JacoBlog - Jacobs Media's Blog

Happy Thanksgiving!

 

 

We hope you and your family have a Happy Thanksgiving!  JacoBlog will return on Monday, December 1.

Country First

OK, picture this fantasy scene....

It's the 2009 Grammys, and the winner of the best Rock song or Rock album takes the stage, grabs his/her Grammy, and says the following, "I would like to thank Rock radio for helping me win this prestigious award."

I know... it's a fantasy.

But during the recent CMA Awards show, there was George Strait and Rascal Flatts thanking Country radio for their airplay and support.  

As the economy worsens, you'd like to hope that everyone will be more appreciative of who's buttering their bread, and keeping them working.  

In Country, they truly get it.  In Rock, well, I can dream.

App Envy

Schadenfreude.  We all feel it from time to time, some of us more than others.  It's that emotion that causes us to feel good when someone else suffers.  Many people are feeling it about Wall Street brokers and the Detroit 3 CEOs right now.  Whether it's rational or even nice, it's hard not to sometimes get a nice glow from someone else's pain - even if you aren't doing especially well yourself.

That's probably how a lot of broadcasters are feeling when they look at Sirius XM stock.  When I wrote this blog, their stock was sitting at about 15-cents a share.  So while most other radio broadcasting stocks aren't doing much better, you know there's a little schadenfreude going on, especially given Mel's famous quotes about how a company's share price ought to determine how it should be judged.

But here's a little piece of schadenfreude that isn't so snarky because it is well deserved.  It turns out that Sirius XM is furiously working on an iPhone app (called StarPlayr).   It sounds pretty cool, and the developers are frantically trying to make sure that it technically works and that it receives approval from the Apple Supreme Court. 

Yet, it's not out, and "old media" broadcasters have been able to produce a solid iPhone streaming product for months now.  Between aggregated sites like AOL Radio to FlyCast, groups of stations are available on iPhones.  Isn't it interesting that satellite radio - always positioned as the future, the next big thing, and so much better than good old AM and FM - has fallen behind when it comes to technology?  As their business model has been leapfrogged by new media and cool gadgets, satellite radio has been tethered to the way they've always done things.

And terrestrial radio has now moved even a step better.  Pardon a little shameless self-promotion, but Jacobs Media's "stationalized" app allows individual stations to have their brands right on the desktops of iPhones all over the planet.  Since we released our app last week - ahead of Sirius XM's - we have received dozen of inquiries, even in this lousy economy.  Broadcasters big and small from the U.S., overseas, as well as Internet stations, quickly understood the beauty of this killer app.  New stations will be coming online every week, as soon as we can get the simple process going.  We are also getting stats that the downloads for the first "stationalized" app - WRIF's - are through the roof, reinforcing our belief that radio's best brands will excel on cell phones, in this case, iPhones.  This begins radio's dream of being easily and attractively accessible on mobile devices.  By the way, apps for WBOS (Radio 92.9 - Boston) and WRAT are also "up."  

As for Sirius XM, dream on.

Genius from Godin

JacoBlog reader Bruce Barber drove me to Seth Godin's blog about what The New York Times coulda shoulda woulda done to save itself from becoming downsized and obsolete.  It's a great read that says a lot about the Times...and about radio, and about other businesses that are trying to make the transition. 
 
I am reminded of that silent movie image where the stuntman has one foot on one biplane and the other foot on a second biplane.  It is not easy to move from the old business model to a new one.  Clearly, the CEOs of the Detroit 3 demonstrated that last week.  Perhaps Congress making them write a term paper ("How we plan to use the money to reinvent our companies") will contain some forward-thinking ideas.  Maybe they should read Seth's blog. 
 
Hope you enjoy it.

PPM FAQ

If there's been a more exciting event in broadcast radio in the last couple of decades than PPM, I can't recall it.  While the PPM rollout has had its ups and downs, it is the buzz of the radio industry.  Last month, markets like Detroit, Washington, and Dallas were added, and as more come online, the PPM story will become even more compelling.

For programmers, sellers, and managers, however, there's a serious learning curve.  PPM is a totally different ratings platform, requiring content and sales managers (and their direct reports) to get their heads around this new methodology.  From weekly reports to huge cumes to the end of Thursday as "The Day," PPM is causing everyone to re-learn the ratings - how to sell them and how to program them.

At Jacobs Media, we have put together a great PowerPoint presentation that helps indoctrinate stations in coming PPM markets to the ins and outs of this electronic methodology.  Our experience working with WMMR and WMGK in Philadelphia has been invaluable, and now that we're seeing data in other markets like Chicago, New York, Detroit, and D.C., certain "truths" are beginning to emerge.

