RBR + TVBR Intelligence Brief
By Adam R Jacobson
Here’s another fact that radio industry account executives, business development specialists, sales specialists and pretty much anyone out there promoting radio should take note of, and share: Third-party verification can’t come too soon to digital media.
That’s a key takeaway from a new Advertiser Perceptions study that asks what advertisers think.
Simply stated: The combination of bot fraud, “fake news” and audience restatements has 50% of marketers saying they will no longer place advertising on a platform they consider risky.
Is radio risky? It is if those charged with bringing in advertisers aren’t sharing with CMOs and brand managers the low-risk, high-reward ROI that AM, FM and streaming audio brings.
A private survey, Advertiser Perceptions in December 2016 connected online with 309 advertising executives – 60% at agencies, 40% at marketers – representing the country’s largest spending advertisers.
These are individuals involved in media brand selection decisions for digital/mobile or TV advertising, and those that plan to spend on national advertising in the next 12 months.
Of the respondents, 44% were at least a VP in the C-Suite.
CONFIDENCE LEVELS LAG FOR TOP DIGITAL BRANDS
“Digital advertising platforms can’t assume that trust issues will blow over,” said Advertiser Perceptions Chief Strategy Officer Kevin Mannion. “No matter what is being said in meetings or from conference stages, the biggest ad buyers are clearly apprehensive.”
With the sole exception of Google Search, advertiser confidence in digital/social platforms runs significantly below 50%. “Google Search is the de facto standard of a buy you can’t question,” Mannion said. “The analytics are pure and anyone can see them on a dashboard.”
Social media is a different story.
“With social media in general, there’s too much unknown,” said one marketing executive who requested anonymity — echoing a mounting unease over reporting.
In the wake of audience restatements by Facebook, the importance of trust is evident. Some two-thirds of advertisers question their investments with that popular social platform. Of those, 40% plan independent audits of Facebook’s audience and ad delivery.
“Facebook can’t go whistling in the dark now,” Mannion said. “While they’ve built up too much goodwill and success for the metrics restatements to automatically erode spending, they need to take the lead in third-party verification.”
Trust issues aside, 84% of advertisers said they intend to increase spending this year with Facebook and/or Google, which have set themselves apart from the digital pack in scale. Several emerging platforms are making compelling cases for increased spending, most notably Instagram and Snapchat.
Thus, radio has its work cut out for capturing — and retaining — clients. Combining digital dollars with an effective radio campaign may be a smart suggestion from the radio industry’s top sales and marketing executives.
Perhaps the biggest fighting words for radio to a marketer in 2017 are the following: If you are concerned about Facebook metrics so much that your spend is questioned, when was the last time questions about Nielsen Audio (or Arbitron) metrics led you to question your ad spend at radio?
Asked if concerns about Facebook metrics would cause advertisers to question their spend, one-third of respondents said no.
Why? Of the 100 or so respondents who said no, roughly 75 of them said, “They’re still the biggest social platform, so they’re indispensable.”
I just envisioned the fiddler in Fiddler on the Roof uttering, “Sounds crazy, no?”
AM and FM radio stations are indispensable. Facebook isn’t. There are plenty of people who don’t use Facebook that tune to an AM or FM station. Use this. Capitalize on this. And, despite all of the hubbub about Nielsen’s ratings, flaunt them.
Facebook isn’t going away anytime soon. But, we said that about Lehman Brothers, didn’t we?
What about Kodak? How about the SONY Walkman?
One day Facebook may fade.
Your AM and FM stations will be sharing the news with active consumers.
Adam R Jacobson is the editor-in-chief of the Radio + Television Business Report. From 2010, he has also served as the Publisher of the independently produced Hispanic Market Overview series of reports for the U.S. advertising and marketing industry. Jacobson’s 20+-year professional experience includes roles as a multicultural analyst for global brand strategy consultancy Mintel, as a consulting branding and sales strategist for Adelante Media Group and Davidson Media, and as an editor in various positions at Radio & Records in Los Angeles. He has also appeared as a live on-air personality under the name “Jake Adams,” which he never wants to relive due to stage fright and the inability to pronounce “Colbie Caillat” properly.
