HD Radio vs Satellite Radio - Understanding the Online Consumer
Wednesday, March 15, 2006 at 3:29 PM
Audiographics recently featured an article about trying to find a sampling of HD Radio online. Try as he may, but Ken was not able to even get a snippet of an audio sample that would show him how 'superior' HD Radio is to traditional radio (or even to satellite).
This got me thinking about the understanding of online consumer behavior and how these industries - Terrestrial Radio vs Satellite Radio that is - differ from each other in their approach to engage the potential customer.
Terrestrial Radio is using the "old media" concept of impression branding. Keep repeating your message enough times, building impressions over and over again; until people buy into it. The benefit to this approach is that it's easy to do - terrestrial radio has the ability to repeat their message to their listener base over and over again. But none of their marketing effort is done online.
Satellite Radio on the other hand is utilizing a "new media" approach based on The Experience Economy. Where engaging the customer at a deeper, more visceral level, will capture and ultimately convert the audience. People who listen to satellite radio, love satellite radio. So what a better way to engage these potential customers than through a free trial. 3-days even. That's one hell of a test drive when you consider it. Instead of telling you that satellite radio is a great product, both XM and SIRIUS are showing you.
This goes back to the understanding of the online consumer. Both SIRIUS and XM concentrate a lot on the online consumer, because while the awareness of satellite radio is growing (through "old media" forms I probably should add) the actual "selling" of the service is most likely done online. People will do their research on the internet and either execute the order immediately or run off to Best Buy to buy that receiver they've been eyeing. A practice known as ROPO to some - "Research Online, Purchase Offline" (more here on that).
But considering how easily HD ignores the online influence, it's no surprise that the adoption will only be 10 million listeners by 2010.
Wednesday, March 15, 2006 at 3:29 PM
Audiographics recently featured an article about trying to find a sampling of HD Radio online. Try as he may, but Ken was not able to even get a snippet of an audio sample that would show him how 'superior' HD Radio is to traditional radio (or even to satellite).
This got me thinking about the understanding of online consumer behavior and how these industries - Terrestrial Radio vs Satellite Radio that is - differ from each other in their approach to engage the potential customer.
Terrestrial Radio is using the "old media" concept of impression branding. Keep repeating your message enough times, building impressions over and over again; until people buy into it. The benefit to this approach is that it's easy to do - terrestrial radio has the ability to repeat their message to their listener base over and over again. But none of their marketing effort is done online.
Satellite Radio on the other hand is utilizing a "new media" approach based on The Experience Economy. Where engaging the customer at a deeper, more visceral level, will capture and ultimately convert the audience. People who listen to satellite radio, love satellite radio. So what a better way to engage these potential customers than through a free trial. 3-days even. That's one hell of a test drive when you consider it. Instead of telling you that satellite radio is a great product, both XM and SIRIUS are showing you.
This goes back to the understanding of the online consumer. Both SIRIUS and XM concentrate a lot on the online consumer, because while the awareness of satellite radio is growing (through "old media" forms I probably should add) the actual "selling" of the service is most likely done online. People will do their research on the internet and either execute the order immediately or run off to Best Buy to buy that receiver they've been eyeing. A practice known as ROPO to some - "Research Online, Purchase Offline" (more here on that).
But considering how easily HD ignores the online influence, it's no surprise that the adoption will only be 10 million listeners by 2010.
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