"WHAT IS THE RUDDER OF YOUR
SHIP?"
by Jimmy Risk
Radio, it has been said, is a targeted medium. Radio's format specific
model can cut to the bone on any demo for any product category, as long
as the frequency is sufficient.
In 1996 however, the Telecom Act transformed some radio vessels into
cumbersome Queen Mary's. The targeted diversity of a radio cluster could
now make for vivid contrast to the shotgun approach of competing media.
Yet the brand that comes on air, on billboards, and online is too often
not enough to reach hearts and minds. Face it -- today's on air brand
is cluttered, undefined and lost in a sea of sameness.
What Steers You?
If a 200lb rudder steers a 5000-ton ship, then significant email communication
is the current and future rudder for terrestrial radio.
The threat to the traditional landscape of radio has never been greater.
From MP3 players to the Internet, the turf has never been so crowded.
Do you ever recall seeing more spots on cable TV urging advertisers to
look at their medium?
And now we have a new threat called satellite radio. If anyone, NOW,
does not think that "people will pay for radio," then they are living
in plausible denial. If anyone thinks that 100 presets on a dashboard
from rock n' roll to ESPN, WITHOUT commercials is not competition, then
you can cancel Christmas!
E-Bonding!
There could be 25+ million listeners by decades end. It is here to stay.
And what are these Satcasters doing? They're sending out email to subscribers
on a weekly basis informing them of programming issues that listeners
are never informed of from the local station.
They are slowly e-bonding with their audience, and tomorrow will be
sending out 30-second commercials for their advertisers with coded offers,
all on a permission basis.
The good news for commercial broadcasters is that radio stations all
over America are adopting loyalty programs driven by life changing prizes
for ratings/revenue, and using an accretive database to bond and sell
their advertisers products.
Taking The Zzzzz's Out Of Ozzy
Consider a couple of cases from some of radio's early adopters. Just
after 9/11, there wasn't much appetite for an Ozzy Osbourne show. Clear
Channel Entertainment came calling in Madison, Wisconsin to stations for
a co-promote on the show.
Most stations offered the standard pitch; "We'll give some tickets away
on the morning show, do 9th caller, register to win, link on the website,"
ad nauseum.
The station with a loyalty database (WJJO) simply said, "We'll put a
codeword on the ticket for our listeners to redeem (after letting them
know by email) they can buy tickets 72 hours in advance of the public.
The result? $225,000 worth of tix were sold in 72 hours and this OZZY
date was the only SOLD OUT date on the entire tour in 2001.
Puddle Pre-Sell
Recently, the rock group PUDDLE OF MUDD announced a date in Springfield,
Ill. WQLZ, with its database, sold 1300 tickets, including 300 sold the
FIRST day, in advance of the concert. There were only 200 tickets left
when it finally went on sale.
HOW are stations with weekly cumes of less than 50K outdrawing stations
with 10-20 times the cume power? Can you say email? It is not a secret
that radio is losing younger demos in droves. Yet a well-timed email with
a valuable offer can elicit a response from this demo faster than ANY
30 or 60 you can put on the air.
If you don't have a loyalty program, get one and give them a good reason
to be loyal. If you have a database, start to manage it better because
nothing can evaporate quicker. It's much like a garden requiring intermittent
care. A periodic change of earth and water will allow it to reap continued
harvests.
Pioneers Of The New Digital America
Radio, as we know it, MUST make the business of accumulating and executing
database the highest priority. Our tower coverage still gives us the best
chance to grow data share against any medium. We have the ability to rope
them in with our on air brand and close them electronically.
This is how a connected America listens and relates. And, if we can
sell digital America, we can own the future -- and let all the comers,
keep coming.
If you feel like talkin' 'bout it, reach out to me at jimmy@loyalears.com.
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