JacoBlog - Jacobs Media's Blog

Competing Against Everyone

There was a time only a decade or so ago in Rock Radio where we had it all to ourselves.  We controlled our music and our pop culture.  Sure, some of Rock's featured bands would appear on Saturday Night Live, and there was always the competition from MTV.  But for the most part, if you worked for a big Rock or Alternative station - even in a smaller market - you controlled the agenda for how music and concerts were exposed and promoted.

Today, you're competing with virtually everyone.  Wherever you look - on and off the Internet - Rock is being marketed in a multitude of different arenas and venues - and I'm not just talking concerts.  NPR does a better job of interviewing our bands and marketing our core product than we do.  Case in point - a Raconteurs concert that was recently broadcast via NPR.org.  And it seems like every week, "Fresh Air's" Terry Gross or their big news magazines feature interviews and music from artists as diverse as Springsteen and Coldplay.

Of course, Internet sources from iTunes to Pandora expose new music and provide information, background, and free samples.  Artists have their own websites, enabling them to independently market their own music and merchandise - without radio's help.  And fan sites are abundant with their own homegrown coverage of their favorite bands.  In response, most radio station websites provide bare bones music coverage, opting instead to hype station contests and events.

And last week in USA Today came this featured question:  "What's your most treasured concert T-shirt ever?"  That's a fun, highly relatable question that is sure to spawn many listener photo entries.  It's a great example of letting listeners get in on the act, sharing their emotion and energy in a highly visible place.  It's the essence of CGM - consumer-generated marketing.

And it's something that we should have thought of first.

Too often, if you ask a programmer who he's competing against, he tells you it's Q96 or Eagle 94 or Rock 107.9.  But that's the narrow, "too close to the trees" answer that has hurt radio and caused more of the myopia that stunts our business.  In the real world, Clear Channel isn't competing with CBS, and Citadel isn't going at it with Cumulus.  In reality, the radio company you're working for is up against Apple, The New York Times, MSN, Amazon, Starbucks, and Electronic Arts.

The pop culture/media stage has expanded exponentially.  But too often, Radio is content to sit in its little corner in the back of the room.  And that makes no sense if you consider that in a recent month in New York radio, PPM tells us there are 20 stations with weekly cumes over a million people, and 6 stations topping the 3 million mark.  In a Philly PPM month, 6 or 7 stations have cume audiences above a million.  That's a lot of people still being impacted by radio programming, and it provides the industry with a big pulpit for delivering entertainment and information.

The challenge of reimagining, reshaping, and fulfilling our future is immense.  Yet, if we're going to be players in this new game, we need to answer that difficult question: "What's the digital strategy?"

Dumb & Dumber

Kudos to Edison's Larry Rosin for his recent think piece about college grads and radio.  If you haven't read it yet, it's worth your time.  To give you the 10-second headline, Larry's Arbitron analysis shows that college grads give considerably less quarter-hours to radio than their less educated counterparts.

And he raises a myriad of questions about the implications, which I'll paraphrase below:

1. Is commercial radio programming driving college grads away, and toward other media, gadgets, Public Radio, etc.?

2. Should commercial radio isolate the most fertile of listening environments - at-work - among non-college grads?

3. Why is this phenomenon happening, and why don't college grads spend more time with commercial radio?

4. To make his point, Larry cites San Francisco where non-commercial KQED rules, so is Public Radio doing a better job of serving college grads than commercial radio?

5. And what can we do about it anyway?

Larry's done the industry a service by bringing these issues to the forefront.  Like his original at-work Arbitron survey conducted in 1997, his observations are an eye-opener a decade later.  And like a lot of research, it raises as many new questions as it hoped to answer.

Here are some thoughts to add to the mix:

* What’s the trend on this?  That is, is radio's lower TSL among college grads something that's been regressing over the last decade (since consolidation), or has it always been this way?  We have this same situation in our Tech Polls where the last four years of data is wonderful, but it doesn't really address issues from the '90s - or earlier.  Has radio always had problems with college grads?

* His San Francisco example is interesting.  But are KQED and KFOG representative of most markets?  And notably, a recent Scarborough report identified San Francisco as a Top 10 market where "digital savvies" live - consumers who tend to be on the leading edge of all things techno.

* For college grads, is it simply a time issue, where they just have less of it because of their professions?  And are their jobs less conducive to listening to the radio at-work than their blue collar, less educated counterparts?  It's easier for a construction worker to have the radio on at-work than the attorney or the CPA.

