Why Radio is struggling - demographic malaise?

[Tom Jeffries]

I have always wondered why everyone is fighting over 25-35 and 25-54 - and I think they are making a tragic mistake - because so many of that cohort are BROKE.
From greaterfool.ca - and Garth Turner explains it simply:

"While 70% of Canadians own a house, 51% of them have less than $10,000 in savings. That was the shocking finding of a new bank survey this week done by Pollara Strategic Insights. When people were asked if they feel financially prepared to handle a ‘rainy day’, it was hard to believe the poll was conducted in a first-world country where thirtysomethings do bidding wars over $800,000 semis.

Almost one in five people don’t have even $1,000 sitting around in a bank account. A quarter of us live paycheque-to-paycheque. And 84% couldn’t live six months without being paid”.

Why chase broke people? BOOMERS have money. Give me a BOOMER station, and (CBC is doing a good job) people will listen.

I would love to know what you think.

Oh, and of course Radio is still part of the fabric of boomers lives = younger demos not so much.

[pave]

Hey, Tom.
I re-posted your comments here (below) as it was an ongoing topic for awhile.
viewtopic.php?f=14&t=12787&p=12823335#p12823335
pave

[Coolcat]

I really have to agree with you. For the life of me I dont understand why the big fuss around the 18-35 demo.

Outside of some of the people near the top end most of these people are either broke working 2 bit jobs or living at home with mom and dad. Outside of buying an Iphone or an Ipad these people don't make a blip on the retail sales monitor.

[Roger Pedacter]

I have to disagree.

While the points made above have a fair bit of merit, the younger generation is also the spending generation -- and that's part of the reason why they have no cash.

Those kids who live at home are taking that money and buying iPads, iPhones, going to restaurants, spending money on a nice car, going to Whistler for the weekend, etc, etc. I saw a little 20,21-year-old girl the other day on transit with an iPhone and a Blackberry. Why? I have no idea why she'd need both at that age other than that she thinks it looks cool.

Yah, they're not buying a new home -- but how much advertising do you hear from condo developers these days?

Think of the advertisers on most stations. Some car dealers advertise, lots of cellphone companies, apple, etc..places where the younger generation are going to go drop $450 and not think twice because they live at home and don't pay rent. Or that VW Jetta that you can buy for $350/mth -- that's nothing for a kid that lives at home.

A random girl cutting my hair the other day said she'd bought something like 7,8 replacement phones over the past two years. Said she was paying full price each time. The iPhone costs a ton to replace -- $300,400,500 bucks (depending on what model, etc). She didn't think twice about replacing it each and every time.

That's the young generation. They're spending like morons.

I'm amazed at some of the stuff the young kids at my place wander around with. Laptops, mobile phones, etc. Insane. And they all live at home and don't think twice about it..or about buying the new Mac when it comes out...or dropping $200 on a personalized Canucks jersey. Lining up to get the new iPhone 5 or the newest XBox 360. That's a lot of money they end up spending on that junk.

Boomers certainly have the money. But it's not like they're all out spending like drunken sailors. The spenders are the youngsters, trying to keep up with everyone around them

Advertisers know that.

[Coolcat]

But outside of the tech stuff they cant afford much more. As for the food maybe a Big Mac or Pizza by The Slice.

If I was an advertiser I wouldn't target them unless I was in these two business demos and most aren't. If radio had to limit itself to selling to companies selling cellphones and junk food it would be tough sledding.

[tuned]

Advertisers invest in the young demo's because a lifetime of buying habits are established then.

[pave]

The more important factor, however, is as follows:
Advertisers do not go after the older demos because.... they, their agencies and their broadcast outlets don't know how!
Radio stations can't go after them - other than with some form of news/talk - for the same reason.

[CKNF]

Yes, but is the 18-35 demo even listening to terrestrial radio much these days?

I can see some of the 30+ crowd still tuning in as they grew up in a time when radio still had some relevancy. But someone born in 1995? I often wonder about that...

I'd love to read some insight on this from some of you currently in radio right now and what your management team is saying or doing to address this issue. Or is it even an issue?

Thanks!

[pave]

A thread to check out is below.
viewtopic.php?f=14&t=12787

[Roger Pedacter]

But outside of the tech stuff they cant afford much more. As for the food maybe a Big Mac or Pizza by The Slice.

If I was an advertiser I wouldn't target them unless I was in these two business demos and most aren't. If radio had to limit itself to selling to companies selling cellphones and junk food it would be tough sledding.

That's a fairly narrow view of a younger demographic.

What else should be advertising on radio then?

Grocery stores...the Home Depots of the world....what else?

