Radio Ad Forecast for '09

Forecasting 2009: Fitch sees a slowdown along Main Street.
Economists at Fitch Ratings have issued their annual outlook for the media sector. Not surprisingly the news isn’t great. Fitch says there’s a "severe global recession" and it issues the gloomiest forecast released so far: Spending could be down 6% to 9%. That’s the worst since 2001. Most worrisome is Fitch’s conclusion that "There are more catalysts for deterioration rather than improvement for local advertising going into 2009."

So what does this mean for radio? Two things: 1)Get out and superserve your community and 2)Look for non-traditional revenue streams

Why do I think it's important to ramp up your community presence during this downturn? Because advertisers and listeners alike need to know that we aren't going anywhere. We are still strong and will continue our effort to be part of the community we serve. Ultimately, this will be a big positive for radio when the economy rebounds because our customers will want to "repay us" for not giving up on them in a time of crisis.

As radio stations we should be seeking out non-traditional forms of revenue regardless of the state of the economy but definitely now. If we can find ways to encourage businesses to "advertise"(buy into, sponsor, etc) as part of promotions, concerts, the web, expos and other venues then we can I believe offer them more than "spots." Customers like added value and feel like they get it with additional promos that can be provided as part of non-traditional campaigns. This offers radio stations a source of income during a time when businesses may be cutting their traditional advertising budgets.