The president of Canadian Broadcast Sales (CBS) predicts that, because of its nimbleness, radio is the traditional medium that will derive the most benefit from emerging technologies. Patrick Grierson says trends indicate that radio stations have already successfully embraced the Internet as a way to not only extend their interaction with audiences but also with advertisers.
Meanwhile, the Radio Marketing Bureau (RMB) has just released a Marketer’s Guide to Radio that touts the medium’s engagement quality, supported by Radio Ad Effectiveness Lab research. The Guide also made a case for radio’s cost effectiveness, citing an ROI study, and research also shows that radio and internet usage occurs at complementary times of the day, with radio’s biggest audience falling in the 6 a.m. to 7 p.m. slot, and internet’s busiest time being 7 p.m. to midnight.
An informal survey by CBS found that stations are using their Web sites to offer a wide range of information and interaction, including live audio streaming, contest information and listeners clubs. Some non-urban markets are selling dedicated community portals, distinct from radio content, featuring event listings, news, weather, entertainment options and local business offers. While in the past online ads were frequently offered as a free bonus to on-air advertisers, today stations have staff dedicated to Web-only sales.
Grierson cites the findings of the recent RMB study conducted by Foundation Research Group to support his belief in the synergies between radio and the Internet, such as the fact that 40% of Internet users aged 12+ listen to the radio while online.
When asked what radio station offerings they had participated in, 38% of respondents 12+ had visited the radio station’s website and 37% had streamed audio over the Internet. Other findings include:
* Participated in radio remote broadcast – 21%.
* Participated in on-air station promotion -17%.
* Participated in online station promotion -11%.
* Participated in listener clubs -11%.
* Downloaded podcasts – 6%.
Grierson says podcasts are the next big advertising opportunity for radio. Some stations already have already ventured into podcasts but, he says, for that to be a significant revenue opportunity for radio, the advertising model will have to change.
‘Thirty-second spots probably won’t work in this environment. Options such as tags, product placements and exclusive sponsorships of individual podcasts are possibilities to consider,’ says Grierson. Some of the largest global advertisers, including P&G in Europe, are already diverting spending from traditional media to these types of digital opportunities. This should present an opportunity for radio as its delivery channels evolve.’
Canadian Broadcast Sales represents commercials radio stations accounting for about 60% of total national radio revenues. Based in Toronto, CBS is owned by Corus Entertainment and Rogers Communications.
