Analytics, Metrics and Music for the Radio Industry
Advertising and Indie Artists for Radio
Radio Industry ROI Strategy How the internet affects radio advertising and music airplay.
Wednesday, December 29, 2010
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Good Data Forces Quality Questions


2010 comes to a close. The natural questions that arise are "What changed this past year?" and "How is 2011 going to be different?"

You may use improved Y-2-Y revenue as a metric to show the radio industry is improving, but that's too easy when revenues are compared to last year's fiscal debacle. Comparing the number of stations involved with social networking isn't going to get you too far either, if such numbers exist. (There's building research showing that a company lacking resources for a total assault on social network marketing is just spinning wheels.)

Radio, online and off, is in a stalemated position. Its leaders are checking the board for options so this past decade of "playing" with new media won't prove wasted. RAB hiring of Sheila Kirby as SVP/professional development only proves that the radio industry still fishes in its own waters instead of going for talent in a technology pool.

We know performance royalties are pushed to 2011, but what of the accountability issues with advertisers? The topic was not simply ignored in 2010; it was avoided.

"2011 is going to be a year when agencies see more force from clients to place ad dollars in accountable advertising; it's the buzzword in business."

Offering accountability in campaigns will become the most important item to be addressed next year (sans performance royalty).

The radio industry is infatuated with numbers. You can see this in the rush of headlines when Ando Media publishes its monthly internet rankings. (See the October and November breakouts.)

Radio keeps track of "Arbitron Trends" so closely that nearly all trade publications have sections on them for each market.

In 2010, we saw no movement from the radio industry for improving the ability of an advertiser to calculate ROI. If executives love numbers so much, then why?


What do you think will be said in 2011? How many panels will be devoted to audience response in campaigns when executives gather for next year's RAB/NAB get-together?

That Pandora, Google, Yahoo!, and MSN are going after local advertising dollars has been pointed to here a number of times. There will be increased effort from them all after the holidays. The point each will make to that same client you are trying to re-sign is "we show you response."

In many cases, with the proper guidance, a local advertiser will be able to track a consumer's movement from exposure to the ad to the purchase of product - especially if the client has a product or service that's available online.

2011 is going to be a year when agencies see more force from clients to place ad dollars in accountable advertising; it's the buzzword in business.

As a small demonstration, let's use this tracking of visitors to RadioRow's Christmas Music page. There's a lot of detail left out, but just analyzing this creates a number of good questions. For example, is maintaining this page worthwhile during the Xmas season?

Because this measurement is taken in an environment where 26 music formats are offered, it also may give you a clue to the popularity of the Christmas format when consumers are given a choice.

The chart (below) shows visitors to the Christmas format page as a percentage of visitors to RadioRow. Multiple links to the Christmas page were offered, one per format page in the form of this banner ad.

There was also a bolded listing on the RadioRow home page.


How did it perform through more than a quarter-million page views?



Its peak in drawing 1.86% of the total RadioRow pageviews happened on December 24, and this is considered a good response in online advertising. (What response is it that you look for when running a campaign over-the-air?)

We'll follow this page through January 10, 2011, having posted it on November 21, 2010. I think we'll see a continuation of visits that are less than 0.4% through the end. The drop-off in interest on December 26 is extreme.

The question most needing answered: Is it worth the effort to produce a Christmas format page if it generates this level of response?

As we enter 2011 I'd also like to ask your thoughts on this question: As an advertiser, wouldn't you feel better knowing that the media you chose to advertise on can deliver facts like what's above?

Think about that for a moment, because it's a good question that Pandora, Google, Yahoo!, and MSN are asking thousands of local advertisers today.

Just last month I received a coupon good for $100 of free advertising at Google Adwords, in a pitch that emphasized "You only pay if it works!"















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