Radio Marketing and Advertising

And undeniable offer

2009-09-10T05:15:00.000-07:00

Okay, so its been a while since I last posted something here. But, man oh man, have I been busy. A lot of advertisers (nationally and locally) have decided that they couldn't wait it out any longer, and the requests for access to the Cumulus Wilmington community of radio listeners has been enormous as of late. So I apologize for not getting back sooner.

When I saw this article, I knew that this was the way to kick things back off. It took me quite a while when I started in radio to understand that it takes more than telling people the who's, the what's, and the where's of a business. You've actually got to tell them WHY. Why should someone choose you over a competitor? Why should they eat at your restaurant, use your fitness facility, or choose you as their financial advisor? The answer: It's all in the offer.

Local ActionCoach Reggie Shropshire and I talked before about branding versus direct response. My view was that branding is key because it creates top of mind awareness for a business, and they will be chosen first when the triggering event occurs in a consumer's life. Reggie agreed, but explained to me that most local businesses can't afford to wait out the process necessary to effectively brand a business. Branding is great if you are Coke or Subway, but when you are Joe's Diner, you've got to get people in the door now.

So it's all about the offer. In the article below, you'll see how consumers are recovering from droughts of spending, but they are still budget conscious. They are looking for deals. Will these people choose you? Can you tell them WHY? It is all about the offer.

To Attract a Buyer, Make the Deal Irresistible

Given the relentlessly dismal retail sales numbers, consumers seem to have locked away their wallets and hid the key.

But some recent promotions show that shoppers will still chase a bargain, particularly one that seems unlikely to be repeated anytime soon. Even big-ticket items costing hundreds or thousands of dollars can be in high demand if they are priced right.

"The otherwise frugal consumer is willing to shell out for a blockbuster value," said John D. Morris, a managing director with BMO Capital Markets, "whether it's cash for clunkers, khakis or a cruise."In the last month, promotions like the government's cash-for-clunkers auto purchase plan and JetBlue Airways' $599 monthlong flying pass have won over otherwise wary consumers.

The pattern appears similar to what is playing out in the housing market, where sales are rebounding from dismal levels a year ago as consumers take advantage of foreclosure sales and start to believe that prices have hit bottom.

That has not been the case with retailers, where consumers have held off spending for months, betting that a 40-percent-off sale was just a warm-up for an inevitable 50 percent sale. To overcome the newfound patience of consumers, many retailers are trying to spur impromptu buying by putting definitive time limits on sale items. The tactic has resonated, especially with upper-middle-class to upper-class consumers.

"There are still shoppers that still have money," said Marie Driscoll, director of consumer discretionary retail for Standard & Poor's Equity Research. "They're just much more discriminating.

"Luxury-goods retailers are finding buyers, at the right price. At TheOutnet.com, a Web site selling designer fashion at a discount, Alexander McQueen leather pants sold out at $1,002 (reduced from $3,340).Rabbit-fur coats by Roberto Cavalli also sold out for $1,498 on Gilt.com, another high-end site, marked down from $5,030.

Hana Ben-Shabat, a partner in the retail practice of A. T. Kearney, said the consumer buying luxury items at a discount these days probably was earning $200,000 to $300,000 a year.If that person's compensation was partly based on a bonus, overall pay has probably dropped significantly. That means that such consumers may no longer be visiting the likes of Prada and Gucci as often as they once did. But these buyers also know what such merchandise typically costs.

"They have a basis for comparison," Ms. Ben-Shabat said. "They see something that maybe last year was $2,500, and they see it below the $2,000 mark and they think, 'I will buy it.'"Donald R. Grimes, an economist and senior research associate at the Institute for Research on Labor, Employment and the Economy at the University of Michigan, said many of these buyers sat out the recession, because they were either nervous about the economy or because they did not want to appear ostentatious.But their confidence is slowly returning.

"Now, they feel, 'I've made it through,'" Mr. Grimes said. "They're definitely looking for deals."JetBlue's promotion drew in Sam Rosen, a Chicago Web site designer. He was planning to spend $400 on airfare to attend a friend's bachelor party in Las Vegas this month. But when he saw a notice for JetBlue's "All You Can Jet" pass, Mr. Rosen jumped.

