Category Archives: Radio

Radio ad spending in decline

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In an article on RealMoney.com, Cody Willard steers investors away from big broadcast companies:

“… the tens of billions of dollars spent on radio advertising are in a steady, secular decline, and that’s not pretty for those companies that have depended on those models for revenue, nor for those companies that have depended on that outlet to deliver their message.”

I spotted one positive nugget in his piece:

“Regional radio is coming back and will find its niche again. But the days of big radio are over.”

I don’t know if Mr. Willard is right and I’m not sure what –if anything– this will mean for the company I work for. But I’m a “small radio” guy at heart and have no tears for the Big Broadcasters. Nor do they need any. They’ve made their millions and it’s safely tucked away in some off-shore tax haven.

Radio to decline 2.5%. Blame iPods and satellites.

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Some interesting stats coming out of the Kagan Radio/TV Summit in New York. The CIBC World Markets director of research says radio can expect an overall 2.5% annual radio audience decline this year owing primarily to iPods and satellite radio.

According to independent research commissioned by Sirius, once consumers get a Sirius radio, they spend 83% of their radio time with Sirius and 7% with traditional radio. So whats commercal radio to do? According to the presentation: Increase local content; upgrade national sales efforts; get better research data; Hire TV people (“they know how to sell in a declining market.”)

Randy Michaels on future of radio

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“People today are being entertained different, and that’s a problem for radio. (By the) time a profit is made, satellite radio will be eclipsed by something more profound. Namely, Internet-based radio stations available nationwide thanks to wireless broadband technology. Radio is going to be interactive, and it’s not going to be delivered just by transmitters. The next thing is not satellite, which is another form of point-to-multipoint technology. It will be interactive, two-way communication that’s available to everybody that is the next big thing. Radio companies will have no more defense in defending their business than the railroads did when airplanes came in and took their freight business.”

— Randy Michaels, former Clear Channel Radio CEO, on the future of radio

Radio “schedule integrity”

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“Compared to other media, spot radio ranked No. 8 and network radio ranked No. 10 in schedule integrity behind magazines, newspapers, network TV, spot TV, outdoor, syndicated TV, cable TV and Internet. Agencies and advertisers also had less confidence in the accuracy and timeliness of radio affidavits to prove ads ran as ordered than in the affidavits from network TV, spot TV and newspapers.” [Mediaweek story]

From Radio Advertising Bureau’s annual perceptual study (funded by Arbitron):

The wireless Super Bowl

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“On the consumer side, the league sees big revenue potential in wireless. The league is moving content from its NFL Network cable channel and Sirius Satellite network to the Internet to bring more dimensions to stories. It’s the first year the Super Bowl is on satellite radio, and the league plans to make audio of the radio calls for the Pats and Eagles available for fans to download to their MP3 players for $10. And when someone calls their wireless phone, Eagles fans can hear defensive end Jevon Kearse tell them “This is Jevon Kearse. It’s time for you to pick up the phone.” [via RAIN]

BostonHerald.com