To learn more, I went to our newest Tech Poll where we ask an "early adopter" question.  Sure enough, even college grads who aren't necessarily on the cutting edge of all things technology, are somewhat more likely to be ahead of the curve:

It makes sense.  When you've graduated from college, the chances are good you're making more money, and consequently, can buy more "stuff."  But does Larry's discovery go beyond that obvious truth, and does it have programming implications? As we saw in the KQED example (an exemplary Public Radio station, by the way), many listeners have gravitated to the lower end of the dial all over the country.  Does more "intelligent" programming on Public Radio stations help explain this listening disparity?

We are going to dig deeper into our Tech Poll for more answers.  In the meantime, please weigh in on this interesting topic.

"Online Is The New Primetime"

Today's posting title is a quote from Gian Fulgoni, chairman of comScore, and it cleverly sums up how the Internet now exceeds television during the daytime hours.  In fact, a recent New York Times article actually asked the question, "What is primetime?"  That's because 6,000,000 May sweeps viewers have disappeared since last year.

The culprit?  The Control-Variety-Choice architecture of TiVos/DVRs and the Internet, especially due to the growth of network television sites that offer shows like The Office and Lost whenever you want to see it.

We saw this in our Tech Poll IV in a new question that revealed that four of every ten Rockers now have a TiVo or DVR.  The implications of this are obvious if you're in the TV business.  But what if you're in radio?

At what point will "morning drive" not hold its traditional lead over all other dayparts (aside from PPM)?  When will radio have a podcasting model that makes it convenient for fans of morning shows to be able to easily time-shift their listening?  (And keep in mind that if a PPM respondent listens to a podcast within 7 days of its original airdate, it "counts" in the ratings.)

Last week, we blogged about Hulu, and how radio has some of the same time-shifting potential.  As we noted, NPR understands the model only too well.  They average 12 million downloads a month and that's more than 200 million total downloads since they started their podcast program in August 2005.  And of course, that doesn't cover other public broadcasting networks and producers, or the many local public stations that provide podcasts of their content.  The graphic below shows the most downloaded podcasts on iTunes.  Look how public radio dominates:

And the sponsorship dollars keep rolling in.  Another finding from the Tech Poll is that two-thirds of those who have downloaded a podcast are very or somewhat willing to sit through a commercial as the price of admission.

Maybe instead of calling it time-shifting, we ought to start thinking of it as "dollar-shifting."

CVC TV

If you haven't checked out Hulu.com, take some time over a weekend or a slow evening.  But you'd better prepare to spend a couple of hours watching some interesting television - or perhaps, better referred to as video.  A product of NBC Universal and News Corporation, Hulu is the next wave of video streaming, and the selection is pretty cool.  It may not upend YouTube, but unlike that network - loaded with home videos shot by consumers - Hulu is actual television shows, from right now to the past.  The commercials are unobtrusive, and the variety is steadily increasing.

We talked about the whole Control-Variety-Choice model during "The Bedroom Project," and that's exactly what Hulu is about.  The television networks are buying in, despite the growing pains of revenue generation.  Even though "old media" is struggling to find a revenue model that's very effective, these forays into on-demand online content are signs that the media world is changing rapidly. 

Where does radio fit into this model?  We are woefully out of the CVC race, save for podcasting - the one area where our content can be accessed - and sponsored.

This year's Tech Poll has some encouraging data in that regard.  iPod ownership is now closing in on the 60% mark, and podcast downloading has doubled every year since '06.  Whether you agree that iPods are good or bad for radio, there's no denying that they've replaced the Walkman in the portability race.  And now that three-fourths of Alternative fans own one, how can broadcasters take advantage of this phenomenon?

NPR is well on the way to figuring it out.  Their podcasts stats - downloads and sponsorships - are downright impressive.  While public radio may have more available content than the average music station, the basic model is proof that radio can play in the CVC sandbox. 

April Fugues Day

One of the dumbest and smartest things I've ever heard a public radio station do occurred this past Tuesday - April Fool's Day.  It was the brainchild of WQED/Pittsburgh's Executive Director, Susan Johnson.  Proving that public radio stations can smile, too, Susan's version of radio punk'd was to announce to her audience that WQED's Classical station would become a Classical/Classic Rock hybrid, in an effort to grow the audience and financial pledges.

