Broadcasters have their hind end so far up their ailementary canal these days it's almost hilarious. It seems difficult but every day they seem to manage to top the previous day's example of trying to convince themselves everything is rosy. Here's today's bit of self-massage, from INSIDE RADIO's email newsletter:
The radio industry had its best cost per thousand (CPM) rates in five months in October, according to the SQAD-Inside Radio CMP Tracker. Costs to ad buyers were up by as much as 15% compared to one year ago, the latest data shows.
So, kind reader, glance around and tell me what might cause the rates stations charge for advertising to be higher this October than last year. Higher ratings? No. They continue to tail off (look at rating numbers...percentage of all people out there who listen to a particular station...NOT share...percentage of people listening to any radio who are listening to a particular station).
Better results? Hardly. I know it is difficult to measure, but does anyone really believe advertising, especially on radio, is producing better results than last year?
So why would rates be higher, according to SQAD?
POLITICAL! Millions and millions of dollars are being dumped into media right now. Even though broadcasters are required by law to sell political ads at their "lowest unit rate," you can be sure that unit rate was established outside the political window and it is not radically different from what other advertisers have been paying.
So that's why rates and revenues are up. Don't delude yourselves, broadcasters. The holiday season will help, but once all the levers are pulled and the chads have been hung on November 2, reality sets in.
Don Keith
http://www.donkeith.com/
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1 comment:
Interesting political correlation you've pointed out Don. Case in point: The well produced NRA adds pushing the pro-2nd Amendment candidates on the FM station we listen to at work.
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