Does Your Marketing Volume Go To "11"?

I am re-reading a couple favorite marketing books during my last-of-2007-vacation-time, and came across a great analogy in John Moore's Tribal Knowledge: Business Wisdom Brewed From the Grounds of Starbucks Corporate Culture.

It's from "Tribal Truth #8" wherein John draws a comparison to marketing strategies being more commonly akin to an on/off switch versus a volume control knob. The analogy seemed especially appropriate for Radio advertising campaigns, and blends perfectly with a well-planned Web component.

When a client considers an advertising campaign, it's either an active schedule that is on the air or off the air. The duration and frequency is dictated by budget restrictions, and the common goal is to turn "on" the marketing campaign and bombard the audience for as long as their ad dollars hold out, and then turn "off" the marketing and hope the message momentum will carry forward long enough to bring about future customer purchases.

Starbucks' strategy was to look upon marketing as a constant flow that could be dialed up or down depending on the need to influence their audience. There were radio and print ads, but usually it was in-store marketing, word-of-mouth, etc. The mainstream media was only used to dial-up the knob and increase the marketing "volume" to allow more people to hear their message.

Consider this in regard to Radio+Web marketing strategy:
The addition of a Web component can help an advertiser's ad dollars go farther. The comparatively lower investment allows the client to maintain a constant level of 'marketing volume' and then turn the control knob to "11" by adding Radio components during times of greater need.

Actually, a steady marketing 'volume' maintained Online will allow the increased volume of additional Radio to work more effectively -- their Web efforts pay-off by building brand awareness so that the Radio message doesn't need to work quite so hard to break through the clutter. The Advertiser will have already been introduced to (and built a relationship with) our Listeners. You may want to reference a blog entry from July of 2007 in which I shared a study that showed Web+Radio demonstrated a 27% ability to recall vs. a 6% recall for using Web-only ads.

Maintaining a constant Web presence and increasing the message 'volume' with Radio as-needed is a great way to help a client's ad dollars work more effectively on their behalf. Try using this Volume Control vs. On/Off Switch comparison the next time you're speaking with a client. It's a great way to tell a compelling story about a 'sound' (...had to slip in a pun!) marketing strategy.

To learn more about John Moore's book (and read all the Tribal Truths) visit: http://tribalknowledge.biz/

NOTE: In case you were wondering, the headline is a reference from the movie "This is Spinal Tap" (for all you heathens.)

CBS Radio Eyes Web Revenue Growth

Good article on CBS Radio and their emerging web strategy.

From the article...
Two months ago, when wildfires scorched hundreds of square miles in Southern California, forcing the evacuation of a half-million people, listenership spiked on KNX Radio, the CBS-owned outlet in Los Angeles. But the uptick wasn't for the station's on-air signal; listeners had instead tuned into the station on the Internet.

The average daily listenership for the newscasts on the KNX audio stream soared tenfold over the weeklong period that the fire dominated the headlines.

The online listenership spike experienced by KNX during the fires, and the real-time metrics available to quantify such digital audiences, reinforce the radio industry's need to expand its Web content. All 140 CBS Radio stations (in addition to 10 Internet-only outlets) are now streamed online to tap into today's fast-growing digital ad platform. And plans call for the development of much more Web content.

"Our digital revenue is growing significantly every year," said Mason. Those dollars are also helping radio counter a drain on the broadcast side, where spending has been flat at just over $21 billion (according to the Radio Advertising Bureau) for the last three years, as advertisers have sought better measured and more accountable media. Over-the-air radio ratings routinely have a three-month lag time, much to the dismay of clients and ad buyers.

Mason declined to say how much the digital revenues contributed to the division's coffers, but a media analyst at BMO Capital Markets estimates that 3 to 5 percent of the industry's revenue, (or roughly $640 million to $1 billion) are generated by online ad sales. Westerfield says the radio industry will continue to develop its online presence.

"The growth in media use is clearly growing on the Internet, and growth of advertising dollars is also migrating to the Web, so it makes sense for the radio companies to develop attractive commercial audio entertainment brands on the Internet."

Click here to read the entire article.

Best Way to Reach Business Decision Makers

The Internet is the best way for advertisers to market to business decision-makers, according to a poll. A survey of nearly 1,000 people by Minnesota Opinion Research found 60% agreeing the Web was persuasive. Fifty percent said it influenced them to make a purchase.

"Business decision-makers have told us that the Web is the best place to reach them," said Chris Schroeder, CEO of Washington Post/Newsweek Interactive. "Most importantly, they've made it clear that what they're seeing on the Web is leading directly to purchases."

Online Advertising To Top Radio In ‘08 & Magazines By 2010

Worldwide internet ad spending will jump to $44.6 billion in 2008, from about $36 billion, increasing its share of the market to 9.4% from 8.1%, according to ZenithOptimedia.

“We predict internet advertising to pass three milestones over the next three years,” according to ZenithOptimedia’s forecast, released December 3rd. “We expect it to overtake radio advertising in 2008; to attain a double-digit share of global advertising in 2009; and to overtake magazine advertising in 2010, with 11.5% of total ad spend.”

Advertising Now International
In addition to noting the growing importance of new media, ZenithOptimedia also notes a trends toward international ad spends.

“North America used to be half of advertising expenditures,” said Tim Jones, CEO of ZenithOptimedia Americas. “We’re seeing its share drop a full point every year at this point. That’s being made up for everywhere east of Eastern Europe. Look at the multinationals and where their investments are focused: the Russias, Chinas and Indias of the world. That’s true of our business and media vendor companies as well.”

Between now and 2010, according to the forecast, the 10 fastest-growing ad markets will be Kazakhstan in the pole position followed by Belarus, Serbia, Egypt, Russia, Moldova, Indonesia, the United Arab Emirates, Ukraine and what the agency refers to as “Pan Arab.”