RadioSalesWeekly, #RSW recently conducted air checks and interviews with radio advertisers, uncovering some intriguing insights. It appears that there might be more happening behind the scenes than meets the ears and eyes.
Advertisers are concerned that consumers might find AI-generated ads less trustworthy or even creepy, which could negatively impact brand perception. Therefore, they are cautious about creating radio spots in the whole process using AI.
The local station Antenne Kaiserslautern (nearby Ramstein in Germany)and its CEO Andreas Sprenart recently demonstrated impressively how he lets customers speak in the spots and what other creative ideas his group of stations uses. There are no artificially generated voices involved!
so, radio spots that are entirely produced using AI throughout the editing process are still quite rare except those created for regional test deployments. Maybe there are some pointers at Mobirise, ThemeForest, or the established providers for political campaigns in radio …
This raises the question: has the hype around AI in advertising and especially in radio advertising slowed down?
#QuestionForGroup
What are your thoughts on the future of AI in radio advertising? Share your insights below!
These days, the world’s largest trade fair – at least according to the organizers – for video and computer games is taking place in Germany. Why in Cologne and not in the “trade fair capital” Frankfurt? Who plays, and what significance does this industry have for our society and economy?
Significance of the Gaming Industry
The gaming industry is no longer a niche market. Believe it or not, with a turnover of almost 10 billion euros in 2022, it is the most profitable creative industry in Germany, far ahead of the film and music industries (source: game.de). The industry is booming and growing steadily, which is also reflected in the increasing number of players.
Who Plays?
In Germany, around 54 percent of the population play computer and video games at least occasionally. Gaming is particularly popular among 16- to 29-year-olds, over 85 percent of whom play regularly. But gaming is also widespread in other age groups: 18 percent of those over 65 also play occasionally (both figures from Statista).
Gaming Companies in the Rhine-Main Region
The Rhine-Main region is home to numerous innovative gaming companies. Some of the most well-known include:
What is Played?
In terms of video game sales, games like Minecraft, Grand Theft Auto, Tetris, and Super Mario Bros. are far ahead. These games sell between 300 and 60 million licenses per year. Gamers pay a one-time fee of between 7 and 30 euros, while bundles cost over 400 euros. Many Tetris games are available online for free, but special versions or platforms may incur costs.
Why Cologne and Not Frankfurt?
Gamescom has been held annually in Cologne since 2009 and has established itself as the world’s largest trade fair for computer games. Cologne offers a large and easily accessible trade fair venue with Koelnmesse, which is attractive to both trade visitors and the general public. The central location and good infrastructure contribute to the popularity of the site. Perhaps the marketing in Cologne was just more alert?
Side Effects of Gaming
Gaming has both positive and negative side effects. On the positive side, video games can improve spatial thinking and help with depression and feelings of loneliness. However, excessive gaming and poor posture can lead to health problems such as neck tension and wrist inflammation (sources: Barmer and Helios).
Exciting effects are being generated in unexpected industries and professions, such as sales, where sales simulations are used to hold competitions between individual salespeople. Gaming has indeed found exciting effects and applications in many unexpected industries and professions. Here are some examples:
In Medicine: With surgical simulations, doctors and surgeons use VR and AR technologies to practice complex operations and improve their skills.
In Therapy and Rehabilitation: Games are used to support patients in rehabilitation, e.g., through movement exercises in a playful environment.
In Education: With educational games like Minecraft Education Edition, students are taught subjects like math and history in a playful way. VR technologies enable students to take virtual field trips and experience interactive learning environments.
In the Military: Soldiers use games and simulations to train tactical skills and practice realistic combat scenarios.
In Marketing and Advertising: Companies use game elements to engage customers and promote their products in innovative ways. Examples include loyalty programs and interactive advertising campaigns.
In Fitness and Health: Exergaming, games like Ring Fit Adventure combine physical exercise with game mechanics to make fitness exercises more entertaining.
An exciting development comes from the nearby Alsatian city of Strasbourg. The company CandyVoice gives players and other actors in the game different voices. So, a boy with a breaking voice becomes a Tarzan or a hero. Some may also like to appear with an anonymous voice. It is quite amazing when, with this application – mainly controlled by developer Jean-Luc Crébouw – someone speaks into a microphone in real-time without noticeable delay, and a familiar voice, such as that of a well-known politician or movie star, is heard from the speaker, of course, following property rights.
Gaming Companies in the Rhine-Main Region
The Rhine-Main region is home to numerous innovative gaming companies. Some of the most well-known include:
Crytek: Known for games like Far Cry and Crysis, Crytek is based in Frankfurt and is a major player in the German gaming industry.
Deck13 Interactive: Also based in Frankfurt, Deck13 is known for games like The Surge and Lords of the Fallen.
Keen Games: This studio, also from Frankfurt, has celebrated great success with Portal Knights (information from “Feels like Hessen”).
metricminds: Located near Mainzer Landstraße, this leading animation studio specializes in motion capture and cinematics (company information).
The gaming industry is therefore by no means overrated but an important economic sector with great potential for the future. So, we can only wish the developers much success in inventing further game ideas and the gamers exciting moments with the saying: “Level completed! Now off to real life before you become an NPC!”
A small explanation: “NPCs” are Non-Player Characters, i.e., characters in a game that are controlled by the game software rather than by players.
Now that the initial hype has subsided and media users have gained experience with AI applications, it’s time to draw an initial conclusion. One recurring question is, ‘Where is the productivity gain?’ One possible answer is that productivity depends on financial gains and reduced costs. For the media industry, especially in radio business, the key questions are: Are personnel costs actually being saved, and are higher revenues being achieved? As previously discussed, personnel costs account for a significant portion around 50% to 60% of total expenses for radio stations. The editorial department likely contributes a much higher share to this cost block than organization and sales/marketing, which we won’t delve into here.
Let’s take a closer look at the sales and marketing department of a radio station over time. In practice, it’s quite possible that expensive creative minds in sales will be replaced in the future, and a new team equipped with pre-generated sales offers and ad creations through AI will be deployed, following the motto ‘We’ve prepared you better than ever before.’ If it becomes possible to enter the market with new and numerous offerings, resulting in actual revenue growth, then the effort will have been worthwhile – killing two birds with one stone. At the end of this article, there will be a call to action.
Navigating the Next Two Decades
The French government has warned of a drastic change in the media landscape over the next 20 years, driven by digital players. Experts agree that this is likely to happen in most radio markets around the world. The author recommends that radio stations fight back with their own weapons, namely artificial intelligence (AI).
AI as a Key Determinant
Despite the uncertainties surrounding the hype cycles of emerging technologies, experts see AI as a key determinant for the future of radio. Radio, whether state-controlled, supported, or privately organized, is dependent on refinancing. This raises the question of how to optimize processes in the programming area, particularly with a view to opening up new revenue streams. And this goes beyond advertising. This article focuses on the commercial side.
Beyond Advertising: New Revenue Streams
In addition to traditional radio advertising, there are other potential revenue streams:
Streaming and podcasts: These offer new ways to reach listeners and generate revenue.
Tapping into new customer bases through new partnerships and content: This could involve collaborating with influencers or creating content for specific target groups.
Increasing efficiency using AI in 10 steps: This could include using AI to automate tasks such as playlist creation and scheduling.
Recommendations for Radio Stations
The author’s recommendations for radio stations are as follows:
Invest in AI: AI can help radio stations to become more efficient and reach new audiences.
Create new content and partnerships: This will help to attract new listeners and generate revenue.
Train your sales teams: Salespeople need to be up-to-date on the latest AI technologies and how they can be used to benefit radio stations.
