Direct Response Advertising; Radio vs TV

Radio advertising vs. television advertising

Many new advertisers assume that they should start on radio and "move up" sometime later to TV. I find that the road is usually smoother when it is taken in the other direction. TV can usually produce more immediate calls and instant prospects than radio and that is what the new advertiser needs -- especially the new advertiser with a limited budget. Later, when TV has been producing new business for awhile, radio can be added to reach new prospects.

Radio vs. TV

Hey, I love radio. I started in this business in radio, at the University of Texas campus station, in 1963. I listen to radio for hours every day. I would love for all my clients to be on the radio. In fact, I put one of my dental clients on the radio recently, along with his TV, and he did very well with it. But...

There's a problem. My clients usually want their phones to start ringing the first time their commercial runs, and keep ringing, and ringing and ringing. Unfortunately, it is very difficult to get that kind of immediate and continuing response from radio.

That's probably because most radio listening is car listening. People hear the commercials and resolve to call later but then they forget. Also, radio is expensive. For example, in the Austin market, for what I would pay for a spot on one of the top five radio stations, I can buy three or four decent daytime TV slots. My client's cost per prospect is much lower with TV.

And television has one very important benefit that radio does not have: Every person watching television has immediate access to a phone, paper and pencil. Prospects can call while they still remember the message and the phone number. Or, they can write the number down and call later.

On the other hand radio can work very well -- and, apparently, does work (or seems to work) for many advertisers, or radio rates would not be so high.

If you have been using television for awhile, radio advertising can be a way to reach new prospects who might not know about you. And radio can be valuable for advertisers for whom the television reach is too general. They advertise on specific radio programs to target specific audiences.

But, in general, you will probably have to wait longer for the calls to come in than you would if you were using "immediate response" television to reach your prospects. Radio works well for advertisers who want to become part of the landscape and aren't so concentrated on getting immediate calls. But -- it usually takes more time, money and patience while you wait for results.

Steve Moundzouris
BigWater Media Group
http://www.bigwatermg.com

Student debt snares parents, putting retirement at risk

Sept. 1 (Bloomberg) -- Funding your child's college education is on many parents' mind. With college tuition costs rising each year, there's reason for concern. So, before starting a savings plan, make sure to do your homework and pick the investment option that's right for your family.

Mitt Romney’s statement that the “very poor” don’t concern him comes as the portion of Americans living in deep poverty is the highest in 35 years

Vigorous debate on the value of state backing

Chinese Premier Wen Jiabao raised the prospect of contributing to the euro-area’s bailout programs, telling Chancellor Angela Merkel that China may be prepared to assist in resolving its debt crisis.

Reserve Bank of India Deputy Governor Subir Gokarn said the monetary authority will cut borrowing costs once it’s confident inflation will keep slowing.

Royal Bank of Scotland Group Plc, which accused a fired Singapore trader of manipulating London interbank offered rates, had condoned such behavior and sought scapegoats in an internal probe, the former employee said.

Japan Inc. is suffering and the supply chain is bearing the cost.

The U.S. labor market recovery is broadening as industries from construction to retail to manufacturing added workers in January and the jobless rate fell to the lowest level in three years.

Feb. 3 (Bloomberg) -- Douglas Creutz, analyst at Cowen & Co., and Paul Kedrosky, author of the Infectious Greed Blog and a Bloomberg contributing editor, talk about the relationship between Zynga Inc. and Facebook Inc. They speak with Cory Johnson on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Advertising campaigns aren't only being designed for TV anymore, the Super Bowl has gone high-tech

The day's top ten most important stocks include Estee Lauder, Research in Motion and Zynga

Feb. 3 (Bloomberg) -- Steen Jakobsen, chief economist at Saxo Bank A/S, discusses the outlook for Europe's sovereign debt crisis and the U.S. economy. He speaks with Susan Li on Bloomberg Television's "Asia Edge." (Source: Bloomberg)

The social network may be valued at $100 billion, or 100 times profit

Buyout funds see profits in turning foreclosed homes into rentals