JacoBlog - Jacobs Media's Blog

A Big Day In Radio

It seems like broadcast radio is almost always overshadowed by other media - whether it's TV, Internet, satellite radio, or movies.  Too often, radio is either overlooked or it's a putdown story about how radio is tight-listed, predictable, voice tracked, or slashing more staff.  

The anti-radio press has been exacerbated by the fact that so many well-known radio personalities are simply MIA - from Adam Carolla to Steve Dahl to so many other once-big names who ruled the airwaves.  To a great degree, we've done this to ourselves as more and more celebrity DJs simply cannot get themselves back on the air. 

So the return of Drew Lane to WRIF this week, and the "Drew & Mike Reunited" theme stands out as a happy exception.  First, kudos to Lane, Mike Clark, and everyone else in the cast for preparing a great debut show.  Second, the management and staff of WRIF is to be congratulated for putting together a multi-layered media campaign that earned coverage from both local newspapers, as well as all the local TV stations.

In fact, Detroit Free Press reporter, B.J.Hammerstein conducted a live chat with listeners from right inside the control room throughout the entire show, as media folks and camera crews were in and out of the studio all morning.  The chat thread alone is worth the price of admission.

>CLICK HERE TO READ THE LIVE CHAT<

The station broadcast the first show via webcam, and web visitors were greeted by a big splash page making it easy to access and enjoy the show.  Again, there was no question what WRIF was all about on this day.

Radio needs to be the center of attention in local markets, instead of always being relegated to the back seat.  It took money, vision, and some balls for everyone involved to step up and make this event happen for WRIF.  The PR and sales response alone indicates a successful launch, and in a just a few weeks, we'll see the PPM evidence.  

It was a great day for radio in a town looking for some good news.

Full disclosure:  Jacobs Media consults WRIF.

Making The Buy

iBiquity is doing something right.  Realizing that part of the HD Radio solution is to get inexpensive, cool-looking hardware into the hands of consumers is a key factor.  Now the Insignia portable at $50 is on the market, available at Best Buy, and it's a chance to flood the market with inexpensive, portable radios.  There are lots of nice features on this Insignia unit, so to provide a little insight on the buying experience, our intrepid reporter, the Conclave's Jay Philpott made the trek to a St. Louis Best Buy.  Here's his report:

Upon reading in this morning's trade press that the first portable HD radio (the Insignia NS-HD01) was available as of today, I resolved to get one.  By early evening, I had a chance to get to my local Best Buy, and before walking in, reflected on the tales I've heard over the past few years about how uninformed the sales people at the "big box" stores were when it came to HD radio.  I braced myself for the worst, but it wasn't the central problem I experienced. 

I was happy to learn they had received 5 units, and according to the sales person, only three remained.  The question was: Where was the radio?  Although it was assigned to the "home theater" department, it wasn't stocked there... it wasn't in car audio or computers either.  

At one point I had three sales associates surfing the store computer, calling out SKU numbers and canvassing the store.  I was happy to hear that they were a bit more informed as to what the product was even if they still referred to it being a device that was "like satellite."  At least they knew it was an adjunct to FM.  Finally, the stock of radios was located in the section with mp3 players... and that makes sense, although there was no prominence in the display to alert anyone to the presence of this new product.

The Insignia is a pretty cool-looking radio, unlike some of the designs of its tabletop predecessors.  It's about half the size of an iPhone, has a nice LCD interface and pretty intuitive controls... it does not have an onboard speaker - so the only way to listen is with earbuds or headphones.  

Still, it's a nice device.  But, there is work to be done to insure that consumers won't have to endure the process I went through.  I'm not so sure that the moderately interested buyer would wait the 40 minutes I did just to get this new radio, even at the very reasonable price of $50.  And the manufacturer needs to be a bit more aggressive with the store to get shelf space and signage.

As an industry, we should support this effort with better promos than those offered by the Alliance.  They seem to be shooting more for creative writing awards than selling actual radios.  None of the ad campaigns has really done much to entice a consumer to the medium of HD Radio by extolling the virtues of the unique programming.

