Legendary broadcaster, Jerry Lee is considered the most successful single-station owner in the country. His WBEB-FM/Philadelphia is rumored to bill in the $30 million a year range and has an unlimited war chest to build and maintain its market position. B101 is a monster. And Jerry Lee is “Dr. Frankenstein.”
Recently, in his speech accepting the NAB National Radio Award, Lee predicted the future of radio. What he said sounded like preaching from pulpit of Direct Response Radio!
Jerry suggested that radio commit to accountability with a money-back guarantee to advertisers. “This is a bold idea, but we need to do bold things,” said Jerry.
A Money-Back Guarantee!!! The sound you’re hearing is Sales Managers jumping out of sixth story windows.
In the world of DR radio, just about every offer made has a money-back guarantee. Try the product, if it doesn’t work, you get a full refund…no questions asked! I applaud Jerry Lee. But how many radio stations do you think will take that bet? Most GM’s are more concerned with unit rate, rate integrity; audience share and rank. If they perform for an advertiser, that’s an extra added benefit. They’re not really vested in the success of their clients. Jerry’s bold idea is all about being focused on the needs and ultimate success of our clients.
Also on the list was an issue about which Lee has long been passionate: testing radio commercials. “Television tests 85 percent of its ads, but in radio, we test less than 1 percent of our ads,” he said, adding with a grin, “and most of those are the ones my station tests!”
The perfect radio commercial commands the listener’s attention. It presents compelling consumer benefits and it dangles an irresistible offer, rallying the consumer to action by creating a sense of urgency.
The need to test connected directly to another issue important to Jerry: research. Lee spoke on the work being done by the Radio Ad Effectiveness Lab, for which he serves as chairman. He said, “We need to be selling the results of the work being done by RAEL, especially that radio delivers better ROI than television, and that ad campaigns that combine radio with newspaper deliver triple the effectiveness of newspaper-only campaigns.”
In the DR world, the only thing that matters is “ROI.” Spend a dollar; get back two, five, ten or more. Cut your losses, refine marginal media, build upon your winners, test new stations and networks, and repeat the process.
He finished with, “We need to take charge of our future.”
Indeed, Jerry Lee’s vision of radio’s future has the 20/20 clarity of purpose that makes radio work for Direct Response.
Vince Raimondo, Vice President of Marketing
Radio Direct Response