From where I sit On The Kowch, a lot of people in radio aren’t having a great Christmas this year because of the introduction of the new Online Radio Diary (ORD) during the Fall 2016 Numeris ratings. Industry sources have told kowchmedia the new audience measurement tool had such a negative impact on the ratings, that many radio stations across Canada will be forced to lower the price of their commercials. Preliminary estimates say lower priced commercials will cost them “millions of dollars” in lost revenue in 2017. A lot of sales reps may not hit their budgets in 2017. With the loss of revenue comes the possibility of budget cuts and more people in radio losing their jobs.
From where I sit On The Kowch, radio sales managers probably won’t be sharing with advertisers the findings of the latest CRN International study on the impact long commercial breaks have on listeners. That’s because the listening habits of 525 radio listeners polled blows up the myth that people don’t tune out when the music stops for commercials. They might not change the station, but mentally they stop paying attention to what is on the radio until the music resumes.
When it comes to radio advertising, clients in the United States will be spending $16 Billion in 2014 to reach their share of the 244 million Americans that listen to radio every week.
“Almost seven out of 10 respondents said they don’t make it past the second in a series of spots during the commercial break; 64 percent said they don’t make it past the first,” says the study. “The law of diminishing returns applies, according to the survey, as spots get further and further down the order within the commercial set. Even for avid radio listeners—those respondents who said they listen several hours a day—31 percent said they listen to the first commercial but no more.”