Radio Direct Response: Direct Response Radio Advertising Agency | Blog Zone

Since the Second Quarter of 2007, radio had experienced 11 consecutive quarters of ad revenue decline, lasting straight through 2009. And then came 2010.

One by one, radio groups and networks have announced higher revenues for Q1 2010 compared to 2009; most of it double-digit. And now Q2 of 2010 continues that trend.

Katz Media Group reports and projects year-over-year growth of 10%, 17% and 27% for April, May and June of 2010. In 20 of its top 25 radio DMAs, Katz is seeing double-digit growth in ad revenues.

Retail, telecom and consumer product categories are leading the way, but the surge isn’t limited to just those three. Nor is the broadcast revenue rise confined to radio.

This year’s television upfronts, the annual media circus where the major TV networks strut their new fall line-ups in hopes that advertisers will lock in their orders for ad time, has resulted in robust orders for air time. TV execs report that the new season could be sold out in a matter of weeks. (Typically, the big TV networks sell roughly three-quarters of their ads in advance.)

This turnaround is a welcome cause for optimism, especially after 2009’s recession-fueled spending exodus. Wallets are once again beginning to open. And while it’s not exactly business as usual, well, at least it’s business.

For direct response advertisers, this means higher rates and tighter access to inventory at attractive “direct response rates.” For DR agencies, that means working harder to find bargains with value a/k/a more work for the same pay.

But accountability for results is a good thing. And so is increased demand for air time in the broadcast industry. In radio, in particular, that means more opportunities for “The New Radio” channels, from satellite and streaming to podcasts and smart phones.

Radio revenues are up and so is the outlook for brisk business ahead.

Lisa Sable, Senior Marketing Strategist

Shake off your winter blahs…summer is coming! I saw the first signs of daffodils on my neighbor’s lawn this morning and I thought sandals, sunscreen, lawn mowers, ice tea, gardening, bicycling, vacations, camp, baseball, swimsuits (with simultaneous thoughts of weight loss), landscaping, exterior household repair along with a stream of consciousness list of brands that could (and should) be actively seeking my business. Are you one of them?

Radio is a great way to reach your target customer and the time to start planning is now. I keep reading that retail sales are cautiously trending up and that consumers are more value conscious than ever. So, make sure to build value into your product or service by offering valuable incentives that get consumers to act NOW!

For instance, what woman wouldn’t love to buy a pair of cute new sandals and receive a free nail polish for her newly exposed toes that scream “look at me!” What about giving a FREE bike helmet with the purchase of a top of the line new bicycle. Or, let’s say you paint houses, what about offering a flat of annuals to beauty up the exterior of your home when you have your house painted.

You get the idea. These kinds of limited-time offers get consumers who are thinking about purchasing to actually DO IT. And, radio is a great way to get the message out, a form of word of mouth that lets you in on special deals.

Even if your product or service is not necessarily summer related, there’s always a way to make it appear to be. Having trouble figuring out how? Call or email me. I’m up for the challenge.

Lisa Sable, Senior Marketing Strategist

If you are one of the tens of thousands of new products looking to gain or maintain retail shelf space in 2010, then you know that the battle for shelf space has never been greater. National brands need to pay to play and - once they gain chain-wide distribution - they need to support the brand in order to STAY!

When properly utilized, Radio is a great way to secure retail distribution and stimulate sell through. You see, your retail customers LOVE radio because it’s heard in the car (close to the point of purchase) and sways listeners to shop at retailers who effectively and emotionally promote their stores. Knowing this, many CPG brands engage radio to promote their products AS WELL AS key retailers in target markets. Doing so not only helps brands secure shelf space, displays and incremental sales, but also drives additional traffic into featured retailers and boosts overall store sales. It’s the proverbial “you scratch my back, I’ll scratch yours.”

As consumers continue to seek savings, private label product sales continue to grow (7.4% in 2009) at the expense of national brands. In fact, many private label brands are now viewed as similar, perhaps even superior, to brand named CPG products (Kirkland private label at Costco comes to mind). That means national brands need to step up and promote.

At RDR, we create sales promotions that maintain the integrity of the brand while attaching a limited-time offer that gets consumers to pay attention and buy NOW. Often times, the promotion is tied to a high-margin department of the retailer (i.e. bakery, produce, floral, etc.) in order to get retail buy in. Many times, the promotion includes an exclusive sweepstakes or gift with purchase that emotionally connects with consumers. And, every time, the promotion is designed to meet or beat your ROI. It’s an explosive chain reaction of event designed to trigger sales. And it all starts with a phone call to RDR.

