Most of this came from a story originally published in Inside Radio.
Deflation? Depression? Don't worry says media economist. University of Maryland's Library of Broadcasting resident scholar Douglas Gomery says of all media sectors, radio is best positioned to survive - and even thrive - in the current downturn. The economist told Inside Radio that he believes a different 'D" word applies. "The depression will get worse," says Gomery. But he's quick to add, "Right now Wal-Mart is doing well because people are looking for a good deal. Companies still need to advertise to move products. That will lead them to radio." The threat of deflation is the latest economic fright. For the first time since 1948's post-war bust there's downward pressure on prices but Gomery says it won't mean radio rates will need to be cut. "It's the choices that the consumer makes, as opposed to changing their price scale," he explains. He thinks that could actually be good for radio since it's more cost-effective than other media. Gomery says cable television is in a similarly good position versus network TV. He predicts "It's the end of the newspaper industry as we know it." He thinks Sirius XM Radio could also be in a tough spot, adding, "Anything that you have to pay extra for is in trouble." Gomery supports Barack Obama and is optimistic about the direction in which the President is headed. He thinks there could be signs of economic recovery by Summer.
Radio is a good deal. But we can't sell like we did. There's not a crowd in front of the station trying to knock down the doors with a battering - demanding SPOTS, or impressions. That could be the case if we became better known for selling solutions and hope with great content and marketing IDEAS.
There's plenty of good advertising ideas rolling around - but Radio is the least expensive way to the get those messages to consumers.
