Radio ad spending in decline

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.

“Advertising in the Age of Podcasts Manifesto”

“We’re seeking out commercial information all the time. When you look up a movie review, or choose a plane flight, shop for an apartment, pick a restaurant or review your stock portfolio, you are seeking commercial information. So, therefore, there’s nothing particularly bad about commercials.”

— Dave Winer’s Advertising-in-the-age-of-podcasts Manifesto

Radio “schedule integrity”

“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):

Cadillac to launch series of five second commercials

Max Headroom introduced us to Blipverts. “High-speed commercials condensed into a few seconds that prevent channel changing and embed themselves in viewer’s minds. Sometimes they cause the heads of viewers to explode. “

On January 15, Cadillac will launch a series of five second commercials to illustrate the speed of its cars which can accelerate from zero to 60 in that short time. The ads include a voiceover which says, “How fast? That Fast.” [Adrants]

Tattoovertising

TatAd will pay consumers to wear a tattoo and become walking billboard for products. The company matches people based on where they live and their lifestyle with marketers who have expressed an interest in the medium. Those selected will then be tattooed with the logo of the advertiser. The company reports 800 sign ups.

One more example of why this is such a great time to be alive. If you are even a little interested in advertising, you should check out AdRants.com

Celebrex, Nexium, Prevacid.

Why are the big drug companies advertising on network television? In many instances, they don’t tell you what ailment the drug is supposed to help, and you can’t get it without a prescription anyway. One of the hosts on the new, “liberal” radio network, Air America, offered a theory last week (I think it was Randi Rhodes).

If Pfizer or Eli Lilly is spending millions with your network, you’ll be less likely to report negative stories about them. The purpose of the ads is not to move product, they’ve got that covered. It’s to keep a leash on the news departments. I’ve been thinking about that for days, asking myself if it could really work. Of course it could. It has. It does.

Then I asked myself if it could happen at our company. We operate several radio news networks and during my 20 years with the company, there have been several instances where a big advertiser threatened to pull business if we didn’t lay off or change a story. The owner of our company, who started as a reporter, didn’t hesitate. Advertisers don’t control editorial content. That happens in the newsroom. Period. Everybody back to work. It still gives me goose bumps to recall those very brief meetings in the corner office.

But the last few years have been a little tougher for our news networks and some of the players have changed. Would we take the same ethical/expensive stand today? Or would we try to find a way to “keep the business?” Search for a compromise. Would our news directors risk their jobs for this kind of journalistic principle? They’ve got house payments. What would I do?

It saddens me that I even wonder about these things. Ten years ago I could have said, with absolute certainty, we would tell the advertiser we would not, could not, be pressured. We’d stand by the story and live with the consequences. And it might still be true today. I hope so.

Accidental Death Remediation

One of the ten thousand billboards blighting Interstate 70 reads: Homicide, Suicide, and Accidental Death Remediation. Barb and I speculated about the services provided and she got it first try. I couldn’t get past, “Who the hell would be willing to do such a job?” I found the answer on their website:

“It’s a job no one else wants to do: cleaning up human blood and tissue and getting rid of the stench that often follows death. But a Menifee mother and daughter have started a business to do just that. Calling their business Crime & Trauma Scene Specialists, Debbie Haar and her mother, Shirley MacNeill will clean up homicide or suicide scenes, homes where someone has died a natural death or even what they call “pack-rat” homes that need special care. The two are also trained to do extensive cleaning of medical offices and funeral homes and can remove tear gas or pepper spray from inside buildings.”

Faith Popcorn on future of advertising

I’m looking for an interview with Faith Popcorn that appeared in the Wall Street Journal. The question/answer that I found most interesting was:

WSJ: What do you think about the advertising business today? How will it evolve?

Ms. Popcorn: I think it’s on its way to extinction. In three to five years you will see consumers rejecting advertising-which will cause agencies to scramble as they try to make a living. Right now, they are opening trend departments, public-relations arms and viral-marketing departments. It’s about trying to reinvent themselves — but they are very late to the game.