MOVING RADIO ADVERTISERS TO THE ONLINE SPACE
BY GREG CYNAUMON, PH.D.
This is Part 2 in a series of articles by Dr. Greg Cynaumon discussing how utilizing radio personalities in online advertising is destined to be a significant growth industry in 2010 – 2011
Agencies such as ROI Media Direct has signed representation agreements with national and local radio personalities as well as networks and stations for the purpose of facilitating the use of radio personalities among ONLINE and OUTDOOR advertisers. The backbone of this model will be an asset tray of radio personalities tha we can deliver, track and bill their use among our ONLINE and OUTDOOR advertisers worldwide.
The VS-360º asset tray offered to advertisers for both ONLINE ADVERTISING and OUTDOOR BILLBOARDS will include:
(a) Still images of radio personalities served online through banners or billboards with a graphically displayed generic and customizable messages about the advertiser
(b) Geo-targeted radio personalities to specific cities/regions corresponding to the consumer’s location
(c) Genre-targeted personalities to advertiser’s consumer targets (ex: country personality to western wear store)
(d) Both generic and personalized audio sound bites from radio personalities to ONLINE advertisers
(e) Video features whereby the personality “walks on” to the advertiser’s website. Audio personalization is extra
INDUSTRY REACTIONS by Greg Cynaumon, Ph.D.
Two highly influential radio visionaries were interviewed in order to calibrate the VS-360º model. They were: Roy Laughlin, Senior VP-Market Manager for CBS Radio, and Kraig Kitchin, retired President of Premiere Radio Networks. Kitchin now represents Rush Limbaugh, Jim Rome, Dan Patrick and several other top tier radio talents.
• From a radio station management perspective, Laughlin labeled the plan, “brilliant and visionary” noting that radio stations and networks across the country have long had executive mandates to expand reach and revenue into online, but have failed miserably. Laughlin sees VS-360º as the program that will ultimately bridge the expanse between radio advertising and online. Additionally, he committed to immediately bring CBS to the table with 500 LA area on-air talents for an initial test and then bring in the entire CBS/AOL (1,640 plus) radio affiliates and stations in 50 top markets.
• From a talent management perspective, Kitchin called VS-360º, “the first win-win-win online and offline model he has seen”. Summing it up, he noted that: (a) talent wins big by gaining online reach and revenue without diluting personal brand. (b) Radio stations and networks win by bringing in non-traditional revenue from online advertisers. (c) Radio stations win double by converting online advertisers to traditional radio ad schedules. And lastly: (d) online advertisers win because the vast majority of local businesses that could not afford traditional radio advertising will now have access to on- air personalities to augment brand awareness and increase conversion) at accessible prices.
Kitchin predicted that once the radio industry sees upper tier personalities joining the VS-360º program, the rank and file will follow. Subsequently, he committed to introducing this model to several of his top tier talents as well as to facilitate other strategic meetings.
WHO BENEFITS by Greg Cynaumon, Ph.D.
• Online advertisers benefit financially from brand enhancement and increased conversion whenever a radio personality is added to an advertiser’s website.
• Online advertisers benefit further through affordable access to (heretofore unaffordable) radio personalities for their websites.
• For the first time, on-air radio personalities will benefit financially by a virtually unlimited number of reaching non-radio advertisers.
• On-air personalities (and radio stations/networks) will benefit further by appearing online without diluting their on-air brands. In essence, a personality could appear on and all parties will receive revenue from hundreds of websites. This model also avoids exclusivity restrictions. For instance, a host can only read commercials for one Ford dealerships on his show, but could appear on dozens of Ford dealership websites as long as they were not in competing customer areas. This model allows the host as well as station (or network) to capture previously off-limit advertising revenue.
• Radio stations and networks will benefit financially through revenue participation generated from online advertising. This will be viewed as an attractive non-traditional revenue stream.
• Radio stations and networks will further benefit when ONLINE advertisers recognize the benefits of using radio personality messaging and migrate a portion of their advertising budgets to traditional radio. VS-360º will receive a commission in these circumstances.
• Radio stations and networks further benefit in that both are experiencing an ever-increasing percentage of advertising budgets moving away from radio to online. VS-360º allows stations, networks and on-air personalities to benefit from online advertising revenue for the first time.