The challenges of the future are clear: Companies must become increasingly efficient to stay ahead of the competition. This also applies to the audio business. But how can this be achieved? Nico Aprile, Managing Director of aprile consulting and co-founder of amily, explains what convergence means and why it is becoming increasingly important for the media industry.
Cross-audio advertising is, of course, nothing new. Advertising campaigns have always been planned and executed across different media. Advertisers and agencies have always relied on multiple channels to disseminate their advertising messages to increase reach or optimally combine specific advantages and target groups. And the planning, organisation, and execution of such campaigns have always been complex and labour-intensive. This is because TV spots, radio spots, print ads, and online advertising – in other words, each channel in the media mix – typically have to be booked and billed separately.
This is where the trend towards media convergence, the increasing merging of linear and digital channels, comes in very handy: TV series will be continued on the internet, cinema films will end as video games, newspapers and radio stations will also operate online portals, produce podcasts, web radio and/or streaming platforms. For advertisers and agencies, convergence means: fewer points of contact for more distribution channels and reach are equivalent to less effort.
Provided that advertising management is also handled by a single provider. And this is precisely what the market expects: Namely, differentiated, flexible, and dynamic multi-channel campaigns, integrated and controlled by comprehensive, convergent advertising management that can serve all channels simultaneously.
Convergence as a competitive advantage in the audio industry
From an advertising industry perspective, FM radio stations that do not yet have an online audio offering (also known as IP audio or audio streaming) should therefore „upgrade“ as quickly as possible. This is because convergence, i.e. the combination of radio and online audio, promises the greatest campaign success and thus the best chance of maintaining market position in competition with other media genres. Especially with the purely digital market leaders Google, Apple, Facebook and Amazon (GAFA for short).
Online audio appears to be on an upward trend, with rising usage figures still not reflected in advertising revenue. This remains below expectations. Radio still holds a clear lion's share of audio advertising revenue. Therefore, unlike others, I am by no means of the opinion that online audio will take the lead in the foreseeable future. Radio advertising, I am convinced, will remain the main source of income for quite some time to come.
However, radio publishers absolutely should use their current lead to simultaneously build and co-market their own attractive online offerings alongside their radio programming. Most are already doing this. A prerequisite is that cross-channel campaigns can also be organised and managed concurrently via a single, convergent, and efficient advertising management (system). And this, in turn, is rather rarely the case. The term „system“ here refers to the processes as well as the underlying software solutions.
Different processes summarised in just one software system
The monitoring and control of advertising campaigns in linear radio, that is, in the one-to-many business, differ in terms of handling and billing from advertising in the online audio sector with its digital one-to-one approach.
This makes it all the more important to connect these two worlds, meaning being able to offer radio and online audio advertising simultaneously from one system. Those who continue to handle linear and digital advertising separately are imposing on their customers the need to accept different conditions, discounts, and invoicing.
Transparency also suffers. This is because marketers cannot be sure that invoicing and distribution to individual clients are always calculated correctly across all channels.
Not least, it must be demonstrably proven in detail that the service a customer has purchased was performed exactly as agreed. This is hardly manageable with isolated, disharmonious processes.
Convergence makes the processes of audio advertising fit for the future.
Advertisers and media agencies want high reach that can be targeted efficiently and effectively. This must be combined with the greatest possible campaign flexibility to adapt to changing conditions, such as weather, stock levels, etc. Equally important are the greatest possible transparency and the least possible effort.
In my firm belief, the demands for flexibility, response time, and efficiency will continue to increase in the future. Therefore, for audio publishers, whether radio and/or online, as well as for marketers, comprehensive, reliably functioning, and above all convergent advertising management will be indispensable as a crucial competitive factor.
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