JacoBlog - Jacobs Media's Blog

Wassup?

In the all-important lexicon of how best to report one's news and views, Twitter has made a left turn perhaps into the right place to maximize its ability to rapidly spread the word to networks of users.

You may recall that from the beginning, Twitter's 140 character or less question was "What are you doing?"  Of course, that was exactly what jock sniffers and star chasers around the globe wanted to know, as they followed everyone from Shaq to Britney. 

But for the rest of us, this question tends toward responses like "Having my nails done," "Running errands," or my favorite, "Waiting for the big game." 

While Twitter's rapid growth is impressive, one of the reasons why many tire of the service is that it is self-indulgent, to the point where it is hard to care about the mundane activities of people's lives (much less your own). 

But Facebook, realizing the power of "now," changed its home page to "What's on your mind?" - a similar but different way to engage its rapidly expanding membership.  As Facebook users know only too well, however, this change has spawned many of the same insignificance from its users, cluttering pages with useless, tiresome information about the boring intricacies of the lives of their "friends." 

So in an about-face, Twitter has changed it prime greeting to "What's happening?"  And in the process, they may have changed the game.

 

Maybe this new question will inspire Tweets to become more current, more meaningful, more informational, more entertaining - and hopefully, less personal and trivial.  When Jerry Seinfeld related the humor of mundane activities, it was hilarious.  For most other people, not so much. 

As founder Biz Stone notes, "Twitter helps you share and discover what's happening now among all the things, people and events you care about." 

Let's hope so, because if this service is going to provide users with real information and not just a lot of philosophical blathering and self-gratifying comments, the Twitter lens needs to show us something we don't know but ought to care about.

<CLICK HERE TO WATCH WASSUP VIDEO>

We Don't Get It

The new technology era has been challenging and often frustrating to radio people.  Many struggle with ways to integrate different platforms, like mobile and streaming.  Others grapple with how to utilize social networking tools, like Facebook or Twitter.

It is somewhat understandable that the radio industry hasn't found those "best practices" that would enable it to take advantage of new digital tools, rather than to be passed by or left behind by new media and technology.

But where it is inexplicable is radio's inability to grasp its eTail potential and its stations' brand equity.  I blogged about this last month, wondering (for the fourth consecutive year) why most radio stations - including the biggest and best brands - often don't set up their own logo ware stores, and use the holiday season as an opportunity to utilize their often large databases to make several thousand dollars at this opportune time of the year.

And like many of you, my email box was loaded with great deals, from Apple to Barnes & Noble to the NBA to the Detroit Tigers to my local car dealer.  (I have "decorated" this blog with just a few of the tantalizing offers I received.)

But despite belonging to umpteen radio station email clubs, I did not get a single email about a sale on station branded items and related merch.  Instead, I received station emails about special programming weekends, and the typical email blast tactics. 

Radio continues to let its best brands wallow.  While many whine about the lack of outside marketing, most broadcasters aren't utilizing many of their existing assets and tools.  Somehow sales and management haven't connected the dots about the power and potential of radio's expansive email databases.  To most, those thousands of connections with loyal listeners are simply PD activities, and seemingly have no sales implications.

 

 

We should be taking cues from Target, Border's, and the hundreds of other businesses that understand how to link with consumers, technology, and eCommerce. 

This is small potatoes in the big picture of radio's need to redefine itself.  But it is indicative and telling about the disconnect between the industry and the rest of the world.  We continue to sell and market radio like it's 1978.  

 

The digital disconnect continues. 

PS.  After this blog was written & posted, I received an email from KSEG/Sacramento, urging me to take advantage of their special holiday discount in their "Half Off Sacramento" program.  I'm sure there must have been a few others, but they were not in my email box.

Aaarrggghhh!!!! (Pirates Buy Music)

Say it ain't so.  

Turns out that a new research study conducted in the UK shows that consumers who steal music pay for more music.  Yup, these "pirates" spend an average of £77 a year on music - £33 more than the honest bloke who would never download music illegally. 

It’s noteworthy that in Great Britain, they are actually considering a “three strikes and you’re out” rule.  If you get caught stealing music three times, they take away your Internet.

Now they’re rethinking this concept because this survey of 1,000 16-50 year-olds who are online shows that what’s ailing the music industry has less to do with illegal downloads and more to do with music passion.

(Not dissimilar to the folks who scream on the request lines or send programmers nasty memos.  They are the most emotional listeners because they care the most.  It’s usually not too difficult to turn them around if you take the time to listen.)

So by punishing core music buyers and taking away their access, the recording business could end up shooting itself in the foot (or peg leg).

