• by John Gaffney , June 5, 2002

A new survey released by the Radio Advertising Bureau shows that 62% of their radio station members are accepting hard liquor advertising, but only half of those are actively pursuing the category. Eighty-one percent want to increase their revenue from the category, yet a small percentage (14%) currently has more than four hard liquor bands on the air.

Apparently radio network sales teams will turn to the category as a source of potential revenue growth: 93% of the respondents said they plan to ramp up efforts in the category by soliciting on-air ads. 90% selected event sponsorship; Internet sponsorships gathered 47%; and 17% would offer other marketing opportunities. Sixty percent of the respondents have been accepting revenue from this category for over a year.

The survey also revealed why some stations still don’t accept hard liquor ads. The number one answer, at 51%, was that the ban was due to a company policy. In a far second place at 26%, was that these types of ads would upset their loyal listeners. The tie for third place, at 24% each, was that the station did know how to get started in this category, or, surprisingly, that they thought that advertising of hard alcohol was illegal. The lowest response at 23% was that this was not a good match for their format.

Advertising is not the only option as radio tries to break the category. 80% of stations that do not accept hard liquor advertising indicated that they would offer hard liquor manufacturers event sponsorships, followed by Internet sponsorships at 53%, other marketing opportunities at 45%, and 26% for direct mail campaigns.

“Liquor advertising is a growing potential category for the Radio industry, possibly representing as much as $100 million a year,” according to Gary Fries, President and Chief Executive Officer of RAB. “While it is not RAB’s intent to officially endorse or condemn the practice of airing commercials for distilled spirits on Radio, we believe that the information from this survey will help managers reach a practical, conscientious, community-minded decision.”

Is hard alcohol advertising right for every radio station? Bill Barr, Vice President, Co-op/NTR Services for RAB explains. “For some RAB members the answer is very clear; for others, it might not be as simple. Any decision on hard alcohol advertising should not be a quick judgment. Stations debating on what course of action to follow, will find the facts from this survey very insightful and helpful in determining if this is a great opportunity, or one that should be avoided.”