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Killer App

The growth of the iPhone is truly amazing, especially since Apple opened up its wildly popular App Store to outside developers.  The range of cool, useful, and whimsical applications makes owning one of these devices a real adventure.  iPhone owners regularly check to discover new apps that are free or require a small fee.

In the process, the iPhone has become America's most popular mobile device, passing the veteran BlackBerry in the process, mirroring Google usurping Yahoo! despite the latter's early entry into the search field.  (So much for the Ries & Trout rule about being the first in.)  

Back in February, RAB CEO Jeff Haley made it clear that if broadcast radio is to be competitive as an entertainment medium of the future, it must go beyond traditional AM/FM radio sets, and become accessible in new hi-tech places - on computers and mobile devices, in particular.

To that end, we have studied our own Tech Polls very carefully, and developed a wonderful app for broadcast radio, allowing stations to have a personalized (or "stationalized") icon on iPhone desktops.  In this way, basic on-air promos will direct listeners to the App Store where they can easily download your logo icon, and let the streaming begin.  (Stations can include up to five different streams with the same logo icon.)

Now we realize that many station streams are already available on iPhones underneath larger "umbrella icons" - such as AOL Radio and FlyCast.  These are great apps, but they require the iPhone user to scroll through hundreds of stations to find their favorite.  Our personalized icon allows individual stations to have their own icons, thus making it easy and simple to stream their audio in just seconds. 

WRIF here in Detroit provided the beta test, and the results look and sound great.  Try it for yourself on an iPhone or by visiting iTunes and typing "WRIF" in the search box.  The one-time cost is $900 for Jacobs’ clients, and $1,000 for everyone else. 

Check out how the App works

We're excited about helping broadcast radio gain an attractive and user-friendly presence in the most buzz-worthy mobile device - the iPhone.  This is the just the beginning for our business, and an important step in spreading our great content across exciting digital platforms and devices.

For more information on obtaining your "stationalized" iPhone app, contact Paul Jacobs.   

iPhone Home

In this year's Jacobs Media Tech Poll, we checked iPhone ownership at 3% in February - not bad for the rollout of a new gadget.  But for Apple, the disturbing news was that only 2% of those who didn't own one said they'd be very likely to purchase an iPhone this year, while 9% reported they were somewhat likely.

While these numbers would make the HD Radio Alliance happy, they did not strike us as great, and our "take" on the iPhone situation was that Apple would have to make some changes to make the iPhone more desirable to mainstream consumers - not just gadget freaks.

And last July, they did just that.  The release of the iPhone 3G version was indeed the "game changer" that Apple claims it to be.  There's a buzz on iPhones, and it runs much deeper than "early adopters."  Consider that in these difficult economic times, the one smartphone that companies are now gravitating toward is the iPhone, while there are down arrows for Palm phones and Blackberrys.

There are now 10 million iPhones across America, and Apple's share of the smartphone category is moving up quickly - in this lousy economy.

Why the change?  First, iPhone marketing is simple and attractive - it makes you want to go out and buy one.  In just a 30-second spot, you can see how the device works.

Second, the iPhone has lived up to its advertised "game changer" claim.  The Apple Store is loaded with cool applications that's either inexpensive or free.  You feel like a kid in a candy store when you browse through the various new apps, and of course, they are continually updated as new programs are created.

And third, opening up software development to the world and taking advantage of the ingenuity of geniuses everywhere was genius itself.  Apple has tapped into the ultimate form of consumer-generated content.  The potential of great new apps is unlimited, and each one generates its own form of buzz - apart from the device itself.  ("Hey, check out this new app I just downloaded on my iPhone.")

This viral component is the key to the iPhone's growth and proliferation, because Apple is more than content with outsiders now being the buzz engine for its gadget.  In the same way that we've seen radio stations benefit from the creativity of its audience, the iPhone is deriving the benefits - word-of-mouth and revenue - from its smart users and crafty software designers.

As the RAB's Jeff Haley announced at his annual meetings back in February, "Let's agree here and now that our goal will be to have radio on every mobile phone, PDA, and mp3 player in the next five years."

Based on Apple's progress with the iPhone, we'd be smart to accelerate that plan.

"Email Is For Old People"

It's amazing how accurate a sample of 31 people can be.  The name of today's entry is a quote from "The Bedroom Project" - and we were surprised to hear it back in February of last year.

I frequently reference that ethnographic study in this blog, and recently, a JupiterResearch study confirms a key finding from "Bedroom."

The rise of social networking activity, coupled with texting and incessant cell phone use, has created a notable decrease in the use of email.  That's what our Bedroomers told us.  For many of them, key communication took place on MySpace, Facebook, and on their phones.  Email was rapidly becoming a place where they conducted business and/or communicated with adults.

