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July 26, 2006
Why Radio Advertisers are Happier than TV Advertisers
A July 10th article in the Wall Street Journal highlights the sea change sweeping the television advertising landscape.
The fragmentation of the TV media, with hundreds of TV channels - plus other online and offline entertainment options - vying for attention, is rendering the traditional Madison Avenue "spray and pray" approach ineffective.
In other words, TV advertisers are unable to target narrowly enough, which lowers the profitability of their advertising. As a result they're being forced to test new approaches. And in order to test, they have to hold advertising accountable - which also means measurable.
Radio advertisers, while also facing challenges, nonetheless are able to target effectively because radio formats aggregate homogenous audiences. Coupled with the methodologies for tracking the impact of radio advertising, which is standard practice for direct response radio advertisers, radio advertisers are further able to systematically capture information about the effectiveness of their advertising and continuously refine it to enhance profitability.
That makes direct response radio advertisers much happier these days than traditional television advertisers.
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