JacoBlog - Jacobs Media's Blog

You Can Take It With You

Kudos to RAB CEO Jeff Haley for underscoring the crying need for broadcast radio to once again become the "anywhere" medium.  As Haley notes, "The goal is to have an FM radio in every PDA and cellphone."  This picks up where David Rehr's "2020" speech at last year's NAB left off.

The focus groups we did for Arbitron back in '05 among 18-34s produced that "Oh wow" moment when respondents after respondent told us that radio is tethered to cars and nightstands, while you can take iPods anywhere.  We saw even more evidence of this in last year's Arbitron "Bedroom Project," which emphasized radio's growing portability problem.  And of course, last year's Jacobs Tech Poll provided us with the evidence that the one feature that Apple iPod owners would love in their next mp3 player is an FM radio.  Tech Poll IV goes into the field later this month, and we're expecting to see more of the same.

Our industry may be turning an important corner, as radio's leadership is now lining up goals that must be achieved moving forward in order to ensure the medium's survival and growth.  While radio has a myriad of problems to combat, this issue of "location, location, location" is paramount in its place on the media landscape.

No, NOT A Blender...

Jacobs Media's Dave Beasing gets his game on in today's post:

Quick quiz:  What brand name gift item has been in the top 3 on Amazon.com's wedding gift registry for the past several weeks?

Give up?  It's the Nintendo Wii videogame system.  Apparently videogames have evolved from a reason couples split up to become something that brings them together.

It's further confirmation of a key finding in the Arbitron/Jacobs Bedroom Project - that videogames are largely a social activity these days.  Many of the young people we visited at home were eager to show us how much fun they have playing videogames with their friends - either in person or in online competition - and they told us they often "talk smack" with their rivals.  One high school senior even said that he and his friends often refer to each other by their on-screen player names.  (I thought to myself, "At least teenagers get to pick their own nicknames now.  That's social progress.")

The Bedroom Project also verified what our friend Steve Schnur at EA Games has been telling us for years, that games are often a "gateway" to discovering other entertainment.  It's Steve's job to decide what sounds - and music - get put on popular games like Madden Football and NBA Live, causing many gamers to then search for more songs by those artists.  If not through James Bond videogames, how else would one of our Bedroomers - a senior at UCLA - have become a Henry Mancini fan?

Just as a whole generation has grown up loving the NFL because of Madden (the videogame, not the play-by-play analyst), Rock music is experiencing a revival that can be directly credited to Guitar Hero.  The third edition was just released with fanfare, and it's still not too late to celebrate.  Clients should check out our handy idea starters on JacobsMedia.com.

Technology changes, but common sense marketing doesn't.  Videogames like Guitar Hero bring people together, and - whenever that happens - there's a golden opportunity.

CVC - Whoah! - Part 1

In "The Bedroom Project," we identified CVC - or control-variety-choice as major attributes that separate desirable media devices and technologies (iPods, for example) from those that lack many of these same qualities.  Radio - as it exists for most consumers today - often fails the CVC test.

And as we also saw in "Bedroom," music is rapidly becoming a commodity.  Consumers have many different ways to control and arrange music.  Thus, for younger people, in particular, listening to it on the radio has become tertiary to their overall entertainment experience.

And as technology marches on, radio's ability to remain dominant will be seriously threatened.  A case in point is a new offering from TiVo.  They are pitching a free 30-day trial where TiVo owners can tie into Rhapsody to control 4,000,000+ songs in any way they want to hear them.  It's like having an iPod at home that is virtually loaded with a massive library, all accessible with a TiVo remote.  As we saw in "Bedroom," radio is already under siege in homes, and these types of CVC advances will only make the situation more challenging.

Yes, not many people actually have a TiVo, but the technology behind this new offer is what you should be considering as we move forward. 

Tomorrow:  another new CVC innovation - for your car.

Radio TiVo

As more and more people see "The Bedroom Project" clips, the power of DVRs and TiVos becomes more tangible.  Add that to the fact that the penetration of these TV recording devices is in the 18% range, and thus having a major impact on television ratings.  More and more people store shows on these convenient hard drives, watching them later that evening or a few days later.  Of course, television execs and ad agency mavens are grappling with the economics of consumers watching shows at their convenience, and how these new viewing habits impact the traditional commercial architecture.

And after seeing "Bedroom," many people ask, "What about a TiVo for radio?"

