Monday, March 7, 2011

Radio Is Losing Digital Ad Revenue Race/"WRKO...The Launch"

By 2015, 26% of all local advertising dollars will be spent online. That means for the first time ever, digital will earn more local ad revenue than traditional radio. The late Johnnie Cochran would've called this "a bombshell" and "a blockbuster." The bad news for radio, comes courtesy of Borrell Associates VP Kip Cassino. Cassino says "There is no question now about the question of online." While advertisers spent about $13.5 billion on local online ads in 2010, that number is expected to increase to $24 billion by 2015 - growth that will be accompanied by a shifting focus on digital versus traditional media advertising. And there's a shift in the direction of where those digital dollars are going too...

Diana Marszalek of Net News Check reports that digital dollars spent online will be targeted on mobile versus the "old" new media of the internet. Cassino predicts that the surge in mobile advertising expected over the next five years will push the percentage of local online ad dollars being spent specifically on mobile from 15% today to 64% by 2015. "The purchase of mobile devices will have replaced the desktop devices that we now have", says Cassino. And the devices are changing. According to Cassino, by 2015, the purchase of tablets will own a major share of devices sold. With the focus on digital advertising, what share of local advertising will radio own???

Cassino predicts nearly 23% of traditional media advertising will go to newspapers - which usually get the most ad dollars. About 16% will head to TV stations in 2015 and radio will fight it out with every other form of remaining media for the rest. Even if these predictions are half-right, radio will have to fight harder than ever for local ad dollars...

10 Timeline Memories:
1.1774] Banned - Boston: The British close the port of Boston to all commerce. Revenge is just two years away. This is what Boston Harbor must have looked like...
2.1876] Can you hear me now?: Alexander Graham Bell receives U.S. Patent no. 174,465 for something called the telephone... 1926] 50 years later the first successful trans-Atlantic radio-telephone conversation takes place between New York City and London...
3.1965] March to Selma: State Troopers and a sheriff's posse breaks up a civil rights march in Selma (AL)...
4.1967] "D-I-V-O-R-C-E": Sandra Dee receives a divorce from Bobby Darin. America's favorite couple were married in 1960...
5.1986] Challenger crew found: Divers locate the crew cabin of Challenger on the ocean floor...
6.1987] So Young: 20-year old Mike Tyson becomes the youngest heavyweight champion after decisioning James "Bonecrusher" Smith in a 12-round bout in Las Vegas. Here's Tyson at 17...
7.1994] Supes Rule: The Supreme Court rules that parodies that poke fun at an original work can be considered "fair use" that doesn't require permission from the copyright holder. SNL was waiting for this ruling almost 20 years...
8.1996] Abuse of power: Three U.S. servicemen are convicted in the rape of a 12-year old Okinawa girl and sentenced by a Japanese court to up to seven years in prison...
9.2003] Cue the band-uh, where's the band?: A four-day walkout by Broadway musicians begins...
10.2004] Not a good thing: Martha Stewart is convicted of obstructing justice and lying to the government about why she unloaded Imclone stocks just as the price dropped. Bernie Madoff takes notes...

Music Memories:
  • 1966] Recorded on this date: The Beach Boys begin recording "God Only Knows" ...
  • 1985] Released on this date: "We Are The World" has its international release...

"WRKO...The Launch" (Part 5) (March marks the 44th anniversary of WRKO Boston. All month long, I will be serializing the story behind the actual launch of what would become one of the country's legendary Top 40 radio stations and today continues to be a mainstay with a N/T format in New England)...

Bob Henabery's critique of KHJ and Perry Ury's follow up with RKO General Corporate clinched the Top 40 format change for WRKO-AM, now just 6 days away. But without the successful launch of WRKO-FM in October 1966, it's possible that KHJ notwithstanding, corporate wouldn't have approved the format change for AM. In terms of importance of the two, I would give a majority of the share to the success of WRKO-FM...

The AM was about to follow in the footsteps of our FM. The music would be similar and the only major difference between the two would be, WRKO-AM would not be automated...

WRKO-FM's music was pure Top 40, if it was a hit, we played it, in many cases before WBZ & WMEX. A look at the "Certified 35" for the week ending January 5, 1967 - (a) seen here, shows a top 5 of "Snoopy Vs. The Red Baron", "Standing In The Shadows Of Love", "Bend It", "Nashville Cats" & "I'm A Believer." All hits of the day - but we weren't afraid to play local acts and questionable (at the time) songs like "Let's Spend The Night Together" either...(Tomorrow: "WRKO...The Launch" (Part 6) (More on WRKO-FM's Success)...

(a) (Under "WRKO-FM" - "WRKO-FM Music Survey")

"Happy Birthday...happy birthday":
Rachel Weisz (40), Wanda Sykes (47), Taylor Dayne (49), Ernie (the youngest Isley Brother) Isley (59), Steeler teammates Lynn Swann (59) and Franco Harris (61), Peter Wolf (65), Michael Eisner (69), Daniel Travanti (71) & Williard Scott (77)...

Timeline Countdown: 6 days until Daylight time, 13 days until the first day of spring, 24 days until MLB Opener, 43 days until Passover & 48 days until Easter...