Internet Ads Surpass Radio for the First Time
Radio isn’t dead, but it is dated and lacking innovation. The proof is in the numbers. For the first time in history there were more advertising dollars spent on Internet ads ($21.7 billion) than on radio ads ($20.4 billion), says eMarketer.
We are flooded with enhancements such as satellite radio, Internet radio, HD radio and podcasting. Yet terrestrial radio continues to broadcast at the same medium and with the same lack of features. Not only do we crave niche artists in the long tail but we want recommendations and individualization that social networks provide.
Here in sunny San Diego I have a choice between a few types of FM music stations, one news FM station and three AM talk radio stations. The music is often not my taste, the news channel gets old and unless I want to listen to 3 minutes of talk radio followed by 7 minutes of ads I don’t dare turn to the AM. So where did I go? Audio books, podcasts and Internet radio.
I, like most of my peers, just simply want to be entertained. Radio is losing significance in our lives because it lacks choice and hinges its industry on invasive advertising. Interactive options based on past experiences and social trends may be off for FM/AM technology but the permission to market to it’s audience isn’t.
Seth Godin in his book Permission Marketing would say to stop interrupting us. Don’t be the guy to walk up to us in a bar and ask for marriage. Get to know us first. Offer us a drink, gain our trust and with our permission we’ll eventually get in bed with you.
EDIT: Jay Ehret, the Small Business Marketing Guy at The Marketing Spot just wrote an excellent article about how radio may have the ability to innovate and why it has gotten itself in such a slump in recent times.
[Mashable]
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Dan Harb said
am September 5 2007 @ 7:02 pm
I guess its not that shocking. This was something bound to happen. I like that you are suggesting ways to improve. How else do you think that radio can catch up?
Jerad Kaliher said
am September 5 2007 @ 9:51 pm
@Dan Harb, yeah, I think that everyone might have expected it. Yet I don’t think that radio is being killed off by the Internet. It is still sustaining minute growth.
In order to boom the industry has to think outside of the box. For me the easiest way to do this is not with technology. It is with fundamentals. And fundamentals start with what people do and don’t like.
Changing the way advertising is presented to us is simple yet effective. Also, I think that being able to touch on the real needs and wants of the market may help as well. Playing Top 20 or variations of that doesn’t cut it these days. Give us choice and make the benefits of your service stand out. Then, when the time is right, start touching on technology.
Connie T. said
am September 6 2007 @ 7:58 am
I confess! I’m sleeping with Pandora.com!
COMPLAIN: You know, I only listen to the radio when I am absolutely sick of my cd’s. What irks me the most is that all the stations play those annoying commercials all at the same time. And the breaks are not short by any means. Another issue: those blasted DJ’s who love the sound of their voice more than anything, booooooring. Lastly, the music that’s considered hot these days is completely uninteresting to me. Even the classics stations play the same songs over and over again.
SOLUTION: Not a clue. : )
Jerad Kaliher said
am September 6 2007 @ 8:46 am
@Connie - It seems to be the same problem across the board. Boring content, blasted DJ’s and nagging commercials.
I think the only exclusion to this has been Jack FM in LA/San Diego. They play “what they want,” don’t take requests, have a very eclectic mix of songs and the advertising isn’t too down your throat. They engage the listener base and include them in activities, events and do it with humor.
lordmanilastone said
am September 11 2007 @ 1:00 am
wow, this must be a chance for me double my effort with my adsense, i myself indeed spend most of my time online, i don’t remember the last time i have totally enjoyed listening to radio programs, i might just be very busy…
Jerad Kaliher said
am September 11 2007 @ 7:32 pm
@lordmanilastone, I used to be just like you and then I got a job where I am driving almost all day. After a while it’s frustrating when you listen to all of the in your face advertising and really very little of what you want to hear.
I guess we’ll both just need something better to take up our time - oh wait, we have the Internet.