Industry Views

Premature Ejection

By Michael Harrison
TALKERS
Publisher

imThere are media and there are media. There are platforms and there are platforms. Not all cultural artifacts are equal in terms of their utilitarian versus cultural value. Damn the tone-deaf corporate bean counters who are ripping the heart out of the spirit that gives humanity its life force! Marketplace obsolescence should not solely be determined by profit and loss. With all due respect to the idea of public service, what about the concept of loyalty? Shame on the automobile industry! Not only is it turning its back on the needs of millions of people, it is in the process of betraying one of its historic partners in not only commerce – but romance and glory. In other words, the automobile industry owes the radio industry a huge debt. The relationship between cars and radios goes a century deep and has been nothing less than a two-way street. Yes, auto industry, don’t be so hasty to save a few bucks by rushing AM (and then FM) radio out the door. You might just find in the long run that “radio” outlasts the private “car” as a fixture of human activity.

A radio is not a cassette, CD, or 8-track player. A radio is a magic box that embodies a century of culture during which it spun the idea that taking a car ride is a lot more soulful than spending time getting from point A to B via the subway, bus, or plane. The car has been the perfect radio-listening chamber and radio has returned the favor in spades with its music and DJs glorifying everything from little deuce coups to Cadillacs to the T-Bird that daddy took away – not to mention bolstering the ubiquitous culture of automobiles with traffic reports, news, weather, and endless references to this particular form of transportation as being a key component of what it is to be a member of society. Radio has provided the car biz with a century long, non-stop free or generously bonused commercial!

From a purely economic position of self-interest and greed, it is understandable why car manufacturers might consider AM radios expendable and are eager to toss them out like the aforementioned obsolete devices of music conveyance.  So, what if millions of people still listen to it and DEPEND on it for free speech, religious expression, ethnic connection, demographic habit and public safety. Couldn’t the car manufacturers wait another decade before turning its back on such an important – and still vital – relationship?

Hey auto industry, be careful what you’re doing. You’re severely mistaken if you think your poop doesn’t stink and your place in our rapidly changing society is guaranteed. You might find rolling along in this brave new world without radio turns out to be a very dangerous road.

Michael Harrison is the publisher of TALKERS and can be reached via email at michael@talkers.com. Meet Michael Harrison at TALKERS 2023 on Friday, June 2 at Hofstra University.

Industry News

Radio’s Digital Sales Approaching $2 Billion

According to data from RAB’s newly released 11th annual benchmarking report in partnership with Borrell Associates, the radio industry is poised to hit $2 billion in digital sales this year. RAB says, “In 2022, radio stations drove $1.8 billion in digital sales, up 21.1% for the year. Those sales accounted for nearly one in five advertising dollars, with a fast-growing portion of it coming from the sale of streaming video advertising. That has led to a ‘tipping point,’ the report concludes, with half of the industry’s top-line growth expected to comeCaelli - Product from digital sales in 2023 and more local ad revenue coming from video streaming than audio streaming spots.” RAB president and CEO Erica Farber comments, “Digital continues to be the catalyst for growth in today’s environment. A solid foundation in digital is a key driver for today’s successful marketing professional. As technology evolves, revenue and sales gains can only be obtained via digital services and training know-how. RAB continues to provide the training, tools and services needed to realize these gains.” The annual report shows that digital sales in 2022 comprised 19% of total ad revenue, representing between $85,064 for the average small-market station and $1.2 million for a station in a large market. Some market clusters were making tens of millions of dollars from digital ad sales. The full report – an analysis of online ad revenue from 3,753 radio stations, as well as survey responses from 851 local radio buyers and 169 radio managers – is available to RAB members.

Industry Views

Radio’s Valuable Asset

TALKERS publisher Michael Harrison says one of the most valuable assets possessed by the radio industry, at this juncture, is the actual word radio itself regardless of which platform carries its content. At this morning’s TALKERS editorial board meeting, Harrison stated, “The rush to abandon the word radio in favor of audio is short-sighted, foolish and a case of throwing the baby out with the bathwater. This trend is indicative of a major blind spot regarding the basics of media theory and the delicate three-way relationship between form, content and institutional branding.”  Harrison continued, “The rush to convert the ‘magical’ business and products of radio to the utilitarian term audio is akin to the motion picture industry theoretically abandoning the words filmmovie or cinema in favor of video… or the journalism industry trading in the word news for information or data… or the automobile industry ditching the word car for vehicle.”  Harrison concludes, “Looking back, maybe the captains of the railroad industry should have stayed in the train business after all and focused on modernizing and improving it as opposed to getting hung up on transportation and winding up with nothing.”