Reflecting
growing signs that the U.S. economy is back, radio delivers its best
results in quarter-to-quarter revenue comps since Q1 2007 with a +6%
overall increase to $3.687B. This gain represents the highest posted in nearly
a decade, according to the recent study by the accounting firm
of Miller, Kaplan, Arase & Co. reported by the The Radio Advertising
Bureau with more than 6,000 member Radio stations in the U.S. and over 1,000
member networks, representative firms, broadcast vendors, and international
organizations.
Revenue
Comparisons - 2010 vs. 2009 ($ In Millions)
Revenue
$Q1 '10
% Chg
Local
2,450
2%
National
568
19%
Local &
National Combined
3,018
6%
Network
260
6%
Digital
123
18%
Off-Air
286
Flat
Grand Total
3,687
6%
Source: Miller,
Kaplan, Arase & Co., May 2010
According to the report,
the Eastern Region outpaced the rest of the nation in ad spending gains for Q1,
up 12.7% - followed by the Southwest and Central Regions, up 9.7% and
6.7%, respectively. Spending is up but trails nationwide growth in the
West (4.5%) and South (3.5%).
RAB President and CEO, Jeff
Haley, says "Our growth in this recovery is showing signs that Radio's
momentum is outpacing that of other traditional media... underscoring
Radio's inherent strength with advertisers demonstrating renewed
enthusiasm for spending in our medium... advertisers have found and, in
many instances, rediscovered Radio. With ever-expanding Digital and
Off-Air vehicles adding to Radio's appeal... this growth trend will
continue to gain momentum," Haley concludes.
Local and
National Radio Leading Growth Categories (Q1 2010; $ in Millions)
Background: Neat Feet and Elkins Retail Advertising
have put together a unique advertising approach, bringing together
multiple podiatry practices to share advertising costs, increase
incoming leads, and reduce their cost-per-lead.
Client: 1-800-NEW-TOES Laser Centers
A collaboration of five podiatry centers, including Neat Feet, offers a
new laser treatment for nail fungus. Locations are throughout the San
Francisco Bay Area.
Elkins Retail Advertising
Elkins has 20 years of experience using vanity 800 numbers in their
clients' advertising campaigns. The agency continually appears on the
San Jose/Silicon Valley Business Journal list of the 25 largest
agencies in Santa Clara County, CA.
Challenge: Neat
Feet was looking for a way to advertise on radio stations with the
largest reach in the Bay Area, but it was cost prohibitive.
Strategy: Join
forces with other podiatry centers in surrounding markets to form
"1-800-NEW-TOES Laser Centers", a group initiative. Develop a radio
campaign and share advertising expenses and incoming leads among the
five locations.
Results: With Neat
Feet, Elkins pulled together four other podiatry centers in the Bay
Area to collaborate on a radio campaign aimed at generating leads for
each location. The radio spots run on the largest stations in the Bay
Area and prominently feature the group's vanity number as the response
tool.
Hunter Elkins has 20 years of experience
recommending and using vanity 800 numbers in his clients' advertising
campaigns. "I've had success using vanity numbers in the past, and
knew that this strategy of radio ads with 1-800-NEW-TOES would be
successful for Neat Feet and the other centers," says Elkins.
"As
a result of the radio campaign, each center now receives more incoming
calls because the 1-800-NEW-TOES vanity number and the matching co-op
company name are so easy to remember," says Elkins. The campaign drives
listeners to call the vanity 800 number or visit the vanity URL,
800newtoes.com, which also lists the vanity number prominently on the
splash page of the site. "The average close rate of incoming calls
among the group is 55%," says Elkins, which is higher than the average
conversion of Web visits.
"We use the tracking site to
monitor the number of incoming calls and clicks they receive each week,
and the resulting cost-per-lead. Call data is easily sorted by each
location so we can keep a tight watch on the performance of our radio
campaign, monitor the traffic to each center, and make adjustments to
the campaign if necessary," says Elkins.
According to
Elkins, "The collaboration would not have been possible without
1-800-NEW-TOES. The vanity number allowed us to brand the group with a
unified name, share advertising costs, and generate more business for
each center."
Toll-free call tracking numbers are powerful 10-digit numbers that allow businesses to monitor and track every lead down to the source. This is a must for any marketing/advertising manager, director, or executive who is responsible for reporting on their strategy's performance at the end of the day.
