I chose this essay because it
was felt that digital sales is driven only by television which is not so and
the author below explains best how digital fits well with the advent of
programmatic advertising and the real time bidding process. Philip Jay LeNoble,
Ph.D.September 15, 2014
From programmatic’s perch on the bleeding edge of advertising
technology, it could be easy to dismiss radio as an advertising medium of a
bygone era.
But despite the tectonic shifts in the radio industry and
listening habits of Americans, radio reaches 92% of all Americans age 12 or
older every week, estimates Nielsen Audio.
Combined with an emotional
connection driven by music, on-air personalities and community spirit, it’s
easy to understand why radio remains an important part of the local
advertising media mix.
The radio advertising industry was worth nearly $5
billion industry in 2013, according to Borrell Associates. Digital advertising
sold by radio reps accounted for $500 million, a 22% increase from the previous
year. For the most part, these digital revenues are from digital
services such as search engine optimization and social media management,
which leverage radio’s strong referral patterns for online search and social
media engagement.
However, it seems that very few stations so far have tuned into
the opportunity in targeted display. That will begin to change as targeted
display drives a dramatic increase in local online ad spending in 2015, when
Borrell predicts targeted display will account for 20% of all local digital
media revenues.
So how can radio stations use programmatic to dial up their
digital revenues?
Complement The Core
Radio is a personal medium that inspires passion and loyalty.
Whether it’s tapping your toes to the sounds of your favorite country artists
or arguing with sports talk personalities, the emotional connection of radio
has long been a hallmark of its effectiveness. Targeted display allows you to
extend the “tribes” of listeners that gather around the fire of a radio
frequency into the digital word. A station that sells spot advertising during
Rush Limbaugh’s radio show can find even a bigger audience of “dittoheads” in
digital, increasing the average campaign size with a simple audience extension
package.
Customize For Your Community
Radio also plays an important role in the communities they
call home. From high school sports to summer music festivals and
automotive end-of-model-year blowouts, radio advertising, remotes and
sponsorships fuel awareness and attendance at many regional events.
Pre-packaged audience segments don’t reflect the unique flavor of your
community. By using unstructured data in programmatic display, your station can
create a “local lens” that is unique to your region with keywords and domains
that reflect what makes your town home.
Package For Social Performance
Radio’s strong referral patterns to social media have driven
stations to offer social media engagement programs as part of their digital
services. More than 83% of small businesses have Facebook pages and
see them as an important part of their marketing efforts. Radio drives more
social media engagement than TV, newspapers or cable advertising, in the form
of “likes” and comments. Offering targeted display through the Facebook
Exchange allows radio stations to further boost social media return on
investment for their local advertisers with cost-effective, targeted
advertising.
Make Mobile Matter
Broadcast radio, by its very definition, is linked to specific
geographies. We listen to radio while we are on our daily commute, running
errands and traveling to grandma’s house. The average weekday time spent
listening by adults is 3 hours and 3 minutes, and on the weekends that rises to
5 hours and 15 minutes, the Radio Advertising Bureau reports. That’s nearly a
full day of listening while on the move, making radio and mobile advertising
perfect partners.
By combining geotargeted mobile advertising with radio advertising
packages, advertisers can create a bridge between radio spot advertising and
their online presence. Better yet, they can create urgency that gets listeners
out of their cars and into stores.
Last week, as the radio industry’s best and brightest converged on
Indianapolis at the NAB/RAB RadioShow to discuss the future of the storied
medium, it became clear that digital will be critical to radio’s long-term
relevance. While digital offers new possibilities, it will also stretch radio
sales reps to learn new skills.
Station managers said their teams need education to sell digital
solutions with confidence, and many fear that digital will cannibalize their
existing business. But with targeted display, radio stations can keep local
advertisers tuned in to the value of radio, while turning up the volume on ROI.
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