"I'm a smart enough guy to realize that for an extra $200, I could go wherever I want," Mr. Rosen said.JetBlue halted the program last month, earlier than it had planned, when it sold out of the passes it designated under the plan. It has not said how many were available.

The first travelers begin using their passes on Tuesday; trips must be completed by Oct. 8. Along with his Las Vegas trip, Mr. Rosen will go to six cities before his month of flights is up.He is visiting two places -- Boston and St. Martin -- where he has never traveled, and will work while on the road.Another Chicago resident, Frank Earullo, could not resist the $3,500 rebate he received when he bought a Hyundai Santa Fe sport utility vehicle under cash for clunkers.

He was among the last of nearly 700,000 people who bought vehicles during the offer, which expired Aug. 24. It helped a number of automakers post better August auto sales compared with dismal results in 2008, although many analysts expect sales to fall sharply now that the offer no longer exists.

"They're pretty much forcing me to do this, it's such a good deal," he said of his new Santa Fe, bought with a trade-in of his 1999 Ford Explorer.

Other promotions, though less ambitious than the clunkers rebates, are succeeding with rare price cuts.Zingerman's, a restaurant and food company in Ann Arbor, Mich., has for years offered a weeklong "bake-cation" seminar for $1,000, where students spend five days learning to make everything from croissants to pie.

This summer, it added a weekend version, for $500, and the first session sold out in days (a second has been added for October). Last month, Zingerman's also started a training course for food professionals on cheeses, and priced the introductory session at $975, rather than the $1,200 it plans to charge for subsequent sessions.

The offer attracted three participants from Dorothy Lane Market, a small chain of high-end specialty food stores in the Dayton, Ohio, area. The store has sent employees around the world for training classes.Supervisors "won't cut corners when it's something worth our time to do," said Dave Mader, manager of specialty cheese at the chain's Springboro store.Still, a broader recovery depends on the willingness of less-flush consumers to buy, and Professor Grimes said he did not envision a return to the kind of impulsive spending that seemed commonplace earlier this decade.

"People who are making $80,000 or $100,000 and who would go off to Disney World and blow $2,000 on a weekend, they aren't going to do that," he said.

Still, the popularity of cash for clunkers was a boost for economic morale, he said, and could bode well for similar programs down the road."

At least it gave some optimism, and got people doing something," he said.

(Source: The New York Times, 09/09/09)

Combining Broad Reach with Effective Messaging

2009-06-17T07:50:00.000-07:00

Sure, we've all seen people blowing themselves up through stupid stunts and clever skits produced in college dorm rooms, but did you know that online videos are becoming one of the most effective means of spreading a message in history? The popularity of online videos has now spread to marketing messages, and when done well has yielded positive results. I came across one report that described a blender company who put up an online video showing their blender mincing all types of items: from tomatoes to shoes to cell phones. They then challenged the public (with all safety measures in place, of course) to make their own videos of what this particular brand of blender could chew up. The response was massive, and the result was a marked increase in the purchases of the blender. Other stories include the recently featured furniture company in High Point whose slapstick online commercial was even featured on MSNBC in their report of interesting online finds. Their result? Increased purchases locally, and inquiries from as far away as Florida, Georgia, and beyond.

Has your product or service got an angle that you could present in an Internet video? If so, head on out with a digital camera and get to work, Spielberg! A few words of caution, though. Humor sells; do your best to make it memorable by making it light hearted and funny. Feel free to poke fun at yourself. Consumers respond well to a firm that can take a joke at their own expense. And remember to keep it short and sweet. This is not the place for infomercials. Keep it to the point, and eliminate fluff. No Selling. The real beauty of the effectiveness of this medium is that it does no selling, it is entertaining. You can present the benefits and features of your product or service, but don't get into special offers, pricing, or anything that makes it sound like a commercial. Many more tips are available through a wealth of online sources, and if you just can't handle a camera or any of the production aspects, consult a production company. In Wilmington, NC, I might suggest Josh Caine at "Past, Present, Future Digital, Inc." on Peachtree Avenue.

