I think that radio stations should no longer focus on just one product, but work on building an ecosystem of products. In the Netherlands, we already see new players operating in this way, such as Jumbo Radio (supermarket chain), Efteling Radio (amusement park) and Yoursafe Radio (payment platform). For these organizations, the listener is not the primary product. Instead, they use radio as a freely accessible instrument to get their customers excited about their core business. This offers a new perspective on how radio can be integrated into a broader business model, where it is not just about selling ads, but also about creating value within a larger ecosystem.
When we cleverly connect free and paid products, instead of a forced sales strategy (push), a natural attraction (pull) is created, which leads to an organic value conversion, where customers are naturally willing to pay for additional services or premium products. The combination of both builds a strong bond with the consumer, as they first experience the value of the free offer, which motivates them to invest in the paid version. This model not only promotes customer satisfaction, but also sustainable revenue, since the customer does not feel forced, but is attracted to the paid offer.
There is where strategy meets structure: the ecosystem mindset.
Many startups often struggle with their go-to-market strategy. Traditional radio is in the opposite situation. Although they have an established market, the need of their product, “the listener”, which was sold to reach the “advertiser”, has changed so much over the years that they have lost their market fit. Given that, traditional media is struggling to stay relevant in an era where consumers are increasingly opting for digital and on-demand content.
Traditional radio companies must consider the product value and placement of their offerings within a larger, multi-product ecosystem, in addition to their current market strategy. Companies should not only consider their go-to-market strategies but also assess how their offerings align with the evolving trends in media consumption. By integrating their products into a broader ecosystem, where different media formats, platforms and services come together, they can offer more value to their audience. This can help them to remain relevant, and discover new revenue streams and growth opportunities.
