2010 Agency Outlook on Digital

The Radio Business Report recently held a 2010 Upfront Q&A with some of the bigger names in the agency world. One of the questions… How strong will streaming/digital media spend be in 2010? Here’s how each responded…

Goldwerger (TargetSpot CEO): “The streaming market is looking up. For one, radio buyers understand now that online listeners represent an important, growing segment of radio audience. But it’s not just growth that makes it a critical component of the marketing mix; unique features like precision targeting, measurement and analytics and helping buyers rise to the demand for increased accountability. The factors have fueled internet radio’s evolution from an ‘add-on’ to a critical component of the radio buy, and will continue to attract advertising dollars throughout the upfront and 2010.”

Warnecke (MediaCom Partner, Group Director): Streaming will continue to be a part of the audio mix - remember, there are still 235 MILLION weekly listeners to radio and some of those folks also listen online.  Radio has also been shown to connect listeners with the web, so smart advertisers will connect with their consumers on air and online.

Mijatovic (Horizon Media VP, Managing Director of National Audio): Much stronger than 2009.  Sellers have been working diligently in providing interesting solutions which in turn peaked agency/clients’ interest.  Overall bringing more accountability to the overall audio buy.  Excellent job on the part of the sellers.

Feinberg (President/Matt Feinberg Media): How strong is anyone’s guess, but it should continue to grow like most other things digital.

Swed Stone (US Director, National Radio Investment, OMD): Will grow significantly as it becomes more mainstream.

Casey (Associate Buying Director of National Radio, Zenithmedia): Definitely on the rise with advertisers who are familiar with the medium. The positive results of the Arbitron Edison research study certainly helped (audience doubling in last 4 years). More advertisers are dipping their toe in the water, so to speak.

Vasey (GroupM Senior Partner, Director of Radio): As the product offer continues to grow in digital media - I’d expect that our spend levels will increase.

Profound $hift

I wanted to share an an article from PROMO magazine that reviews a recent study showing how the recession has impacted consumer’s habits and should affect marketing tactics as well…

Profound Shift in Consumer Saving and Spending: Survey

    Raising a fresh set of challenges for marketers, a new survey from Citi has found that consumers across all socioeconomic levels and ethnic groups have made permanent adjustments to both spending and savings to adapt to the economic climate.

    The recession has proven particularly difficult for African Americans and Hispanics, who have dipped more often into savings to pay for expenses than the national sample of respondents and who are working longer hours to make ends meet, Citi said.

    The survey found that 63% of Americans surveyed said their spending and saving habits have forever changed as a result of the recession. Less than a third, 29%, expect to return to their old spending ways.

    Moving forward, marketers will have to craft messaging and promotions in a marketplace where 59% of respondents said they will continue to cut back on everyday expenses, 60% will continue to save and invest more, 61% will continue to cut down on credit card purchases and 63% will continue to reduce debt. Read more

Radio Reaches 235 million!

From today’s Radio/TV Business Report…

Radio reaches more than 235 million persons age 12+ over the course of a typical week, according to the RADAR 102 National Radio Listening Report which releases 9/21. Since the December 2007 RADAR 95 report, the national radio listening estimates and network radio audience reports have been based on PPM respondents from within commercialized PPM markets and on diary respondents from the balance of the United States. The combination of PPM and diary respondents have shown more listeners to radio over the course of a week versus the 2007 RADAR listening reports which were based on diary respondents alone.

As additional radio markets transition to electronic measurement, total radio reach is revealed to be larger than in previous surveys. Listening has also risen year over year. Over the course of a typical week, more than 214 million persons age 12 and older tune to the more than 7,700 RADAR Network Affiliated stations, up from 210 million listeners one year ago in RADAR 98.

Radio reaches 92% of persons 12+ each week, despite the adoption of MP3 players and the growth of Internet-only stations. Even 90% of the youngest radio audience, teens ages 12-17, most accustomed to using new technologies and forms of media, continue to tune in each week. Network radio also reaches nearly 85% of the ad elusive and media multi-taskers Adults 18-34.

Is Social Media a fad?

Yeah - I don’t think so…. ENJOY.

Local Advertisers Go Digital

Quick blurb from today’s Inside Radio further promotes the advantage radio stations have in the digital realm as no other traditional media has the number of online assets and opportunities. Enjoy…

Milestone: Local online tops traditional.

For the first time, digital media use exceeds that of radio, newspaper, television and other traditional media among small and medium-sized businesses.  BIA/Kelsey’s Local Commerce Monitor study shows 77% of local businesses are doing some form of digital marketing.  At the same time, traditional media usage slips to 69%.

Kelsey Group director of research Steve Marshall has been tracing the trend of digital replacing traditional media and the latest data is an “indicator of the broad shift to online platforms.”  The firm says nearly four of every ten advertising and promotional dollars goes to digital, doubling last year’s level. Ability to track lead sources by counting clicks or emails is the biggest motivator.

The shift comes as local advertisers hold their marketing dollars tighter in hand. According to the study, they decreased spending on advertising and promotion over the last year by 24% from $2.7 billion to $2.1 billion.

BIA chief economist Mark Fratrik says, “There is some promise for radio and television stations.” He says many companies are already selling their station site as well as new city-based online destinations using their existing brand names and ability to cross-promote.

Mobile: No Signs of Slowing

As Entercom Sacramento continues to expand its stations’ mobile platforms (4 now have robust text messaging systems), it seemed fitting to share an article from Brandweek that shows how the growth of mobile has not peaked yet.