Yet, the questions about PPM remain.  Despite Arbitron's best efforts, there are many outstanding and basic questions about PPM - the methodology, the system, the meter itself, and interpretation of the data.  I know that in the course of presenting our PPM PowerPoint, I am pelted with all sorts of questions.

Arbitron understands that, and as a result, they have put together a panel for their upcoming Consultant Fly-In on Friday, December 5th.  Called "PPM FAQ PDQ," a panel of Arbitron experts and wonks will answer those frequently asked questions in a quick and simple Q&A format.  Arbitron's Gary Marince has asked me to do the moderating, and I'm looking forward to a rapid-fire panel.

To that end, I want to be sure that every key PPM question is addressed.  If you've got one, this is the time.  Please send an email to me, and I'll be sure to include it in the session.  Arbitron will make it available on their site at the conclusion of the panel, so whether you make the trip to Columbia next month or not, you'll get your question answered. 

As they say, knowledge is power.  In the case of PPM, that's especially true.  We'll try to get everyone a little smarter about PPM next month at the Consultant Fly-In.

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.   

Expanding The Platform

It's probably not a surprise that those Saturday Presidential radio addresses were started by none other than Hall of Fame broadcaster President Ronald Reagan.  Of course, radio speeches were first popularized by FDR when he took office in the 1930's before the days of television.

But President-elect Obama realizes that in order to better communicate with Americans, he needs to deliver his message on different platforms.  When he takes office in January, he'll continue the radio tradition, while also delivering his weekly address on YouTube. (He's actually already started this with his Democratic response speech last weekend.) 

Radio's top personalities should be taking notes.  While most were taught their craft in the traditional "theater of the mind school," today's audiences expect to be able to access and enjoy content in a myriad of settings.  Those "visual bits" that never translated well on the radio can take on a whole new life via webcams and streaming video.  But radio needs staffers with video editing skills, and personalities themselves have to recognize, welcome, and create content for the changing media environment.  

The President-elect isn't dissing radio.  He is acknowledging that video isn't an afterthought, but a primary way to inform (and entertain).  Too often in radio, we view video as an extra or an add-on, rather than a vehicle that has become a primary way for Americans to consume media.  We have seen the meteoric ride of video streaming in our last two Tech Polls - reminders that Americans are clearly focused on the visual, and on accessing media when and where they like. 

As every marketer has blogged over the past few months, Obama has re-written the book on how to utilize digital media to run and win a Presidential campaign. Now he's going to set a new standard on how to communicate with his audience (constituents) by going beyond those Saturday radio speeches.   The radio industry should be furiously taking notes. 

Back(wards) To The Future

The announcement that Nielsen is back in the radio ratings game now that Cumulus and Clear Channel have signed on for 50 small and medium small markets has achieved "breaking news" status today.  But what does it tell us about the state of our industry, and its inability to get on the same page?

PPM lacks perfection, to be sure.  Many broadcasters have been critical of numerous flaws, from sampling frames to meter issues, and of course, the cost.  But going back to the diaries as the solution?

Today's Media Daily News story, written by Joe Mandese, notes that "instead of utilizing a newfangled, state-of-the-art audience measurement technology, Nielsen will deploy old school paper diaries, though it will utilize a peel-and-paste sticker methodology that Nielsen has deployed successfully for radio audience measurement internationally in 11 key global markets, and will utilize what is considered by some to be a better system for drawing the samples it uses to produce its ratings."

Isn't this like saying that instead of using a "newfangled" word-processing program like Word, Cumulus and Clear Channel are opting for Remington manual typewriters?  Who needs a GPS when we can still get TripTiks from AAA? 

But don't take it from me.  Ask your neighbor at your kid's hockey game, or the guy next to you in line at Quantum of Solace, or the mom you run into at the tailgate.  Tell them you're in radio, and when they ask you that inevitable question about how the ratings work, describe the metered electronic measurement system of PPM versus the paper diary.  And then get their reaction. 

PPM - flaws, expense, fits and starts, and all - makes sense to anyone who has a computer and has put away their 8-tracks.  Programmers in PPM markets will tell you to a person that the accountability and reflection of reality they see in electronic measurement is what they've yearned for their entire careers.

But as has been the case - especially since consolidation - radio rarely speaks in one voice.  Instead, it's often several disparate tongues.  As advertisers continue to wonder about radio's relevancy, broadcasters continue to give them fodder that suggests we just don't get it.

