• by Erik Sass , April 1, 2008

The HD Digital Radio Alliance is preparing a host of new initiatives to increase adoption of HD digital radio in 2008, with the tagline "HD: It's Time to Upgrade!" The focus on this year's campaign will shift from raising awareness (still a priority) to persuading consumers to actually buy new sets.

During the first two years, the Alliance, which includes virtually all the country's leading broadcasters, spent the equivalent of more than $200 million annually on campaigns. The goal was to inform radio listeners that a new audio technology had arrived. Running on air time donated by the consortium's members, this year estimated at $230 million, the spots focused on the CD quality sound and extra channels offered by HD radio.

In 2007, spots began to include more promotions for retailers and manufacturers of HD radio sets, including Best Buy, Radio Shack, Circuit City, Wal-Mart, and Amazon.com.

The first two annual campaigns helped raised awareness of the new HD offerings to 77% among radio listeners, according to the Alliance, marking a substantial increase from just 38% in May 2006, per a survey by Mark Kassof and Co., a strategic research firm. Further, the most recent figures suggest that more people are aware of HD's special qualities, up from just 25% in the May 2006 survey.

Since over three-quarters of the country's 230 million weekly radio listeners are aware of the product, and HD broadcasts are already live in all 100 top media markets, the Alliance will move to encourage adoption of the new technology with a slew of new messages, logos and radio ads this year.

Peter Ferrara, president and CEO of the HD Digital Radio Alliance, promised: "This year will see unparalleled numbers of receivers in cars and at retail, totally new data applications, and new investments in HD2 and HD3 programming from broadcasters. Now is the time to convert consumer awareness into purchasing action."

One critical measure of success is the rate of adoption for HD radio sets among new automobile buyers. According to a J.D. Powers survey cited by the Alliance, 31% of current or likely auto buyers want an HD set in their next vehicle. HD receiver manufacturers have already struck deals with major car makers, include Mercedes, Ford, Volvo, BMW, MINI USA, Jaguar and Hyundai.

To expand the potential pool of automaker partners, the Alliance is currently petitioning Congress and the Federal Communications Commission to force satellite radio broadcasters Sirius and XM to cancel their deals with automakers as a condition for the proposed satcaster merger being approved.