Housing and vehicles? Most people only have one of each (with apologies to the high-rollers out there), so there's no need for them to advertise like crazy. The car companies still do, because so many people want to get a new ride every 2, 3 years...but that's about it.

How bout we flip this? What companies should be advertising on radio in order to hit the boomers?

Seriously, I'd like to know.

Banks and investment firms should be targetting all ages. Same for insurance companies. Where are the boomer-specific advertisers that this thread is yearning for?

Yacht-building companies? There's a narrow field

High-end vehicles? I've got news for you - younger people drive those too.

I'll buy - a bit - that young kids are interested in their iPods more than radio. But why does the Beat do so well, then? 45year-olds aren't listening to it.

[Bigbangboom]

I'll buy - a bit - that young kids are interested in their iPods more than radio. But why does the Beat do so well, then? 45year-olds aren't listening to it.

Could it be that young people ARE in fact listening to radio?

[jon]

What companies should be advertising on radio in order to hit the boomers?

Rather than trying to sell advertising to makers of "stuff people need when they get old", I think it makes even more sense to sell advertisers on the value of narrow-casting their advertising to a particular demographic, without having to send out mixed messages to try and attract all demographics in a single 30 seconds.

For example, ask any life insurance salesman and he'll tell you that how you sell a mutual fund to a 20 year old versus a 60 year old is very different. Advertising on a "boomer station" is like our salesman being able to sell one on one with the 60 year old. Advertising on a station with a broad demographic is like standing behind a podium with both the 20 year old and the 60 year old sitting in the audience, and trying to sell both of them on your mutual fund at the same time.

[Eldon-Mr.CFAY]

Greetings,
Jon I totally agree what you said about radio advertising. Very good point, narrow it down to certain demographic groups! That is an excellent idea and I think it would work well. More stations should be taking your advice on that! Hey Jon perhaps you should go into the consulting business for radio sales!!! With ideas like that I think it would really help station.

Taking a broad based approach to all age groups at the same time with radio advertising is not really the way to go unless the product or service appeals to all age groups!

73s All the Best, Take care!

Eldon

[Mike Cleaver]

Which brings us back to the "old days" of block programming, practiced usually in single or small market stations that tried to be everything to everyone.
There was news, weather and sports, to be certain, but also there were farm reports, community calendar, and other audience specific features such as Tradio and it's ilk as well as various types of music being segmented into blocks, smoething for everyone, a couple of hours of country and western, a morning show with something for everyone, a couple of hours of rock, dinner music, ethnic music blocks all with specific ads targeted to the listener attracted to the specific time blocks which also could include network programming for a few hours a day.
Radio advertising back then was far more targeted to the intended audience, for example, Coca Cola and A &W and Dairy Queen during the rock music blocks in the '60s, agricultural sponsors during the farm report, you get the idea.
Target the audience you want with specific programming and then sell it to people who want to target those listeners in hopes of making them clients for their wares.

[pave]

Radio has been in a massive rut for a very long time. The suppression and/or decapitation of the talent-base - on-air, news and creative - only speaks to the lack of understanding by the ownership of their own medium, the indifference of management to the needs of the audiences and advertisers and a callous disrespect for employees. All that has been openly obvious in the last twenty or so years. Most people in radio today may not have any awareness of when things were any different. Some would argue "better" back in the day and I won't put up much of a fuss. But only because that's a discussion for another time. I mean, things weren't all that much better. Just more fun and a lot more interesting.

Still, I am obliged to suggest that "block programming" as we called it back then, is no panacea for what ails us today. Targeted ads, have, more or less, always been worthy of some consideration. However, given the lowest possible standards of most locally-produced spots, the concept hardly ever comes up. Besides, the advertiser or the agency makes those decisions well before making the buy.

Radio is in a position where only significant and fundamental changes are going to have to be implemented. That is, if we expect to stay as a fourth or fifth choice for entertainment, information and advertising. Anyone who is willing to risk sharing the fantasies of radio making any actual, massive inroads had better have a satchel full of new or important information, tools, techniques and/or technologies handy. Otherwise, they could well be accused of wishful thinking at best - delusional thinking at worst.

Personal talent and acquired chops notwithstanding, every mechanic or service-person toiling at every local auto dealer is better trained in their specialties than anyone working at the local radio stations. This doesn't speak well to individuals making important, skilled and knowledgeable contributions to their stations or to having long-term relationships with the owners.

I have grave doubts that playing around with past elements or approaches will do much for sustaining or improving our lot.

Let us be consciously and admittedly clear: We are, indeed, screwed - as an industry and as individuals eking out a living - for the time being.