F-Bombs Away

There's been a lot of talk about Joe Scarborough's F-word miscue last week on his MSNBC, "Morning Joe." 

Oddly enough, I was watching in real time (while reading email, of course), and just about fell off my chair.  Yet, the lack of reaction afterwards from just about every corner, is even more shocking.

First, Scarborough had been a vocal critic of the Janet Jackson incident, and was vitriolic about broadcasters paying for these types of mistakes.  Just a few years later, here he is addressing his gaffe by advising adults watching his show that they should simply get over his "F-bomb moment" and move on. 

And no one else was outraged either.  Some explained that cable TV is different from broadcast, and lives by a different set of rules.  Really.  Ask anyone under the age of 30 which channels are broadcast and which are cable and the chances are good they have no clue.  All the channels simply appear on their screens, whether they're CNN, NBC, CNBC, MSNBC, or CBS. 

Secondly, others (including Tom Brokaw) have noted that the "F-word" has become such a normal part of the language that it has virtually become acceptable.  While there's truth to this, it's amazing that when these slips have occurred on the radio, the FCC and Congress have been vicious with their threats against stations and personalities.

And while MSNBC has now acquired a delay unit for "Morning Joe," they apparently won't use this technology for their other shows where the likelihood of more verbal mistakes is just as great.  Contrast that with the complex multi-delay systems that radio stations have been forced to install - not to mention the personnel who are constantly "on the button" - and you get a sense for the hypocrisy of this moment.

Radio has paid the price for all this vitriol from the hardcore right wing, and it has cost the business a great deal, in terms of advertiser revenue, legal fees, and the expense of monitoring our own potential "F-bombs" and other nebulous FCC violations.  Conversely, I'm sure there were no agency boycotts or "do not buy" lists for "Morning Joe" this week.   Nor were there any indications that Scarborough had to sit down with a team of NBC lawyers, or put up with threats, fines, or suspensions.  In radio, the net result of a similar slip-up would likely have been an on-air apology, some form of punishment, a letter in "the file," and possibly a dismissal.

When radio CEOs claim that our problem is more perceptual than real, it certainly applies to this issue.  We have done a terrible job of promoting and defending some of our most dynamic personalities.  The NAB has systematically ignored some of radio's biggest stars - from Howard Stern to Bubba to Opie & Anthony.  Instead, the industry would rather be associated with more "wholesome" entertainment, totally missing the edgy direction in which America has moved over the past decade or so.  As a result, these personalities have felt the alienation, and have run scared from the potential government backlash, thus creating the exodus to satellite radio. 

Broadcast radio faces bigger challenges moving forward than even the newspaper business because our P.R. efforts have been so miniscule.  This has allowed others - from Sam Brownback to Mel Karmazin to Tim Wildmon - to define and defile a business that is still the best, easiest, and most cost-effective way to reach American consumers especially during tough times.   Eff that.

Staying On-Key

The sands are shifting very quickly in the world, in our country, and in our business.  It is noteworthy that some companies are "getting it," and responding to the changing emotion of the American consumer, while others are missing it entirely.  

In the midst of their new Yankee Stadium project, many luxury suites are going unsold - despite all the hype and excitement.  Season ticket sales are slowing, while many tickets in the new stadium will be considerably more expensive than in the old ballpark.  The Milwaukee Brewers - fresh from their playoff run - have increased ticket prices in '09.

What are they thinking?

In the meantime in Boston, tickets prices are being reduced for the '09 season.  Their CEO, Larry Lucchino, noted: "This is not based on an assessment of a reduction in demand.  We have thousands of people on our waiting list.  This is an assessment that this was the right thing to do for the people of Red Sox Nation who have been loyal and committed fans to us."

Exactly.

Meanwhile over at Ticketmaster, their new CEO - none other than music industry genius Irving Azoff - has dropped those nasty "convenience charges" on all tickets for the upcoming Eagles tour.  

It's about reading the tea leaves, and these moves have resonance for radio.  Is the right tone right now to be giving away big items and luxury prizes?  Or is it more about finding discounts for listeners that are meaningful?  Or is it about putting together charitable and community events that help those in need?  Or is it about providing listeners with free/less expensive entertainment during times when just going to the movies is a major expense?

I'll leave those decisions to you, because as we consultants always say, "Every market is different."  But at this anxiety-ridden time, it might not be a bad idea to review what's on the air, and what's coming up, and take your audience's temperature in the process.  The Red Sox and the Eagles are proving they understand their loyal fans very well.