Finding Budget for Digital Advertising That Doesn’t Rob Radio

Other Traditional Spending Can Move to Digital

Many local businesses still spend dollars on other traditional formats, all of which underperform radio. Those include TV, print, direct mail and billboards. These tactics are hard to measure, leading to many gaps in assessing their impact.

They are typically more expensive than digital ads, and there’s no way to change messaging easily. Once something prints or goes up on a billboard, businesses can’t pivot if needed.

According to the benchmarking survey, many companies agree that those traditional print tactics are ineffective. It doesn’t mean they’ve completely abandoned them or are moving those dollars elsewhere. Businesses may just continue with the status quo on media buys, which is why they might need someone to make more relevant media suggestions.

What verticals tend to spend more in these traditional categories? Knowing this can help you understand at the industry level.

Industries Spending Big in Traditional Media

Protecting radio dollars will likely mean getting businesses to move dollars. There may be some “new” money for digital, but you also need to change perceptions. The best traditional category for local advertisers is radio; it has the greatest mass media reach and performs well in creating and converting demand.

So, what industries prioritize the other traditional options? A look at BIA data at the vertical and tactic levels revealed these opportunities:

• Legal services: Direct mail is the No. 2 spend category, but how effective is it? Those seeking legal counsel may be more likely to search online, which means SEM (search engine marketing) could be a better investment. Firms can run numerous campaigns aligned with their practice areas.
• Grocery stores: Their top tactic for spend is direct mail, typically their circulars, but is that the way America shops now? The continued increase in online grocery shopping would call this into question. The grocery industry is increasing local digital spend, and it can shift more dollars to tactics like CTV, which is targetable.
• Physicians, dentists and chiropractors: This group also puts the most budget into direct mail. These businesses focus a lot on location, as most people want a provider close to where they live. Geofencing could be a much better option to engage these folks.
• Clothing retailers: These advertisers are spending the most on direct mail and a fair amount on news print ads. Getting shoppers to buy new clothes is very visual, and video advertising and social campaigns give their merchandise a 3D component that print cannot.

These are a few ideas to help you plan your pitch. Additionally, any advertiser still spending significantly on broadcast TV needs to be aware of its dwindling numbers. More consumers stream now than have cable or satellite subscriptions. Advertisers need to follow consumers and invest in CTV and OTT campaigns. They’ll be able to target by demographics, location, interests and more. That’s impossible with traditional TV, which they can only buy through programming.