One of the newer sources that fills up my email inbox is Semafor. I started getting the media column that arrives on Sunday nights, adding more to the ridiculous amount of news and commentary that’s already flowing in about the radio industry and other mediums.
The June 22nd Semafor Media column had a short but telling article. It stemmed from an interview at the Cannes advertising bash in France. I could write about how much money is spent, mostly without justification, on the festival of creativity in advertising. Others who know more than me have already done so though.
Semafor’s Max Tani interviewed Trade Desk CEO Jeff Green for a forthcoming story, releasing a tidbit in advance. Green said “admakers were responding very positively to new video podcast advertising inventory” and “visual ads more closely resemble the traditional commercials that many are used to producing”.
Here’s how I read those quotes:
“We, the advertisers of the world and our agency handmaidens really don’t like audio ads, even host reads. With a few exceptions, we don’t use radio. Then along came this new form of audio called, for better or worse, a podcast. There are some that have broken through and have large national audiences, but gosh, they were only audio. That means that while different than traditional radio, podcast ads are still inferior to the TV spots we’ve been running since Milton Berle was on and the DuMont Network still existed. Now that many of the podcasts that we like (and listen to) are available via video, we’re interested.”
If what Green is suggesting is true, maybe the smartest radio/audio person in the room is another Jeff — Jeff Warshaw. Let’s face it, the guy who owns the local chain of tire stores or the chef who just opened her new restaurant will not be at Cannes any time soon. In fact, they probably couldn’t find Cannes on a map, even a map of France. But they know their businesses. They’re not waiting for podcasts to go to video so they can put a 30-second TV spot somewhere in the mix. They want to see people showing up at their doors.
I had a conversation recently with Rich Tunkel, managing director of Nielsen Audio, about a few topics. Rich shared that the Audio Alliance, a group of radio broadcasters (and Nielsen subscribers) would prefer to see Nielsen Audio have a greater presence in front of major advertisers rather than spending marketing money sponsoring radio events.
On the surface, this makes complete sense. Getting the audio story in front of major advertisers and agencies might bring additional dollars to the medium. We have plenty of wonderful stories to tell, especially with Pierre Bouvard and his group at Westwood turning out data each week.
But if Jeff Green is right that advertisers and agencies shy away from audio and prefer 30-second TV spots regardless of what radio can do for them, is this money well-spent?
We all remember the big deal when Procter & Gamble returned to radio and began spending, led by John Fix. The P&G change was a great win for the medium. That started in 2017 though, eight long years ago. Have any other major advertisers shifted a reasonable proportion of their business to our medium? Have you heard anyone in the business say anything lately like “national is really doing great”?
Someone not named Jeff echoed the same thing. Fred Jacobs recently wrote that our focus needs to be on local.
I’m not in sales (thankfully for both me and the sales profession), but I can read the tea leaves and articles just like you. Major advertisers and agencies like video regardless of the cost (can any company truly justify the dollars for a spot in the Super Bowl?). Having another place to run TV spots, such as video podcasts, makes them happy.
What the Audio Alliance said to Rich is right: the medium needs to get in the face of advertisers. But the venues may be wrong. Perhaps Nielsen should financially support local radio organizations at local events that get in front of business owners.
Let’s meet again next week.