Numeric call tracking numbers are perfect for advertising and marketing campaigns that include visual media types, but only if they have a "shelf-life." This includes newspaper advertising, Yellow Pages ads, online ads, and some direct mail. Advertisers can effectively track pay-per-click and SEO ad campaigns, test one direct mail postcard against another, and tracking online conversions from their websites, all with these numeric toll-free numbers.
What these numeric tools cannot do is brand. Only a vanity 800 number can brand your business, like 1-800-NEW-ROOF for a roofer, or 1-800-NEW-RATE for a bank or lending institution.
So, advertising businesses that execute multi-media campaigns need both of these tools. Don't balk, because it is possible to get them at an affordable price. Some vanity service providers offer free call tracking numbers with their service so that businesses can maintain a complete lead-tracking system and monitor every advertisement in their campaigns.
For an effective advertising and marketing strategy, incorporate both of these toll-free options - vanity 800 numbers and call tracking numbers - and you'll capture every incoming lead and be able to source it back to the specific advertisement/media buy that generated that lead. These direct-response tools allow for complete lead-tracking, accurate measurement of ROI, and budget accountability.
Market research study shows that consumers
have recall rates of vanity 800 numbers when they are used in advertising:
·Advertisers
can expect up to 84% improvement in consumer recall using a vanity 800 number
in outdoor and print advertising vs. a numeric toll-free number.
·Consumers
are 9x more likely to recall vanity 800 numbers in broadcast ads vs. numeric
toll-free numbers.
Television Advertising, Toll-free
and Vanity Numbers:
·82%
of phone numbers in TV ads are toll-free.
·64%
of toll-free numbers used in TV advertising are vanity toll-free phone numbers.
Radio Advertising & Toll-free
Numbers:
·Radio
ads featuring a vanity 800 number yield 58% more calls than an identical radio ad
using a numeric toll-free.
·Almost
60% of study subjects recall a vanity 800 number after hearing only one time.
Billboard Advertising, Toll-free and
Vanity Numbers:
·75%
of the total toll-free numbers used on billboards are vanity toll-free numbers.
Remember
these stats when you're developing your next advertising campaign!
Here is some good news for the radio industry, and for any business who may be using or considering radio as part of their advertising strategy...from Radio Business Report...
http://www.rbr.com/radio/22862.html
Summary:
Radio ad
revenue pacings are picking up so rapidly that some forecasters are racing to
keep up - while it appears others are just being left behind. Just as there
were lots of downward revisions throughout 2009, we can probably expect upward
revisions through 2010.
Last week's
update by Barclays Capital analysts Anthony DiClemente and George Hawkey put
them at the head of the pack, with a 2010 radio revenue gain of 7.4%
forecast.It was the second revision of
their forecast, having gone into 2010 expecting yet another down year for the
medium.
Consumers have a 45% higher recall rate of vanity 800
numbers over URLs.
As many as 40% of survey respondents cite "Research the
Competition" as their first step after visiting an advertiser's Web site.
Less than 10% of respondents would communicate with the
advertiser as their first step.
Advertisers will benefit by providing both a URL and a
vanity 800 number in their ad campaigns (based on recall rates and online
research behaviors, it is essential for companies to include a vanity phone
number in addition to their URL in advertising campaigns for optimal lead
generation).
60% of consumers prefer to dial a vanity 800 number vs. a
numeric toll-free to reach a local business.
The Five
Most Dangerous and Expensive Advertising Mistakes Dealers are Making in 2009 - By Bill Park of CBC Ads
Running a
highly successful advertising program has never been more important for your
dealership. Gone are the days when wasting fifty percent of the ad budget was a
running joke, and not knowing which fifty percent was the punch line. Having a
well-planned and executed advertising program is crucial--in fact these days it
can make the difference between failure and survival.
Turning a profit in 2009 is proving to be harder and more complicated than
ever. Owners face obstacles ranging from age-old challenges like finding and
retaining good staff, to new and complex hurdles like maintaining floorplan
financing and becoming Red Flag compliant. Even with a firm handle on those
areas, no aspect of dealership management is more critical--and potentially
treacherous--than advertising.
Tier III advertising always has been a tricky business. But for years,
thousands of dealers have done a perfectly good job handling their own
programs. Now, with the automotive world and the media world both turned inside
out, more and more dealers are making the same critical advertising mistakes.
With stakes this high, the mistakes couldn't come at a worse time--unless you're
the competition!
How can dealers avoid such mistakes? Understanding them is the first step. Then
planning a consistent strategy to avoid them is the next step. Enlisting the
help of a top-flight ad agency also can be an enormous help--but be careful.