And as individuals in the industry, I submit we all commit to this exercise:  Pick a Best Buy in your market and go there as a normal shopper.  Inquire about this product.  See what product knowledge the sales associates possess.  If they seem to struggle with the product description, how it works, etc... help them through it.

Let the teaching and learning (and buying) begin!  An appropriate spirit since the Conclave begins this week!

The Black Swan

You know the scenario all too well.

Cluster A has a dominant Country station, so to counter it, Cluster B takes one of its loser FM signals and goes right at it with a Country spoiler of its own.  

Cluster A won't take that lying down, so they deploy one of their dog FMs, changes the format and puts on a Classic Hits format to try and upend Cluster B's successful Classic Rocker.

Petty?  Self-serving?  Typically radio? 

Well, not really, based on the escalating war that Google and Microsoft are now engaged in (and let's not leave Apple out of the mix).  

First, Google creates Chrome, a web browser designed to steal market share away from Internet Explorer.

Then, Microsoft launches Bing, its answer to Google Search.  Bing has received positive reviews, and might emerge as a player in the search space. 

Not to be undone, Google announced last week that it's going to create a new computer operating system - Chrome OS - designed to rival Windows' long-time dominance.  Talk about lofty goals.  

Are these upstart events simply crazy or is this just the same kind of back-and-forth maneuvers common to radio formats over the years?  How rationale is it to go up against Google or Windows?  Yet, each company is confident they can do just that to each other.

The history of dominant brands suggests that it is indeed possible to create a new brand or product in this space that can rival - or even topple - a long-time category leader.  It's the "black swan" theory, popularized by Nassim Nicholas Taleb's book, The Black Swan: The Impact of the Highly Improbable.

And we've already seen it happen.  Remember that the dominant, first-in search engine was Yahoo! and it was rapidly obliterated by Google.  And that Facebook is set to pass MySpace for social networking (yes, we even saw that trend happening in our Tech Poll V).  Blockbuster has gotten kicked around pretty good by Netflix, too, in another example of how innovation can lead to improbable changes of the guard. 

And in radio, it happens, too.  The Power Pig destroyed WRBQ.  WNRQ put WKDF out of business (forcing it to become a successful Country station!).  And WYSP crushed WMMR in the '90s - only to see WMMR come back and return the favor in the '00s. 

There are scores of other examples in the radio space that speak to this notion that market leaders can be upended by clever, innovative challengers.  The improbable can and does happen, and the rapidity of the Internet appears to usher in more of these "black swan" moments.

But they don't happen by accident.  There is research, innovation, and dedication that mega-companies like Google, Microsoft, Apple and others utilize in order to run the kind of drag race necessary in order to damage a dominant brand or company.  It also takes balls. 

As Google stated in their press release about their goal with Chrome OS, "The operating systems that browsers run on were designed in an era where there was no web.  It's our attempt to re-think what operating systems should be."

Now that's an attitude we haven't seen in radio in decades, perhaps since Bill Drake, and yet, reinvention is all we talk about in the trades, at conventions, and in board rooms.  I have long wondered what a company like Apple or Google might do if they swooped in and bought a major radio company, especially during these times when stations are cheap and bargains are plentiful. 

Some re-thinking would be healthy, and beware the "black swan."

Oh, Randy

In a recent RBR email "Opinion Box," the Tribune Company's COO, Randy Michaels, posed the rhetorical question to Arbitron about the diary versus PPM: "Since the results are so different, which time were you wrong?"

And his answer: "Both times."

Which raises some other questions.

Why is the COO of the Tribune Company wasting his time writing editorial comments to a radio trade when his company is in flames?  What is he doing to earn the confidence of his company's shareholders?  Last time I checked, Tribune was still in bankruptcy.