What does this mean for radio?  As happy as stations may be when their listener database cracks a certain threshold, it is becoming more difficult to reach consumers with email.  According to the JupiterResearch study, "The Social and Portable Inbox: Optimizing E-mail Marketing in the New Era of Communication Tools," nearly one-fourth of respondents report that social networking sites have replaced email.

David Schatsky, the president of JupiterResearch, notes that "marketers need to be aware that consumers are using other forms of communication and must ensure their strategy adapts to consumers' changing behavior."

This is another reason why stations need to go beyond email, and work on initiatives like text messaging, building their own social networking modules, blogs, video streaming, and other conduits with listeners.  This is especially true among younger-targeted stations.  And as we've seen with just about every other technology, these trends typically start with teens and work their way older.

Today, as a fiftysomething consumer, I have a Facebook site, I text constantly, and I play Guitar Hero - all activities that were off my radar screen just a few short years ago.  So, keep building your email database, but keep in mind that trends are rapidly moving in different communication directions.

Arbitron & The MRC

At the recent Arbitron Radio Advisory Council meetings in one of my favorite places on earth, Jackson Hole, Wyoming, the RAC Chair Chuck DuCoty made some tough observations about the diary system.

As we know, many markets will never see PPM, and many others won't be metered for several years.  As DuCoty noted, diary sample issues are "past the point of being critical."

Arbitron is testing new cell phone-only strategies, and is launching other initiatives to get more young people into the sample frame.  DuCoty credits Arbitron's moves as "the most aggressive I have ever seen."

Which leads me to my question:

Could the diary system as it exists today be accredited by the MRC?

While the industry needs to work with Arbitron to ensure that PPM is the best possible system it can be, markets that are struggling with the diary - and will be measured that way for the foreseeable future - might be asking this same question.

Runaway Train

Bill Jacobs weighs in on the implications of Internet usage surpassing time spent listening to the radio.  The Internet is indeed a runaway train.

A recent study released by The Media Audit finalizes the inevitable - web usage has passed time spent with radio for the first time.  (TV still has the lead, but it's just a matter of time for them, too).

It's not all bad news though.  TSL to radio has remained unchanged over the last two years (though radio's share of a typical media day is off from about 27% in 2006 to 24% in 2007).

The other important finding is that "although the time spent listening to radio has remained unchanged over the last two years, the same report revealed that currently 14.2% of U.S. adults visit a radio website in a typical 30-day period, many of whom are likely streaming radio content."

So, of all the possible places one can go on the limitless Internet, 14 out of every 100 adults visit a radio station website.  Of course, these numbers would be higher if radio station websites were sticky, laden with great content, refreshed consistently, up-to-date, and as digitally enhanced as possible.  Yet it's an unfortunate truth that many station sites are sorely lacking in these areas (some stations still do not even stream their audio) and, as such, are losing out on carving and keeping a piece of the Internet pie.

The additional implication is that sites that aren't living in the 21st century are also missing out on significant revenue opportunities.  According to online research firm and Jacobs Media Summit Speaker Gordon Borrell of Borrell Associates, "Local online ad spending is predicted to reach $12.6 billion in 2008.  Among the top three advertising categories for local web sites are automotive, recruitment, and real estate with the likelihood of political advertising to heat up this summer."

The bottom line is that nothing is going to stop the runaway train called the Internet.  But radio has a place on that train with a truly interactive, interesting, sticky content.  And the ability to generate serious revenue is well within our boundaries if the necessary efforts and investments are made.  And this is a train none of us can afford to miss.

Stop Whining!

You think it's tough out there in your business?  Imagine the vibe at the recent leadership conference held by the American Association of Advertising Agencies (or the Four A's).  From a fun convention that used to include golf and tennis tournaments to the no-nonsense "reality bites" theme that this year's get-together featured, the tone was serious and concerned.

There was a recent New York Times article full of great sound bites that should probably be echoed at newspaper conventions, music industry conventions, TV conferences, and this year's NAB in Austin.

Consider these pithy quotes:

Tom Carroll, president and chief executive officer of TBWA Worldwide: "It's like driving in the fog.  You're not sure what's ahead of you, but you have to keep driving."

Ben Silverman, co-chairman at the NBC Entertainment and Universal Media Studios:  He suggested that better deals and sponsorships could happen if agencies would stop asking "Am I buying media?" and ask instead "Am I buying culture?"

And finally, Lee Clow, chairman and chief creative executive at TBWA, who exhorted the crowd to "Stop whining."  He reminded convention-goers that the new realities of the advertising world "shouldn't be scary" and should instead provide "a huge opportunity for us" to become more useful to clients as they look for new ways to sell their wares.  And then finally, this:  "If you want to participate, you've got to start hiring young people.  And don't tell them what to do -ask them what to do."

Stop Whining!

Download Mp3 File

Scenes from coming attractions, to be sure.

