Top Radio Stories of 2009
Wednesday, December 30th, 2009Advertising Revenues off more than 20% in 2009
Radio stations from coast-to-coast felt the sting of the recession, with fewer advertisers finding the funds to afford radio advertising. The biggest hits came from retail and traditional branding advertising, creating opportunities for direct response marketers to buy up available inventory at aggressive DR rates.
Radio Company Bankrupty
Citadel Communications, Tribune Broadcasting and Next Media were among the major broadcast companies forced to file for Chapter 11 bankruptcy in 2009. Turbulent economic conditions and shrinking ad revenues put these broadcasters under the gun to file for protection from creditors and restructure to sustain their businesses by doing more with less.
Smart Phone Apps/Expands Reach and Frequency
As technology explodes in new directions, radio strives to keep pace. Smart phone applications now allow radio listeners to hear their favorite stations using their smart phone as their radio. This marks a major victory for broadcasters who previously ran the risk of risk to losing share to services like Pandora and Slacker by evolution of technology, rather than choice.
Consolidation v2009
The economic downturn forced radio to tighten its already snug belt even tighter. Many broadcast companies were forced to cut employees who, for lack of a better explanation, simply made too much money. Many programmers now program content on up to 4-5 stations at once. They’re also being asked to return to the studio and host air shifts to cut payroll. And local talent in small and medium markets are being replaced by nationally syndicated talent, streamed in from larger markets around the country.
National Syndication of Top Tier Talent
Clear Channel Communications led a movement to nationally syndicated local broadcast talent. Music programs hosted by Ryan Seacrest in Los Angeles and Elvis Duran in New York now air in more than 20 markets nationwide with additional markets planned for 2010. Clear Channel’s premium choice allows stations nationwide to pick and choose from a variety of on-air hosts culled from a large pool and plug them into specific day-parts in their local markets.
PPM’s Evolution into the Top 30 markets
Arbitron held true to its commitment to convert the Top 30 radio markets to its Portable People Meter method of audience measurement. Although accreditation has been slow and anything but automatic, the PPM train continues to roll with another 20 markets slated to be added by the end of 2010.
Social Media’s explosion into Radio’s Foreground
Radio’s need to be in touch with their listeners’ lifestyles has resulted in most creating Facebook, Linked In and Twitter pages for their listeners. Beyond simply streaming audio content, the addition of rewards programs for dedicated listeners has given radio stations the opportunity to super serve their core with additional content, contests and promotions specifically designed with these dedicated listeners in mind
Subscriptions Plateau at Sirius-XM
For the first time in 2009, satellite subscriber numbers stopped growing and actually fell. Most experts agree this development was tied to the dramatic drop in new car sales, which historically delivered new satellite subscribers by giving them an in-dash radio with a three-month free subscription to programming. When new car sales rebound, look for Sirius-XM numbers to follow suit.