Now comes the most important part: How to get it noticed. As I've shown before in previous blogs, there is no greater way to drive local traffic to your website (or any Internet offering) than a radio campaign designated for that purpose. Internet advertising will go viral, and spread by email and through search engines. But to really get noticed in a hurry, use the traditional medium of radio for its reach, frequency, consistency, and creative commercial messaging to drive traffic to your online video. Remember, people only go where they are invited; tell Wilmington and surrounding area residents to head over to your online video, entertain them, and then prompt them to share it with a friend. That friend will share with a family member, who will share with a co-worker, who will share with a church member, and before you know it, your video has spread to hundreds, thousands, and millions of potential customers.

Here are two great articles that give some added insight into online video as a blossoming medium.

"Report: Online Video Fastest-Growing Medium in History" - Media Post, 5/29/09

"Nearly Four out of Five Americans Watching Online Video" - comScore Video Metrix

Cutting Advertising in a Recession = Weakness

2009-05-28T06:03:00.001-07:00

It's the drum I've been beating all year, and now there's research to prove it. One of my business contacts has in her email, "Cutting advertising to save money is like stopping a clock to save time." It just doesn't work.

In a recession there is less business being done, but it is still being done in all industries. It is more important than ever to attract new customers and retain your current customers and clients. When times are tough, you must show strength, and the only way to do that is to remain present in the public eye. Radio advertising is an omnipresent media; in fact, it may be the only one. It is in homes, vehicles, offices, and, when commercials are done right, in your clients' consciousness. Check out this May 25, 2009 article from Marketing Charts:

"Survey Indicates that Reducing Advertising in a Recession is a Mistake"

More than 48 percent of U.S. adults believe that a lack of advertising by a retail store, bank or auto dealership during a recession indicates that the business is likely struggling, according to a study from Ad-ology Research.At the same time, a large majority of consumers think businesses that continue to advertise are competitive and/or committed to doing business.

The research study, "Advertising's Impact in a Soft Economy," which was undertaken to determine whether stopping advertising during the recession could harm a business, takes an in-depth look at specific consumer perceptions regarding firms that continue to advertise in the current economy, as well as those that do not.

Not advertising can harm brandAdvertising appears to play a key role in consumers' view of how a business is doing, the study found. By not advertising, businesses may be sending a warning signal to current and potential customers, Ad-ology said.

For example, when consumers no longer see/hear advertising from an auto dealership during a down economy, 50 percent say they view the dealership as "struggling." In addition, 19 percent feel these dealers are "less willing to deal," and only 7 percent believe they "must be doing well."

On the other hand, when a dealership advertises during tough times, 34 percent believe the dealership to be committed to doing business.

Consumer perception is similar for stores and banks. When advertising ceases among the following businesses, consumers:

* View their bank as struggling (48 percent)
* Believe their bank may not be in business much longer (12 percent)
* View their favorite store as struggling (56 percent)
* Believe their favorite store may not be in business much longer (15 percent)

However, when the following businesses continue to advertise frequently, consumers:

* Believe their bank is committed to doing business (43 percent)
* View their bank as being competitive (30 percent)
* Believe their favorite store is committed to doing business (47 percent)
* View their favorite store as being competitive (30 percent)

"It is critical to advertise in the current economic climate, to maintain long-term positive consumer perception of your brand," said C. Lee Smith, president and CEO of Ad-ology Research. "Advertising not only assures consumers of a business' reliability in a soft economy, but it can influence where and what they buy, especially when the ads address concerns about value."

Small Businesses Turning to the Web

2009-05-15T06:02:00.000-07:00

In coversation, and through my own observations, I'm finding that many small business owners inWilmington, NC are turning to the web for much of their marketing and advertising. I can certainly understand that. Even I have started to increase my web presence, and have started taking advantage of some of the free offerings available for marketing myself as a radio advertising and marketing consultant. There are many advantages to marketing and advertising on the web, the first being its cost effectiveness.

But now my problem is getting noticed. How will nayone find this blog, or my LinkedIn profile, or my Naymz profile. There is a lot of leg work involved in advertising these pages if I want them to be effective. And for now, much of it has been direct email marketing to various contacts I have in Wilmington, NC. Unfortunately, I am not permitted by my own company to use the one tool that is most beneficial in driving traffic to a website. Radio advertising!

The Radio Advertising Bureau has compiled information on how using radio advertising to drive website traffic can be effective. The following comes from their report:

Perception: Radio is reducing clutter at a time when the Internet is becoming more cluttered. Draw attention to the advertising message by supporting Internet with Radio.

