Traditional Radio Relevancy in 2024 & 2025

Traditional Radio Relevancy in 2024 & 2025

It’s the week between Christmas and New Year and for this weeks update, I found an article that caught my attention back in July. You can read it here.
In the meantime, I’m just going to share a couple of thoughts from that story and what really matters as we move to a new year.

Between ad-supported Spotify or ad-supported Pandora and AM/FM radio, what do most people only listen to? New data courtesy of Edison Research’s “Share of Ear” quarterly study, examined by Pierre Bouvard, Chief Insights Officer of the Cumulus Media/Westwood One Audio Active Group, shares that it is broadcast radio that is the definitive answer to that question.

There are tons of research being done on an ongoing basis that show the power of traditional radio and this is one of them.

With 4,000 Americans surveyed by Edison Research, ad-supported audio was put under the magnifying glass. And, six key findings from the Q1 2024 “Share of Ear” study caught Bouvard’s eye:

 
  • In a typical day, ad-supported digital audio reaches a third of America; AM/FM radio reaches two-thirds of America; Combined, digital audio and AM/FM radio reach 75% of the U.S. daily

Those numbers are referring to daily listening habits which is different from the way Nielsen Research measures listenership for radio stations. Nielsen gives us the number of weekly listeners which has consistently been over 90% of adults.

Items two and three:

  • Between ad-supported Spotify and AM/FM radio, most people only listen to AM/FM radio

  • Between ad-supported Pandora and AM/FM radio, most people only listen to AM/FM radio

Often times, we make the assumption that our own habits and preferences are a reflection of everyone else. So when someone discovers a streaming music platform like Spotify or Pandora and that replaces radio as their music source, they sometimes jump to the conclusion that everyone is abandoning traditional media.  But when you add up the numbers, it’s not really true.   The company I work for, Federated Media operates 5 different stations, and three of 5 are music stations, the other two I work with are talk radio.  The 3 music stations have an impressive number of listeners, many times larger than the local listeners to Pandora and Spotify combined.

Number 4 on his list:

  • The U.S. ad-supported audio clock: Podcasts and AM/FM radio represent nearly 90% of tuning minutes

I would like to see the data behind that statement, but it’s not surprising.  Podcasts have been surging in listenership in the past several years.

Number 5:

  • With a towering in-car share of 86%, AM/FM radio is the primary way to reach consumers on the path to purchase; The proportion of AM/FM radio in-car listening has surged, returning to pre-pandemic norms.

I just turned 65 this month.  I bought my first car when I was 16 and the car was my mobile music machine. Before we had the ability to consume media on demand, we would listen to radio in our cars during what’s called traditional drivetime in the morning and afternoon.  That was radio primetime.  TV primetime was in the evening.   I’ve got some data I’ll share next year about local listening habits but for now, let’s keep going.

The 6th Key Finding:

  • Among registered voters across the political spectrum, AM/FM radio is the dominant ad-supported audio platform.

This article was published before our most recent national election.  Donald Trump won and I can see how the power of talk radio beat the power of Political TV.  Conservative media includes most of the News Talk Broadcast radio stations along with the Fox News TV Network.  Liberal media sources don’t include radio for the most part unless you want to classify public radio as liberal.  Even if you were to do that, the total radio listenership of political talk across the country is heavily conservative.   A few decades ago there was an attempt to create a left-leaning talk radio network but it fell apart because it didn’t have the on-going financial support.  I can’t give all the credit to radio because the viewership of MSNBC and CNN combined are dwarfed by the Fox News TV network, so a combination of conservative talk radio and TV overwhelming beat the liberal progressive media in this years election.

Listenership and viewership are important however what really matters for the businesses I work with are the results we create from the advertising campaigns we run on the radio and our social media channels.

My station, WOWO turns 100 in 2025.  Sister music stations, WMEE, K105 and 98.9 the Bear each have been on the air successfully for decades. I define success as successfully connecting listeners to advertisers and being profitable for all.  More on that in the year to come.

Win Back Former Customers

Win Back Former Customers

What should you change to retain or win back customers?

What internal changes can you make that will create a more positive customer experience?

Are there some things that have changed but that law of “unintended consequences” kicked in and perhaps you should revert to the it was before?

How prepared are you for the upcoming year and both the known and unknown that will impact the Customer Experience and your business bottom line?

