What establishes a primary advertising medium? One way is by following the herd. “Advertise here” because this is where everyone else is spending their ad dollars. Another is believing that the success of an advertising channel is based on the number of subscribers. Ninety-six or even 500 million subscribers is impressive but does it really build business? Then there are those who endorse a medium because that’s where they can make the most money from their clients. The selected medium showcases their creative talents but doesn’t really move market perception in a cost-effective manner?
There is a difference between a primary advertising medium and a novel advertising channel, just like there is a difference between building a lifestyle brand and executing a transactional campaign. A successful core medium has a proven track record for growing business. It stands the test of time and technology, engages emotion, ownership and community, and has an incalculable power to engage the mental life of human beings.
Radio’s first broadcast took place on November 2, 1920. It was a huge success. Ninety-two years later, radio is still growing with the latest count of 14,952 stations and 241,595,000 listeners in the United States. It grows because it places a premium value on the human voice. It grows because it develops the imaginative “rest of the story” in the minds of its listeners. It grows because it allows people to live their lives and still participate in song, story and news. Radio grows because it celebrates the individual listener and connects the masses to the greater world, new ideas and community values.
Commercial radio is thriving and has for almost a century for only one reason: It is profitable for its advertisers. In 1926, Wheaties was a lagging cereal in the eyes of General Mills (GM). Then one company executive noticed that in the small area where the Wheaties jingle played, sales were strong. GM decided to air the jingle everywhere, and Wheaties quickly became a profitable, top American breakfast cereal.
In 2012, radio has similar stories to share. The insurance, fast food and financial industries all endorse and prosper with radio. Radio Ink highlights:
Lisa Cochrane is the Senior Vice President for Marketing at Allstate. She says Allstate is using a lot of radio, both national and local, across all markets and all formats. "Over the past 18 months or so, we’ve increased our footprint in radio and you’re likely to see (I mean “hear”) the Good Hands continue to reach out (pun intended) to radio listeners next year. We don’t specifically use one format over another; like most marketers, Allstate looks to whatever will best reach the demographics of our target consumer in each market. That, in fact, is the beauty of radio – you can get that targeted." Cochrane says Allstate reaches 98 percent of the United States through national and local radio, "And I’d guess the remaining two percent of people must not be radio listeners," she jokes.
American Express is another success story for radio. Radio was a big part of their recently run Small Business Saturday campaign that made it all the way up to the White House, endorsed by President Obama. Lou Paskalis is the Vice President of Content Development and Mobile Marketing for American Express. He says, "Here is the headline...Radio Works." Small business Saturday was a feel-good campaign that everyone wanted to be a part of. Paskalis says "The stated endorsement of on-air talent is something we can't buy. Radio helped us get the word out."
Subway is another great radio success story. Chief Marketing Officer Tony Pace says, “People have a pretty personal relationship with radio; to me that naturally extends into social media. People start saying, “That DJ is my guy. That announcer is my guy.” They become a trusted voice. That trusted voice can extend beyond radio to other media. You obviously have to have a significant audience, but there is still an awful lot of power in radio. People are still listening. Drive time is still a very, very powerful thing. Passion points like sports and music are still very powerful things. We have been very pleased with what we have been able to do in terms of driving business with the radio investments we have made.”
There are those who will continue to spend their ad money outside of radio. Radio isn’t always recognized by agencies for the profit generator that it is. Perhaps this is because its success isn't rooted in attracting quantifiable "subscribers" and it doesn’t possess the sparkle of newest technology. Maybe it’s because radio isn’t known to be the best place for agencies to maximize profits.
But radio, the primary medium, does have growth in listeners, proven longevity, and a unique way of meeting people in every generation and lifestyle. Most importantly, it has 92 years of success stories. Radio in 2012 is the primary local advertising medium and the only superpower of sound and story.
