HC at the NAB: More Than Spots, Less Than Clutter
By Holland Cooke
Consultant
Radio sells advertisers our listeners’ attention. For a hundred years, our inventory has largely been commercials. Now, as our wandering audience leads us to more revenue channels, are we hooked on spots?
“We’re still in the same business. What’s changed is the tool box.”
Salem Media Group EVP, operations and revenue development Linnae Young was among panelists exploring “The Local Advertising Buying Landscape: What are Clients Buying, and how are Radio Sellers Succeeding or Missing Out?” Her laser-like focus is on the client’s need: “The HVAC company has two trucks and wants six.”
Ditto from session moderator Mike Hulvey, the Radio Advertising Bureau’s president & CEO. He called pitching a multi-store McDonald’s franchisee, who heard-him-out, then asked “Will that idea sell a hamburger?”
We sure have ideas. Researcher Gordon Borrell reckons that “the biggest mistake radio stations are making is underestimating the potential [of digital].” Many now sell video advertising. Prospects “don’t have any questions about radio, other than ‘Can you lower the price?’ They have lots of questions about digital.” Be their guide.
And obsess on outcomes. “Stop with the tactics,” urges Marketron senior director of digital strategy Dustin Wilson. “It’s all about solutions-based selling.”
“As radio has encountered increased pressure on revenue, it has often increased spot loads.”
Ad nauseam, in the view of Edison Research co-founder & president Larry Rosin, whose Ted Talk-type session “Considering Spot Loads” was plainspoken.
Radio has violated what Larry calls “The Commercial Broadcast Bargain” – the unspoken deal that content is worth the time spent listening to ads. “We’ve tilted the bargain in an unfair way,” he said, pointing to “fewer, but much longer breaks; and many, many [music] stations now loading all their spots into two interminable breaks per hour.”
Rosin’s team has long tracked listening habits through its Infinite Dial series, and the trend is clear: Radio’s “Share of Ear” never fully recovered after the pandemic; and commercial loads went up during that time.
“The real problem” is not understanding how ‘Infinite’ today’s ‘Dial’ is, “ignoring the fact that there are other things to listen to.” Ad loads tend to be shorter in podcasts and in non-paid streams. These ad-supported competitors never run more than two spots back-to-back. And increasingly, Americans are paying for ad-free content, via SiriusXM, Spotify, YouTube Premium, and others.
Solutions? Larry was clear: “What I’m NOT saying: ‘cut the load and charge more’ in today’s low-demand environment.”
— Even if you can’t lower total inventory, consider more shorter breaks. “Listeners have, or at least had, an internal clock: song (3 minutes) – song (3 minutes) – song (3 minutes) – break (3 minutes). When you ask music radio consumers, a break should be the length of a song. The two long breaks clock simply can’t be the best we can do for advertisers.”
— Bonus on Rating, not Share, which would “reorient radio programmers to consider ALL competitors, not just other local stations. Radio’s insular world hurts it.”
— Don’t demonize commercials – “a disservice to advertisers” – the way we seem to when we call the stop set “a break;” or tout commercial-free hours to pump-up a daypart (then overdose the load in adjacent hours).
— Improve the quality of commercials.
Holland Cooke (HollandCooke.com) is a consultant working the intersection of broadcasting and the Internet. Follow HC on Twitter @HollandCooke and connect on LinkedIn
During my tenure at NBC, once a month the division heads would meet at the behest of the CEO to report on their progress and trends in their sector. As the executive vice president of the FM division, I took a seat in that formidable group and tried to keep my remarks as brief as possible. What could I possibly say that would be more damn important than the words of the president of NBC News or the NBC Television network? In addition to NBC’s CEO, the CEO of owner RCA would often join the fun.
platforms that emphasize conversation and create a sense of connection. To win with this community who wields $2 trillion in buying power, brands must prioritize engagement strategies that center diverse Black experiences and cultural nuances.” The study notes that social media apps have become a haven for Black consumers – Black adults overall spend more time scrolling than their peers. Black millennials (between 18 and 34-years-old) spend the most time on social media among all adults by almost an hour per week. Black adults also have high engagement with radio and podcasts. Radio averages the same as TV in weekly reach with Black adults – each medium reaches 27 million Black adults on average. 
which is 19.6% of adults planning a new vehicle purchase. Among heavy radio listeners (those that listen more than 3 hours a day), that number jumps to 30%. That’s 53% stronger than the general market.” Forester says that podcasts are also a good genre for auto advertising. He says, “The multi-media analysis by The Media Audit revealed podcasts captured the interest of 30.1% of adults 18+ planning to buy a new vehicle in the next 12 months… 53% higher than the general market. Audio streaming does well at 22.7%… 16% higher than the general market” Forester concludes, “Automotive advertisers have a tremendous opportunity to leverage radio’s ability to connect with ready-to-buy consumers. Our data shows that radio not only drives awareness but also inspires action, making it an essential part of any automotive advertising strategy.”
that partner with Audacy’s own sports talk stations. Some of the key takeaways from this study include: 1) Sports fans are 4x more likely to trust brands that support their teams; 2) Listeners are 4x more likely to catch a brand’s message on sports radio than on TV; 3) 73% of fans spend more time following their favorite teams on sports audio than sports-related digital media; and 4) Brands that advertise on Audacy sports stations enjoy a 40% lift in usage. 
Wall Street investors do not put up money for traditional radio and television stations.
announcer last season, will continue as Bills Insider for the station, co-hosting “One Bills LIVE,” weekdays at 1:00 pm and simulcast on MSG Western New York. Audacy Buffalo SVP and market manager Tim Wenger says, “Chris is best suited to carry on the long tradition of informative, passionate and entertaining Bills play-by-play announcing. His decades-long knowledge of the organization will be invaluable as he assumes the play-by-play microphone.”