I know, that’s a lot to contemplate but it’s the kind of questions I like to ask when I’m meeting with business owners and managers.

I’ve got three stories/examples to share.

I was one of the millions of people who voted early this year. Instead of waiting until Election Day on Tuesday November 5th, I was downtown one day in October and decided to visit the early voting location and stand in line to vote early.  The line was long but it was inside.  Total time from when I arrived and parked my car to when I left was 50 minutes.

A couple weeks later I noticed that the early voting line was different.  It was shorter and people had to wait outside the building.  I’m not sure why but I was thankful that my wait was not braving the elements, even though it was longer than those later early voters.  The customer experience of voting was less favorable for those who had to wait outside.  Most, but not all voters persisted in both scenarios because they had a determination to vote then and there instead of leaving.

Another story dealing with lines is my favorite locally owned coffee shop, the one that earned the nickname of ScLoHo’s North Office for more than a dozen years.  These days I visit mostly on Sundays but have started to stop by during the week on occasion too, like the old days.

However there are times when I will walk in and look at the line of people waiting to order and decide if I want to stay and wait or leave.  When they are busy the line can be 20 people deep.  Longer than that and the line goes out the door which I’ve seen a couple of times.  I know that over the years the owners have continually made modifications and that includes expanding and also streamlining their menu.  They’ve also adjusted their hours and during the Covid years, made required adjustments as needed.  They’ve raised their prices and even added a surcharge which is a percent of your bill that goes to pay for benefits to their staff.  I know that because they were upfront and posted about it.  They are 25 years strong and despite the long lines during busy times which discourages some customers from waiting at that moment, they will continue to thrive.

I also have the Starbucks app on my phone and I keep it loaded with funds so I can get coffee on the road at places other than my favorite local shop.  There have been a couple of times that one of the local Starbucks was so busy that they had no parking avail and I’ve waited for over 20 minutes.  I know, First World Problem. I’m not the only one that has been deterred from being their customer as they’ve lost sales and now they are going to fix a couple of common complaints to their speed and pricing.  Here’s the info from MediaPost.com:

Starbucks Ends Milk Upcharge, Returns To Sharpie Roots

“Starbucks will no longer charge customers extra for nondairy milk alternatives in their lattes, macchiatos and other beverages, part of a strategy to boost slowing sales by streamlining its menu and re-creating a more inviting coffeehouse vibe at its stores,” according to The Washington Post. “Customers previously complained that the extra fee for nondairy substitutes discriminated against people with lactose intolerance or other dietary restrictions….

Customers ordering drinks with nondairy substitutes can expect price reductions of more than 10%.

“The company is also setting a goal of getting customers their orders in four minutes or less,” according to The New York Times.  Brewed coffee will now be delivered to customers at the register, and customers can customize their coffee themselves — adding milk and sweeteners — at the condiment stations that the company will be reinstalling. That should also alleviate some of the workload for baristas.”

Another change won’t save customers money, but might make them feel more connected to the brand:  “Starbucks is bringing back hand-written names in Sharpie on cups and self-serve stations with sugar and cream to try to win back customers,” according to CNN. “Baristas handwriting customers’ names and messages on their drink orders in marker will make a comeback.”

It’s part of their strategy to recreate a coffeehouse vibe at Starbucks and add a “human touch.”

The last story I have has to do with something I did about 15 years ago when I served on the Board of Directors with the Advertising Federation.  We had monthly lunches at least 9 or or 10 times a year and there was a fee to attend.  Nearly everyone else on the board worked on the creative side or at an ad agency, yet I was the one that moved us forward into the world of online payments.  This was around 2009 and the custom was to reserve with an email or phone call and then bring either cash, check or credit card to be processed at the lunch.

Eventbrite was just a few years old and some of the old school board members were hesitant to move to an online reservation and payment platform for our lunches.  I set it up and our attendance quickly rose because we improved the customer experience and provided a fresh option to make it easy for people to buy along with keeping the previous method as an option for about a year to handle the transition.

All of these stories and examples are related to marketing too because you’ve changed the perception and reality of your company to the customer.

Go back to those original questions and ask yourself and your team about ways to improve as you move forward.

Is Your Brand Identity Correct?

Is Your Brand Identity Correct?

My favorite carbonated beverage is changing their branding.

