||'Radio Kicks Digital’s Butt'
Gordon Borrell, CEO of Borrell Associates, presented a Super Session at last week's Radio Show in Orlando. The title was: "Radical Change in Local Advertising and How Media is Morphing."
Borrell began by looking at cutting-edge technology of 2003. Just 10 years ago it would have been hard to believe smartphones would replace cameras, watches, even PCs.
The allocation of budgets between advertising and promotion have changed, too. Advertising over the past 10 years is essentially flat while spending on promotions has increased over 80%. Promotional spend includes everything from building out a social media staff to the cost of product coupons.
The good news for radio is it is good at promotions. Borrell points out radio is better at creating and executing promotions than any other medium, including the growing digital medium. His quote was: "Radio kicks digital's butt" when it comes to promotions.
Borrell said of most traditional media: "When a disruptor arrives, the 'disrupted' often concentrate on the overlapping area, missing the bigger opportunities to create 'new' business."
Borrell pointed out that radio is often so focused on selling radio commercials that it misses seeing the opportunity to sell digital advertising. He recommended a radio sales staff and a separate digital sales staff. He said there has never been a case where a salesperson charged with selling two media gets a significant share in both.
Hubbard Radio, Entercom, Delmarva Broadcasting and Beasley Broadcast Group were among broadcasters recognized by Borrell for leading at developing digital revenue by going after a new set of advertisers. They are selling to advertisers who are not using radio and later converting those advertisers over to radio.
Borrell summarized by saying that you won't die if you don't morph, but you won't grow anymore.
Borrell's complete presentation, including research findings, along with several other Radio Show sessions, is available free to view here.
(Source: John Potter, SVP/Professional Development, RAB)