To be fair, the newspaper business has been battered like no other, and has experienced the worst year in its history.  And to be even fairer, Randy Michaels had nothing to do with its failure to keep up with the digital times.  But the promise that Randy and his former Clear Channel team brought to Tribune had all the radio trades going ga-ga.  The innovations.  The out-of-the-box thinking.  The brash, edgy Power Pig tactics. 

Where are they now? 

But specific to Michaels' "Have you stopped beating your wife?" question about diary versus PPM, and which one is more accurate, he knows better.  Different methodologies always yield different results. Go ahead and test the same artist or song in a perceptual study, callout, and an auditorium test, and you're likely to get three different answers.  The phone, the web, and the hotel room all yield different results.  Does that make them all wrong? 

The onus falls on the analyst who has the task of studying the data to determine how to best interpret the numbers and apply them to the problem. 

The diary system has always been archaic, and radio people have had to live with a flawed methodology for decades.  The "bounce" from month to month is often downright scary, and the diary's inability to capture good and bad moments on the radio is well known to any of who have been in the business for more than 15 minutes.

Is the PPM methodology perfect?  Not by a long shot.  And Arbitron has much work to do in order to keep its panel samples strong and healthy.  In many markets, the ups and downs have been within tolerance.  In some of the newer ones, however - like Seattle and San Diego - the settling in the data is frankly, unsettling. 

For years, advertisers and radio people have placed more weight on the ratings than has been smart.  After all, these are "estimates," and while they are the only numbers we have, they are only a cursory look at the lay of the land.  

As Arbitron struggles to get PPM "right," there are going to be ups and downs.  Should their feet be held to the fire when they fall short of sample goals?  Should they move as quickly as possible to get to the bottom of market and format specific ratings anomalies?  Should they continue to upgrade PPM with cell phone only respondents?  Should we ensure that headphone listening is accurately recorded?  Absolutely, on all counts.

But the cheap shots on Arbitron, a company that is easy to dislike for its PR debacles and questionable business practices from years past, are just so unnecessary at a time when advertisers need to have confidence in radio and the companies that measure it.  Arbitron needs to be questioned, tested, and pushed - hard. 

But radio has to play this wisely.  While challenging Arbitron as PPM rolls out, the radio industry needs to take a bigger picture view of the way it publicly criticizes the most visible and widely used ratings services. We have consistently asked the most vocal and snarky critics of Arbitron to keep their questions and even their frustrations at a lower, calmer volume so as not to communicate to the agencies that radio cannot agree as an industry about its ratings service.  

Michaels is no longer in our business, but his trademark outside agitation continues.  Thanks, but let radio deal with its ratings companies. 

The cheap shot mentality at radio, popularized by Jacor, is as dated as the mullet and the Pet Rock.  It's how some in radio used to behave, but it has been replaced by a more business-like attitude and strategic thinking.  

And it won't work in the newspaper business either.

The $ummer Of Love

A recent New York Times article notes the smell of incense in lots of advertising these days - and there are signs that it will intensify into lots of marketing expenditures this year.

A number of brands are dredging up '60s images, clothing, decor, and phrases during the 2009 version of the Summer of Love.  Of course, August marks the 40th anniversary of Woodstock, coupled with the revival of Hair on Broadway, both of which are fueling this nostalgic trend.  Advertisers on the psychedelic bandwagon include Wawa (convenience stores), Macy's, Disney, and Volkswagen (featuring all those original Beetles).  CBS Radio has even created a '60s inspired channel, "Hair."

As Glen Dady, creative director for the agency that's producing the ads for Wawa told The Times, "For people in their late 40s and up, it takes them back.  And the younger people gravitate to it because their video games are playing music from that time period."

Of course, he's referring to Rock Band and Guitar Hero, which have revitalized a lot of Classic Rock for multi-generations of gamers.  For stations that specialize in Classic Rock, what's old is new...again and again... as the country just cannot get enough from the nostalgic '60s and '70s.  That's a great pitch to advertisers, who are always looking for more proof of Classic Rock's long-term viability.  They are looking for a little buzz in a tough economy.  And it continues to cement the value of the Classic Rock specialist in the radio landscape.

Groovy.

