Paul Jacobs joins in today with some thoughts on growing revenue with your Web site:
As I'm watching CNBC one morning last week trying to figure out if I should buy or sell, a news item scrawled across the screen that caught my attention:
"Anheuser-Busch announces a reduction in advertising expenditures in network television and an increase on cable and the Internet."
This shouldn't surprise anyone. Like so many other advertisers, the King Of Beers recognizes that the entire media landscape has become fragmented by both new technology and increasingly diverse demographics. The old "one size fits all" marketing strategy is falling apart. Bud is just responding appropriately, as has McDonald's and other smart marketers.
This development has two implications for radio:
First, radio is built on demographic fragmentation. We have stations that target small demographic cells and ethnic groups. Like cable, the industry should be able to present itself to these major clients as the perfect targeting vehicle.
The second implication is more immediate, yet it's tricky. As we've written before in this space, it's imperative that radio stations begin ramping up their Web site and database efforts. Not only do we have to engage and entertain our listeners beyond our FM frequencies, but we need to develop new advertising platforms to meet growing advertiser demand. Radio stations that don't have vibrant Web sites with proven traffic figures and promotional and advertising platforms built in are going to miss out on major dollars, because they won't be able to adequately satisfy their clients' needs.
Keep this in mind when negotiating your 2006 annuals: your major clients are going to place a higher value on an Internet strategy than a bar night package.