According to Peter Bradwell from the think tank Demos (the company that commissioned the study from Ipsos Mori), “Politicians and music companies need to recognise that the nature of music consumption has changed, and consumers are demanding lower prices and easier access.”

But perhaps that’s where there are greater similarites between the U.S. and the U.K. because the labels still don’t understand this notion of control, variety, choice, and access.  If they rethought their premises, it’s the pirates who could actually save the music industry.

“Aaarrggghhh!!!!” to you.

Weatherman

Where is it going?  That's always a big topic, and the blogosphere has no shortage of experts and geniuses who will tell you they have the answer to what's ailing radio, and what we'll all be doing in five years.  

It's a lot like the stock market.  There is the ongoing avalanche of analysts, many of whom have great credentials.  But then there's Warren Buffett.  Yes, he's had a tough year, but over the long haul, investing in his Berkshire Hathaway has been a pretty good bet.

Google has amassed a pretty solid track record, too.  Not all their experiments and projects have paid huge dividends - like radio advertising - but it's tough to argue with their track record.  

That's why their recent purchase of AdMob caught my attention.  For a mere $750 million in stock, Google now owns another piece of the mobile ad machine.  

This is especially noteworthy because it signals another investment in the mobile space for Google.  As we have learned at jacAPPS - our mobile application division - there is an abundance of optimism, and it's backed up by industry metrics.

Paul Palmieri, CEO of Millennial Media chimes in with his view: "Today Google validated what many companies including Millennial have thought for years - that mobile is a different market with a huge potential for advertising; possibly a bigger opportunity than online media."

It's interesting that we first started our mobile division, and then actually went to school on this space.  My best teacher has been a Finnish consultant, Tomi Ahonen.  He now lives in South Korea, and is the author of Mobile as 7th of the Mass Media.  

This guy totally "gets" what's happening in mobile, especially in more advanced countries outside the U.S. (as odd as that sounds).  It is more than a little interesting that in in other parts of the world, credit cards are becoming rare while more and more consumers are paying for everything with their mobile devices. 

This is where the action is.  In a recent article, "What Hath Apple Wrought,"  Inside Digital Media president, Philip Leigh, notes that "outside America, most people connect to the Internet over a mobile device.  At 1.2 billion units, worldwide mobile phone sales are about four times those of personal computers."

And it is mobile that has turbo-charged the recent growth in Pandora sign-ups.  More than 45,000 of the 65,000 new daily registrations for that Internet radio channel come from its various mobile apps. "Our future is going to be more mobile-centric than I had even thought, and sooner," says Pandora founder Tim Westergren. 

And all this at a time when some broadcasters are still debating the wisdom of streaming.  The winds of change are blowing hard, and there are no signs of a letup.  

Mel Karmazin thinks this Christmas will signal a significant rise in the sales of satellite radio.  My money is on mobile gadgets - iPhones, Droids, and the like.  With WalMart, (Radio) Shack, BestBuy, and Costco all selling more affordable iPhones and iPod Touch devices, the forecast calls for an even more ubiquitous mobile environment.

You don't need a weatherman to know which way the wind blows.  

The New King of All Media?

Here’s a guest post from Jacobs Media’s talent guru, Keith Cunningham, with some observations about a new celebrity phenomenon.

Cincinnati Bengals’ wide receiver, Chad Ochocinco is at it again.  But this time he’s not changing his name, hilariously trash-talking with opponents, catching touchdowns, or racing thoroughbred horses – he’s on the way to becoming a media monster.

The outspoken NFL star has partnered with Motorola to set up a social news network on Twitter, dubbed OCNN (Ochocinco News Network).  His goal is to compete with mainstream news outlets and tell fans what’s going on with NFL teams.  Don’t laugh – it’s not a bad idea; he’s the ultimate insider and will probably dig up some compelling dirt. 

After all, who has the best access to what really happens in the locker room?  As Ochocinco promises, “"If I break it, you might as well believe it."

While it’s early in the game for the OCNN, this is another sign that traditional media is being challenged on every level.  When you think that it was TMZ that broke Michael Jackson’s death – not CNN or NBC – Ochocinco’s concept doesn’t sound so crazy.  It’s also proof that anyone with motivation, creativity, access, and resources has the ability to participate in, or even change, the entertainment and news landscape.

The OCNN will not replace ESPN or the NFL Network for football news.  But gone are the days when ESPN had a lock on sports news, when newspapers and TV owned breaking news, or when radio owned music and traffic reports.  Citizen journalism (and in this case football star journalism) is thriving.

