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More response to Home Depot-spot radio issue

Another reader chimed in with opinions on Home Depot's switch from spot radio to network radio and the effect it and other similar moves may have on radio's bottom line.


My understanding is that advances in technology dealing with copy splitting and third party verification have allowed HD to shift budgets from Spot to Network Radio. Why wouldn't they do this - they save a ton of money and maintain or increase their radio presence at the same time? It's brilliant from a marketing standpoint!

Do stations even realize how much cheaper network is than spot? A national advertiser could only afford to buy the top 8-10 markets before running out of money - the same money that would cover the entire US in nicely targeted networks. Network is so much cheaper that waste isn't an issue. Actually it increases reach beyond our target to listeners that may also be buying our product. It's a bonus!

HD should be applauded for raising the bar. Technology is changing everything in this industry (standardized trafficking and delivery systems, audience measurement, verification services) and national marketers, who are challenged to do more with less every day, will take full advantage of it in order to increase their ROI.

In defense of the networks, stations should try to better understand what network radio offers and the interdependency that is becoming more important and blurred as available inventory diminishes. Most stations really do need their network affiliations because it provides them with services they would normally not be able to afford, which makes the station sound better so they can continue to attract their listeners and, in return, keep the locally advertised businesses who buy their station.

As a network radio advertiser who has supported the medium for years, I can say that we could not afford to use radio at all if it weren't for the networks. So stations should think about how much more they would lose if they didn't have network services and the advertisers that come with them.

--anonymous, (but very, very important)




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