“Regulators in Australia seem to prefer regulating radio more than any other medium,” according to Paul Thompson.
Speaking during a panel discussion on ‘Programming, Advertising and Audiences’ at the ABA Conference, Thompson was arguing against banning live reads on radio.
“Advertisements need ‘effective engagement’ and live reads… are good for listeners and advertisers.
“Any suggestion that live reads should be banned would do enormous damage [to the commercial radio industry],” Thompson told the conference.
The ABA is currently planning a review of advertising codes and one of the possible outcomes of this review could be a tightening of restrictions on live reads. Mark Day in The Australian also recently wrote an article (largely rejected by the radio industry), in favour of a ban on live reads ads.
While Thompson was mostly speaking about music radio stations, he also gave the example of how a ban on live reads could adversely affect revenue in talk stations.
“Our station 5AA in Adelaide currently makes a seven figure profit. Not huge, but still a profit. 50% of the ads on 5AA are live reads. If 5AA was to lose the capacity to do live reads that would plunge the station into a loss.”
Thompson, who has successfully driven the Nova brand into the younger demographics, says “new consumers can handle integrated advertising such as live reads.”
“Effective advertising involves bringing consumers into emotional contact with a product” through the contact they have with their favourite radio programming.
All Nova’s advertisers would like program and advertising integration, although it is only appropriate for some and not all can afford the extra cost.
“If the ABA standard is enforced too strictly, it will prevent radio advertising effectively to the new consumer.”
The Cash for Comment furor has “created a threat for commercial radio,” but there is nothing intrinsically wrong with live reads contends Thompson. He wants the concept that anyone would think of banning live reads to be “stamped out.”
Comparing radio with tv, Thompson says the radio industry is “a long way behind product placement and integrated advertising on tv.”
Also in the session, the UK’s Sky Network Managing Director Dawn Airey told the conference how there are no live reads on UK Radio, and also contended that there is plenty of room in Australia for a 4th tv network, provoking the anger of channel 9’s Deputy CEO David Gyngell.
Panel convenor Jane Marquard showed clips of many tv programs which contained product placement and Gyngell displayed examples of how his network helped advertisers “integrate” their advertising into programming.