A blog post this morning from Jacobs Media pretty much threw gasoline on my fire! And I think that we at radio stations need to understand this concept throughout all of our departments! By understanding it thoroughly… it’ll shape what comes out of our mouths when we’re talking to clients, prospective clients, partners, record labels, peers and friends.
The post touches on a New York Times piece that looks at the change in consumer spending levels since 2003. Jacobs relates it to which categories are “hot” categories in advertising spending… then makes a completely valid point that it isn’t that spending is down. It’s that advertising is shifting.
Great. Now that we’ve established that… the biggest challenge is to work thru this with agencies who have relied so heavily on ratings for so long! Why do you think that Arbitron is struggling with the launch of PPMs? It’s because their model is broke. (Arbitron Profit Dips in Q3 via Radio Ink10/21/09) And as Arbitron work desperately to stay in the game (by introducing PPM), they’re failing to see that radio is changing. Some stations are upset because ratings are changing. Others are upset because they’re not changing fast enough. But here’s the key…
As entertainment evolves… the value comes in the multi-channel reach that you’ve developed with your station!
Ratings alone are losing their potency. They’re now a piece of the pie.
It is time to start placing value on fans, friends, followers, subscribers, and the various communities of people that are just as valuable, if not more valuable, than the listeners Arbitron tries to reach!
Now all we need is a system that aggregates all of that data together into one, easy to read/use, piece of inexpensive software. Anyone… anyone… Bueller… ?
Read the post here: Follow The (Shrinking) Money – jacoBLOG 10/21/09
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