To give the stunt more credibility (?), Morning Host & Senior Executive Producer Jim Cunningham interviewed "Classic Rock expert" Paul Jacobs about why WQED was making this format morph.  In between Paul's interview segments were ridiculous clips of Emerson, Lake, & Palmer, Jethro Tull, and other bizarre "covers" of rock songs by classical ensembles, put together by Cunningham and morning show producer, Steve Baum.

To add to the joke was an online web survey where WQED listeners could give feedback about the proposed change (65% say that if this change goes into effect, they'll "never give another dime to WQED").

The highlight?  Consider this ridiculous exchange between Paul and host Jim Cunningham:

Click Here To Download The MP3 File

The Pittsburgh Post-Gazette ended up writing about WQED's misadventure into Classic Rock, providing the station with some well-deserved, tongue-in-cheek ink.

I'm sure there were many hilarious stunts that radio pulled off this April Fool's Day (hopefully, none of which triggered an FCC inquiry).  But WQED's efforts underscore what any station can do - with no budget - to make some noise, have some fun, garner some PR, and remind the audience how thankful they should be their Classical station will never play Jimi Hendrix again.

The Vision Guy

Paul Jacobs chimes in on the importance of leadership with vision:

Several years ago, in a last-ditch attempt to save the company, the board of Apple Computers turned to the one person who truly understood the company's core values - Steve Jobs.  The rest is history.  By restoring the "mojo" of the company and focusing it on leading-edge technology and user-friendly, attractive designs, Apple today is a powerhouse.  The halo effect of the iPod has even turned around the fortunes of their long-dormant personal computer business, and now Macs are flying off the shelves.

Over a month ago, a similar event happened at Starbucks.  To stop its stock slide and to fend off new competitors like McDonald's, the company is bringing back their original visionary as CEO, current Chairman Howard Schultz.  In announcing his "transformation agenda" in a letter to employees, Schultz laid out four goals.  Here are two that caught our attention:

• Re-igniting emotional attachment with customers.
• Building for the long term.

Pretty simple, isn't it?  These two "bullet points" are the essence of any great brand.  And they are "action steps" that the leaders in the radio industry should carefully consider.  When you strip away the rhetoric and quiet the pundits, this is the recipe to turn radio around.

One of the most disappointing trends over the past decade has been the exodus of the "celebrity program director" - the visionary who truly understood the station's brand, core values, and its emotional relationship with its listeners.  They were the people who defended and protected the brand inside and outside the station.  While there are still a handful around, the loss of these outstanding product managers has led to the decline of great radio stations as local media institutions.

And when you lose the visionary, you lose the brand essence that created stations like WMMS, KVIL, and so many others that have deteriorated into ordinary, pedestrian radio stations.

We're often asked why, in the face of declining overall listening to radio, Public Radio continues to thrive?  It's simple - everything about Public Radio programming is long-term.  And they cherish their audience relationships.  They're patient, they nurture their programs, they research their listeners' needs.

Their conventions and meetings are more frequent, better attended, and more considerate of the values and qualities that contribute to product development, brand building, and audience relationships.  While admittedly they don't suffer under the pressures of Wall Street or profit goals, they are in fact businesses that need to pay bills (with a lot less government support than people think).  The bottom line is that Public Radio succeeds because they think long-term.

And while Public Radio doesn't have "celebrity" program directors you've heard of, most have been in their local communities for a long time and understand how to connect with the locals.  Additionally, Public Radio's core values are brilliant, concise, and imbedded in the minds of every person responsible for the creation of programming.  They are the guiding force behind their emotional attachment with their listeners.

So, the next time you are asked to create a strategic plan, stop writing reports.  Learn from great visionaries like Jobs and Schultz, as well as successful broadcasters, perhaps like the Public Radio station in your town.

"If You Build It...

...they may not come."  The old thinking is that great web content on radio would develop via word-of-mouth, and perhaps a promo or two on the air.  But as web efforts have improved, and media outlets have multiplied, how can radio stations (or any other entity) draw attention to cool, useful web features and improvements?

Aside from strong on-air campaigns, how about dedicated emails like the one we received last week from NPR, promoting their election coverage - on-air, on-line, on cell phones, etc. (see below)?  This isn't just a big election year - it could be a political revolution, and NPR's email to its database members is a focused, no-frills effort to remind listeners about its content offerings.

