HD Digital Radio Alliance 2007 Campaign to top 250 million
After a successful first year that broadcasters hope has put HD Digital Radio on track to be the fastest consumer technology rollout in history, the HD Digital Radio Alliance announced it has renewed its charter, with broadcasters increasing their ad commitment to 250 million. Next year's marketing campaigns will continue to support the success of a rapidly growing list of retail, receiver and automotive partners in the HD Radio marketplace.
Alliance member companies will continue to promote HD Digital Radio and the new HD2,3 multicast channels, along with its manufacturing, retail and auto partners. Over 1,000 stations are currently broadcasting in HD, reaching 81% of the population and over 230 million people. More than 500 of those FM stations are providing HD2 multicast channels, expanding programming choices in 167 markets.
"The radio industry is in a whole new place today on the Alliance's one-year anniversary," said Peter Ferrara, Alliance CEO. "We have driven a wave of progress on digital radio supported by a wealth of new content and formats, as well as new HD Radio receivers, an explosion in retail availability; and new automotive partners and devices that are turning the in-car radio environment digital. We are grateful to all our partners for their leadership and vision, and we're excited to expand our marketing commitment to ensure that every consumer in the United States discovers HD Digital Radio."
12 months ago, the number of stations providing HD2 multicast programming stood at just 89. Today it is over 500 and counting. A year ago, few HD-capable devices were being manufactured, prices were high and retail availability scarce. Today, HD Radio units are manufactured by more than 35 device makers for the home and auto markets. Thousands of retail outlets carry product.
"HD is not just the future of radio - it is the present," said Joel Hollander, CBS Radio CEO. "It is a critical element of the forward strategy for CBS Radio and our other partners, and the success thus far has been phenomenal. We salute our fellow Alliance members for making a tremendous investment in HD Digital Radio, which stands as a tribute to their commitment to the future of this industry."
"We've known for months that nothing comes close to the sound quality of HD Digital Radio, and now we're seeing evidence that consumers agree," said Peter Smyth, president and C.E.O. of Greater Media. "The 99 Accurian promotions over the Thanksgiving weekend were a huge success in Detroit, with sales exceeding expectations by 100% in some retail locations."
We've heard plenty of stories about that Thanksgiving promotion, both positive and not so much so. Here are just a couple:
"Apparently the radio campaign aired on most (if not all) CC stations promoting the benefits of HD Radio is working. The Columbus, OH market is depleted of any HD in-dash receiver at the major audio big box retailers. And from what I was told at a Best Buy store, Cleveland, OH is just as bad. This Best Buy store was told that new product will be in not before February of 2007! HD Radio - let's start manufacturing!," said Brett Johnson, LSM, WMNI-AM, Co-Network Sales Manager, Plant Talk Radio Network, North American Broadcasting Company, Columbus, OH
Excerpt from an online post from Edison Media Research's Sean Ross: "The day after Thanksgiving, I went to www.RadioShack.com to see if the Accurian was indeed on sale for 99. There was no mention of it on the homepage. There was no obvious place to click to on the homepage, for that matter, since the pulldown for "portable music" offered you CD players, MP3 players, boomboxes, portable radios (smaller ones), satellite radios, and accessories. I found the Accurian sale (125 with a 25 mail-in rebate) through a Google search, although I later found out that using the site search would have worked, too. At the Radio Shack I went to, the salesman was indeed aware of the special - an improvement, by the way, over the early days of satellite radio when the first Circuit City salesperson I spoke to was barely conversant about it. But he had to walk around the store with me to find the display unit; still an improvement, the Circuit City salesperson had only been able to hand me a brochure. But the Radio Shack salesman couldn't play me the Accurian - it wasn't plugged in and, he told me, didn't get any reception inside the store. I bought the Accurian anyway - the last one in stock, he told me. Had he sold any others today? "Somebody must have bought one. It's the last one," said the salesman."
RBR observation:
Yes, retailers and manufacturers have a long way to go in getting these radios on the shelves, but it's better than having plenty on the shelves with no demand for them. The price points are getting affordable and the 2006 radio campaigns' frequency is working. Keep it up in 2007 and consumers will be demanding more and more these units be stocked. The plug in HD Radio adapter from Visteon should sell like wildfire if properly promoted.
One further suggestion: In the 2007 ads, please don't present the content of an HD Multicast channel ("the hidden channels") as the sound of small dog being brutally tortured...whoever thought that one for the '06 campaign up should reconsider such lunacy.
