By Holland Cooke
Consultant

Radio sells advertisers our listeners’ attention. For a hundred years, our inventory has largely been commercials. Now, as our wandering audience leads us to more revenue channels, are we hooked on spots?

“We’re still in the same business. What’s changed is the tool box.”

Salem Media Group EVP, operations and revenue development Linnae Young was among panelists exploring “The Local Advertising Buying Landscape: What are Clients Buying, and how are Radio Sellers Succeeding or Missing Out?” Her laser-like focus is on the client’s need: “The HVAC company has two trucks and wants six.”

Ditto from session moderator Mike Hulvey, the Radio Advertising Bureau’s president & CEO. He called pitching a multi-store McDonald’s franchisee, who heard-him-out, then asked “Will that idea sell a hamburger?”

We sure have ideas. Researcher Gordon Borrell reckons that “the biggest mistake radio stations are making is underestimating the potential [of digital].” Many now sell video advertising. Prospects “don’t have any questions about radio, other than ‘Can you lower the price?’ They have lots of questions about digital.” Be their guide.

And obsess on outcomes. “Stop with the tactics,” urges Marketron senior director of digital strategy Dustin Wilson. “It’s all about solutions-based selling.”

“As radio has encountered increased pressure on revenue, it has often increased spot loads.”

Ad nauseam, in the view of Edison Research co-founder & president Larry Rosin, whose Ted Talk-type session “Considering Spot Loads” was plainspoken.

Radio has violated what Larry calls “The Commercial Broadcast Bargain” – the unspoken deal that content is worth the time spent listening to ads. “We’ve tilted the bargain in an unfair way,” he said, pointing to “fewer, but much longer breaks; and many, many [music] stations now loading all their spots into two interminable breaks per hour.”

Rosin’s team has long tracked listening habits through its Infinite Dial series, and the trend is clear: Radio’s “Share of Ear” never fully recovered after the pandemic; and commercial loads went up during that time.

“The real problem” is not understanding how ‘Infinite’ today’s ‘Dial’ is, “ignoring the fact that there are other things to listen to.” Ad loads tend to be shorter in podcasts and in non-paid streams. These ad-supported competitors never run more than two spots back-to-back. And increasingly, Americans are paying for ad-free content, via SiriusXM, Spotify, YouTube Premium, and others.

Solutions? Larry was clear: “What I’m NOT saying: ‘cut the load and charge more’ in today’s low-demand environment.”

— Even if you can’t lower total inventory, consider more shorter breaks. “Listeners have, or at least had, an internal clock: song (3 minutes) – song (3 minutes) – song (3 minutes) – break (3 minutes). When you ask music radio consumers, a break should be the length of a song. The two long breaks clock simply can’t be the best we can do for advertisers.”
— Bonus on Rating, not Share, which would “reorient radio programmers to consider ALL competitors, not just other local stations. Radio’s insular world hurts it.”
— Don’t demonize commercials – “a disservice to advertisers” – the way we seem to when we call the stop set “a break;” or tout commercial-free hours to pump-up a daypart (then overdose the load in adjacent hours).
— Improve the quality of commercials.

Holland Cooke (HollandCooke.com) is a consultant working the intersection of broadcasting and the Internet. Follow HC on Twitter @HollandCooke and connect on LinkedIn