Thursday, March 26, 2009

When is new radio too much radio?

Enough already! Over the last month or so, the Canadian Radio-Television and Telecommunications Commission (CRTC) has been madly granting new radio station licences. And most of them are in communities that are already extremely well-serviced by an overdose of radio choices.

Just because it sounds like a good idea to put a radio station in "wee tiny town Canada" doesn't mean it actually makes sense. The logic seems to be, according to one radio station owner in "wee tiny town", that it's important to have local news and information. Yep, okay, sure. But unless you are an independently wealthy radio station owner doing it from the goodness of your heart, you are simply watering down the audience market for your advertisers.

As it is, I hear from innumerable small business owners that radio doesn't work. I always beg to differ with this opinion because radio does work, when you do it right. And part of doing it right is choosing a radio station that matches your audience definition. If the audience is spread over five radio stations instead of three - well, you can see that this becomes a nightmare of planning and budgeting. All these additional radio stations are just going to make it harder for a small business to make a reasonable buy that gets results.

As a marketing coach, I get to meet a lot of small business owners. In one local community, a number of the small business owners that attended a coaching session were quite frank in their dislike of buying their local radio station. They felt the music choices were erratic and didn't sit well with their potential customer.

As a result, I had a rather long conversation with radio station owner from "wee tiny town Canada". The biggest surprise to me during this conversation was the emphatic statement, "People don't listen to the radio for the music. They listen for the information." Well, yes that might be true if you are a talk or news station, but if you're going to play music you might want it to have some logical association with the audience you are trying to sell the local businesses.

And in reality if radio can't deliver results, then people will stop buying it. And when they stop buying it, people lose their jobs and the radio stations cease to exist. How does it make sense to saturate the market with loads of radio stations - either for the radio stations or the small businesses?

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