|
PERCEPTION IS REALITY: ACCOUNTABILITY WILL INCREASE REVENUES Tony Sanders It’s another part of the RAB’s ROI theme but it’s a part of that message some radio station managers don’t like to hear: Stations must be more accountable to their advertisers—must deliver more direct and precise information about how and when an advertising schedule ran.
If that isn’t done, then radio will not be part of the next media buy. “The advertising business is making fundamental change. Everything is based on three simple letters, ROI,” says RAB president/CEO Gary Fries, who spoke with reporters about the just-released perceptual study on how advertisers and agencies view radio and radio accountability.
“This is an industry situation that is relevant to all broadcasters,” Fries said, including small-market stations that may not be part of any regional or national-spot buys. Because the advertising community is going through a fundamental change, Fries said, it’s important for stations in virtually all markets to install the type of computerized system that will give them the level of accountability marketers are now demanding.
Stations that ignore these changes, that consider this a big-market issue that affects only national advertising accounts are making a mistake, Fries said. The reason: Major accounts such as McDonald’s and Coke now have their own marketing systems in place that allow them to consider, plan and execute an advertising schedule that includes small-market media.
Billboard Radio Monitor has learned that Ford Motor Co. plans to embed their Houston-market radio spots with PPM-friendly tones in order to track specific spots and to gauge their effectivness. The plan, apparently, is to determine which types of spots—those touting used cars, for example—are getting responses from listeners and then to track those spots back to the specific stations and specific times that were scheduled.
Advertisers and national ad agencies are demanding greater levels of accountability. The problem for the radio industry is that it’s perceived as having a very low level of accountability. That’s the perception from the advertisers’ standpoint. As might be expected, the radio industry’s own perception of itself is that accountability is good and, in some cases, on a par with other major media.
That fundamental difference of opinion was dubbed a “disconnect” by Steve Farella of TargetCast and Ed Padin, of Padin & Estabrook, LLC. The two men conducted and presented the perrceptual study, titled the “Radio Industry Media Accountability Study.”
One way to eliminate this disconnect, according to Farella, is for radio sales managers and staff to “own this issue” of accountability. “You can own this issue,” he said during the presentation, suggesting that sales staff that present themselves as offering trackability and accountability can use this new perception to persuade advertisers to spend more with radio. That money, he suggested could come from TV: “You can go after the big dog, TV” he said. “Nobody buys TV with a smile,” noting that spot prices have increased dramatically for the medium. |
