A number of creative digests have picked up a tidbit from your favorite radio monopoly and mine, Clear Channel Communications. Apparently the owner of over 1,200 US radio stations is feeling the effects of a weak advertising market,
especially since radio ads are often the first to get sacrificed when
companies tighten their sales and marketing belts. One might
expect that a media firm hoping to boost its earnings would be inclined
to add more advertising to popular radio shows and music
segments. But in fact, Clear Channel is planning just the
opposite, hoping to reduce spotloads by 20% by January 2005.
For
radio listeners this comes as good news, since the current status quo
is about 8 minutes of commercials in every half hour of airtime.
(Yes, satellite listeners, you have it good). But it's even more
interesting than reducing the amount of advertising. One of the
biggest reductions that Clear Channel hopes to realize is in the use of
60-second ads. Since many radio stations often sell 60-second
spots for only 20-25% more than a 30-second spot, advertisers often opt
for the longer format to help get their message across. However,
as radio ads are fleeting and only appeal to one sense (hearing), they
are notoriously difficult to write, especially in a shorter
format. That's why Clear Channel is also launching a new Creative
Resources Group that will provide free creative services assistance to
clients to help them write more effective ad content. Their goal
is to make each spot persuasive but not offensive, and they're
particularly focused on getting advertisers to use the shorter
30-second format.
Digital signage network owners should sit up and take notice of this for a number of reasons. First of all, for those who are running captive audience networks
supported by ad revenue, it's important to remember that sometimes less
is more. If your screens are placed in locations where people
might be lingering for a long time (say more than 10 minutes), you
might be better off running a larger radio of content to ads. All
signage owners should take into consideration the lengths and formats
of the content segments being displayed on their screens (and don't
forget to have a call to action).
And last but not least, as Clear Channel Radio CEO John Hogan notes,
local advertisers can account for up to 80% of a radio station's annual
revenues. So while you might be drooling over the prospect of
signing Coke or Pepsi to a national deal on your signage network, don't
thumb your nose at local businesses who might provide better near-term
revenue opportunities.