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January 17, 2008

Cut Radio Advertising! Six Flags Makes Classic Business Mistake

Trying to please Wall Street and the other short term-ers, Six Flags is resorting to announcing large cuts in operating expenses. 50% of those cuts will come in "marketing expenses" where they would cut their radio advertising spend and shift dollars to online advertising "where the teens are."

Teens don't listen to radio anymore? Who told them that?

Christina, one of our media pros here, pointed out that at least two radio formats reach teens aged 12-18. Contemporary Hit Radio ("CHR") is strong with females in that demographic, and Alternative Rock skews toward males in that demo.

We would bet that Six Flags doesn't use direct response radio advertising. If they did, they would know - down to the dollar - how much it costs them to acquire a customer with radio advertising verses other mediums.

We would also bet that Six Flags, if they carry through with the cuts, will see a slide in their topline growth that will force them to backtrack on this announcement.

Any takers?

Posted by Jeff Small & Brett Astor at 04:07 PM | Permalink