It’s hard to stand out in today’s crowded field, but radio personalities should take notice of Chad Ochocinco’s efforts and begin thinking of ways to grow their own personas outside of the traditional airwaves. 

Chad Ochocinco …

• Has his own iPhone app

• Has over 300,000 followers on Twitter with many more to come

• Has his own content rich website that’s updated more frequently than most radio websites

• Is constantly in the news because of the content or controversy he creates

• Has creative ideas and has the cojones to put them in motion

Could a radio personality pull this off on a local level, or in the case of syndicated shows on a national scale?  Keep in mind their advantage in being able to promote initiatives to large audiences each day.  In the digital world, a big-thinking personality can do big things.

We're #1

One of the lessons of the new media world is how category leaders don't own the franchise, and dominance is far from guaranteed.  In radio, we have become accustomed to seeing the same radio stations on top of the heap for years - or even decades - KGO in San Francisco, KMOX in St. Louis, and in medium markets, stations like WIVK in Knoxville - all examples of call letters that you always see in that #1 position.  (Of course, PPM has had a lot to say about the "new order" in many markets.)

But in the Internet world, the pace is considerably quicker.  Today's leaders are tomorrow's losers or also-rans.  And reversals of fortune can happen fast.

Even President Obama has felt this pain. He took office with an incredible 78 approval rating, but has watched his poll numbers drop precipitously each quarter.  He was walking on water in January, but even strong leaders can never take their constituencies for granted in this fast-paced environment.

Consider MySpace, which Rupert Murdoch bought for $580 million.  Today, it has been totally eclipsed by Facebook, and while social networking is white hot, MySpace is yesterday's news.  Murdoch could not get anywhere near what he paid for MySpace, a one-time leader that has seen its dominance rapidly deteriorate in the past year.

Then there's Yahoo.  Remember that before Google, that's the service that most of used for various portals and search (along with Lycos and others).  Now that Google owns the world, Yahoo is left to try to market its way out of this mess.  And they're not doing a great job of it because all the TV advertising in the world isn't going to change the minds of consumers.  They know what they know, and all the glitz and glamour of Yahoo's newest effort is just a bunch of marketing noise. 

<CLICK HERE TO WATCH YAHOO TV SPOT>

So, what does this mean for your station, your morning show, and your brand?  Consumers are all driving much faster than 55 these days, making their way through products, gadgets, restaurants, and brands.  To help the filtering process, they have more and better evaluative tools, from online reviews to social networks to good old word of mouth.  If a new product or service does not make a good impression, consumers move on.  If they've been an existing customer of a brand, but recent experiences have been underwhelming, they don't hang around for long. 

If your station has been mailing it in, not researching the target, and just hoping that your audience base will simply stay tuned because they always have, think again.  Even in a tough economy where resources are tight, service, quality, and innovation have to do more than hit the minimum standards. 

More than ever, brands have to earn their stripes every day.  They have to invent, morph, and change with the times.  Wal-Mart's book pricing attack on Amazon's dominance is another reminder that leaders don't get a free pass. 

An old Ziebart campaign reminded us that "Rust never sleeps."  And it is true that when erosion sets in, it's tough to stop the bleeding.  "Trust never sleeps" either, and stations cannot take their relationships with listeners for granted.

Brands that don't keep pace, that don't strive to innovate and improve, and that don't recognize that there are no laurels to rest on may find it even rougher sledding ahead.

The 8/85 Rule

A research update for comScore's "Natural Born Clickers" study from a study first conducted two years ago reveals some alarming stats for Internet-focused advertisers.  While banner and display ads are ubiquitous on websites all over the Internet, the percentage of "clickers" is precipitously falling.

In the 2007 study, about one-third (32%) of Internet users clicked on ads; in their updated March '09 study, it's down to an alarming 16%.

That translates to 8% of Internet users accounting for 85% of all clicks.  So what does that tell us about the efficacy of Internet advertising in 2009?

First, online advertising is missing a whole lot of web users.  Campaigns that are focused on clicks are off-target in reaching a mass appeal Internet audience.

Second, the click-through as an evaluative measure is insufficient in measuring campaign effectiveness.   comScore talks about the value of web advertising in overall brand "lift" - whether consumers visit a brand's site, buy products offline, etc.  

Finally, Internet-only advertising is myopic in its approach.  A web campaign is not sufficient to move the sales needle. 

The drop in clicks is real, and that underscores the importance of multi-platform, integrated advertising programs for retailers and businesses - and not just committing the lion's share of ad dollars online.