Reinventing The Whopper

Burger King has provided us with a smart marketing lesson this year.  Their very successful signature burger, the Whopper, recently turned 51 years-old.

But the company is not resting on the Whopper's heritage, reputation, or laurels.  While the sandwich has always been a big hit, Burger King realizes that it's easy for consumers to take it for granted as they keep looking for the next hot restaurant or food style.

So, they've been reinventing.  You may remember that commercial campaign last year where they punked consumers in the drive-thru line by telling them they were out of Whoppers.  Customers were irked, angry, and desperate to have their Whoppers.  This was a great way to remind us all about the value of the Whopper, and its importance in the fast food pantheon.

And now, they're starting the Whopper Bar, a new concept that will bring the sandwich to food courts, strip malls, and casinos.  Looking a lot like the open style of a Starbucks, the Whopper Bar will feature chrome counters and plasma TVs (that show open flames).  And a key to this new concept is a whole new line of Whoppers, with different toppings and flavorings.

Too often, heritage companies get caught in the same rut that Burger King was in.  Signature events and promotions that once were exciting often become forgettable annual events that customers appreciate, but no longer find buzzworthy.  No matter the legacy or history of the event, the audience appreciates new spins, different features, and additional reasons to engage with you.

Reinvention isn't just a good idea, it's a necessity, especially in a society where "new" is the mantra, and consumers are always looking for something to talk to others about.  The good old Whopper has now been updated and relocated, and it might just become a topic of conversation more than a half century after it first came to market.

Bringing together your key staffers for a brainstorm and/or conducting a couple of L.A.B. groups are all it would take to do the same thing for a station event, promotion, or fundraiser.  How will you reinvent your station in 2008?

The Selling Of Music - 2008 Style

What an exciting time for the record industry.  Consider these recent news headlines:

• iTunes has now passed Wal-Mart and everyone else to become the top music retailer in the U.S.


• Universal, Sony BMG, and Warner Music Group will offer their catalogues in a joint project with MySpace

This is big news for a business that has been plagued by self-inflicted misfires, mistakes, and misadventures in the digital world.  After all this time, they have discovered that indeed there is a "there there" to stream, distribute, and sell music via a variety of different digital sources.  Good for them.

In the meantime, the RIAA continues to downplay radio's role in the exposure and selling process.  But ask yourself this:  how do most consumers discover the music they choose to stream, download, and/or purchase from all these new distribution outlets? It's still about the radio.

Yes, it's great to get a song on Grey's Anatomy or on that new GAP commercial.  Satellite radio is another outlet that the labels vigorously pursue,  but as we see in our new Tech Poll, let's not forget about how the vast majority of Americans still find out about new music:

Now, critics will chime in that this survey is a self-fulfilling prophesy because it is conducted among radio listeners.  But since 90%+ of the U.S. falls into that category, there's not much of a skew to this data.  Hey, if it makes you feel better, subtract 5 or 10 percentage points from FM radio and look at this chart again.  If I was a new band with music to expose and sell, my chips would still be on good old FM radio.  Why the record industry would criticize the incredible power of this traditional medium defies logic. 

What would an artist rather have?  A song in this month's slasher movie soundtrack or a solid add on Z100?  A song featured on Scrubs or strong airplay on KROQ? 

Just asking.

Shifting Sands

A recent article in Ad Age, "GM Roars Forward Into Digital Ad Channels," is a game-changer.  GM is the third largest advertiser in the U.S., so the news that they will split half of their $3 billion ad budget over to digital on one-to-one marketing ought to grab our attention.

And they're not talking about just banner ads.  The plan is to integrate gaming, search, mobile, and other interactive applications.  Part of the GM strategy is to use traditional media for new car launches, but then shift to digital for branding and sales events.  Of course, much of this is driven by the role the Internet is now playing in the way that consumers search and research vehicle purchases.

This is a difficult piece of news for radio, especially because GM's Vice President of-Field Sales, Service and Parts reveals that GM will also try to nudge its regional dealer ad groups "to shift their focus to digital versus spot TV" this spring.  And the other quote in this article is from Joel Ewanick, vice president/marketing for Hyundai:  "Online is getting to the point where it may be more important than the 30-second TV spot."

These are strong words, and they should be posted in the sales, interactive, and programming departments of every radio station.  In theory, radio has the ability to deliver multi-platform campaigns to advertisers like GM or Hyundai.  The combination of radio's strong cume reach and its personality loyalty, in concert with digital/web tools that include strong databasing, could be packaged to provide the best of both old and new media worlds.

The operative words, however, are "in theory."  Because as we've been saying for more than a few years now, radio must transform its advertising, programming, and marketing departments to think differently.  It underscores the importance of content - on-air and online, because when one of our industry's most important advertising segments undertakes a major shift like this, it should send shock waves all the way up to the top.