Lisa Sable, Senior Marketing Strategist

I have a teenage daughter who doesn’t go anywhere without her iPod and her cell phone. Working in the radio biz, I’m so curious to know if she, and others like her, still listen to radio; or has traditional media become passé. She’s my focus group of one (1) for her demographic so I asked her a leading question, “How do you know what music to download to your iPod?” Her answer was a bit unsatisfying and so typical for a teenager. “Mom, I just know.”

Well, now I know that radio is a large part of the equation! A new study, How U.S. Adults Use Radio and Other Forms of Audio, was just released by The Council for Research Excellence (CRE). The study observed real time audio media usage and recorded how much time people actually spent using each type of audio media, ranging from broadcast and satellite radio, CDs and tapes, portable audio [ipods/MP3 players], digital audio stored on a computer such as music files downloaded or transferred to and played on a computer, digital audio streamed on a computer and finally, audio on mobile phones.

Here are the findings:

• 90% of adults are exposed to some form of audio media on a daily basis, with broadcast radio having by far the largest share of listening time.
• Broadcast radio is the dominant form of audio media at home, work, and in the car.
• Broadcast radio reaches those aged 18-34 at rates equivalent to the general adult population, with 79.2% of younger adults listening to broadcast radio for an average of 104 minutes a day among listeners.

“It really seems like the young group tend to be more audiophiles,” said Dr. Michael Link, Chief Methodologist of The Nielsen Company, who funded the study. “They’re really into their audio. So, it’s not that they abandoned radio, per se, but they essentially augment with some of these portable media/digital media devices.”

Now I understand why my teenager never hears me when I tell her to clean her room, walk the dog or set the dinner table. Her ears are otherwise engaged. She’s an audiophile. The big news, however, is that for young demos, RADIO still accounts for the biggest share of their listening.

Lisa Sable, Senior Marketing Strategist

I’m the newbie at RDR. Take a look on our website – you won’t find a photo of me yet. I’m still in the honeymoon phase.

I spent most of my adult life working in Radio (at this point, that accounts for most of my life). Regardless of the station and/or format, I was always, ALWAYS lectured by the station sales manager, “It’s our job to lead a horse to water, but it’s our client’s job to get it to drink.” It was explained to me that I didn’t control the client’s product mix, the pricing structure or any of the other things that could affect a sale. If the campaign worked, we could take credit and if it didn’t, well, “It’s our client’s job to get it to drink.”

That always bugged me.

Being a marketer at heart, I usually made it my business to get involved, to ask the 4P questions regarding product mix, pricing, place and promotion. I really wanted the campaign to work. And now, after my first month at Radio Direct Response, I am ecstatic to report that I get to do ALL of the above and then even take it one step further in order to ensure success. By TESTING! We test both the creative and the effectiveness of the media properties before we roll out a campaign. You know what that does for a Type A, control-freak personality like me? It makes me feel really good about what I do.

Last week I turned down a potential client request to do a small budget “mini test.” Why? Because the test phase is so critical to the campaign’s ultimate success. After explaining and defending our test process, the prospective client said, “I completely understand. I should be able to get that budget together early next year.” That made me feel really good because I believe, if you make the effort and properly test, you can make that horse drink.

One last thought. Stan Laurel (half of the Laurel & Hardy team) said, “You can lead a horse to water, but a pencil must be lead.” So, take out your lead pencil (or keyboard) and let me know what you think.

Lisa Sable, Senior Marketing Strategist

I just read an article, Will the Future of Advertising Be a Blend of Old and New Media, published by my alma mater, The Wharton School. It talks about a new research initiative called the “Future of Advertising Project” that aims to scientifically analyze the various old and new advertising techniques through case studies and data. The goal is to create a model to help Marketers craft a unique strategy using a mix of traditional and new media to reach the right customers and to achieve a specific objective.

Sound familiar? Well, at RDR, that future is now! As a “RADIO ONLY” advertising agency focused on delivering results, we take full responsibility and accountability to achieve the specific metrics each of our clients define as successful. Whatever your specific metric is, be it cost per lead, cost per acquisition, cost per web hit, we want you to hold us accountable. It’s our business model. And it’s a way of investing media and marketing dollars to learn and establish a profitable campaign and then sustain that profitable campaign indefinitely.

Social networking sites like Twitter and Facebook are all the rage. Both national and local advertisers alike, desperate to be perceived as relevant, believe they NEED to be present on these sites, lest they risk missing out on the next big thing. I get it. Just show me the metrics that justify the expense!

Much like the research being done at my old B-school, RDR sets up a controlled creative and media testing matrix that provides us with all the data we need to sustain a profitable advertising campaign to meet an advertiser’s specified objectives. It’s a methodology that works. It works today. AND, I believe, it’s the future of advertising.

Lisa Sable, Senior Marketing Strategist