But aside from assorted talk shows, and morning personalities, what's worth TiVo-ing on the radio?  What are we producing that consumers would want to record and listen to at another time?  That's a difficult question, but it needs to be asked.

And in related news, TiVo has now banded together with RealNetworks to offer Rhapsody to its consumers.  Thus, with access to 4,000,000 songs, TiVo owners can now mix, reorder, and program their own playlists and formats.  And music videos are on the way.

So what can a local radio station provide that sets it apart from the allure of new technologies like this?  How can a radio station create an experience that's more entertaining than someone's iPod or TiVo?  These are the questions we should be asking listeners in perceptual studies.  And they are questions we should be asking ourselves in strategy meetings.

"Which station is the concert station?" or "Which station plays too many bad songs mixed in with the good ones?" is no longer relevant to the larger issues that are facing broadcast radio.  And as WiMax makes its way into cars, and iPods and DVRs continue to proliferate, radio needs to reinvent itself yet again.

Inside The "Bedroom"

Mark Ramsey talked with me about the inside scoop behind "The Bedroom Project," available as a podcast he's streaming on his blog - Hear 2.0.

It's a nice synopsis of the study, and talks about some of the implications this Arbitron-sponsored ethnographic study has on our business.  It weighs in at just 15 minutes, and provides a nice overview of the project.

Click here to check it out

Thanks again to Mark for taking the time to do this and putting it out on his site.

The Swiss Army Phone

We used the graphic to the right for our "Bedroom Project" presentations in Charlotte - the perfect way to depict what mobile phones have become.  Consumers do quite a bit more than just talk to others on their phones - from texting to photo taking/sharing to the alarm clock to streaming.  And now, Nokia is acquiring the technology and expertise of Navteq to cement in the GPS function.  It won't be long before those portable, plug-in GPS units will become a thing of the past, as mobile phones make this feature as texting is today.

As Roger Entner, senior VP for communications at IAG Research chimes in, "It's a step that moves us toward the Swiss Army phone." And it's a reminder that media outlets absolutely have to be accessible via mobile phones.  That was one of the messages that was part of NAB President/CEO David Rehr's "Radio 2020" initiative.  Radio needs to be a part of new technologies, rather than run from them or pooh-pooh them as just fads.

This move by Nokia is another wake-up call for broadcast radio.  While there may be long-term value in introducing something totally new to the gadget world - that is, HD Radio - it is even more imperative that radio find its way into existing technologies.  In the case of mobile phones, these are gadgets that are far more than just phones.  They are lifelines, fashion statements, photo albums, texting devices, alarm clocks - and people don't leave home without them.

As radio loses its grip on portability to these devices and iPods, wouldn't it be wonderful if AM/FM stations could easily and conveniently be accessed by cell phones?

Jacobs Media Summit 12 Recap

We've put the finishing touches on Summit 12 - something we're sure that many readers of this blog will be thankful for.  But the NAB/R&R Conventions - and the Summit - were a great experience for us this year.  And I wanted to thank a number of people, and give those of you couldn't make it a sense for how it came off.

Clockwise from top right: David Rehr, PPM Rocks Panelists (John Snyder, Charley Lake, John Fullam, Paul Blake), and Dave Beasing in the stylish hat.  Top left: Richard Laermer, and Fred Jacobs, center.

First, "The Bedroom Project."  All of us at Jacobs and Arbitron were thrilled with the receptions to both presentations - the Tech version at the NAB on Wednesday, and "Radio Uncovered" at the Summit on Thursday.  In that second presentation, a packed room saw Dave Beasing and Dr. Ed Cohen focus on radio's difficulties and opportunities with a young generation that is clearly media and entertainment focused.  And Dr. Ed's insights about how "Bedroom" has shed light on the difficulties of attracting young participation in research studies, as well as how PPM is developing because of studies like this one, was riveting.

These revealing video segments were put together by Paul Jacobs, Dave Beasing, and of course, Tim Davis, who once again designed the look of this project.  Video modules from these presentations will be available at a new site that Arbitron has launched, www.thebedroomstudy.com on October 8th.

NAB President/CEO David Rehr kicked off the Summit for the second consecutive year.  He talked about his new "Radio 2020" initiative, and candidly answered all my questions about satellite radio, the convention, and how the NAB is changing under his leadership.  David is truly an inspirational leader, and his presence at Summit 12 was an honor.  (And we also found out that he owned the 8-track, "Cat Scratch Fever" by Ted Nugent.  How's that for a nugget?)