The Healing Power Of Michael

Here's a quote from Magic Johnson:  "Michael Jackson made me a better point guard."

What?  It is truly incredible how death can instantly change one's image.  Have you ever seen so many people come out of the woodwork, "deeply affected" by Jackson's passing?

This recent "research" from the website, GraphJam, says a lot about posthumous mood swings and changing attitudes:

Let's put the Michael Jackson story in perspective.  Yes, for the cable news networks, this thing could generate O.J. Simpson-like ratings.  And with medical and autopsy results, child custody fights, and other family squabbles yet to come, this story will be the gift that keeps on giving.  The PPM data in a couple of weeks will no doubt be telling.

But at what point can media outlets not benefit from the Jackson hype?  What is the trade-off for tapping into the most mass appeal story of the year versus going against the grain of the audience's DNA?   Case in point: WNRQ in Nashville, a Classic Rock station that has been quite successful over the years.  Here's an email they sent out to their database (mostly P1s, of course) on Tuesday morning.

And Michael Jackson video coverage of the service was featured on their website the next day (along with many other Clear Channel station sites we checked). 

When does mass appeal news coverage overstep its boundaries and do damage to the brand?  Would a Country station or an AC outlet do the same if (gulp) a Robert Plant bought the farm?

Maybe this is one of those Clear Channel "cram downs," rather than a local decision.  And while no disrespect to the PD at WNRQ, how does the audience react to something like this?  It's a good question, and one that should spur varied opinions on both sides of the Michal Jackson line. 

While some would argue that this is one of those bigger-than-life events that demands coverage and attention, others (me) would respond that you can't have it all.  There is the Law of Sacrifice, and while Rock morning shows need to deal with the Jackson death/service/hype/insanity in their own stylized way, does this type of adulation coverage exceed the "rock speed limit?" 

Your comments, as always, are welcome. 

In another note this week, the radio industry was saddened by the loss of one of its own superstars, Emmis/Indianapolis' Tom Severino, who was highly regarded both in life and in death.  Tom was one of the good guys - a down-to-earth broadcaster who truly loved this business, and was in the process of leading his cluster through the digital morass.  Tom was also an alumnus of WRIF in Detroit, a station that has "graduated" many fine radio professionals over the years.  Our sympathies and condolences to Tom's family, and our friends at Emmis.  We just lost one of the best.
 

Cash for Radio

A catchy headline, to be sure, but that's what the "Cash for Clunkers" government program could mean for radio.  But not if radio reps are going through the "business as usual boogie."  It's why radio stations that play the same drops and positioners, month after month, sound dated and out of it, when they should be keeping it current by integrating big local and national events (Sarah Palin, Michael Jackson, etc.). The same thing could be said of the sales department.  How can sales management think differently in order to generate much-needed new revenue?

In one of Tom Taylor's Radio-Info emails earlier this week, he quotes Gap Broadcasting's Erik Hellum about the "Cash for Clunkers" program.  Hellum posits that "CFC" could be a shot in the arm for radio, based on his notion that perhaps most consumers don't know much about the program and how it works.

And that leads me to a few important observations....

First, Paul Jacobs sent out a great piece on "CFC" and related opportunities a couple weeks back to Jacobs clients, based on the same notion that there's cash to be had.  Paul consistently looks for new ways for radio to take advantage of its inherent strengths - in this case, local automotive biz.  Radio sales managers - and whatever DOS's are supposed to do - ought to be constantly strategizing to find new revenue sources, especially in an environment where the government is heavily involved in just about everything that falls under the heading of manufacturing, finance, and consumer spending. It's critical to be able to understand how changing policy and turbulent times can translate into financial opportunity, as opposed to planning the first quarter sales trip, the client golf outing, or the one-day sale.

Second, there's a way for Hellum and everyone else to not have to wonder whether consumers know much about "Cash for Clunkers" - but to go with confidence to local auto dealers.  In less than a week, just about every manager reading this blog could field a Listener Advisory Group or two. Bring in your listeners to the station's conference room for some Dominos pizza and soda, and do a little dive into their worlds.  How's it going in this crap economy, are they in the car buying mood, any change in that American car vibe, and what do they know - if anything - about the "Cash for Clunkers" program? 

