Sirius XM Gets Creative on YouTube

For years, a chief complaint among Sirius XM (SIRI) investors was the company's apparent disregard for using non-traditional means to reach its listeners. Fans and investors alike have been questioning the lack of company motivation when it comes to marketing.

The recent news of potential failures of traditional forms of media make clear the fact that advertising is down across the board. It's not just Sirius XM which is not advertising. I can assure you that any company, including Sirius XM, knows well in advance through market research what its return on investment will be. Sirius XM is laser-focused on reducing costs at this point of its existence rather than frivolously spending revenue on wasted ad dollars.

For years, Sirius XM has been fortunate to receive more than its fair share of free advertising from the Internet. Sites such as the former SiriusBackstage, SiriusBuzz, OrbitCast and my own website SatWaves offer information at a sometimes frantic pace. The most active stock message boards and forums all involve Sirius XM. It seems Sirius XM is beginning to embrace this online community again. There is even a documentary about to be released that focuses solely on Sirius XM Radio.

Today, as I was myself listening to Sirius XM's Hair Nation Channel, it was announced that subscribers can now not only hear what they've been missing, but see what you've been missing also. Sirius XM today began promoting itself on YouTube, again. What began as a startup idea a few years ago and was all but abandoned has been given new life.

Truth be told, it may have been there for longer, but as a 5 year subscriber I can attest that the DJs have never promoted this aspect of the company on their shows - until today that is. The very first video is BB King talking about the first time he met Jimi Hendrix. There are videos from Sirius XM sports, Sirius XM music, and Sirius XM everything. The links even link to the future website home at siriusxm.com, whereby you may enter left or right.

Taking advantage of free internet advertising as a means to connect to its audience is a great way for Sirius XM to market itself without the multi-million dollar price tag.

Position: Long SIRI

Comments

[kingfrogcash:]

Unless it's just my PC's that have the SIRI cookies, it appears that SIRI is spending a lot with internet advertising.

Apr 19 09:13 AM

[Ishortyou:]

this online-internet model could add another tool in their book of business and lean towards its survival.

Apr 19 10:11 AM

[Neal Barkett:]

Good observation.

Apr 19 10:21 AM

[relmar2003:]

Marketing is important in every economic environment. It simply costs less Brandon. "Throwing dollars" in advertising isnt a good idea, but a low budget constant attack is better than nothing. Whats still the number 1 way to reach all Americans, and change their image of SATRD. Nothing like TV, and they are non existant on TV. Im sure its cheap as hell right now to advertise on TV. Bad economic environments mean good opportunity to reach avenues usually too expensive. They might not buy now Brandon, but they will remember when they can, or when they go buy that new car, they will take the Radio feature, or will keep it, or will try it a lot because they saw that ad on TV.....
TV is the best form of advertising in existance, and they dont use it.

Apr 19 12:51 PM

[relmar2003:]

I would fire whoever they have in charge of marketting yesterday. Hes the main reason retails subs have declined so dramatically. Marketing marketing marketing.

They have the other best way to grow subs, car sales. Now make these people want to really get to know their SATRD. Remember just because its free, and they have it doesnt mean they will use it. SiriusXM is lazy.

Apr 19 12:53 PM

[shure46:]

relmar - Damn you are right again !!! I used to check out the retail displays in walmart , circuit city , best buy , etc etc ...... Thay always sucked , nothing worked properly , and there was NEVER anyone checking out the radios ( except me !!! ) ...... and I was always thinking the same thing ----- " Siri is Lazy " , and it was like they half assed set up the display , and left 'em to rot !!!!! This was a year or so ago , AFTER I sunk my money in , and I went " Oh shit , I'm doomed !!!!!! "

Apr 19 10:24 PM

[163888:]

relmar, You are wrong the reason they are not getting so much retail anymore is because of the penetration rates have gone up in the OEMs. You dont need to go out and buy a satellite radio for your car if it already has one in it. It is as simple as 1, 2, 3, One directly effects the other.

Apr 20 03:10 AM

[sabex:]

Simply put the product sells itself.
When i got my car with 6 months free XM, I laughed. Why pay for satellite when regular radio is free, my mp3's are free...
I signed up for a year within 6 weeks....

All SIRI needs to do is offer 3 months free programming to any new customer. As XM / SIRI equipped cars hit the used market, those customers will try AND buy.

I bought the product, then I bought the stock. Only wish I had the cojones to buy more when it went to $0.05

Apr 22 08:01 PM