Usage of Mobile Devices Still Growing Briskly

Aug 6, 2009 -By Mark Doliver

mw/photos/stylus/28181-LOGO_mobile-phone_Punchstoc.jpg

With so many Americans already in the ranks of Internet users, there’s now little change from year to year in the percentage of the population that’s wired. Even broadband access has grown so much in recent years that the rate of increase inevitably has moderated of late.

So, if you’re on the lookout for significant change in people’s engagement with new technology, where should you look? The results of a Forrester Research survey released late last month suggest it’s in usage of cell phones, smartphones and other wireless devices.

One question in the survey asked adults who have a mobile device to say whether they use it at least once a week to do various things. Fifty-one percent said they use it that often to send or receive text messages, up from 38 percent saying the same in a similar poll last year. There were also significant increases in the number saying they use their mobiles to send or receive picture messages (to 29 percent this year from 20 percent last year), to send or receive e-mail (from 14 percent then to 18 percent now), to access the Internet (from 11 percent to 15 percent) and to listen to music (from 5 percent to 10 percent).

For some functions, though, there’s been little or no growth from last year to this year in the use of mobile technology. For example, the number of respondents saying they use those devices at least once a week to watch TV/videos remains stuck at 3 percent; the number using them to check sports scores/updates is static at 5 percent.

With the economy making it less palatable to see how one’s stock portfolio is faring, there has even been a downtick (from 3 percent to 2 percent) in the number of respondents who use the mobile gadgets to check stock quotes at least once a week. Read more

Role Reversal: Brandweek reports on male shoppers

Read a great article in the recent Brandweek on something I’ve believed for years - mainly because I do most of the grocery shopping at my house. Men shop (and buy) much more than many retail categories give them credit for. From department to grocery, most plan their marketing in a way that all but ignores the male demographic.

Off my soap box and on to the Brandweek article.

Role Reversal: Mr. Mom Goes Shopping

July 1, 2009

- Peter Leimbach

The past two decades has seen a role reversal of sorts taking place: the traditional roles of men and women are being redefined to better reflect today’s social norms. Today’s American households are looking less like Donna Reed — the paradigm for the ideal 1950s family — and more like Mr. Mom.

Shifting norms
Since 1985 there has been a dramatic shift in the composition of male principal shoppers in the U.S. Several factors are contributing to this trend. First, the traditional family unit has multiple variations today. From two working parents to single-parent homes, a younger generation is being exposed to new norms. Second, Americans are waiting longer to get married. According to the U.S. Census Bureau, in 2008, the median age at first marriage was 27.4 for men and 25.6 for women vs. 25.9 for men and 23.6 for women in 1988. Lastly, Americans are living longer and as baby boomers retire, the men of that generation are shopping more than their fathers or grandfathers ever did.

Today, almost one-third of men are now the principal shoppers in the household. With more men in store aisles, marketers need to better understand how to reach this growing segment of shoppers.

Complete Article

Streaming Radio… in your car?

We all knew it was coming… WiFi for your automobile. What was once considered to be something you may be able to get as an option on your next NEW car can now be added to your existing vehicle. I’ll let Roy Furchgott from the NY Times take it from here…

… Autonet quietly began to offer its hub — which has the same name as the company, Autonet Mobile — in Advance Auto Parts stores less than a month ago, and on Amazon.com last week. “Because people are holding onto their cars longer, they are looking for upgrades,” said Sterling Pratz, a co-founder of Autonet. “I believe that is a large opportunity for us.” Some boutique installers who sold them in their shops did offer them online before. This week other online retailers, like Crutchfield, will begin to sell the system.

The hubs are being used in several ways, Mr. Pratz said. About 38 percent of the buyers are businessmen and professionals who need an Internet connection at all times for work. About 33 percent are using the systems for backseat entertainment. Roughly 18 percent are technophiles using the system in the front seat to stream Internet radio and use location-based services like Fandango, which locates movie theaters and show times and sells tickets. And the remaining 11 percent of the buyers are fleet owners, including a small number of police and ambulance companies. Read more

And we’re back… (Web Key for Cars)

Sorry for the hiatus on the Fusion Blog… Will try to get back to some regular postings as there’s tons of good ideas and info to share. For example, Brandweek released an article last weekend highlighting the importance that the web plays in selling cars during tough times. Here are the highlights…

Web Key for Autos

June 20, 2009 -By Kenneth Hein from Brandweek

  • For many consumers, skimping on a new car upgrade has created a lot of pent-up demand. While it’s unclear when buyers will be ready to buy autos en masse again, a new report from The Nielsen Co. suggests one of the best ways to reach them now is via online advertising, particularly video.
  • The report, released this month, found many consumers were still looking, but just not buying during the first four months of the year. However, 12 percent of the U.S. population said they will probably or definitely buy a new car or truck during the next six months, per the 250,000 U.S. adults that make up the Nielsen MegaPanel. That was up slightly from 10 percent in the spring. Read more

Survey Indicates That Reducing Advertising in a Recession is a Mistake

More than 48 percent of U.S. adults believe that a lack of advertising by a retail store, bank or auto dealership during a recession indicates that the business is likely struggling, according to a study from Ad-ology Research. At the same time, a large majority of consumers think businesses that continue to advertise are competitive and/or committed to doing business. Read more