It's a Twofer Tuesday

And no, it's not what you are thinking.

Here's two quick hits:

#1 Facebook continues to grow. In the month of June it had a unique audience of more than 87 million according to the The Nielsen Company . That's huge. I am amazed at who I connect with there. Personally, I have a blast on FB and I am not alone. And of course for radio stations, Facebook continues to be a goldmine of opportunity for those who choose to take part and do it right.

Check out how it breaks out by gender and demo (interesting how males are laggards in every cell):

#2 According to this projection radio will uptick in 2010, 2011, and 2012 but still not regain 2007 levels. Nothing to just up and down about, but then again, maybe it is. It's no surprise that the internet is projected to be the top revenue producer in 2012. The one area that is projected to show huge growth is a sector I think radio can grab a piece of--branded entertainment/product placement. For radio it's kinda like back to the future, hearkening back to it's earliest days. Think: theater of the mind and specifically branded shows here and you will get where I am headed.

It Could Be Worse

From e-Marketer:

And for those wondering, CAGR is the Compound Annual Growth Rate.

I know -4.3 doesn't look so good. Hard to argue otherwise. But as radio continues to better understand and deploy content for the internet we should be able to capture some of the growth from that potentially lucrative sector. Right? Exactly.

As I often like to do...let me end this post with a question.

What have you done to enhance you digital content and sales effort today?

Radio 2009 Not So Good?

In this afternoon's Inside Radio update they reported:

Analyst: Tough radio economy into 2009.
Stanford Research analyst Fred Moran says rising energy costs, the credit crisis and a slumping housing market have combined to create a recession for the consumer which will "pressure advertising demand" through next year as budgets "tighten" to align with softening consumer spending.

If this analysis is correct it will be another tough year for those on the front lines at radio stations all across the country. More personnel cuts, even smaller or non-existent marketing budgets, smaller or non-existent research budgets, and the continued and inevitable loss of innovation when it's needed the most.

Just as we were beginning to deal with the onslaught of new media platforms and changing attitudes we were also beginning to make those cuts -- a perfect storm of sorts.

There were many among us who underestimated what was about to happen; after all we survived and thrived as the Walkman's, 8-track's, CD's attacked. We weren't going to stop the new media train but we did less and less to slow it down and react appropriately to it. Even today, there are STILL broadcasters who doubt the severity of seismic shift that has taken place.

2008 is barely half over and already we are being alerted to a shaky 2009. As mind-numbing as this is, at least we have a head start on thinking about how we can productively deal with what might confront us in the months ahead.

Now is the time to plan ahead and figure out how innovation can figure into your equation--no matter what that the financial situation is going forward. Here's a few thought-starters:

• How can we better connect with and reward our most loyal listeners?
• How can we be more than a easy to replicate jukebox?
• How can we be better story tellers in order to capture the imagination of our listeners?
• How can we make the "same old-same old" not so stale?
• How can we develop content good enough that listeners would consider podcasting it?
• How can we demonstrate to our clients that not only should they spend money with us, but it will be the best money they will spend?

For anyone interested, I would be happy to set up short-term projects and assist you facilitate these vital meetings and develop your strategic plan. Honest and frank analysis plus creative and innovative solutions to your specific issues. Feel free to give me a call [952.401.9067] if you would like to discuss.

So, What's Going On?

The RAB released the January revenue figures that, to say the least, were not very good.

Here's the bad news:

RADIO ADVERTISING BUREAU RADIO REVENUE POOL NUMBERS
Jan. 2008 vs. Jan. 2007

Local Revenue All Markets -5%
National Revenue All Markets -13%
Local & Nat'l Revenue All Markets -7%
Non-Spot Revenue All Markets 11%
Grand Total Revenue All Markets -6%

Local and national revenues are based on approximately 150 markets as reported by the accounting firm of Miller Kaplan Arase & Co. Non-Spot data has been collected and verified since January of 2002, and reported since September of 2004. As previously announced, the RAB will report quarterly Radio revenue in dollar amounts beginning with the 2007 results. Monthly percentage growth rates will continue to be available on the RAB website at www.RAB.com. The Radio Advertising Bureau (RAB) is the sales and marketing arm of the Radio industry with nearly 7,000 members including close to 6,000 stations in the U.S., and over 1,000 associate members in networks, representative firms, sales, and international organizations.

As you can see the only bright spot was non-spot revenue which increased 11% year over year. It's good to see that "new media" is getting some traction, but we all know this is not going to compensate for the spot revenue loss.

Is this a double whammy for radio? A soft ad market coupled with an uncertain economy? Could be. But these numbers hit like a ton of bricks.

One thing struck me as I was reading these numbers, right at the top of the release is the RAB logo, contact information and "slug line."

230 Million people listen to radio every week. One would think a platform that robust would have more business than they could handle. Obviously, there's much more to this story than total users--like perceptions, predispositions, people, content, buzz, momentum, structure, competition, etc.

I read in one of the trades that some radio managers said the next couple months were looking better...I hope so.