Our "PPM Rocks" panel truly rocked.  We were blessed to have three key players from Greater Media's Philadelphia team - John Fullam, Paul Blake, and Charley Lake - representing management, sales, and programming.  And Arbitron's John Snyder used his data, and his wit, to tell the room some important facts about PPM that most attendees had never seen.  It was a breakthrough session, and one that hopefully sets the tone for PPM and Rock Radio in the years to come.

And finally, Richard Laermer punked the room with his treatise on "Punk Marketing."  Using real-life advertising examples, as well as some marketing efforts from radio stations, Richard urged the room to get out of conventional marketing traps, be transparent and not be afraid to cede some control to the audience.  He's a great speaker, and we were glad to have him anchor this year's Summit.

Thanks go to Summit sponsors Mercury Research, ILG (Independent Label Group), CMI, The Bob & Tom Show, Arbitron, The John Boy & Billy Big Show, and of course, MusicMaster.  In fact, MusicMaster sponsored giveaways throughout the session, including a new Dell laptop loaded with their scheduling software.  The winner?  A great guy - Mark Hendrix from Entercom's Greenville/Spartanburg cluster.

Also, thanks to the entire Jacobs Media staff.  Paul Jacobs, Dave Beasing, Tim Davis, and Lisa Riker were big movers and shakers for Summit 12, along with Bill Jacobs, Keith Cunningham, Ralph Cipolla, Eric Holmes, and Elnora Lowe.

And to the Arbitron team - Dr. Ed, Barb O'Hare, Bill Rose, Jessica Benbow, Liz Bruen, Ron Rodrigues, and others.  And of course, our friends at R&R.

We will have streaming video of the Summit sessions posted on our website soon, and we'll send out an email alert when they're available.

Next year, see you in Austin.

TV In "The Bedroom"

As regular readers of this blog are only too aware, our "Bedroom Project" presentations will be made this week at the NAB/R&R/Jacobs Media Summit gatherings in Charlotte.

All of us here at Jacobs Media and inside Arbitron have gotten to know our 31 young respondents on a very up-close-and-personal basis.  We have also watched recent Media Post emails, as well as observations by various media and entertainment columnists, pundits, and writers with keen interest, as America grapples with the rapidly changing tech environment.

Our conclusion?  Ethnography is a very effective research tool, despite the small numbers, our narrow demo, and two markets (LA and Columbus) as our interview pool.  The "data" we have been able to mine from these two-hour videotaped interviews has been spectacular, and we think predictive of where it's all headed.

A case in point was an article last weekend in the New York Times in a special "Television" section to herald the networks' Fall lineup of shows.  Titled "Television: You Are What You Watch," writer Alessandra Stanley makes some fascinating connections about the power of TV, the addition of control and choice with DVRs, and the social discourse that compelling programming creates.  This is precisely what we saw in "Bedroom," even among a very active, engaged tech-rich demographic.

Stanley goes further, suggesting that "a favorite show is a tip-off to personality, taste and sophistication the way music was before it became virtually free and consumed as much by individual song and artist." (Italics mine)

And that's precisely what is occurring here.  It is rare to hear that debate about music.  Do you remember, sitting around your dorm room, and arguing about who was the better band - the Beatles or the Stones?  Or more recently, "Is Coldplay a derivative of U2?"  Or "Is Silversun Pickups really the next big thing?" Or "What will the reunified Van Halen really sound like?"

Instead, the "action" is about the demise of CTU on this year's "24," who's doing who on "Grey's Anatomy," and can "American Idol" top itself once again?  Consumers who occupied their time trying to find that next underground, cult, indie band are now doing the same with TV shows, such as HBO's "Fight of the Conchords."

Television has reinvented itself, and technology (HD, plasma, DVR, streaming video, network websites) has enabled its re-ascension to the top of the entertainment heap.  As Proctor & Gamble's director of multicultural marketing Najoh Tita-Reid points out, radio is “almost irrelevant” for most campaigns.  The reason, she says, is that “it’s not as sexy” as TV.

There's a lot to be learned by what is happening socially, culturally, technically, and programmatically in TV Land.  And we're excited that "Bedroom" will help pull back the curtain and take us into the dormitories, bedrooms, and apartments so we can watch it all happen.

