What's Next for Radio?
Inside tips for effectively using radio to drive return on investment

By Tom Barnes
September 19, 2003

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Change your buying habits

Next, if at all possible, buy direct. Nationally placed buys based on cost per point are a dubious use of your dough. National buyers are often overwhelmed, inappropriately staffed, and lack deep local market insight required to make effective buys. It's not their fault either. Planners put buyers under pressure to meet Arbitron reach [and frequency goals based on a granularity (demographic ranking) that is statistically unjustifiable.

Rating compression is gravely distorting the difference in rank between one station and another. And while few pros actually calculate the standard error of Arbitron ratings anymore, suffice it to say that in most major markets there is often little to no significant statistical difference between the third ranked station 18-49 and the tenth station in that same demo. Even more alarming, this "rating compression" is even more pronounced in the top 10 markets. This is an unintended consequence of consolidation: big broadcasters all using the same proven, consistent programming techniques, resulting in indistinguishable offerings from the advertiser's point of view.

Demand value-add that has financial impact

What else? Demand value-add from your radio partner that means something. Radio has entered the direct marketing business via their web sites and email. Their email campaigns work better than you think, and most stations with a decent database under-price campaigns that utilize them because they don't know quite yet how to effectively integrate into a flight or price them as an adjunct to traditional broadcast advertising.

More simply put, radio sales people aren't compensated on their ability to sell integrated direct marketing--they get paid for selling 60-second spots. That puts you, the radio buyer, at a distinct advantage when purchasing that next schedule. Seek placement opportunities in email campaigns that are currently underway. More advanced radio buyers will demand their own email campaign, and will probably get it.

Integrating talent endorsements and email in your radio buy will deliver ROI that you can take to the bank, making radio perhaps the best bargain in all of mass media, despite the crisis in the music business.

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