JacoBlog - Jacobs Media's Blog

The End of Low-Hanging Fruit

The recent announcement by Anheuser-Busch that they are cutting marketing budgets to stave off the takeover from a Belgian brewer is another slap in radio's face.  In this chapter, the beer company that has dominated radio advertising for decades has decided to pull significant radio dollars off the table - and in some cases, is eliminating its radio buys in many markets.  Yet, it appears that A-B - rather than hacking its marketing budget uniformly across all media - is simply moving these radio dollars into other media.  For many stations that are dependent on beer advertising, this is yet another setback.

But in the bigger picture, the rules of buying and selling radio time have been undergoing changes for some time now.  The days of account reps who work for highly-rated stations sitting around answering the phone and giving out their rates are over.  As budgets tighten and competition increases, only the most creative and aggressive will succeed.   Nothing is as simple as it used to be for radio, and will probably never be that way again.

In many markets, we work with stations that are top-rated in the glamour 25-54 adult demos and they are struggling mightily to make goal.  The old adage that "If you get the ratings, the sales will follow" has been upended by the reality that radio is not going to get the dollars simply because that's how they've historically been allocated.  Just ask the marketing guys at A-B.

Instead, clients are looking for results, not numerical justification for higher rates or "getting on the buy."  Today, sales people have to SELL.  They have to be creative, and they have to provide solutions, not just cost-efficiency.  And that means developing programs that show results.  Retailers aren't interested in 25-54 shares and better cost-per-points.  They want people in their stores, buying their product.

A recent article in the New York Times told the story of Heinen's Fine Foods, a local grocer who is up against the big guys.  Rather than trying to win with lower prices, Heinen's has come to realize that in order to keep and win customers, there's a need to tell stories, a lesson they learned from competing against Whole Foods.  To generate sales and loyalty, Heinen's now trains its employees with an arsenal of 50 stories they can tell customers about the meat, the produce, and other store items.

A few years ago at another Jacobs Summit, marketer Tom Asacker told the story (that's what HE does well) about a how a good story can trump data every time.

Tom was correct, and radio needs to learn these lessons well.  The medium has tremendous power.  It can drive large audiences to web sites and car lots.  It can motivate listeners to download coupons and show up at phone stores.  But the simple times of getting ratings and easily converting them to easy sales are over, and radio is going to have to work harder at telling stories - ITS stories.

No, I'm NOT Trine...

Today's blog from Keith Cunningham wisely reminds us of the importance of maintaining updated direct mail marketing lists:

What do the following Los Angeles stations, KIIS, KYSR, KOST and MY-FM (formerly KBIG) have in common?  Yes, they're all owned by Clear Channel, but that's not the answer.

It's that I've been consistently receiving direct mail pieces from each station since 2001, for both the spring and fall books.  Kudos to Clear Channel for actually spending money on marketing and not taking the success of brands like KIIS and KOST for granted.  But there is a problem.

For this entire time - more than seven years - they think I'm someone else: a female who's probably between 25 and 44.  In other words, their direct mail lists have been flawed for years, and as a result, they're wasting money on me, as I'm clearly not part of the target.

I'm registered to vote, my driver's license is current, and every other direct mail company seems to know who I am.  So it's only these radio pieces that are misaddressed.  Further, I've NEVER received another piece of mail addressed to this mystery female.  And the previous two tenants who've lived at my address aren't the person they're targeting either.  So we're probably looking at a decade of errors or even more.

Some of you may remember I blogged about this last year, but since I'm looking at yet another stack of spring book direct mail pieces from each station, and more wasted money, I thought I'd take the time to post another reminder.  If your station is engaged in direct mail or telemarketing, make sure your vendor frequently updates their lists to ensure accuracy.   While there's always going to be a certain percentage of "waste" with these programs, radio faces enough obstacles these days.  The last thing it can afford is wasting money on unreliable marketing lists.

Shuffling The Deck

As we become more attuned to analyzing PPM numbers, it's looking more and more that well-branded and well-positioned Classic Rock stations should do very well in a metered world.  Of course, many operators of Classic Rock stations have experienced two decades of pretty consistent success, playing the best rock from the '60s, '70s, and '80s.

