Radio Is Dead

Radio is dead, long live radio!

A popular sentiment among many veterans of this business and radio may well be dead to digital natives under 35. But in 2019 radio can still drive customers with the right message targeted to the right audience at the right time. What’s also real is radio like all other traditional media platforms is being squeezed hard. 

The Internet now controls the territory that radio has ruled for decades…that of “the middleman”. Products and services no longer are being forced to go through any traditional media gate keeper to get to the customer. 

Gary Vee – Founder VaynerX

“The Middle is F’d. If you’re in the middle now you lose”.

The power of the middle is now the domain of the Internet. It’s simple, the Internet eats everything. Because of this all products and services have been or will be turned into commodities. When a product or service has been commoditized it has no ability to protect itself with price. So in the case of radio, to the detriment of the customer experience, they run more and more ads with irrelevant messages in an effort to stay afloat.

93% reach, a stat most quoted by radio as a point of continued platform relevance is not protecting broadcasters from the transition of power to the Internet. As an ad platform radio is now just one of multiple tools business has at its disposal. Again the commoditization of ads has killed the ability to be profitable on any scale in radio. Resulting bankruptcies and reemergence will not change this. 

This leaves radio with a new reality that no one seems willing to acknowledge, in 2019 radio remains a non-growth industry with projected radio spend at -1.8%. (Source: eMarketer)

It’s time to stop renting our platform to others because it’s clear that being an "ad landlord" has not been a profitable business model for a decade. (Remnant inventory is the artery clogging cholesterol that is killing radio)

When you can’t raise the price of ad inventory and you can’t run more ads what moves are left to drive revenue?

Cliché or not, radio must think and operate differently.

The answer has always been right in front of us. The Internet venom is not our poison but our antidote to remain relevant. 93% reach is only valuable if we use the Internet not fear it.  

I’m not talking about selling digital campaigns using products in a field dominated by Facebook, Google and Amazon. Selling BARK programs, geo-fencing, pre-roll videos, IP targeting or mobile-conquesting (if you are not familiar with these terms or others like them you stand zero chance of surviving) are not the tools that will save radio. They will be the targeting tools radio will add to the arsenal along with our current ability to reach on a mass scale the next/new generation of customers we MUST turn our obsession to. Gen Z. 

Those who know me have heard me say over the last decade…

 “If radio really has a unique relationship with listeners then shouldn’t we be able to monetize that relationship directly”?

The answer IMO is monetization through e-commerce channels that are owned or controlled by broadcasters.

A listener gets inspired by relevant and valuable content on one platform that drives them to another platform (that we own or partner with) where they spend $$$.

The answer is DTC, direct to consumer. 

The winners will be those closest to the customer on their phone and have their credit card numbers (Gary Vee).

Radio needs e-commerce channels and e-commerce needs radio’s 93% reach and networks. Neither seems to understand this yet.

DTC is radio's path back to relevance and value to the customer.