So I’m going to stop drinking it in protest.

Just kidding.

Mountain Dew is changing their labeling to Mountain Dew.

I know, that sounds weird but it’s a visual change, not a verbal change.

Here’s the story from Mediapost titled:

Mountain Dew Unveils New Logo, Visual Identity

After around 15 years, Mountain Dew has found its vowels again.

The brand unveiled its new logo — eschewing the “Mtn Dew” stylization officially introduced in the U.S. market in 2009 –– in favor of the full brand name, while tying the brand’s visual identity back to mountainous peaks portrayed in the background as it approaches its 75th anniversary. Mountain Dew’s new logo also includes small text reading “Est. 1948” over the “W” in its brand name, a nod to the year the trademark was officially established.

I know, it’s shocking.  I say that with a ting of sarcasm.

Because honestly, I don’t recall them dropping the vowels out of Mountain in 2009.  I didn’t change my buying habits and I won’t now, or when the new logo comes out in 2025.

I was trying to recall when I started drinking the Dew, and I’m guessing it was in the 90’s as an alternative to coffee.  Nothing wrong with coffee but the Dew also replaced Pepsi as my go to cold beverage.  I recall having a conversation with my kids when they questioned my drinking Mountain Dew in the morning and I pointed out to them that the second ingredient on the label was concentrated orange juice. Let’s be honest, besides the taste and the O.J.  Mountain Dew had more caffeine than Pepsi or Coke and that was the main reason I drank it.  Also a little over 20 years ago I switched to the diet versions of soft drinks.

What I just shared was my own story and reasons for drinking Mountain Dew.

It has nothing to do with the name, or the logo. Yet someone in their advertising agency was paid big bucks to revamp their visual image.

I’m not against updates.  One of my favorite advertising partners on WOWO radio has done an internal name change this year and we’ve updated his ads and also the visual elements.  There was nothing wrong with the previous name, Moore and Associates, but it really didn’t identify his brand.  Unless you knew from the advertisements that have aired on WOWO for over 29 years who Chris Moore is and what he does, Moore and Associates could be a law firm, or a plumber or nearly anything.

His new name is much more clear and a much stronger branding statement.  Moore Wealth Management.  Chris and his team have grown over the past 3 decades and the new name is accurate as it reflects what they do now and what they’ve been doing for years.

With all do respect to my friends who specialize in graphic design and understand the subconscious influences of color and typography including font selection, those are secondary to having a good product and service that people will talk about positively.  As a side note, I like Comic Sans.  Time to crack open a Diet Mtn Dew.

 

Success in Sampling

Success in Sampling

Debbie Fields was only 21 years old when she opened her first Mrs. Fields Cookies store in Palo Alto, California in 1977.  Seven short years later, in 1984, the marketing “novice” had 160 stores selling more than $45 million worth of Mrs. Fields Cookies.

There are a lot of lessons we can learn from Debbie’s marketing success. Her passion and determination caused her to succeed even though she had no experience, and was told by friends, family, bankers, and others that her “idea” would not succeed.

The marketing campaign that drew customers to her stores consisted of simply going out into the streets with trays of free cookies for people to sample. If you have a great product, consider finding a way to offer free samples to your customers.

Car dealers know the value of the free test drive, and vendors at local farmers’ markets have learned they sell more produce by offering free samples.

Advertising that you offer free trials or samples also speaks volumes about the confidence you have in your products or services. Mrs. Fields did not wait for customers to come into her store to offer them free samples, she went out into the streets with trays of goodies. 

“Free” is one of the most powerful words in advertising and giving samples of your product engages “psychological reciprocity” in the minds of your prospects. 

Psychological reciprocity is defined as “a deep-rooted subconscious need to do something for those who do something for us”.

FREE! If you have a product that customers will love, click here to read the 8 Keys to Successful Sampling.

Mrs. Fields Cookies was one of the first franchised cookie shops in the country and we use to have a couple of them here in Fort Wayne Indiana.  We don’t anymore due to the changes in consumer behavior and decline of major malls that was going on for awhile but then took a big hit in 2020 with covid.

When Mrs. Fields started in the malls around the country, that was a strategic location move.  See, the rent in a mall was usually higher than a smaller strip shopping center.  Just the mall itself was a destination, not just specific stores.