You can see both "Bedroom Project" presentations at the NAB/R&R Conventions in Charlotte.  Conceived by Arbitron and conducted by Jacobs Media, "The Bedroom Project" is an ethnography study about media, technology, and survey research.  The presentations are this afternoon at 3:45 at the NAB and tomorrow afternoon at 2:15 for the Jacobs Summit 12.

Has Mountain Dew seen "The Bedroom Project?"

Jacobs Media's Dave Beasing offer his thoughts on Mt. Dew's marketing strategy:

No, they haven't see it, but they're clearly learning a lot about their consumers' attitudes in their own research.  In the Arbitron/Jacobs "Bedroom Project," one of the many revelations is the motivation for playing videogames.  The folks at ad agency BBDO and Mountain Dew seem aware that videogamers are extremely competitive, enjoy the social aspects of videogaming, and try to avoid losing their cool during battle.  The creative result is this television commercial for Dew's new energy drink:

If the Dew Game Fuel marketing team had used traditional consumer research, they might have tried to sell that delicious cherry flavor.  Or they may not even have known that their target consumers play Halo and are beyond excited about the upcoming release of Halo 3.  But with ethnographic research, marketers see real people showing their real emotions in their natural habitats.

Fred Jacobs, Arbitron VP Ed Cohen and I invite you to witness real people using media and technology during our presentations at the NAB/R&R Conventions and Jacobs Summit 12 in Charlotte.  Sorry.  We won't be showing a single chart or graph, but you may actually learn more about today's young people than if we had.

You can see both "Bedroom Project" presentations at the NAB/R&R Conventions in Charlotte next week.  Conceived by Arbitron and conducted by Jacobs Media, "The Bedroom Project" is an ethnography study about media, technology, and survey research.  The presentations are Wednesday afternoon at 3:45 at the NAB; Thursday afternoon at 2:15 for the Jacobs Summit 12.

A Cautionary Tale Chapter 2

Paul Jacobs offers a follow up to his piece earlier this month about marketing mistakes:

A while back I wrote a posting about how Diet Coke's market share has fallen and pointed out several lessons that broadcasters could learn from their experience.  Here's another example from outside of our business that points out the cost of poor decisions.

Unilever has announced they were putting their laundry detergent business up for sale (remember Wisk?).  This is noteworthy because a few decades ago, Unilever was locked in a pitched battle against Procter & Gamble (Tide, etc.) for supremacy in this highly profitable category.  Hundreds of millions of dollars in advertising and marketing were spent - this category is extremely important to both companies because of the huge profit margins involved and the proceeds go to invest in new products and increasing market share.

The fact that Unilever is getting out of the business shows who the big winner is.  But in a recent article in Advertising Age, two reasons stand out that we should take note of:

1. P&G aggressively conducts research and isn't afraid to innovate.  They were one of the first believers in ethnography, where consumers are viewed using the product in their natural environs.  They knew that data was valuable, but there's no substitute for observing consumer behavior.  While P&G researchers were watching consumers wash their underwear in their basements, the article notes that "Unilever executives hadn't been in a laundry room for years," and in an interview in 1999, their President was quoted as saying, "That would never happen here."
   
   He doesn't have to worry about that any more.  Of course, he probably has someone else wash his underwear.
   
   As we learned while conducting "The Bedroom Project" ethnographic study for Arbitron, observing consumers in a natural setting interacting with and talking about a product is incredibly valuable, and something radio needs to do more of.  The mystery behind why radio listeners do what they do can be found simply by observing behavior and following up with key questions.
2. P&G played hardball.  Last year, P&G spent $218 million marketing their laundry brands compared with $25 million for Unilever.  They swamped them.  In radio, we're trying to defend ourselves with shrinking promotion budgets while Apple spends hundreds of millions to market iPods and iPhones and Sirius and XM spend even more marketing satellite radio.  Why are we surprised to learn that usage of these products are cutting into time spent listening to radio?

Some of the solutions for radio's challenges are out there.  We can learn from other's mistakes.  And mistake number one is, "Don't become Unilever."

You can see both "Bedroom Project" presentations at the NAB/R&R Conventions in Charlotte this September.  Conceived by Arbitron and conducted by Jacobs Media, "The Bedroom Project" is an ethnography study about media, technology, and survey research.  The presentations are Wednesday afternoon at 3:45 at the NAB; Thursday afternoon at Jacobs Summit 12.