And that's where radio comes in because of its ability to provide a wide variety of engagement tools - from its website features to texting to on-air advertising and testimonials to event production.  At a time when American business is struggling to generate sales and brand awareness, radio truly has an opportunity to use a study like this to underscore its value.

There's a lot more to advertising, marketing, and branding than click-throughs.

It's time to start marketing and emphasizing results.

Radio Radio

Old friend and veteran rock programmer, Ron Nenni, sent me an eye-opening chart, courtesy of the Silicon Alley Insider.  As you can see below, a new Nielsen analysis of a media use study conducted by the Council for Research Excellence shows that radio out-reaches the Internet on a daily basis.

The methodology of this study is observing consumers, rather than allowing them to report their media.  It sounds like another form of ethnography, the methodology we used in the Arbitron "Bedroom Project" a few years ago.  This study covered five markets and the research was conducted in '08.

Because radio is often a background medium, it was "on" more than perhaps people might actually report to an interviewer.  So, the end result is that radio comes into contact with 77% of consumers, compared to 64% for the Internet.  Of course, TV dominates, while the death watch continues for newspapers and magazines.

A deeper look into audio device usage by time spent listening across locations shows that broadcast radio is still dominant.

It is impossible to know what this data might have looked like a decade ago.  Clearly, broadcast radio would have been in the 90% range in all three locations.  But even this recent data shows that while different gadgets and media outlets are eroding radio's dominance, the numbers are impressive.

Now nay-sayers will have no problem shooting these charts down.  Perhaps lots of this radio listening is indeed background.  And of course, reach does not equate to engagement.  

But this information also suggests that the cost (free), simplicity (wireless/good reception), accessibility (it's everywhere), and sheer habit still make broadcast radio stations an attractive source for everything - from exposing music to advertising.  

Those who write off radio should perhaps rethink their logic.  But those who own broadcast radio companies should consider the half-empty implications of these charts.  Radio is a leaky bucket, and the options are growing and are plentiful.  But with the right investment in research, content creation, personality development, and the strategic applications of digital tools, the medium still has a great deal of life and vitality. 

It's the beauty of research because it's very much dependent on who's looking at the data.

What's YOUR take?

"P" - The Secret Weapon?

There is sure to be a lot of controversy about ABC-TV's new V, which debuted earlier this week.  If you haven't tuned in, it's the saga of a charismatic new leader offering the promise of hope and peace.  Of course, it's all cleverly disguised and is, in reality, an alien invasion. 

Politically, the show raises the idea about questioning what is right in front of everyone's eye, while the media jumps on the excitement bandwagon.  Clearly, Obama followers, fans, and pols will not be happy with the tone and messaging on V. 

I'm looking at the show a little differently.  Substitute a "P," and you've got the phenomenon known as Pandora that is doing a pretty good imitation of its own alien invasion, trying to take over the world.  It, too, has a charismatic, compelling leader in Tim Westergren. 

And unlike the plot line in V, Pandora's takeover plans are transparent, candid, and outside our front windshields. Unfortunately, most of the leadership in radio somehow cannot see what a threat to the industry that Pandora represents. 

And it's not like Westergren is hiding his plans.  In multiple interviews, he talks about his growth plans, and substantial successes in making Pandora available to consumers on different platforms.  Consider this:

Pandora adds 65,000 new registered users every day.  Of these, over half come from mobile phones.  Overall, he says that Pandora now has 36 million sign-ups.

Overall, 35% of Pandora usage comes from users who are listening in cars.  Westergren notes that a growing number are plugging in iPhones and other smart phones into the "aux" input on dashboards, and he's aiming to have Pandora embedded in vehicles (much like he's accomplished with phones).

Westergren is actively lobbying for broadcasters to pay what he calls their fair share of music licensing fees.  Claiming that Pandora pays 60% of its revenue in fees, he is pushing hard for radio broadcasters to pony up.  And in that process, his sheer heft and hipness makes him a compelling, persuasive voice.

While Pandora is still trying to monetize itself, it is making bona fide progress.  The service sells $1 million in revenue on iTunes every month.  And Westergren estimates that Pandora will generate revenues in the $40 million range in '09.

So, when we see radio companies continuing to battle only with one another, while totally missing what's happening outside of our shrinking empire, it is difficult not to wonder why the industry isn't taking a larger strategic inventory of the real competition for radio.

For so many years, corporate executives have pooh-poohed the Internet, streaming, texting, social networking, mobile devices and other gadgets.  You know the excuses:

"We're not giving away our content."

"When we can make money from it, we'll start doing it." 

"We'll do it when we can find a way to pay for it." 