So the Mrs. Fields cookie stores took advantage of the foot traffic created by the other well known stores and built their brand that way.

Some of my radio advertising partners have used a free offer that was in response to a genuine need to create increased business in the past few years.  Let’s talk and see if there’s something that might be appropriate for your business.

Audio Advertising: Streaming Music versus Traditional Radio

Audio Advertising: Streaming Music versus Traditional Radio

I’ve been getting a lot of research and data coming my direction that I’ve decided to share with you in a series of articles I’m labeling Audio Advertising.  As a business owner or just a regular consumer, we hear and read various things that we might think are more true than they really are.

One of the ways to identify these types of mis-information is when they include absolute statements such as:

No one listens to music on the radio anymore.

Sports Fans watch all their games on TV or in person.

Podcasts are what everyone is listening to these days.

Or Radio is dead.

The past couple of weeks, I’ve addressed the Radio is Dead rumor with evidence that it’s not.  It’s alive and thriving.  If you missed those stories, go back and read or listen to the podcast episodes.

Before I joined News/Talk WOWO radio in 2013, I worked primarily for music stations.  The past couple of decades pundits were eager to declare that ad supported free AM/FM commercial radio was dying and people were now going to listen to their favorite songs via streaming services.  Pandora Music was one of thee first that has it’s roots going back to the year 2000.  It was September of 2005 that they officially launched as a subscription ad-free music service but then they added a free service that included advertising, similar to traditional radio.

According to Wikipedia, Pandora grew to around 70 million active monthly users worldwide, but that number comes from 2013.

What does this have to do with advertising?

A couple of things… 

Local businesses can pay to run ads on Pandora.  

Pandora is not the only music streaming service and others also offer ad placement, Spotify is the most recognized for home/office and Sirius XM for mobile listening in vehicles.

Pandora and these other streaming radio services never have had the number of listeners that traditional radio stations continue to have and a recent study shows that Pandora’s ability to reach local listeners with your advertising message has been declining for years.

Here are some highlights from a report from Westwood One titled What Ever Happened to Pandora:

Here are five key findings:

  1. Since consumer interest in Pandora Radio hit an all-time high in 2008, its audience and profile have significantly collapsed, according to Google Search trends.
  2. A brand-new Advertiser Perceptions study conducted in August 2024 reveals marketers and media agencies need to “take the me out of media” as they wildly overestimate Spotify and Pandora audiences and dramatically understate AM/FM radio’s shares.
  3. AM/FM radio represents the dominant ad-supported audio platform with a 69% overall share and a massive 86% in-car share.
  4. Podcast audiences soar. At a 19% share of ad-supported audio, podcasts now represent one out of every five minutes of U.S. ad-supported audio.
  5. Among registered voters, AM/FM radio leads in ad-supported audience share (69%), followed by podcasts (19%).

I’ll have more on the podcast growth trend in a few weeks.  For now, let’s dig into the Pandora data:

Ad-supported Pandora’s daily reach has been cut in half; AM/FM radio streaming is twice as big as ad-supported Pandora and ad-supported Spotify

Since 2017, Edison’s “Share of Ear” reports ad-supported Pandora’s daily reach has plunged from 12% to 6%. At a 63% daily reach, AM/FM radio’s audience is ten times larger than Pandora. Amazingly, the 11% daily reach of AM/FM radio streaming is double that of ad-supported Pandora (6%) and ad-supported Spotify (5%).

Looking at one of the charts, we see that AM/FM radio listenership either over the air or via a stream was 77% of daily listening in 2017 and in 2024 it’s 70%.  Meanwhile Pandora dropped from 12% down to 6%, Spotify went up 1% from 4 to 5 while Sirius remains flat at 5% of daily listening.

Most traditional AM/FM radio stations offer additional ways to listen to your favorite station along with a regular AM/FM radio and that’s where the streaming comes in.  In my home we have both Alexa and Google Home smart speakers which have replaced the radios in a couple of rooms in our house.  

As an experiment for this article, i listened to Pandora for about an hour and never heard any local ads.  When I looked at the display ads, again nothing local and nothing targeted to me despite the fact they have that meta data. The job I had before returning to radio in 2013 involved a lot of desk work and I would listen to Pandora for a portion of the work day.

Bottom line is in order to invite local consumers to your business, local radio is still an excellent choice you need to consider.