Thursday, March 4, 2010

The Web Dilemma

From my discussions with small market broadcasters, I’m getting that opinion is divided about 50-50 on the importance of your website to your overall operation. Some see the Internet as a big part of their—and radio’s—future, while others see it as a wasteful distraction.

Since folks on both sides of the issue are reporting that their web revenues account for maybe 5-7% of total revenues, this is a case of seeing the glass half empty or half full—or should I say, 95% empty or 5% full?

I certainly believe the Internet represents significant potential to our industry, and my web-development business aims to help broadcasters realize that potential. But I stop short of predicting that our online activities are our salvation.

I also disagree with those who, in their missionary zeal, declare that their websites can succeed on their own, untethered to their radio stations. Sure, the big guys from Amazon to Zappos exist in a worldwide environment where no other medium can meet their reach needs, but that’s not the case in our local markets. Google processes over a billion search requests a day, so even with click-through  rates averaging 0.5% of page views, that means the search behemoth generates five million click-throughs every day.

Local market websites, on the other hand, generate daily page views in the hundreds. The most successful small market sites we’ve seen, in a month with lots of bad weather and a big murder trial, will attain 100,000 views. Applying the interactive-industry-average, total click-throughs, for all advertisers, amount to 500. In a more normal month, cut that number in half.

As with radio ratings, misuse and misunderstanding of web metrics abound. Time after time, we’ve seen panic at renewal time, when it’s evident that the laws of Internet advertising are immutable, and the expected spectacular results never materialized.

While Internet revenues should be tracked separately, in any local market you need to use your radio stations to drive traffic and boost click-throughs by selling the benefits of doing so.

One thing is clear: a website is not a radio station. On your station, you have the capability of managing hundreds of clients and ads. On your website, you have neither the technology nor the real estate to sustain a similar strategy. On most radio stations, growth comes mainly from selling more ads. On your website, visual cacophony can quickly take over—and drive traffic away.

Is the Internet our future? Yes and no. If you use your website to extend the interactive communication you already enjoy with your listeners, and to provide a richer experience for your advertisers and their customers, your online slice of the pie will grow. If you expect your Internet tail to start wagging the radio dog, you’ll probably be disappointed.

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