I had been keeping an eye out for articles relating to the Guardian Changing Media Summit which took place in march, and was far beyond my budget to attend(about £340!). According to this article on the media guardian website, commercial radio is ‘dying out’. It even has a rather doomsday-esque warning that it could be gone within 15 years. This is based upon the declining advertising revenues in the commercial radio sector. Commcercial radio is, as the name suggests, entirely dependant on advertising/sponsorship to fund its operations. Advertisers are being tempted by the benefits of online advertising, such as more accurate figures on who is seeing and interacting with adverts and the ability for targeted advertising. Matt Wells, head of audio at the Guardian states:
“We are witnessing the slow death of commercial radio in this country due to a number of factors, [including] the complete failure to grasp the digital nettle” (my emphasis).
So, if radio could take ahold of digital trends, could it potentially stem the tide of advertisers leaving radio for other advertising options? Digital is a very ambiguous word when applied to radio. Wells could be referring to digital radio, or alternatively he could be referring to the impact of wider digital culture (ie. the internet, mp3 players etc.). Another key factor contributing to this decline is that less young people are listening to radio, therefore the longevity of radio advertising is under pressure. As the younger generation moves into the target markets of various commercial stations, listening figures may drop as advertisers will be looking to capture these audiences through other mediums.
One way radio could boost revenue is to offer tailored advertising, but how? Radio is such a linear process that there is no input or control for the users and therefore it’s a little difficult to tailor its advertising. The music listening application Spotify has employed tailored advertising, based upon music choices. If users were inserting customised music playlists into radio shows (as in my application ALPHACAST) then radio could sell advertisments based on genres, moods and artists which could potentially make radio advertisements more bearable, and more profitable.
Tags: advertising, changing media summit, commercial, prid303, radio