As Digital radio become more important in the UK (and satellite radio in the US) people are thinking about how the business model of radio may change. Why? Because of Ad Avoiders.
Ralph Bernard of GCap (one of the major UK radio companies) is quoted as saying " broadcasters could compete more efficiently with the BBC by taking heed of listeners' concerns over advertising breaks interrupting shows. For example, GCap's Classic FM could broadcast an advertising-free service on digital costing £5 a month."
As we talked about with the news that Jazz/Smooth FM will restrict the amount of ads, consumers find radio ads very intrusive, not least because of the high frequency - and the generally low creative standard.
Advertisers need to think about how they could use the power of radio in a new way – why couldn’t Coke sponsor a 1 hour Ricky Gervais Xfm special that is only available as a podcast?
When the old ways stop working, we need to start trying new ones.