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so happy together
Way cool and getting cooler for direct marketers
By Debbie Durben
Historically, radio has not been very high on the media priority list for direct marketers, who spend most of their money on direct mail. Of the money placed in traditional media, radio receives less than 1 percent.
But that could change.
One reason is because of another medium out there, the internet, a medium that in many ways is a direct marketer’s dream.
Responses to direct mail take an average of three to six weeks. On the internet responses can be almost immediate.
Since direct marketers measure the success of their advertising by how well it motivates consumers to act, this real-time measurement is a great asset in tweaking their ongoing campaigns.
Success is measurable on a daily--even hourly--basis.
And what is one of the best ways to direct a consumer to the internet?
Radio.
In fact, the two media seem to be growing in lockstep. Media investment banker Veronis & Suhler says they are the only two media expected to show increased usage over the next three years.
We saw their lockstep growth during the dot.com ad blitz of 2000. It was also the largest revenue year in radio’s history. During that period, dot.com companies were pouring money into the medium at levels far exceeding what would be expected on a share ratio. Dot.coms actually became radio’s largest ad category in 2000.
While the dot.com spending frenzy has stopped, a dynamic relationship between the two media remains. It is radio’s exceptional compatibility with the internet.
Demographically, radio and the internet are the most closely matched of all traditional media, including magazine, newspaper or television.
“Listening to radio/music” is consistently citied as the primary media activity accompanying on-line usage.
Then there's daypart compatibility.
The internet and radio are effectively the only two media that consumers, especially desk-bound professionals (read: “highly sought-after consumers”), are exposed to during the workday. No medium can reach the at-work audience as consistently and comprehensively as online and radio can.
The OPA confirms that the internet is in fact the No. 1 medium among millions of at-work users. Recent reports by eMarketer and The Wall Street Journal say that out of a total U.S. workforce of 135.1 million, some 37 percent, or 50.1 million, regularly go online at work.
In fact, dot.com advertisers often see a direct spike in the number of hits to their site within minutes after a radio commercial runs. This is especially true for ads run during lunch hours, when desk warriors may have more time for browsing.
Even for radio listeners who hear a direct-response ad in their car, the internet removes one of the obstacles cited by direct marketers in the past, that listeners could not write down a phone number while hearing an ad in the car.
Ahh, but a catchy URL – no problem. (Not to mention the ubiquity of cell phones for those who prefer the more traditional communications venues.)
Perhaps what makes radio an even more attractive option to direct marketers is that many of their traditional marketing venues are facing tough times. In a recent DMA survey, direct marketers wrung their hands over a range of troubling issues like consumer/customer privacy, postal rate increases, threat of restrictive legislation, and post office delivery issues.
To these, they might want to add this insight from GartnerG2:
“In an effort to manage advertising dollars, many businesses are using email marketing campaigns instead of traditional direct mailings. Email marketing has become a more cost-effective way to acquire and retain customers, and its success can be measured more easily. Direct mail has reached its peak and will account for less than 50 percent of mail received by U.S. households by 2005, down from 65 percent in 2001. As email use, familiarity and trust increases, consumers will become more comfortable with accepting advertisements through their computer."
Other ominous clouds gather on the direct marketing horizon. Business grew in 2002 at a snail’s pace, compared to growth the industry experienced over the preceding five-year period. The U.S. Postal Service keeps raising rates while delivering worse service.
Numerous states have enacted do-not-call lists, and consumers have flocked to them by the millions. Now the feds are moving on a do-not-call list.
Direct marketing to consumers by radio is forecast to grow by 8.5 percent per year, to reach $43.6 billion in 2006. I suspect this growth rate will accelerate as Americans continue to watch less TV, sign up for do-not-call lists, and do their catalog buying from reply mail or 800 numbers to online.
Ironically, one of the nation’s oldest mass media can work in powerful partnership with its newest, most targetable media to serve the biggest ad category in the land.
March 19, 2003© 2003 Media Life
-Debbie Durben is president of the Interep Marketing Group.
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