Don't Rage Against The Machines

Some of our columns are intended to be purely "motivational." Others present case studies in success. And when we are presented with stunning -- or at the least enlightening -- news about shifts in the tectonic plates of advertising as it applies to radio, we're compelled to share it. So, it seemed appropriate to open 2018 with this one.

Last week respected colleague Ed Christian forwarded a stunning article from Thom Callahan, president of the Southern California Broadcasters Association. It's as coaches say, a "slobber-knocker." Titled "Don't Rage Against The Machines," Callahan comments that it's not without some satisfaction that 2017 was a disruptive year for digital advertising. Proctor and Gamble and JP Morgan pulled over $200 million out of their digital ad budgets based on poor ROI (or to use digital's terms, ROAS, return on ad spend). In parallel, Facebook has been scalded with criticism and scrutiny over the accuracy of their audience data.

Callahan adds, "Adding to client rage is the nagging issue of bots, malware and the environment of what sites are carrying a client's image through numerous unknown third-party 'networks.' Think about it: It's now projected that audience fraud, referring to ads seen or heard by nonhumans, will approach a worldwide loss for clients of over $16 billion (with a B) as we look back at 2017."

Thom's most salient point may be this as he adds, "Material disruption always leads to significant change and opportunities for other industries to advance, so 2018 should finally be the year that radio and its pure digital platforms begin to see the value and respect from major advertisers, which radio so richly deserves." Here's why.

According to Ad Age, 64% of marketers are unclear about the origins of their data sources, and three of four admit they are not confident that their digital ads are even reaching the right people. Callahan goes on to add, "Because of these murky conditions, advertisers are beginning to demand more transparency from the digital giants, including transparency on fees."

In the face of all its ad fraud, lack of accurate consumer targeting, poor commercial and image environments, and documented nonhuman viewership, Thom adds, "Digital still remains as broadcast radio and TV's main budget killer."

Callahan's thrust is simply this: "Let's join the client conversation. Radio needs to be in the room where it happens when target marketing, same store sales, market share, conversion rates, brand awareness and actual documented audience delivery gets discussed." This means not at the buyer's desk, but at the planning meeting, account team meetings, and even at client sessions.

Thom Callahan hits it out of the Dodger Stadium when he adds that with continuing weekly cume growth, radio's popularity as measured by Nielsen's listening data (no "bots" included), is at an all-time high with around a 97% reach of the U.S. population!