Too often, radio station emails are cluttered, contain too many messages, and require the reader to scroll down well past the point of realism.  Or they continue to be last minute efforts that are not especially well-written or put together.

When you have thousands of nicely aggregated P1 email addresses, treat them like the fantastic customers they are.  Respect their time, deliver a strong and targeted message, and do it with a sense of care and class.  It's another reason why public radio ratings continue to buck the downhill trends.

The Content Mountain

In yesterday's blog, we talked about how the Eagles have circumvented Rock radio, record labels, and traditional avenues that used to be mandatory for music discovery, exposure, and sales.

Today, I want to show you an exciting new website that NPR recently launched - http://www.npr.org/nprmusic/

It's a cooperative venture between NPR, and some key Public Radio stations, including WXPN, WBGO, KEXP, KPLU, WGBH, KUT, JazzWorks, Minnesota Public Radio, and others.  The idea of the site is to give Public Radio listeners a chance to discover the music they hear on the network's programs, as well as on the air at the various stations involved in this initiative.

The site is rich - there are extensive music resources aimed at giving visitors a chance to sample music from a variety of genres, along with concerts, studio sessions, interviews, and music news.  It's a very cool site, and it's loaded with great content.

As we've discussed in this blog, radio is losing its vise grip on being the primary source of music discovery.  Between sites like iTunes and Rhapsody, video games, TV shows, and other outlets, consumers are finding myriad ways to learn about new music.

So where does this leave broadcast radio?  Well, one approach is to throw in the towel, concede the position to other media, and focus solely on personality, allowing its listeners to go elsewhere to find out about music.  Another is to take the more proactive role, as NPR has done, and provide the audience with a sense of control, variety, and choice. In fact, many DJs are still well-respected "guides" who listeners trust to help them decide what's worth listening to.

Where radio drops the ball is on its websites, sometimes virtually devoid of useful and entertaining music resources.  Consider the possibilities:  Classic Rock stations could do a great job of exposing its audience to new music from legendary artists, such as Springsteen and Dylan.  Alternative/Active stations could provide music information, social networking, and other tools that would help its more engaged listeners stay ahead of the pack musically.

These initiatives require time, personnel, expertise, and money.  But as Sumner Redstone reminded us all the other day at the Media & Money Conference, “Professionally produced content only increases in value as digital platforms multiply.”  And this: "We are now in a fragmented search economy, which means we need to extend our content beyond our own destination sites so consumers can reach it more easily... The content mountain has officially relocated."

Pretty sharp for an 84 year-old guy.

That's why this NPR music discovery site is so damn impressive.  They brought together different thinkers from different stations, formats, backgrounds, and geographies to achieve a common goal.  And they didn't just launch this site without a great deal of thought and effort.  They conducted research throughout this past year to ensure the site would be congruent with the tastes, expectations, and values of its audience.  (Full disclosure:  Jacobs Media conducted much of this research.)

It takes investment to have a bona fide place on the "content mountain."

Sometimes, it's NOT about the music

At Lincoln Financial Media's FM 94/9 in San Diego, they proudly say, "It's about the music."  But when over 300,000 people have been evacuated and everyone else in the county is "on standby," it's about vital information.

So when the local public radio station that has a big reputation for news coverage had their transmitter go up in flames, FM 94/9 Program Director Garett Michaels and VP/General Manager Darrel Goodin acted quickly to air KPBS' continuous coverage.  As DJ Tommy Hough explained before throwing the switch on Tuesday morning at 8:30, the decision was simple:  "We have a signal.  They have a great local news team but no signal.  It's in everyone's best interest to hand over our airwaves to KPBS."

If you got into this business to make a difference, know that you do, every day.  Sometimes it's by playing a favorite song or making people laugh.  And sometimes it's by doing what's least expected but most needed.  Congratulations to FM 94/9 and KPBS for their unprecedented cooperation.

NPRadiohead

In a very Public Radio way, Radiohead is going to sell its new album, In Rainbows, by letting consumers set the price they're comfortable paying.  They can set their own price - or pay nothing - in order to access the music.

And of course, that has similarities to the Public Radio model.  Listeners can choose to support their local station with a check - or they can simply opt to enjoy the programming without paying a dime.

Of course, Radiohead is going to do it without those annoying pledge drives.

As the music industry searches for a new revenue model, this one will be worth watching.