Buying space

They used to call it buying space. Not so long along ago, media buying was a relatively simple process. Success in media sales was dependent more on service than on savvy analysis. But much like most everything else in life, progress brought complexity. Every answer brings a new set of questions. So here advertisers sit in an era of increasing media fragmentation trying to ascertain what they should buy and in what combination. On the flip side of the coin, broadcasters and publishers are contemplating what properties they should buy in order to maintain control of the marketplace. Expansion brings us scores of new specialty TV channels catering to almost every whim, hobby, fantasy or fetish. In this turbulent atmosphere, radio has an opportunity that should not be overlooked.

Traditionally speaking, television has always been a mass medium while radio was somewhat more targeted with formats catering to specific niches. Suddenly, television is leapfrogging radio in its attempt to superserve narrowly defined niches. All History, All Golf, All Women's Sports, All Weather, All Cartoons, etc. I'm waiting with anticipation for the new "All Female Left-handed Golfer's Channel" beaming in 24 hours a day. Although they could run out of "A" list programming by 3 a.m. All kidding aside, these channels provide a valuable expanded service. It's pretty hard to say "200 channels and nothing on."

It's also good for the production end of the industry since networks are ravenous for content to fill their schedules. But pity the poor buyer. Long gone are the days of programmes such as the finale of M*A*S*H which delivered astronomical audience shares and spectacular reach. With much of this new programming we're talking small fractions of GRP's. And that is before we introduce the idea of zipping and zapping. The buying process becomes unwieldy. How can a buying quickly achieve broad reach? How can sellers offer cost effective packages and still cover high programming costs? With no lack of applications for new specialty channels, the situation could become even worse.

In the midst of all of this, the number of radio stations has remained fairly consistent. Credit the CRTC with this much: they have not allowed Canadian markets to be flooded with unprofitable radio stations like we have seen in some U.S. cities. While television audiences are being spread across a burgeoning menu of choices, the top radio stations continue to deliver the kind of audiences that advertisers have come to expect. On top of this, radio doesn't have the same sort of commercial avoidance problem faced by television.

Internet radio is a possible threat, but it has had virtually no impact on the 20+/week per capita hours tuned to conventional stations as reported by BBM. Tuning to out of market (or out of country) stations is little more than a novelty. Time and again, listeners have expressed a preference for their local stations with local weather, traffic, news and personalities. Music only services offered via cable TV packages have not even dented radio tuning figures.

National satellite services such as XM or Sirius could also pose a threat, but they are not approved to operate in Canada in any other than a grey market capacity. In the U.S. there is an interesting battle brewing. At first, the FCC granted special temporary authority to the satellite broadcasters for terrestrial repeaters with the stipulation that there would be no local origination or spots. With no local content on the national services, the threat to conventional broadcasters is minimized. All of that has been challenged by XM which has announced that it will offer local content. One would think that the NAB would fight that proposition tooth and nail. But here is the rub...... one of the major (to the tune of 1600 stations) broadcasters is a shareholder in a satellite service. Raise your hand if you think that may have an effect on lobbying.

In Canada, radio has, by standing pat while the number of television stations explodes, improved its competitive position. Radio audience measurement is more detailed than ever with the availability of single source demographic/product usage diary data and RTS.

These afford the medium precise niche targeting without audience dilution. So, while buying space in radio may be somewhat more complex than in days gone by, the combination of superior audience data with consistently substantial audiences is making the experience more rewarding than ever.