Some agencies still promote self-serving interests of their own like
overspending, so caveat emptor.
What follows is a list of the five most dangerous and expensive advertising
mistakes dealers are making in 2009. If one or more of these situations applies
to you, consider taking a long, hard look at your program--and work to change
your ways. You'll be glad you did!
Mistake #1: My Customers Listen to THAT??
Do you really know your customers? Consider for a moment you may not know them
quite as well as you think. Sure, you probably know dozens, if not hundreds of
customers by name. But do you know their favorite radio and television
stations? Do you know how many visited your website prior to purchase, or their
favorite cable networks or their favorite sports? Do you know your dealership's
number one vehicle purchased by women over 45 with household incomes below
$75,000 who didn't consult a newspaper prior to purchase?
You're not alone if you don't have this information at your fingertips. But did
you know you could easily have access this kind of data? Consider the enormous
benefit of setting up a modest, in-house customer research program that would
provide you with all the above information and more. Think about how valuable
this information would be in deciding where to direct your precious advertising
dollars. Is such a research program expensive? Not necessarily, and it's much
more accurate than a dartboard.
With ad budgets tighter than ever--and with more than ever riding on every
spending decision--it's imperative dealers know everything they can about their
customers' demographic profiles and media habits. Imagine discovering where
you're wasting that fifty percent of your ad budget... and where you're not.
Mistake #2: Never, Never, Never Give Up.
An alarming number of dealers these days are deciding their best approach to
advertising right now is to shut it down completely. Bad idea! No matter what
the state of the economy and no matter how slow your sales may be, giving up on
your advertising is a deadly mistake. It's like not watering a plant and still
hoping it grows.
The severe and lasting effects of advertising asphyxia on your dealership brand
can take months to reverse--and you'll probably pay extra in the long run to buy
back the mindshare you gave away for free. The most important aspect of any
successful ad program is consistency. Notice how most successful dealers always
seem to be 'out there' with their advertising? It's no accident. But when you
break your consistency, it's like waving a white flag to the competition and saying,
"Here, come take my customers--you can have 'em!"
Mistake #3: Online Overkill
Without a doubt, the Internet has revolutionized the way people buy cars. And
without question, dealer websites and a growing number of online enterprises
have forever changed the way cars and trucks are sold. What's alarming,
however, are the growing number of dealers devoting most or all of their
budgets to the Internet.
It's a mistake to view your website as advertising--because it's not. Instead,
think of your website as your online sales arm--an electronic extension of your
showroom--a portal for sales, service and financing. Traditional advertising is
what drives traffic to your website--the same way it drives traditional foot
traffic to your front door.
Similarly, online pay-per-click and search engine marketing programs are
legitimate ways to increase your presence on search engines like Google and
Yahoo, and online lead providers like Autobytel and Cars.com match buyers
directly with your inventory (usually for a hefty price). But it's arguable
that even these services aren't really advertising--as technically they're
structural enhancements to your online sales arm.
Regardless, what's important to know is this: dealers who move their ad budgets
'100% online' are essentially canceling their advertising. Moreover, such moves
generally seem to be connected with a budget reduction--as if this maneuver can
completely take the place of traditional advertising while saving fifty cents
on the dollar. No matter what the motive, it's a dangerous and misguided
move--like a major league baseball team deciding to put only catchers on the
roster. If you're thinking about this measure, think twice!
Mistake #4: Media Missteps
Making a killing at the auction is one thing, but getting killed by your own
media buy is something else.
Many dealers are at their best when wheeling and dealing, yet in no way does
this ability automatically qualify them as good media buyers. Skilled media
buyers are highly trained professionals who are worth their weight in gold when
negotiating with media reps.
Why? Simply put, they regularly and routinely save clients thousands of
dollars. They make media buys go further, they bring added value to the bottom
line, and they put precious dollars back in clients' pockets. And the best
buyers make it look easy.
Media buying, however, is anything but easy. More and more dealers have come to
learn this the hard way. What's more unfortunate are the many dealers who
continue to believe they're media buying magicians, when in fact the trick's on
them.
Negotiating with the media is like walking through a minefield riddled with
trade agreements, sponsorships, contracts and packages. One misstep can cost
thousands of dollars--all the more reason to leave the media buying to a
professional. Need one final good reason to hire a media buyer? You won't
believe the time it saves you!
