Friday, March 03, 2006

Take 2 on RSS, Podcasting and the Radio Advertising Industry

I sat and thought a bit more about the news in my previous post and shared my thoughts with some colleagues. My second version is included below:


I’ve been banging on a bit about how Interactive media is changing the advertising game, and two articles today highlight exactly what I am talking about.

The first one is in Precision Marketing

It talks about RSS (Really Simple Syndication) and Podcasting and recognises this medium as a growing trend, which is making radio figures look very tame.

Compare this to a piece on Brand Republic today

The Radio industry is trying to arrest the decline of advertising sales for their medium and is considering offering commissions of 15% to agencies who do advertise.

This sounds more like the cart being put before the horse and then entering a chariot race to me. The whole point is that the way consumers are consuming the Radio medium has changed. They don’t want scheduled programmes, they want them to be consumed at a time which suits them. They also want it delivered digitally, which means that you could conceivably have a worldwide audience. Compare that to Capital Radio’s listening figures.

There is an irresistible change happening, and the answer is not to offer commissions to agencies because it isn’t the agencies who are driving the change, it is the consumers. If radio wakes up to the idea that they need to syndicate their content and offer it as a Podcast, then they have a chance to stay in the game (advertising for Podcasting is currently behaving as though its on steroids). If however they continue to flog their dead horse then someone else will come along and occupy their space.

The current likely contender is Last FM.

Its software creates a personalized streaming radio station based on the digital music you already listen to, shares your playlist on the Web, and suggests music from other closely related playlists. So you get all the music you like, none of the music you don’t like and you are self segmenting yourself to make yourself look very appealing to advertisers.

Think about this if you want to introduce a new band to the charts, and compare that to how promotional activity works now.

Agencies who wake up to this are going to make a fortune, media owners, unless they wake up to this, are going to die, and it is all being driven by the consumer from the bottom, up. That’s a very different world from mass media where everything worked from the top, down.

Our challenge is actually quite simple. If we embrace this wholly, we are going on a climb, the likes of which the industry has never seen.

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