Ad dollars moving online

“This year the combined advertising revenues of Google and Yahoo! will rival the combined prime-time ad revenues of Americas three big television networks, ABC, CBS and NBC, predicts Advertising Age. It will, says the trade magazine, represent a watershed moment in the evolution of the internet as an advertising medium. A 30-second prime-time TV ad was once considered the most effectiveand the most expensiveform of advertising. But that was before the internet got going.”

— Economist.com on an article in this week’s Advertising Age. More of the same at Yahoo!

Internet radio “not real radio”

David Goldberg is VP/GM for Yahoo! Music, the home of LAUNCHcast. From his keynote speech at last week’s RAIN (Radio and Internet Newsletter) Las Vegas Summit:

“We really want to replace broadcast radio for music discovery. We believe music will migrate off of terrestrial radio to the services we are offering because we can deliver the music consumers want, when they want it, where they want it,” he explained. “We don’t believe music will continue to be broadcast on analog radio. Terrestrial radio will continue as a very successful, profitable business — but it will be mostly talk (he cited the only formats growing on terrestrial radio as Talk and Hispanic),” he said. And, he explained, this goes for satellite radio as well.

Susquehanna Radio Senior VP Dan Halyburton claimed that since Yahoo! Music couldn’t bring the “personality” and “local community” like AM and FM radio, it’s “not real radio.”

Not podcasting.

Mark Ramsey (Radio Marketing Nexus) explains the difference between posting mp3’s for download and podcasting:

“…podcasting represents the passive movement of audio to your iPod without having to download it yourself. If you think that’s not different then consider the difference between going out to a restaurant and having your meal delivered to you at home.”

Another one of those things you have to experience to understand.

Bob Garfield’s Chaos Scenario

“In the April 4 print edition of Advertising Age, columnist Bob Garfield laid out a sweeping vision of an advertising industry caroming toward chaos and disruption wrought by the digital media revolution. Boiled down, his theory goes something like this:

The marketing industry is currently whistling past the graveyard and largely ignoring signs of massive, fundamental changes in how the business of mass marketing will be conducted in the near future. The broadcast TV model is working less well each year and will eventually cave in on itself as it reaches ever-fewer viewers with a fare of low-quality programming and mind-numbing clutter. Marketers will increasingly abandon it. But despite their glitzy promise, the aggregate of new digital technologies — from Web sites and e-mail to cell phone content and video on demand — lack the infrastructure or scale to support the minimum amount of mainstream marketing required to smoothly sustain the U.S. economy. The result, as the old systems are abandoned and the insufficient new systems struggle to carry an impossible advertising load, is what Garfield calls “The Chaos Scenario” — a period of serious disruption moving like a tsunami through the marketing business as well as the economy and the broader society itself.”

I’ve been unable to find the full article but did find a report about the article (audio – transcript) at OntheMedia.org.

I might have mentioned this before but it bears repeating. My dad was a radio guy for 30+ years and I’ve been at it –in one form or another– for 33 years. Radio has been “berry, berry good to me.” And during the dozen years I worked in local radio, I estimate I wrote and/or produced 60,000 commercials. And I believed they “worked” for the advertisers who paid for them. And they believed they worked. And many of them did work. But I now wonder if wasn’t a little like believing the wine turned into blood. A matter of faith, based on… faith. Commercial transubstantiation.

Word of mouth was probably always more effective than radio or TV or newspaper ads. But how many people can one person talk to in a day? Not so many in 1955. In 2005… with a website… you can reach a lot of folks. And when Doc Searls says he likes this IBM Thinkpad, I believe him. Or Halley Suitt recommends an author. Or Chris Pirillo tells me he likes his iRiver mp3 player… I believe them. Because I “know” and trust them.

When I’m shopping for a (fill in the blank), I go online and read the reviews of real people. And yes, some shrewd marketing type could spoof me with a bogus review, but a hundred (a thousand!) others would have a different opinion. It’s getting hard to lie/exagerate/bullshit your way to a sale. Bob Garfield said it much better:

“The total democratization of media, combined with ultra-targeted ads consumers actually opt to see. We, the people, cease to be demographics. We become individuals again.”

XM Radio Online.

Okay, this is neater than I expected. The new subscription structure includes XM Radio Online (doesn’t include all channels). As a rule, I don’t care to listen to anything while I’m online. Breaks my concentration. But XM has an excellent UI and it all just works. I might look into some of the wireless appliances (is it a radio?) you can tote around the house, listening to your favorite XM channels. Or any Internet radio for that matter. Stay tuned.