Netflix Top Competitor is Sleep: Who Do You Compete With?
by Andrew Curran
When you’re in the midst of binge watching a series on Netflix, sacrificing sleep along the way, remember what CEO Reed Hastings says. Netflix’ biggest competitor isn’t HBO or YouTube. It’s “sleep”.
The way Hastings sees it, as Netflix has grown exponentially, HBO has also grown and prospered, which proves “home entertainment is not a zero-sum game.”
In a similar way, Facebook isn’t concerned about the small amount of time people spend with other social media platforms. They are focused on the significant time spent watching TV and playing video games. As a result, Facebook aims to be “more compelling than all the other things you could be doing with your time.”
For Uber, their competition isn’t Lyft or other ride hailing apps. It’s self-driving cars and the race to eliminate the expense of drivers. That’s a cornerstone of their long term business plan.
Radio’s Real Competitor
Meanwhile, radio consumption remains predicated on the audience first being engaged in another activity. Although most audio platforms benefit from complimentary listening, the fact is that many digital audio platforms remain unmeasured. That limits radio’s ability to consider them a direct competitor. But they are. Anything that takes away a quarter hour costs you ratings.
As a result, while the dial is infinite, radio remains focused on other radio stations in the zero sum game of ratings. To radio’s credit, we’re keeping our eye on the prize with 90% of revenue still coming from on-air spots. But for how long?
However, like Facebook, Uber and Netflix, radio does have unconventional competition: Top of Mind Awareness (TOMA).
Radio’s TOMA Challenge
If your brand isn’t being thought of first and most by your core demo, your days could be numbered. In a world of personalized playlists, voice command and infinite choice, your brand must have a clear value proposition. That’s what makes people seek you out as they approach their next tune-in. Otherwise, the listening occasion goes to someone else, measured or not.
The importance and impact of Top of Mind Awareness in a digital world can also be seen in your grocery list. If you’re a cereal brand that relies on in-store impulse buys, you have a problem. You need to develop a strategy to generate top of mind awareness. Otherwise, as more people move to online delivery, sales will continue to erode. Out of sight, out of mind!
For radio, the landscape is well defined. Our best listeners turn on the radio 31 times per week and spend 1+ hour per day listening. On the other hand, 90% of their life is spent away from the radio.
By focusing on the core audience and thinking about their life away from the radio, there are countless opportunities to be part of the rest of their life. All of these things can add to TOMA. That includes social media, email, text messaging and coupons. It extends to external events, word of mouth marketing, special offers from advertisers and direct mail. And it includes your mobile app, workplace calls, and much more.
The outcome of these efforts? You win more than your fair share of the available 31 listening occasions each week.
Author: Andrew Curran
Andrew Curran is the President and COO of DMR/Interactive, the leading strategic marketing agency for radio and digital audio platforms. DMR/Interactive provides data analytics and integrated marketing strategies that include precision-targeted, multi-contact personalized campaigns across mobile, digital, social, telephony, direct mail, e-mail, word-of-mouth and database marketing services. For more information, visit DMR
Following programming roles with ESPN Radio and iHeart Media, Mr. Curran joined DMR/Interactive in 2004, was named COO in 2011 and President in 2013. He has been a featured speaker at numerous industry conferences including Nielsen Audio’s Client Conference and Hispanic PD Clinic, the Country Radio Seminar, CMB Momentum Summit and the Worldwide Radio Summit.
Curran was named a 2012 Radio Ink Rising Star of Radio and also serves as a board member and past president of the Society of St. Vincent de Paul in Cincinnati, OH. Curran graduated Cum Laude with a Bachelor of Arts degree from Boston College and received his MBA from Thomas More College. He resides in Cincinnati, OH with his wife Liz and their four children: Anna, Bridget, James and Claire.
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