Internet advertising closing in on radio

The Internet will receive a greater share of global advertising spending this year than do outdoor outlets such as billboards, and it is set to overtake radio soon. That’s one of the findings in a report by ZenithOptimedia, a media planning and buying firm. The growth is being driven by smaller brands, which are turning to the Internet because it is relatively cheap and can target their markets effectively. (see The Long Tail) The company said it expected the spending share gap between the Internet and radio to narrow from 3.9 percentage points in 2005 to 0.7 in 2008. (Yahoo! News/Reuters)

If you understand how to market and sell online, this is not necessarily a bad thing. If you don’t… then pray that these are new dollars that won’t impact your sales.

Media Study: Radio Makes People Happy

That’s one of the findings in a new study by the Radio Advertising Effectiveness Lab. Harris International surveyed more than 2,500 people between the ages of 18 and 54 in June and July. (MediaWeek)

Less Annoying“Fifty-five percent of respondents said radio was the medium most likely to improve their mood compared to the other three media studied. The findings were generally true across all ages, genders, and ethnic groups, but especially strong for African-Americans and Hispanics.”

“Advertising on radio was also found to be less annoying than on other media. Comparing Internet ads to radio ads, 45 percent of respondents said radio ads are “repeated too often,” compared to 53 percent who said the same about Internet ads; 24 percent said radio ads “appear at inconvenient moments,” while 60 percent said the same of Internet advertising.”

The simple truth is most radio stations just have too many commercials. And too many of those commercials have no relevance for me. Yes, I understand that they ALL have relevance for someone… but in an iPod world, that truth is no longer relevant. I have to stop now, I’m out of italics. [Thanks, Chuck]

Radio listeners don’t mind ads

Mark Ramsey points to this Arbitron study that concludes radio listeners don’t tune out when commercials come on. And wonders about the implications:

“If listeners don’t mind spots then why should they mind mediocre songs? And what ARE they listening through the spots for?”

The whizzing sound you hear is thousands of radio sales reps emailing the Arbitron study back and forth.

Stalking the prospect. Shhhhh.

Dear J:

Thanks for sending me the newspaper story about the big liquidation at Reagan Hyundai. It looks like a great opportunity to buy a pre-owned vehicle!

Wait a minute. I don’t think this is a real story at all! You know what this is? It’s a sales gimmick! But that can’t be right, it came with a hand written Post-It note. What the heck is going on here?

This is what direct mail marketing has come to. Can the marketing wizards at the car dealership really think I’m this stupid? Or, do they think this is insanely clever and assume I will, too. My guess is they weren’t shooting any higher than just getting some chump to open the envelope. (“He opened it! He opened it!”)

From the same bag of tricks:

At a recent sales training session for a national marketing group, one of the more popular tactics for getting appointments was a how-to on hiding your phone number from the prospect’s caller ID. That one has haunted me all week. If the prospect knows it’s me calling she won’t take my call. So I gotta sneak up on her. How about dressing up as the Culligan man and toting in a big bottle of water? Once in the office, drop the bottle and start your pitch.

Blipvert update

Clear Channel Radio has found its first buyer for blinks, its new one- to three-second radio spots. Fox Broadcasting Co. is the first to purchase and use two-second radio spots in an effort to promote the fall season premiers of “Prison Break,” “House” and “The Simpsons.” [AdAge]

Tod Maffin calls these “pop-up’s for radio.”

Podcast monetization

From Podcasting News:

“About.com, a New York Times property, has launched a sponsored medical podcast about heartburn and acid reflux. Each podcast will be approximately three to five minutes long and will be introduced monthly. The series –the first of its kind on About.com– is sponsored by AstraZeneca, a pharmaceutical company that makes Prilosec and Nexium heartburn and acid reflux medications.”The podcasts allow us to provide educational information to patients in a unique and creative way,” said Dana Settembrino, brand communications manager, AstraZeneca.

Topics to be covered include: What Causes Heartburn; Acid Reflux and Your Diet; How to Talk to Your Doctor about Acid Reflux; Exercising with Acid Reflux; and How Stress Affects Your Acid Reflux.

According to Marjorie Martin, general manager, ABOUT Health, “Podcasts provide an exciting new format for delivering trusted health information. Users can now choose to listen online or take the information with them. This series on heartburn and acid reflux disease should provide the millions of sufferers with the tools to better manage their condition.”

Dr. Mona Khanna, M.D., M.P.H. is the program’s host. “Dr. Mona” is a quadruple board-certified practicing physician and Emmy award-winning medical correspondent.”

We covered heartburn on the Living Healthy Podcast back in February.

I find Henry’s conversational style more to my taste than Dr. Mona’s scripted read, but I’m hardly objective. Would love to know what AsstraZeneca is paying for this and their expectations. But one can assume they think this makes more sense than 30’s and 60’s. About.com seems like a good fit. You go looking for info on heartburn…and find a podcast on the subject.

But how sustainable is this? I think sponsoring something with broader topic scope might make more sense.

KATG: Please watch this trailer

Keith and the Girl fans received an email today, touting a new movie coming out in a couple of weeks. Crank stars Jason Statham (Snatch, The Transporter, The Italian Job) and opens September 1st. The email pointed me to the trailer:

“It’s a cool ad, and it brings KATG a little scratch whenever it’s viewed. So take a look-see and pass it to your friends. And then get back to work! How are we gonna survive as a society if everyone’s watching movie promos all day?!”

I really like Statham so I was glad to know about the movie. And I’m even more inclined to watch the trailer (and tell others) because it helps KATG… and I’m a fan. Do you see how this is different than just running the ad on one of the TV networks? Would love to know how much KATG got for this. Hope it was a lot.

Niche audiences

“While Rocketboom reaches a mass audience, Baron sees his next opportunity in niches. As an example, he suggests a program to target “high-end tennis players.” It would be natural for Wilson Sporting Goods to advertise tennis racquets and “Viewers might actually be interested in the commercials,” Baron said. He believes that while only 10,000 people might watch, it’s so cheap to do Internet video that such programming is economically feasible.”

— Rocketboom’s Andrew Baron on possible sponsorship opportunities

The radio ads I want to hear

Tod Maffin is looking forward to the day his satellite radio delivers ads he wants to hear:

“So, let’s take this to its natural next step in, say three years. You call up XM or Sirius and activate your radio. Besides asking for your billing address, they also seek out some basic demographic information. How old are you? What are your interests? Suddenly, your radio begins playing ads that are aimed at you and people like you. With my demographic profile in hand, the satellite service could have screened those (crappy spam-like ads) out and sent me ads specific to my interests.”

I sort of dread going through some long “check the products and services you’re interested in” procedure, but you’d only have to do it once and then keep it updated. Then, maybe once a month, they send me a link to a web page where I see a list of all the advertisers that hit my reciever in the past 30 days. I remove any that I don’t like. Sort like signing up for Netflix. Or, maybe they just have a bot crawl this blog and figure out what I care about.