals and encourage entrepreneurial thinking in the building. Find new ways to engage audience online and create unique exposure and branding opportunities for advertisers.
The radio companies we consult in developing interactive audience and revenue are generally aiming for goals in this range:
2. Prospect Beyond Radio Buyers.
Many radio account executives spend time pitching traditional radio spots to existing radio buyers. While there's nothing wrong with this, only a fraction of media buyers in any market regularly buy radio as part of their campaigns. Of course, some markets have higher percentages of radio buyers than others.
With education and a total media solution approach rather than just a number of spots approach, it is possible to grow your business. The number of interactive buyers is growing, and the average interactive share of USA,s total ad spend is now at 10%. That means that having digital reach opportunities diversifies and expands your ability to serve advertisers.
Recently, I was visiting a new client in a medium market. While working through sales diagnostics and training, we were discussing a radio buyer of theirs who had consistently lowered their ad spend with the radio station over two years. The buyer,s excuse to the radio station was 'lowered marketing budget,' which left the account executive road-blocked. With further research, we were able to help the account executive discover that their buyer had not lowered the total marketing budget, but only the radio budget. In fact, the local buyer had been spending $85 - $105 per day on search advertising and $350 per month for local online directory listings. That,s over $3000/month to which the radio station had no access.
Prospect beyond radio buyers and monitor the local ad market beyond the radio airwaves.
3. Integrate Streaming Video into your website.
The widespread growth of professional video content online (largely from TV networks) has helped to boost audience usage of streaming video in the last year. This year, one of the fastest growing product categories for online advertising continues to be streaming video. Over the last two years, streaming video ad buys have consistently grown 35-40% year-to-year. In 2009, the Interactive Advertising Bureau predicts that $850 million will be spent on online video advertising.
Most interactive media sites have integrated on-demand video in the way of 'bonus' content for their audience. In addition, advertisers can capture the attention of audiences using pre-roll ads prior to each viewer's content of choice.
4. Database!
The fundamental problem with most radio contests, is that eight callers pass through your phone lines leaving no trace before a ninth caller is catalogued. Even then, the data collected on that contest winner likely ends up in the trash after their prize is mailed.
Even in larger-scale promotions, few stations retain contest entries in any organized manner.
An important key to your long-term success in engaging audience and serving advertisers is DATABASING. The information you collect can be helpful in informing strategic programming decisions. It also allows you to offer specific direct marketing solutions to advertisers. Most importantly, it empowers you to maintain frequent communication with your audience.
Share valuable information, unexpected bonus gifts, or special offers and discounts with your database via e-mail. Even the offers that attract response reveal helpful information about your database constituents.
It is clear that 2009 will bring fundamental change to the radio business. Convergence is the future.