Trusted: From the beginning, consumers have expressed caution in using and believing the Internet. Radio is consumers' local, trusted source for information. Add credibility to your advertising campaign with Radio.

Efficient: Cost-Per-Thousand impressions is still a bargain on Radio.

Easy to Use: Radio is fast and simple. Turn on the receiver and begin enjoying a favorite station immediately. The Internet's complex, confusing, and often slow processes turn the user’s experience into a negative one. Reach consumers within a positive environment.

Marketing Partners: Radio and the Internet make perfect marketing partners. Radio has proven its ability to drive consumers to advertised Web sites, and many Radio stations have their own Web sites offering advertisers unique multi-media marketing opportunities.

Target Specific Customers: With Radio, you can target specific customers by demographic group, lifestyle trends, and specific product affinity. And since the average Radio listener spends almost three hours each weekday and five hours per weekend with their favorite stations, it’s easy to generate enough message frequency to get them to check out your online advertisement. As Radio draws consumers to your online message, it can encourage them to print special coupons directly off the Web and redeem them at your place of business. (Radio Marketing Guide & Fact Book, 2007 edition)(Radio Marketing Guide & Fact Book 2007, )

As you can see, Internet traffic and radio advertising make incredibly powerful marketing partners. And with the introduction of internet radio and streaming plans in Wilmington, NC, you can reach your clients at the closest point of purchase possible by advertising on the station of your choice. If your website is e-commerce ready, you can run a radio commercial that promotes the website and gives a consumer a reason to visit it; since they are already listening online, your website is only a click away. Clients who have already seen success with this are local businesses who have printable coupons that customers download from their website, and can then redeem in the store. If you are looking for a way to increase awareness for your website, traditional radio advertising, and internet radio advertising are powerful tools. For businesses who have farther reaching customer bases, it is worth noting that we have had comments on several of the stations from listeners in other states who have fallen in love with the programming, including Ohio, New Jersey, West Virginia, and South Carolina.

Below is an April article from eMarketer about the increase of web marketing among medium to small businesses, as well as a link for a series of webinars on the subject:

Small Businesses Seek Solutions Online

Small businesses face stiff challenges in 2009.

According to a poll of US marketers by Bredin Business Information, the primary challenges in marketing to small businesses are funding new projects, growing the business with limited resources and increasing awareness.

In addition, marketers say the outlook for small-business marketing has changed in 2009. They are increasing their online activities, becoming more focused and conducting segmentation research to better target their customers.

It is no surprise that the local online marketing space is where many small and medium-sized businesses (SMBs) are moving their efforts -- and their dollars.Borrell Associates estimated SMBs spent $7.4 billion on local online marketing in 2008.

That figure accounted for 11 percent of all SMB marketing spending, and more than one-half of total US local digital spending, including Website development.

(Source: eMarketer, 04/13/09)

Note: Borrell Associates will be conducting a series of four webinars with more on this and other research and recommendations starting Thursday, May 19th. Register now by clicking here, or call 800-232-3131.

What's in it for your customer?

2009-05-06T17:43:00.000-07:00

Time and time again, I work with people who want customers in their store, but have no idea how to get them there. One thing you have to ask yourself is, "If I were spending my money, what would make me get up and go?"

Its not enough to have the best service, the best product or service, be locally owned and operated, or even being the only one who does what you do. What are you willing to sacrifice in order to get customers motivated? Not only do you have to make an offer, you have to make it undeniable. It has to be something that the customer finds real value in, and they know that they are getting one heck of a deal. And it must have a deadline. You must leave only a reasonable amount of time for the offer to be redeemed; that creates the sense of urgency necessary to prompt more immediate action.

Here's a great article that gets into ideas for attracting more customers through the "dangling carrot."

Offer Multiple Prizes Instead of Just One
Beat the Recession Without Breaking the Bank

It's the dangling carrot -- the incentive that motivates a consumer to take an action. But how do marketers determine what that carrot looks like? Will consumers be receptive to it? Is it what they want? Is it what they need? And, most important, can I afford to dangle it?

