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?"

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.

D'oh! Online Communities & Your Station

Here's a revolutionary announcement - Fox is aggregating a group of 2,000 loyal viewers and "giving them a seat at the table in the decision-making process," according to Melva Benoit, a senior VP of audience intelligence with the network.  Holy NeoRadio!

Of course, many radio stations have been engaging listeners via email databases for years now, but the Fox announcement lends more credence to the wisdom of using the audience to help guide programming, promotions, website, and marketing decisions.  Fox notes that it plans to use its "community" as another voice beyond perceptual research and focus groups.

This is exactly how radio should be shaping its future.  As we've seen with our Tech Polls, Listener Advisory Board groups, and other tools, our email databases are a fountain of information and feedback from loyal, caring listeners.

In many ways, radio has been ahead of its curve, but simply hasn't formally tapped into this resource, partially because it's so different from traditional research studies.  Many radio stations have larger and more vital databases than most cable television networks.  It's just a matter of putting together a program, and staying with it.

Even Homer Simpson could tell you that.

If You Spend It, They Will Come

As radio proceeds through tough financial times, marketing budgets (among other expenditures) have been slashed.  What type of impact do these cuts have, and how might they be hurting the medium's long-term growth, as CEOs continue to tighten the belts?

There's no better Petri dish than right here in the State of Michigan where the economy is clearly the worst in the nation, led by the highest unemployment numbers in the 50 states.  Trust me - it sucked here even before the economy tubed.

And yet, Michigan has announced it will increase its tourism marketing budget by 33% to $17.5 million.  How can they justify this, while jobs continue to deteriorate, along with home prices?

It's because the campaign - "Pure Michigan" - worked.  In an independent study conducted by Longwood International, they found that for each advertising dollar spent out-of-state (Chicago, Cleveland, Indianapolis, Cincinnati, Milwaukee, and Ontario), $2.82 came back to Michigan in new tax revenue.  As a result, they're budgeting more for advertising, and expanding it to other markets in the Midwest. 

It's a great campaign on both TV and radio - voiced by Michigander Tim Allen - and of course, that is a big part of its success.  But the other side is simply the same basic axiom that radio reps have been saying to clients since the beginning of time:  marketing works.

Here are two examples of what the spots sound like:

Download MP3 File of "Gone Fishin'"

Download MP3 File of "Beachtowns - Lake Effect

We should follow our own advice.

And by the way, so does great writing, outstanding delivery, and a well put-together audio campaign (something that's been missing from so much local production over the past decade).  It's amazing how a well-crafted commercial campaign stands out in this environment.

Topical CGM

Here is a guest blog from our own Keith Cunningham enlightening us on the power of topical CGM:

While it’s not the greatest photo gallery you’ll find online, you’ve gotta give CNN some credit – they definitely get CGM.  With the passing of the legendary Bo Diddley earlier in the week, CNN sprung into action and asked their viewers (“iReporters”) to send in pictures of themselves with Bo.

The power of topical CGM is not talked about enough these days, yet TV networks (and their news programs) are getting very good at it.  And while evergreen radio campaigns like “Show Us Your Tatts” or “The Homemade Bikini Contest” have their value, topical CGM can also be very viral, if executed well.  And we urge programmers and webmasters to think “outside the radio box” and use video CGM more often.

The topical video CGM possibilities are endless, but consider the Sex & the City event this past weekend as an example.  Listeners could have sent in Vlogs (video blogs) about the movie.  Maybe its guys ranting about the flick or offering up excuses other men can use to get out of going to see it; or even groups of well-dressed women delivering excited, flirtatious reviews of the movie and teasing the men they adore.  Finally, I wonder if any morning shows took a video camera to the theater and captured the moment in their own unique way, and then posted the video on the station website.

Online revenue growth for radio will only be fueled by great content.  Therefore, it’s critical we ask ourselves W.T.D.A. ("What’s the Digital Application")?

And more often than not, some of the best answers will be found in CGM, especially topical CGM.

Got Live If You Want It

Question: How are television networks working around the TiVo problem?

Answer: By doing something that radio has done forever.

The New York Times reports that live commercials (or as we call them in radio, "live reads") are making a comeback on network TV shows.  Jimmy Kimmel (yup, a former radio guy) has done a live commercial for Quiznos (among others), and it turns out that the client is "ecstatic" with the result.

Look for TV networks to do more live commercials, because as we learned in radio with "value added," once the horse is out of the barn, it will run a long way.

But when executed well, these live reads can be good for advertisers, and not harmful to stations, programs, or jocks.  Howard Stern certainly didn't lose any ground with live commercials on his show, and advertisers like Snapple clearly benefited.  In radio, WMGC's Jim Harper and the station's sales/marketing team have been leaders in creating a special category for his "platinum" advertisers.  Not only do they get Jim's attention and great reads, but these clients who pay premium prices also receive other special treatment and services as well.

It's all in the approach, of course.  If personalities put something into these commercials - and don't just fire them off or make them sound like they're shills for their advertisers - they can actually have some entertainment value.  This is - once again - an asset that radio can leverage to put butts in seats and get bodies into retail stores, even in this lousy economy.

As I've posited in this space before, stations should consider using their top personalities to sell their own promotions and contests.  If advertisers are going to pony up extra dollars for their celebrity, credibility, and their unique presentational styles, why wouldn't their home stations want to derive some of these same benefits, rather than having Mr. Big Voice do all the reads?

At a time when radio is looking to leverage its strengths, and find greater benefit for its existing assets, perhaps more attention to putting together programs where stations, personalities, and advertisers can mutually benefit should be pursued.  It's going to work for television - and radio can do this better than anyone.

Where Less May Really Be More

You have to hand it to Fox Entertainment.  They're going to try a new experiment with two of their new television dramas this fall - fewer commercials at higher rates.  What a concept.

As Peter Liguori, chairman of Fox Entertainment, notes: "It is potentially revolutionary."

If it works, it truly will be revolutionary.  Marketed as "Remote-Free TV," the concept is designed to attract new viewers to less over-commercialized shows, while netting essentially the same revenue in the process.  Whether new viewers will be attracted to this value proposition and whether advertisers will pay extra for the privilege of running their commercials in a less cluttered environment are key questions.

Radio often debuts new stations commercial-free for a time, but then reality sets in a few weeks later.  An exception, of course, is Clear Channel's WRFF in Philadelphia, now one year-old, and still running only about 6 minutes of advertising an hour.  And Cox has long advocated running fewer commercials than most other broadcasters, too.

A lot of folks in the TV community will be watching this Fox experiment very closely.  We should, too.

"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."