But there are some stations that do an especially good job of repackaging the music to create memorable special programming.  I call this "shuffling the deck" because it involves playing many of the same songs but in a different format.  The now-famous "Classic Rock A-to-Z" is a good example, as is the ubiquitous "Top 500 Countdown," typically scheduled over Memorial Day Weekends.

One station that always seems to come up with clever specials is Entercom's Eagle in Sacramento.  Curtiss Johnson, Brian Lopez, and their veteran staff have become experts at melding Classic Rock with a little old school theater of the mind.  This week, they're taking another "Classic Rock Road Trip," cruising across the country (forget those high gas prices) to feature music from many different cities and towns.

Maybe this all sounds simple, but the reality of putting together something like this (and doing it well) is that it takes several staff meetings and brainstorms, storyboards, show/prep scripts for each state and city on the tour, and a great bit of writing and production that makes "Classic Rock Road Trip" come alive.  The feature generates a huge audience reaction, fueled by the fact that many Eagle listeners moved to Sacramento from somewhere else.

My favorite Eagle stunt, however, is "Woodsquawk," a virtual/fantasy music festival that is always entertaining, colorful, and enhanced by great personalities like Bob Keller, Tom Nakashima, Charlie Thomas, Kat Maudru, and even syndicated hosts, Mark & Brian.

Download an Mp3 Of The "Woodsquawk" Aircheck

If you ever wonder about the value of having knowledgeable, respected local jocks, look no further than Entercom Sacramento.

Email & Radio

There are times when Radio seems almost Third World in its efforts to catch up to other media, when it comes to technology and digital strategies.  But there's one area where Radio is often ahead of the curve - email databases.

At Jacobs Media, we have been fortunate to work and interact with a variety of "competitive media" in television, print, and other technologies.  And we're often shocked by how little thought is given to the strategy of amassing customer email addresses, and creating communities.

But in Radio, we've been doing it for years.  Yes, there are inefficiencies and other speed bumps along the way, but the chances are good that an FM Rock station in Colorado Springs may have a better and bigger database than many cable television channels and other media and technology entities.

That's why a new research report from Ipsos for Habeas, Inc. caught my eye.  There are a few findings that you may find interesting.

First, more than eight of ten respondents say they prefer doing business with companies that use opt-in permission to send them email.  Of course, in Radio's case, that's the method stations use to entice listeners to sign up in the first place.

Second, more than eight in ten also say that a company's reputation can be negatively impacted if it shares their email addresses with third parties.  There are stations making this mistake right now, and it can do permanent damage to their ability to ever rehab the audience relationship.  While sales should have every opportunity to make money on digital and interactive products, a line in the sand needs to be drawn when it comes to turning over a database to advertisers.

Finally, nearly nine in ten say they would like companies to give them more choices over the content and frequency of the emails they receive.  This includes advertisements, coupons and special offers, articles, etc.  This is the next step where Radio stations need to go with their databases, and it's a simple web poll/research procedure than can help determine what members of your email club actually want.  Too often, I receive station emails hyping concerts, presales, and events I have no interest in.  Get to know your database members, find out their interests, and tailor your communiqués to their interests, and the connection grows stronger.

Radio has made considerable progress with email database marketing.  Email "blasts" are getting better, and stations are gathering intelligence about the best ways to communicate with their online audiences.  Giving the database what it wants by customizing content to their interests is an important next step in creating even better relationships, loyalties, and communities.

Your Wildest Streams - Part 4

Now that AOL and CBS Radio have hooked up in what CEO Dan Mason says is a merger that "has instantly doubled our daily audience of listeners," it's another victory for strong brands.  For years, AOL has offered generic streaming radio stations that were as exciting as wallpaper.  Now with 150 CBS Radio stations to choose from, AOL-goers can actually find a better radio listening experience - or can easily find a radio station they've heard from during their travels around the U.S.

The player (shown below) is nice looking, and provides album art in-sync with what's playing, the chance to rate and/or buy the song (or the album), as well as designate the station as a pre-set or share it with someone else.  On the left is a list of the CBS stations available.  Of course, there are no fewer than 8 Jack-FM stations on the list, and it's not always easy to find a station that you're searching for.  (Maybe list them out by markets - or at least offer that as an option, so the user can look through NYC stations, for example.)  The stream sounds good technically, and as we've discussed in this space, that's not always the case.