Videotape these sessions, get Jason the Intern to edit a neat little two minute video, and you've got something to show the local car dealers that - believe me - they have no way of knowing themselves. 

And more sophisticated stations can go one step further by pulling together a quickie web poll among database members, asking all of the above questions, while also identifying listeners who may be in the market for a new car or truck.  If you don't think having a list of prospective buyers means much to your local car dealers, you're missing a major way to make your station - and radio, in general - more valuable and proactive than the local newspaper (assuming you still have one), the Yellow Pages (how are they still in business?), and the sales folks at the Fox TV affiliate.

Do you think the auto dealers are getting a whole lot of help, guidance, research, and insights these days from their corporate nameplates?  Think again. Your station can provide the research, and with it, the strategy.  And for hardly any expenditure.

Finally, if you're wondering when that digital department down the hall is going to start producing revenue, here's a great way for them to contribute.  Build a microsite for your "CFC" initiative, complete with FAQs about the program, and resources that auto dealers can consult in order to learn the best ways to reach customers - sales packages, appearances, dedicated videos, personality participation, and all the other tools that can help your station or cluster stand out and take a leadership role.  This is how you monetize your digital efforts.  

Radio has to do more than talk about its reach, its bargain basement rates, and its legacy status.  In fact, all of those things are conspiring against the medium in 2009.  Simple, effective, creative solutions that generate results are the only language that retailers - especially car dealers - understand. 

We know how to do this, but it's not going to just happen without proactivity, effort, and imagination.  Creative, current solutions and clever tactics are the only way to move the sales needle in order to salvage some degree of respectability in the last half of the year.

It's time to think differently.

An Arbitron Shocker

Last week, Arbitron broke out its April data based on the first month of Cell-Phone Only data.  They discovered that while the overall 12+ level for CPO is just under 11%, more than one-quarter of 18-24s have dumped their land lines in favor of mobile phones. 
 
Of course, this is data we discovered during our debut Tech Poll in '05 - young radio listeners have been under-represented in Arbitron surveys prior to the Cell Phone Only fix. 
 
But there's lots of good news here.  First, Arbitron is well on the way to rectifying this deficiency, thus making the ratings more representative of the population, especially young listeners.  Second, formats that are younger targeted are on a level playing field.  And the inclusion of CPOs will faciliate Arbitron reaching its Designated Delivery Index goals. 
 
Unfortunately, it often takes a long time - in this case, a few years - for complex ratings systems to adapt and change with the times.  As technology continues to evolve at a rapid clip, Arbitron (and any other ratings service that hopes to compete) is going to have to move like the rest of us - fast and furious.

On Target

In a recent Sunday edition of The New York Times was a full page ad for Target, asking this simple question:

Tell us what more we can do for you.

Customers are encouraged to send Target an email, and they'll receive a timely response.

Does it get any more simple than this?  A basic question about how an already successful retailing giant can improve the customer experience.  As we have learned over the years with our own database survey work, research is marketing.  The very act of asking for a consumer opinion is almost always perceived as a positive.  

And this type of consumer campaign can help expand Target's reach, while converting fans to evangelists.  At Jacobs Media, we regularly utilize the Net Promoter scaling into nearly all the research studies that we conduct - especially the fan-based web polls.  In a very simple question, it identifies "promoters" - those who will willingly sing a product's praises to others, while recommending it to them.  The Target ad can accomplish the same thing, while strengthening the bond with current customers. 

Oftentimes, stations ask us how they can expand their databases - without marketing or contest dollars.  But if you think about it, the types of listeners who sign up for your email club based on the bribe of winning something are likely to be very different from those who join up because they are interested in helping you make a better product.