"When there are more mobile phones out there, we'll look into branded applications."

Westergren must laugh at this because he has all that broadcast radio revenue in his crosshairs.  As he explains it to AOL's Daily Finance: "In the last year there has been a big sea change in the infrastructure surrounding radio.  That's driven by the ability of cell networks to carry a streaming audio signal.  That a phone can now stream Pandora has broken open what until now was a domain occupied only by commercial radio (satellite or broadcast) either in cars or homes.  I think this new ubiquitous streaming capability is a hugely disruptive change that will put Internet radio right up alongside broadcast radio."

And in fact, Westergren's goal is to displace broadcast radio, and he's tipping his pitches, telegraphing his passes, and allowing radio into his huddle.  And broadcasters still don't realize what's going on.

Here's an on-the-streets case in point.  With all these millions and millions of registered users, Westergren still finds a way to keep it personal and real. 

Pictured above is a personalized email that our Tim Davis received from "Tim" last month, inviting him to a Pandora "meet-up" here in the Detroit area.

So we went.  And here's what we saw:

More than 200 enthusiastic ADULTS gathered on a cool Monday night at the Palladium theater complex to hear Westergren speak, and to get a T-shirt.  How many local stations could have pulled this type of crowd - without cheap drinks or a football game on a big screen TV?  

And he did not disappoint.  Westergren is a charismatic, folksy, unassuming presenter who comes off as a music fan who just wanted to create a radio station that would play more and better music than what he grew up listening to on the FM band. 

And make no mistake about it.  In this video segment that we recorded, Westergren leaves nothing to the imagination about his long-term plan to put broadcast radio out of business. 

So while radio programmers are wrestling with each other in the mud, or rushing to beat each other out for the honor of who will be the first to play "White Christmas," Westergren has a higher mission.  

And while our sales departments are running around, giving away inventory and bonus spots, Westergen is creating value for his growing bevy of Pandora sponsors.  

And while radio ownership is still shutting down streams, waiting to commit to smart phone applications, and slow to invest in cohesive, integrated digital strategies, Westergren is rapidly eating their lunch.

Yes, it is easier to charge up the hill on an exciting mission like Pandora than it is to play defense and protect the throne.  But if broadcast radio is to succeed in this awful test of finances, innovation, and strategy, it must get serious about the real enemy. 

Or maybe it's just that famous quote from Pogo.  You have to believe that's what Westergren is banking on.

Think iPhone

Volkswagen has always been a car company that has marched to a totally different drummer.  From its "Think Small" campaign for the Beetle, to "Fahrvergnügen" (OK, maybe not the best slogan of all time), the German automaker has taken a left-handed approach to marketing. 

You have to give them credit for being consistently inconsistent.  For the launch of its new GTI, VW will do no traditional advertising.  Instead, the entire marketing effort for this vehicle is a new iPhone app they've put together in a partnership with Apple.

Their digital marketing guru, Charlie Taylor, insists that their target audience is very wired, favoring digital over broadcast.  And the demographics of the iPhone skew heavily toward thirtysomething males.  Ergo, a game app that is supposed to carry the campaign, also part of a contest that will give away a new GTI a week for six weeks starting November 2. 

As Taylor pointed out to BrandWeek, "This is the entire investment, it is a fraction of the cost for the standard automotive vehicle launch, but we did not do this for financial reasons, we do truly believe that this is one of the new forms of marketing and hyper targeting and digital allows us to do this."

That's an important statement in the annals of advertising, and we will have to wait until the end of this marketing effort to determine its effectiveness.  But as a company that has learned a thing or two about branded iPhone apps in the past year, this is very risky business.

The biggest challenge is driving awareness of the app - something that radio has no problem doing when a station or personality launches their application.  We see this in our analytics every week.  When stations or DJs consistently promote their app, it absolutely drives awareness and downloads.  

For some of our non-radio clients, the app business has proved to more precarious because there are so many apps in the store, with hundreds of new ones coming in every week.  Without a media partner, it's not an easy putt. 

So perhaps this campaign for the GTI is a test case for advertisers and broadcasters alike.  If it works, we will most likely see more efforts that bypass broadcast in favor of digital.  If it doesn't, it may serve as a reminder that multi-platform campaigns that combine the best that both broadcast and digital have to offer are the preferred ways to go. 

If Apple features the GTI app on iTunes and in the App Store, it will help VW's campaign succeed.  But keep in mind that even some of the best, most advanced, coolest, techie, and well-known brands regularly use broadcast media to reinforce awareness and sampling. 

Just ask Steve Jobs.