They said that Satellite Radio would never take off. Then they dismissed it as barely even a threat. But now, it looks like terrestrial radio is starting to feel the heat. With more and more satellite radios being sold by Sirius and XM, and the marketing departments of both companies creating more exposure than ever before, suddenly Terrestrial is taking notice and is launching a counterstrike.

Big Radio companies such as Clear Channel, Entercom Communications, Infinity Broadcasting, Greater Media and Cumulus Media, put their wallets together to scare up $28 million in advertising time over the next few weeks to air a series of 30-second radio ads. Radio will be the primary media vehicle in the campaign, but other media, including Print and the Internet-based will also be used.

A WSJ.com article (subscription req'd) points out:

The campaign combats "the urban legend out there about radio not being an innovative medium," says David Field, chief executive of radio company Entercom, based in Bala Cynwyd, Pa. He points to breaking artists and emerging formats such as "Hispanic hip-hop" to make his point.

But satellite-radio operators counter that they are more cutting-edge, and that their diversity of stations allows them to give more airplay to new artists. "We are not far from the day when XM breaks a [mass appeal] artist," says Eric Logan, XM's program director.

New York-based DeVito/Verdi was tapped to create the campaign. The first round of radio spots goes after the 19 to 29 year-old featuring Nelly, Ludacris, Avril Lavigne, Alicia Keys, Ashanti and Hoobastank in an attempt to prove terrestrial's leading role in launching new artists.

Prove it? Please.
After years of listening to "Traffic and weather together.." "The number one home of Rock and Roll.." and "Be the 9th caller to win.." by all the same wacky-DJs - now they're surprised that terrestrial radio is being viewed as (gasp) not innovative?! That's gonna be a little hard to fix with just a few commercials.