Overall, this is another indicator that big streaming brands will easily best "generic radio stations."  With its personalities, production, and elements that you could only get from a real radio station, this plan should be a big winner for both AOL and CBS, especially if it can generate significant web revenue.

CBS is positioning its terrestrial radio stations for the future by offering them up to a much larger web audience.  This bodes well for traditional broadcast companies as they seek out smart alliances moving forward.

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?"

I Mel-ed Them To Death

While watching a recent streaming video segment from CNBC - "The Business of Innovation" - featuring Mel Karmazin, it reminded me of Mel's talent for proofing ideas and forcing his people to exercise logic, strategy, and fiscal sense.  In the clip below, Mel talks about how Sirius came up with the idea of streaming television (Nickelodeon, etc.) for mini-vans in a deal they put together with Chrysler (starting at about 7:35 into the clip) .  He refers to his "devil's advocate" method that demands sound answers for a plan, and notes, "I Mel-ed them to death."  Of course, when his team was able to justify the plan, he green-lighted it.

>Click For The Video<

If you ever asked Mel for a music test or to hire a particular jock or to even change formats, Mel would put you through the ringer.  It wasn't always pleasant, but it forced you to think the strategy through, from beginning to end.  In the process of honing your own thinking in order to "do battle" with Mel, you ended up crafting the best argument for going forward - or in many cases, not bothering to pitch a mediocre idea in the first place.

As the radio industry constricts and belt-tightens, too many good ideas aren't seeing the light of day.  And too many positive and important components of radio success are being blindly cut in order to reduce expenditures.  Perhaps the "Mel Method" - forgotten by many, but still a very valuable exercise - is a great litmus test for the evaluation of "best practices."  (I still hear his voice in my head.)

Beyond the "7 Dirty Words"

The passing of George Carlin this week brought many memories to mind, especially the controversy, the language, and indecency comparisons.  For many comedians and even DJs, Carlin was very influential in their career choices and even their development as entertainers.

But there was another side to George that came to light, from ESPN fantasy sports maven, Matthew Berry.  Just out of college, Berry was a gofer for Carlin on a Fox TV show.  Every week, people would send in loads of pictures and memorabilia for Carlin to sign, and he dutifully and cheerfully complied.  When Berry asked him why, Carlin offered this comment:

"I always do it.  No matter what.  Look, it's 30 seconds out of my life.  And now those people had a good experience.  And the next time my name comes up, for the rest of their lives, they'll say 'Yeah, I met Carlin once.  He was nice.'  I'd much rather that than a lifetime of 'Yeah, I bought all that guy's albums and then he wouldn't even sign my hat.  That guy was a jerk.'  Thirty seconds for a lifetime?  I'll do that every time."

George Carlin understood a lot about the human condition and what made people laugh - and think.  But he also had a keen sense of what entertainers bring to the lives of fans, and the relationships that are created in the process.  In our world of radio, these relationships still matter, and in fact, are very much a part of our "secret sauce."

A quick recap of "The Seven Dirty Words" (*caution: not safe for work!)

Who's Your Tom Brokaw?

The news of Tim Russert's passing still seems unbelievable.  No one could have possibly anticipated this tragic event.  Yet, NBC News - after some in-depth, difficult meetings, to be sure - came up with a solid strategy for Meet the Press in an unprecedented election year.  They've called veteran news anchor, Tom Brokaw, out of semi-retirement to handle Russert's hosting duties, at least through the election.

And that raises the question that many radio managers and programmers should be asking:  What would you do in a similar circumstance if something tragic befell your big morning guy or team?  Is there a plan in place that would allow a station to look down the bench - or utilize other resources - in order to fill a painful gap?

Radio's talent is aging, and it seems like there's a death notice every day in R&R Today.  Aside from planning for the future, as in "Who will be the personalities of the future?", radio needs to start thinking more present tense - just in case.

A JacoBlog Quiz

Take a good look at the three pictures, and guess which one is the pirate:

If you picked "C," you're on the same page as musicFIRST spokesperson, Martin Machowsky, who was quoted as saying that broadcasting music without payment is "a form of piracy."

So, first the RIAA goes after 14 year-olds who download music.  Now, radio is a form of piracy?

These guys are getting more desperate and illogical by the day.

AAARRRGGGHHH!!!!