Heard it on the radio and saw it on TV

6Mar08

The Southern Cross Ten acquisition – made possible by last year’s
far-reaching changes to the country’s media ownership laws – means
about 80 per cent of consumers in regional Australia can now watch a TV
channel and listen to a radio station owned by MacMedia.

Mr Dorney said the company will be underlining the complementary
nature of the two branches of media: "They fit together very nicely.
Radio makes its biggest impression through breakfast and throughout the
day, while TV touches the viewer in the evening."

He believes this extends to the ways advertisers are able to market
their wares through the different media: "TV is where you build your
brand image. Radio is the call to action for consumers to go and buy
that product."

Mr Holleran said Macquarie was working on "sustainable ideas" for
marketing clients’ products throughout the day in both media. However,
he was dismissive of the concept of simply bundling TV and radio
advertising spots.

"I don’t think clients are interested," he said. "Our job is not to
sell radio and TV spots, but to find more innovative ways to sell
fridges and freezers."

He uses the example of the Bunnings hardware chain, which has had a
traditional bias towards TV advertising in regional areas. "In an ideal
world, Bunnings would use a combination of both," he said. "There is a
benefit in the principle of being able to talk to an organisation like
ours, with an integrated (radio-TV) solution in terms of outcomes,
rather than going to media organisations with solely one point of
view."

Mr Holleran has hinted at the use of programming to help promote
advertising products across the platforms. "We might run a radio
program and promote it through TV," he said. "That’s the sort of thing
we’re excited about. It’s not about bundling advertising packages, it’s
about integrated solutions."

Anne Parsons, chief executive of leading media buyer MediaCom, has
cautiously welcomed the new MacMedia approach. "It’s a smart way for
them to be looking at it," she said. "They’ll be telling advertisers,
‘Instead of spending $50 on radio, we want you to spend $100 on radio
and TV, because this is an effective integrated solution."’ Ms Parsons
pointed out, however, that advertisers would want the benefits of any
cross-platform package to be spelt out by MacMedia.

"The challenge back from clients will be, ‘Give us some
understanding of the incremental benefit from having two media versus
one’," she said.

Because of MacMedia’s unique position, it might need to "invest in
an audience measurement device that helps (it) to prove what the total
reach is from using (its) multiple channels," she said.

Mr Holleran said it was early days, but MacMedia has started
trialling the cross-selling of TV and radio advertisements in
Shepparton in the Victorian regional market.

Sponsorship opportunities are also being developed along with
promotable radio programming: "We have a couple of exciting programs
we’re developing, with an element of promoting them through TV," he
said.

The recent appointment of former Southern Cross sales executive
Jeremy Simpson as the head of the national sales business for both its
radio and TV assets – as part of an extensive restructure of the
division – also appears to be focused on the company’s cross-platform
advertising package.

Meanwhile, MacMedia is evaluating the merger of as many regional TV
and radio sales offices across the country as proves feasible. (Note: does this mean Newcastle’s SC TEN and the NXFM/KOFM offices could be merged?)

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