With marketing budgets becoming tighter and tighter, one good strategy is to offer a handful of "baby carrots" rather than one large carrot. For example, instead of investing in one grand prize for one winner for a new promotion -- like $1 million or a new car -- offer a handful of smaller giveaways to a greater number of winners. This approach is successful for a number of reasons:

1. Consumers are more likely to sign up for a sweepstakes or contest if they feel their chances of winning are enhanced. That sense of attainability, the "Wow! I could really win this" factor, is truly a powerful motivator.

2. It's beneficial to create a positive brand experience with more than one winner. By selecting 50 people to win $1,000 versus one person to win $50,000, marketers are able to build an army of loyal brand ambassadors who will continue to promote the brand.

3. People love winning free stuff -- period! -- and that's true in any economic climate. But given the state of the current economy, consumers are more actively looking for promotions offering a chance at winning a freebie. They are paying more attention, and even the smaller prizes are generating a great deal of interest.

4. Capitalizing on smaller, lower-value items allows marketers to imprint their logo or message, which permanently reinforces consumer loyalty and provides a little more "bang for your buck."

Additionally, the more a giveaway item aligns with the target audience's interests and the more directly it ties to the consumption of the brand, the greater the participation. Developing a prize that is both relevant and interesting to the audience is critical in generating maximum participation.

For example, we recently developed a promotion for a healthy frozen snack product. The marketing was geared toward "soccer moms," and the product required toasting. Therefore, we offered consumers the chance to win dozens of free toaster ovens and gift cards to a popular sporting goods retailer (for their kids). While the prize was more practical and may not have been as sexy as some other giveaway options, we received hundreds of thousands of site visits and entries in a little over a month. This led to a double-digit sales increase and secured the product as the fastest growing brand in the frozen snack category.

When there isn't a flashy prize on the line that people will talk about, marketers need to step up their promotional game. Where can I best reach my audience? Who's going to want or care about this prize?

Yes, the toaster oven and gift card incentive played a major role in the overwhelming response. But because the prize was so targeted to a specific audience, it was just as important to target our publicity efforts. Using a focused online banner campaign and e-mail blasts, and partnering with a cost-effective national youth sports network, allowed us to pinpoint our soccer-mom target. Additionally, at the hub of this campaign was a feature-rich sweepstakes entry microsite that enabled the brand to engage consumers, reinforce key product attributes, offer coupons and solicit consumer feedback by using interactive games and entertaining content.

Last, the hundreds of thousands of contacts we garnered can now be used for future, cost-effective, one-to-one, brand-to-consumer dialogue -- which is typically the end-goal of any sweepstakes.

So, sometimes thinking smaller can be better. The results of the frozen snack campaign were attained at a fraction of the cost and time it would have taken to generate the quantity and quality of consumer brand interaction had we used traditional media and methods. Instead, we developed a simple promotion that really resonated with our target.

Marketers are continually faced with the growing challenge of shrinking budgets. Yet, thinking strategically about the target audience and their lifestyles, and giving that audience more opportunity to win, will result in successful, cost-effective incentive campaigns. Think small and win big.

(Source: Miles Smith, Promomagazine.com, 03/01/09)

The Last Captive Audience

2009-05-04T13:30:00.000-07:00

I'm starting this blog as a service to my clients. From time to time I have experiences in the local marketing and business arena that I feel are beneficial. At other times, there are articles that I receive about marketing and advertising that I feel are interesting and worthy of your read. As you may know, my ultimate goal is for you to do more business, no matter how it comes through the door. Radio is my business, but successful business marketing is my goal. With that in mind, here is the first of many articles that I hope to pass your way. If you know of anyone else who may benefit from insider tid bits from time to time, feel free to pass it on to them, or have them sign up for my blog, too. Enjoy it, have a great day, and God bless!

Radio Offers Advertisers the Last Captive Audience

Earlier this week, National Public Radio conducted an interesting interview with author Warren Berger, who offered his observations on the value of Radio advertising. Mr. Berger, who has been writing about the advertising industry for more than 20 years, emphasized the affordability of Radio, and noted its particular effectiveness in local markets. He also cited Radio's ability to blanket the airwaves with a slogan or jingle in a way that TV can't match. Click here to listen to this short clip of Mr. Berger's interview, and think about sending a copy of it to your advertisers to reinforce the benefits of Radio advertising.

(Source: National Public Radio (All Things Considered), 04/28/09)