Execs Say Madison Avenue Killing the Radio Star

John Hogan of Clear Channel

Top executives at leading radio companies acknowledged Wednesday the industry's rocky times, but attributed it more to perception than reality. Advertisers have failed to appreciate the appealing content and marketing opportunities that radio offers, they said.

"We don't have much leverage because there's a perception that somehow radio is dated or radio has lost its fastball," said John Hogan, the president-CEO of Clear Channel.

But the executives, who spoke at an Advertising Week event, said radio offers content that connects to consumers in a personal, emotional, immediate way--and ad agencies don't realize that radio holds its audience better than other mediums.

"We have a perception problem, not a consumption problem," said Jeff Smulyan, the president-CEO of Emmis Communications.

advertisement

advertisement

Smulyan added that "on Madison Avenue, radio may be considered a dinosaur," but that's not the case "on Main Street." Top radio executives have spoken about the perception deficit before.

Executives said that in small markets, advertisers continue to use radio effectively for calls to action, but ad buyers have turned away in major markets.

"In the larger markets, people have lost sight of our ability to engage people," Smulyan said. "And that's what we've got to get back."

Citadel CEO Farid Suleman said advertisers fail to appreciate radio's potential beyond retail spots. "Radio is a great branding mechanism," he said.

The industry is running a "Radio Heard Here" image campaign looking to address some of its perceived shortfalls.

The medium's level of engagement is "something that an iPod or satellite radio couldn't capture in a million years," said CBS Radio president-CEO Dan Mason.

One reason the industry may be suffering among advertisers is that creative talent pooh-poohs it, and many have little interest in writing copy or working in it. And lackluster creative can have a trickle-down effect, leading to displeased clients and lower spending. Peter Smyth, president-CEO of Greater Media, said the industry needs to find a way to get young creatives more excited about the business.

The industry itself also needs to offer advertisers more out-of-the-box marketing opportunities, the executives said. Some of those could come from the various new technologies the business is moving into--such as streaming on the Internet, and on mobile devices. Mason said, for example, that New York's fabled 1010 Wins AM news station could one day be offered in 10 different forms, and across the globe.

Smulyan is fighting for a potential breakthrough: a radio tuner in every portable phone.

Next story loading loading..