The global digital revolution has entered the local market. Global is the new local.
Global web players are on the march to grab the lion’s share of local ads in local markets everywhere.
Google is betting on geolocation and functionality like location-based mobile coupons as essential to the future.
Pandora is hiring local sales people and in 2012 will generate more money in local streaming audio advertising than the entire radio industry will in local streaming audio advertising.
Gordon Borrell of Borrell Associates said in an interview local broadcasters must strike back against this disruptive change.
I have summarized what Gordon said broadcasters need to do to address the problem. First, they need to…
Learn from history. It repeats itself over and over. Learn from companies that failed to respond quickly to disruptive technologies or disruptive innovation. Kodak failed to become the “Kodak” of digital photography. IBM failed to join the race for small, inexpensive computers until it was too late to dominate the market.
After gaining a historical perspective…
1. Get the CEO involved. Those at the highest level of the organization need to make investments in digital. It’s required to keep radio healthy for the long run.
2. Build a digital sales force. For radio, 2.5 times more revenue is generated with dedicated digital only AE’s, in addition to legacy media staff, than if a station doesn’t have digital only sellers. For TV, it’s 3 times more with digital only reps.
Radio should take a look at this and say it’s not one or the other, it’s both. Use a converged staff to sell digital products and use a digital only staff to go after the 90-95% of the businesses in the marketplace that aren’t on the radio station. There’s plenty of digital business. Average share of digital advertising for a radio station is .2%.
3. Create a new digital business. Twitter and neat technology are not digital business models. Develop new platforms that offer a complete line of content distribution and audience monetization options. Include geolocation technologies to reach new audiences and to counter similar moves by web competitors.
4. Lead for the longterm. The potential revenue may seem small today but one day it won’t be.
No escape clause for Christian broadcasters
Like all of radio, Christian broadcasters are facing the attack of the internet titans.
Investing in the development of digital platforms and revenue efforts can greatly complement traditional business and ministry efforts. Moreover, it can give you a leg up on your secular counterparts and web competitors.
We will still be listening to and watching the gospel via media in the future but no one can guarantee it’s going to be over a terrestrial stream.