We – inside-the-box – live and breathe radio. Listeners have their hands full just living and breathing. Their day is time crunched and financially challenging, and we want to be its soundtrack.
43% of spoken word listening, and podcasts 36%. Keep in mind that for Edison’s purposes spoken word content includes news, sports talk and play-by-play, audiobooks, talk shows, and “personalities.” Edison states, “Podcasting’s share of spoken word will almost surely surpass that of AM/FM within a few more years. There is one more thing to note – the advantage for AM/FM is coming entirely from those age 65 and older. Among those ages 13-64, podcasting has already passed AM/FM listening by, 41% to 39%. Meanwhile, among the oldest Americans age 65+, AM/FM radio continues to dominate, with a 66%-13% advantage. Curiously, that 66%-13% difference among the oldest Americans is the exact same difference we recorded for all Americans 13+ in 2017.”
Got young local radio news talent? CONGRATULATIONS, for five reasons:
Almost everything I know about pricing strategy I learned from domestic airlines. Guess what? Airlines are at it again and I hope you are watching and learning.
reach. “Republicans listen to more AM/FM radio than other groups, with an index of 109 (or 9% more listening than average). The ad-supported spoken-word channels on SiriusXM are a particularly efficient place to find Republicans, with an index of 146. Meanwhile, podcasts stand out as the more efficient platform for reaching Democrats, indexing at 121. And what about those elusive Independents, who often tip an election? Both streaming music, and in particular music videos on YouTube, over-deliver for these potential voters, with indexes of 103 and 123 respectively.” Edison adds, “Regardless of the party that buyers are trying to reach with political ads, audio stands out as a superior pathway to reaching voters. Audio provides enormous audiences and often a far less cluttered political environment than other ad channels.”
What happened to us? Unless we move quickly, the radio business stands to lose the final frontier: in-car listening.
AI-generated content in political ads; 2) Proposing to apply the disclosure rules to both candidate and issue advertisements; 3) Requesting comment on a specific definition of AI-generated content, and 4) Proposing to apply the disclosure requirements to broadcasters and entities that engage in origination programming, including cable operators, satellite TV and radio providers and section 325(c) permittees. Chairwoman Jessica Rosenworcel says, “As 
artificial intelligence tools become more accessible, the Commission wants to make sure consumers are fully informed when the technology is used. Today, I’ve shared with my colleagues a proposal that makes clear consumers have a right to know when AI tools are being used in the political ads they see, and I hope they swiftly act on this issue.” However, Republican Commissioner Brendan
Carr opposes the move, saying, “There is no doubt that the increase in AI-generated political content presents complex questions, and there is bipartisan concern about the potential for misuse. But none of this vests the FCC with the authority it claims here. Indeed, the Federal Election Commission is actively considering these types of issues, and legislators in Congress are as well. But Congress has not given the FCC the type of freewheeling authority over these issues that would be necessary to turn this plan into law. And for good reason. The FCC can only muddy the waters. AI-generated political ads that run on broadcast TV will come with a government-mandated disclaimer but the exact same or similar ad that runs on a streaming service or social media site will not? Consumers don’t think about the content they consume through the lens of regulatory silos. They just view content on screens. Will they conclude that the absence of a government warning on an online ad means that the content must be real? I don’t see how this type of conflicting patchwork could end well. Unlike Congress, the FCC cannot adopt uniform rules.”
be able to alter the course of established radio stations and the marketplace of ideas before the 2024 election or even soon thereafter. Harrison told “America at Night” host Rich Valdés last night (5/22) that radio is far too idiosyncratic an industry – already run by too many people who don’t understand how it really operates – for someone (who also doesn’t really have first-hand experience in the field) to just step in and make drastic alterations to entrenched stations, formats, audiences and sponsors just to make a political statement. Harrison states, “There are more 
expedient uses of his money if that is his main purpose. After all, not all Audacy stations are conservative news/talkers… many are music, sports and a variety of formats. How inefficient such a move would be!” Harrison went on to say that radio is still an extremely powerful and potentially lucrative medium if only its present owners and operators believed in it and invested in its programming and marketing. He encouraged radio broadcasters to understand and believe in the “esthetic of ‘radio’ and not be so anxious to bail out into the utilitarian term ‘audio.’” Harrison and Valdés tied the discussion into the current news about the AM for Every Vehicle Act currently making its way through Congress stating that radio is still a lifeline for service to the community as a place for information, education, and entertainment and that eliminating it from automobile dashboards would be about “five to 10 years premature.” 
Because you can? Because you aren’t doing AM/FM radio? Because you are on radio, but can’t-do-there what you can-do podcasting? Because you are making money podcasting?
Does anyone care anymore?
When a new restaurant opens, smart owners put the phone on busy so would-be diners believe the joint is hot, packed and hard to get in to. At street fairs we are drawn to merchant booths with long lines. Crowds give us confidence.
Audio advantage.” The guide provides data to counter prevailing myths that marketers often believe. Some examples include: 1) the notion that “apps have all the audience” is not true as “ad-supported platforms are key to marketer’s winning and Audacy’s 200 million+ is miles above Spotify (48.6M) and Pandora (41.2M)”; 2) “young people don’t listen to audio” isn’t true as 96% of Gen Z listen to audio daily – with 44% being daily radio users; and 3) “I can’t measure audio” is also false because marketers can “track, measure and analyze