Monthly Archives: July, 2014

A Smart Approach to Revenue Growth

Smart-Reach-Logo-300x66In May Entercom, one of the largest broadcasters in the US, launched a new division called SmartReach Digital. The launch came initially to six of Entercom’s markets, with more to follow. SmartReach Digital is a full-service digital agency formed by Entercom, staffed with a team of experienced digital marketers. Dedicated sales reps will drive business in each Entercom market.

The idea is new and innovative to radio, but one that has taken hold with newspapers, tv, and other locally driven media outlets. Local market knowledge and resources are valuable and can be used to sell more than one media -that’s the thinking behind this strategy. With relationships with local businesses already established, sellers become trained marketing consultants, prepared to work with those SMBs to develop a digital strategy that grows business and drives revenue. Website design, search engine optimization, email marketing, mobile platforms, social media, text marketing, online reputation management, display advertising, and of course, Internet radio advertising – these are all marketing options that might be recommended. The online platforms that sell these products offer white labeled versions that enable an agent like Entercom’s SmartReach Digital to brand and execute the campaigns, perform billing, and manage the relationships directly with their local customers.

Want to know more? We’ll be examining this new and innovative approach to growing revenue and optimizing local direct sales teams at RAIN Summit Indy on Tuesday September 9th, during the NAB/RAB Radio Show week. Christine Merritt, Google’s Head of SMB partnerships and channel sales, North America, and George Leith, VP Sales, Vendasta, are two speakers who will join a panel discussion on options for turning local sales teams into digital marketing consultants. It’s a deep and lucrative opportunity, and one you’ll want to take note of.

Register for RAIN Summit Indy now and get reduced rates on hotels as well. Click here for more info. See you in Indianapolis!

 

Potluck Dinners, Knees and Targeted Ads

old-casserole-779396-mAt a recent neighborhood potluck someone asked me about my business. As usual, once I started talking about online audio, everyone at the table identified with Pandora. After a discussion of the types of stations they like to listen to on Pandora, one person mentioned the problem they’ve been having of hearing the same two ads over and over whenever they listen.

Which is precisely the experience my husband and I had on a weekend trip to Cape Cod recently, listening to Pandora while driving the two hours each way. Lots of music variety, but no such luck with the ads, which popped up every few songs. Unfortunately for us, our targetable zip code and demographic earned us two disheartening commercials – one for knee replacement at a local hospital, and one for a senior living facility. Yeesh, we’re old – parents of a college age kid – but we still work – and walk!

But this is the conundrum that Pandora is faced with. In selling targeted ad campaigns to local businesses, they then become tasked with delivering them, and since we live in a small market (New London, Connecticut), they probably don’t have a whole lot of campaigns to send us.

From my experience, a few thoughts – first, those two campaigns were likely oversold for this market, and delivering them is requiring repeating the same ad over and over to a limited number of people. Second, there is no frequency capping going on with that campaign, and there ought to be. It’s not good for the advertiser when I hear their ad 6 or 8 times in a 2 hour period.

It’s also not good for the listener – but there in lies a question that is worth asking: is Pandora hoping that I’ll give in and upgrade to a commercial free Pandora One subscription? “It’s only $3.99 a month” said one of the folks at the potluck dinner, who thought it was well worth it. Actually, new subscribers now pay $4.99 a month.

One thing is for sure – with expansion into local markets, Pandora has some issues to contend with. Listeners are noticing the ads, and they’re talking about them. Targeted ads can be good for the advertiser, but they can also create repetition that is not valuable to the advertiser or the listener. Unless you’re in the market for a new knee…

 

 

The Best Internet Radio Station

Bragging rights for best online station are up for grabs now, as RAIN prepares to award the Fifth Annual RAIN Internet Radio Awards. Presented by RAIN News, this self-nominated awards competition is open to all streaming stations – and it’s free to enter. Winners will be announced at RAIN Summit Indy on Tuesday September 9th. 

Five years ago, Kurt Hanson and I started these awards as a way to bring the industry together to celebrate excellence. We started with three categories, then expanded to four, and this year we added a separate category for International streaming platforms, bringing the categories to five:

  • Best Overall Online Radio Service
  • Best Streaming Broadcast Station
  • Best Overall Digital Strategy
  • Best Single-Stream Webcaster
  • International Excellence in Audio

You can review the criteria for each category here, and enter the competition as well.

This is a competition for streaming audio services of all shapes and sizes, designed to include everyone, and celebrate excellence in our industry. If you haven’t submitted your service for consideration yet, please do it before the awards close on July 20th. Past award winners have included many great stations and platforms like Pandora and iHeartRadio, WEEI and ESPNRadio, Hard Rock Radio and The Blast.fm.

To submit your service right now, click here and complete the very simple entry form. You can’t win if you don’t enter, so do it today!

Know someone who should enter? Forward this email to them and encourage them to do it today!

Putting Millenials In The Driver’s Seat

nissan-connect-nav-appsAccording to a Zipcar study released earlier this year, Millenials – that generational segment born after 1980 or so who are adults now – think that having a smartphone is a lot more important than having a car. In fact, 40% of that group think that losing their phone would be a bigger hardship than losing their car. They also think it would be harder than losing access to a computer or a tv. Meanwhile, only 16% of persons over 35 would rather do without their phone than their car, and 40% of that age group put the car at the top of things they would not want to do without.

This wide discrepancy in the need to own a car has the auto industry back on its heels. It’s a sea change that has implications for all kinds of other business segments as well – including standard brick and mortar retail, and radio. AM/FM radio built its relationship with generations of listeners by virtue of its front-and-center placement in the car. Millenials lack-of-love affair with the car means they are less exposed to AM/FM radio as well.

The importance of a smartphone in the lives of this generation of younger adults has impacted radio in other ways – millenials don’t wake up with an AM/FM alarm clock, and they discover music via social networks rather than by hearing their song on the radio.

Radio broadcasters and auto manufacturers face similar challenges in needing to re-engage this key demographic. And radio – in all its forms – broadcast, satellite and streaming, is playing an important part in the strategy that car companies are pursuing to do just that.

The other day I was driving my car and listening to the radio and noticed two car ads. A Nissan ad featured Pandora, talking about how a trip to the store can turn into a rock concert with Pandora. The other ad talked about an entertainment system that lets one kid in the back seat watch the ball game and the other stream a movie at the same time. Car manufacturers have tuned in to the fact that connectivity and entertainment are essential to this group, and that’s what they are selling.

That’s an exciting proposition for radio. Trying to entice Millenials, the automotive industry is focused on selling dashboard systems that offer potential car buyers connectivity and choice, and feature radio (in all its forms). It’s a renewed chance for radio to engage with Millenials, on their terms.

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