Mistake #5: Playing Favorites
Finally, it should go without saying that allowing personal factors to unduly
influence advertising decisions is extremely ill-advised. Unfortunately, it's
also quite common, and therefore bears mentioning here.
Think twice before devoting a big chunk of your ad budget to a particular radio
or TV station simply because it's what you like. You or your sales staff may
listen to Sports Talk all the time, but how often does your average customer?
The answer just might be never!
Also, set strict, personal limits on accepting tickets, gifts and trips from
the media. After all, why would you want to promote even the hint of a quid pro
quo arrangement?
Be very careful becoming outspoken on political matters as there's no telling
how many people you'll endear and how many you'll anger.
Should you be thinking about hiring a celebrity spokesperson, think twice, then
a third time, then a fourth time. Then proceed with the utmost of caution. Even
with a very popular athlete or entertainer, you must honestly consider the
downside risks of associating this individual with your dealership. Remember,
anybody can look pure as the driven snow today, then tomorrow have compromising
pictures turn up on the Internet, become embroiled in a messy divorce, go
through a lengthy drug trial, or get traded to your team's evil cross-state
rival.
Bottom line, maintaining a creative, consistent and cost-effective dealer ad
program is no small task. Yet having effective advertising month after month is
absolutely essential. Avoiding these five mistakes will greatly improve your
probability of success--and in 2009, success is the only good choice left.
--Bill Park is CBC Advertising's Senior Account Executive and a 17-year
veteran of retail automotive advertising. CBC (www.cbcads.com) is a
full-service ad agency working with dealers large and small throughout North
America.
Let's say
you spent good money on a brochure. Several pages filled with features,
benefits, facts, figures, call to action, contact info...oh yeah, paragraphs
about who you are, what you do....the different services you provide, your
product offerings...and the list goes on and on. Everything you believe a
potential client would need or want to know about your business. Now you are
interested in advertising on the radio.
Here's a
great radio advertising tip -
Don't let
your radio commercials end up like your brochure.
Advertising
on the radio works best when it is simple and effective.
First...a
given. If you are going to advertise on the radio, make sure you have a product
that has demand. In another article we discuss the topic of Direct Response
Radio Advertising Mistakes: A Product No One Wants. With that said, lets move
on to advertising on the radio assuming there is demand for your product or
service.
Simplicity
is the key to effective direct response radio advertising. Face it, when you
are buying fifteen, thirty, even sixty seconds worth of radio advertising, you
don't have the time to create an audio brochure. Radio advertising is a
powerful advertising medium, but can it work for you?
Yes it can.
You just need to make sure your direct response radio advertising campaign is
just that...DIRECT. When advertising on the radio, get right to the point. What
is the problem your potential customers face? What is the solution? (Hopefully
this is where you have inserted your company name). What benefit does your company
provide that solves the problem? And most important of all...what would make me
choose your company? Here is where the irresistible offer comes in. Direct
response radio advertising is rooted in a foundation of "what's in it for me".
Give me reason to call. A free offer...free sample...free estimate...deep
discount...money back guarantee...whatever your feel is important to your potential
customer. This offer helps "grease the skids" and provides a strong incentive
to call or click.
And
speaking of calls and clicks - If you are advertising on the radio, you must
make your call to action clear, concise and memorable. In other words, if you
are driving to a toll free number, make sure you are not advertising some
random ten digits that are difficult to remember. Use vanity phone numbers.
Vanity phone numbers provide sticking power in the listeners mind. What will
you remember more - 1-800-I-ATE-A-BUG or 1-800-428-3228 (plus the extra useless
digit)? You can use a combination of vanity numbers or words and number for
tracking purposes. If you are directing your radio advertising campaign to a
URL. Make sure it's a simple domain name. No long URL's with dashes and slashes
and long strings of weird variables. Simple works better. And again, you can
use a variety of simple domains for tracking. And make sure you mention your
number or URL at least a couple of times throughout the radio commercial.
So what
have you learned here?
When
advertising on the radio, keep it simple. Get directly to the problem, the
solution, the benefit, the irresistible offer, and the clear call to action.
Keep this simple structure in mind, and your chances of success when
advertising on the radio dramatically increase.
Toll-free vanity 800 numbers are proven to generate more incoming calls to your business. They are more easily recalled by people, and they are trackable. That means you can measure advertising performance and track return on investment.
You can make the most of your advertising campaigns by incorporating a vanity number as one of the direct-response tools in your creative materials. Combined with a URL, a vanity 800 number makes for a solid ad that will get results.