A simple campaign - like Target's - run on both your website and backed up on your own air - could be just the cume/fan/database burst you need.  But be prepared to follow up your initiative with valid, timely, and meaningful responses.  And be prepared to serve up some solutions.  My bet - based on moderating hundreds and hundreds of Listener Advisory Board groups over the years - is that you'd actually come away with some good ideas.  You can bet that before Target crafted their campaign, they made sure they had a back end in place, to ensure that suggestions would be properly handled and responded to.  And some of the best will more than likely be put into action. 

Maybe this is another reason why K-Mart and other retailers are no longer in the same league as Target.  Connecting with consumers, especially during a time when companies and institutions are being questioned on a daily basis isn't just smart - it's good business.

The Harper Effect

There's been a lot of talk in media circles in recent weeks about "The Oprah Effect."  This is where Oprah provides marketing's "Holy Grail" - an unabashed endorsement of a product that she believes in.  It's one thing to read a J.D. Power report for a car or to analyze online reviews of a product.  Oprah's stamp of approval is in a whole different universe.  It sells products - books, clothing, or anything she endorses.  This is where NBC is headed with Jay Leno's new show, and we can look for even more product engagement and integration with television talent.  Marketers want more than commercials - they crave an honest-sounding endorsement of their product by a trusted celebrity.

So how does radio fit into this equation?  If you think about it, Oprah cribbed this from some of radio's original superstars (long before format radio).  Arthur Godfrey, Don McNeil, and many others perfected the craft, back when their entire shows were underwritten by sponsors that demanded RESULTS for their products.  That was ROI in the 1940s, and getting the endorsement from a major host in those days was every bit as powerful as what Oprah provides now. 

So, let's fast-forward to radio here in 2009.  Yes, live spots have become more common, and for reasons that are still a puzzle to me, advertisers place higher value on a jock reading a piece of copy than they do an obviously produced commercial. 

But they're missing the boat.  The way in which Johnny Carson played with Mrs. Grass' Soup or how Howard Stern had fun with Snapple is the type of humor and engagement they ought to be seeking.  Instead, live commercials on the radio often don't pull down rates much higher than the run-of-the-mill produced commercial because they are devalued, unemotional, non-genuine, and too commonplace.

Radio is leaving money - and relationships - on the table.  The interaction between the advertiser and the sales rep, and the sales rep and talent, and talent and the audience is all pretty clunky.  The jock is told to do a live read (for which he may or may not get some extra cash), and that's what passes for engagement. 

But it's not.  This is why I've long admired what Jim Harper has put together first at WNIC, and now at WMGC here in Detroit.  Jim has an exclusive group of advertisers ("The Platinum Club") that pays for the privilege of him not just reading their commercials, but committing to their product, store, or service in a highly personal way.  Jim personally screens these clients, ensures they're a good fit, and then makes them a part of his advertiser posse.  Here's an example of Jim's work:

Jim Harper and On-Star

Download the Mp3 File

And ask any of them - Jim's relationship with their companies is gold - or platinum - and well worth the additional cost.  In the process, Jim has unknowingly sold them on personality radio as an advertising and marketing medium.  Instead of being one of six different undifferentiated advertisers in a spot cluster or even being part of a dry, pedestrian live read, Jim's "Platinum" advertisers get what they pay for - his seal of approval.  I have seen the focus groups that underscore this premise, and his Platinum Club clients have, too. 

The handful of radio stations and their personalities that have nurtured these types of relationships is too few and far between.  There is great potential here for many stations to create their own "Oprah Effect," but it requires a strategic marketing effort between advertisers, the station, and the iconic personality. 
As Jim told me, "Live 'partnerships' with advertisers are part of radio's equity.  And even in a struggling economy, it's something we still do better than any other form of media." 

Radio has gone to the trouble and expense of discovering, nurturing, and growing talent.  And many hard-working jocks and personalities have established valuable relationships with listeners and advertisers.  

What's missing in this equation is a plan to create a program that nurtures talent/station/client relationships in partnerships that get results.  Oprah gets it, Jim Harper gets it, and many of you could, too.