What do radio and seagulls have in common ?
AudioNET Founder and CEO Dave Cox started working in radio over 25 years ago at 2CA in Canberra.
For the last 10 years Dave has been listening to advertisers and agencies about what they want from radio advertising and it always gets down to one word… Proof.
What do radio and seagulls have in common?
They both live on scraps.
Australian radio is surviving on meagre advertising revenues in the millions, while online thrives with billions.
Radio networks are stretched thin. Costs are rising faster than revenue. Centralisation, multi-tasking and networking have cut employee numbers. Online music, online communities and online radio stations are attempting to replace radio altogether.
And online advertising is reaping $2.6b revenue and growing.
The reason online advertising is raking in $2.6b while metro radio manages less than $700 million is that radio remains oblivious to a fundamental shift in marketing.
Marketers need proof of performance.
Proof of performance isn't about how many listeners a radio station might reach, based on listener recollections that are several weeks old.
Radio has to provide independent proof that the audience exists now. It also has to be able to track listening habits of individuals, their brand interests and their peer group pressure points and a range of other data that online advertising is already providing.
Radio has to leverage its listener engagement to help marketers really get to know their customers' thinking.
Until radio can provide the proof of performance that marketers demand, radio will remain relegated to picking up the advertising scraps.