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Mar
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Category: Advertising, Blogging, Industry news, Strategy
Today’s Journal of Marketing (JOM) debate session was titled “Radio: A good media buy? Or goodbye to the medium” (held at the Michelangelo Hotel). With the MTN Radio Awards 2011 coming up, this was a fitting debate topic.
Our panelists were:
- Natasha Basson – GM of Brand & Communication, MTN SA
- Terry Volkwyn – CEO Primedia Broadcasting
- Gordon Patterson – CEO of Starcom Mediavest
- Rachelle Jaques – Sales Manager of the Media Connection
- Omar Essack – Executive Director: Broadcasting – Kagiso Media
Jeremy Maggs lead the discussion and here is an overview of all the questions and answers from the session:
- Terry Volkwyn – We don’t think radio is a dying medium but it does face challenges from digital media. The most important factor for radio is that the medium is driven by advertising and this is pivotal to its survival.
- Gordon Patterson – Radio is not dying, infact stats show that listening minutes are increasing over South Africa and radio has the advantage of ‘direct reach’ to clientele.
- Natasha Basson – Radio is not dead but when marketers advertise, they should advertise by programme and not by station.
What are the limitations of radio advertising?
- Gordon Patterson – The limitation is that marketers are planning/targeting TV advertising by station but they should plan by programme (people tune in to a station because of the programme not because of what station it is).
“In addition, broadcasters are now in a habit of discounting sales and advertising services and this is hurting industry player (for example SABC making loses due to discounting)” – Gordon Patterson – CEO of Starcom Mediavest.
- Natasha Basson – Another limitation the industry has is that research is limited in terms of knowing more about their ‘listenership’ (who they are and more about their demographics).
How do small businesses owners benefit from Radio advertising?
- Gordon Patterson – They need to know which radio stations are in their area and analyze the cost effectiveness of advertising with each station. It is also important to look at the budget and consider advertising with local radio stations.
- Terry Volkwyn – My advice would be to approach a radio direct sales team and calculate the cost per response.
- Rachelle Jaques – The benefits of small companies is that they are flexible and there is a lot of room to be creative in advertising.
“Using community radio stations for small business advertising may be most beneficial however they are limited to the community” – Rachelle Jaques – Sales Manager of the Media Connection.
Do Brands use radio to build the brand or just for product promotion?
- Natasha Basson – Depending on your strategy, national radio broadcasting stations are often used for company branding campaigns (e.g MTN) whereas regional broadcasting stations help in ‘sell brand products’.
What should clients expect from radio advertising sales individuals?
- Terry Volkwyn – We make sure that the sales team is fully trained and give professional consulting so they approach clients (advertisers) effectively.
- Omar Essack – A good radio sales team must understand their clients’ needs and strategize the ways in which they can reach the sales conversion. They must offer the client the most relevant channels to reach the most optimum strategy for the advertiser.
What is radio advertising added value?
- Omar Essack – Radio advertising added value are the extras added on to the service offering such as in depth reporting of results.
- Rachelle Jaques – Added value is not an advertising discount but more of a ‘tailor-made’ service – monitor, watch and respond to the client’s needs anytime.
- Gordon Patterson – this is addition support that makes sure that radio stations run a campaign that works.
When can you tell that a campaign is not working?
- Natasha Basson – It takes roughly 24hours to see if a radio campaign is going to be successful or if it needs extra attention to reach its benchmark – especially if it is an interactive radio campaign.
In conclusion, the last question the panelists addressed was “How will radio work for businesses?” It was generally agreed that radio advertising will work effectively when advertiser focus on leveraging on the relationship the radio station has with the community in order to unleash the power of its advertising potential.







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