JacoBlog - Jacobs Media's Blog

Convergence 2009

As mentioned in an earlier blog, I attended Radio Ink's tech conference a couple of weeks back.  The strong turnout was one of the most impressive aspects of the event.  At a time when companies discourage convention attendance for any number of reasons, a big meeting room was jammed for two full days.  It is a tribute to Eric Rhoads and his staff, and to everyone who found a way to get to San Jose for this conference.  Obviously, there are many radio professionals who are still searching for answers, trying to learn how to integrate technology into this industry of ours.

As enlightening as some of the panels were, however, I couldn't help but wonder how radio is going to turn that next big corner and truly reinvent itself.  As we watch venerable media outlets like The New York Times struggle, as hundreds of magazines fold, and as Sirius XM flirts with bankruptcy only to be bailed out at the Eleventh Hour, radio is still groping for answers.

It was noteworthy that many of the smartest professionals in our industry are groping around, and trying to unlock the monetization key.  While it is clear to just about everyone that streaming, access on mobile and Internet devices, and texting are all mandatory at this juncture, how to get it all paid for continues to be the mystery of mysteries.  Panelist after panelist circled around the issue, but there are painfully few war stories that broadcasters can simply take home and plug in to their markets.  

Maybe part of radio's "answer" is to get back to where we once belonged.  It was interesting to me that amid all the gadgets and technologies, several of Convergence's luminaries talked about the importance of being local and making a difference to listeners and communities.  Both Guy Kawasaki and Craigslist's Craig Newmark talked about this value, especially as it pertains to customer service.   

And it was also interesting to me that both of these Silicon Valley geniuses have their terrestrial radio favorites.  For Guy, he couldn't stop talking about Classic Rock K-Fox and morning guy, Greg Kihn.  And for Craig, he went out of his way to laud radio podcasts, and mention NPR's "On the Media" - a show he said he'd pay to listen to.  These are hi-tech mavens who could occupy their time with a myriad of new content offerings, but in each case, they love aspects of broadcast radio.  And Gordon Borrell reminded us, once again, of the power of radio's cume to drive thousands of consumers to any number of websites.  

So, I left Convergence with mixed feelings.  On the one hand, too many smart people recognize radio's promise, but in the process, warn against losing that local, community identity.

Local towns and cities are especially hurting these days, and it's hard for us not to notice those among us who are out of work, restaurants and local businesses that are closing, and factories that are shuttered.  There's never been a better time for radio to turn its focus to the communities and towns that supported us all these years.  

It may be a case of doing well by doing good.

Why Research Matters

A recent MediaPost commentary by Per Lofgren, director for EuroContactPool, asked the question, "Is email marketing next for extinction?"

The issue is based on Lofgren's realization that youth have moved away from email, preferring instead to communicate with one another via text, social networking sites, and web messaging.  In fact, Lofgren notes that while the iPhone is often criticized for its mediocre support of email, the fact is that these devices are especially convenient for SMS, Facebook, and MySpace mobile applications - perfect for today's teens who would prefer to communicate that way anyway.

Of course, this raises questions about the efficacy of email marketing, a topic that we're exploring in Jacobs Media's Tech Poll V, which launches in just a few days.  By tracking listener behavior in these mega web surveys, we continue to learn about changing habits, new devices, and preferred platforms.  A lot has changed in five years. 

It's another reason why research matters - and the lack of it right now in radio is going to make our problems worse.  When Arbitron commissioned us to implement the ethnographic research study in 2007 that became "The Bedroom Project," we quickly knew we were learning some special things.  When one of our teen-aged pretest respondents remarked, "Email is for old people," it was one of those "aha moments."  Of course, the entire study played out this way, as many of the participants echoed that conclusion.  Way back two years ago, you could see that most of our respondents were using email for school or business purposes, but favored texting and sites like Facebook and MySpace for their personal communications.  As Lofgren notes, these same teens who are breaking away from email will be joining the workforce in just a few years, and they'll be changing the communication habits of America. 

As the financial crisis grinds on, and companies try to do more with less, radio is falling farther behind.  If any medium could use some bona fide audience research and guidance right now, it's radio.  I believe our Tech Surveys will continue to provide pieces of that data, but there are still many more questions than answers.  

In order to compete against Apple, Google, the New York Times, NPR, and Pandora, commercial radio is going to have to do more than cut staff - and cut corners. 

Taking It Personal

OK, I'm getting a little political with this post, but it's a great illustration about the power of using personality and warmth to connect through newer digitally communiqués, such as emails and text messages.  Marshall McLuhan taught us all about the importance of "hot" and "cool" media and messaging, and the Obama campaign has figured out how to make it work, unlike any other political machine we've witnessed.

If, by chance, you signed up for text messaging or submitted your email address at www.barackobama.com, you've been receiving missives from a variety of people from the campaign, including Obama himself.  What is striking about these messages is that they are encouraging without being cloying, and they keep supporters up-to-date with the campaign's thinking.

They are also very personal, using first names - the supporter's and Obama's himself.  It is interesting to receive an email or text from the candidate (and now the President-elect) that is simply signed "Barack."  It connotes familiarity, association, and a personal connection - even when you realize that you are one of perhaps millions of people receiving the same message.

This is also why radio station email messaging can be so much more effective when it contains that personal touch, conciseness, and simple messaging.  Every email from the Obama campaign is personalized, brief, and contains a simple action step.  They do not offer too much information or promotions, and there are never typos.  Your morning guy may not have the power and presence of a political candidate, but to your listeners, he may be the conduit between your audience and your station.  Unlike generic emails that we continue to receive from stations, your DJs can make the connection that iPods and other technologies cannot. 

In future blogs, we'll talk about how some of the lessons of the Obama campaign can work for radio - if we're smart enough to rethink some of the procedures we've been employing for years.  And if you were a McCain supporter, unhappy with the recent turn of events, I would ask you to go beyond your political leanings, and think about the Obama campaign as a way to get schooled about how to do it right.  The Republican Party is doing the exact same thing as we speak. 

Here's the email Obama sent:

"Be The 9th Texter Right Now..."

I don't know about you, but every time I hear a station take the 9th caller (especially with those touchtone sound effects), I get flashbacks to Mr. Mister and decades that I'd just as soon forget.  It just sounds dated, and is perhaps a subtle reminder that radio unknowingly continues to use antiquated techniques and tactics.

I'm not saying the phone is dead because with the cell phone proliferation, drive time phones and contests are even more viable because everyone is connected while they drive.  But the reality of 2008 is that texting is eclipsing phone use for many demographics - and not just teens.

New research from Nielsen Mobile shows that texting is up a whopping 450% in two years - an incredible stat.  I went back into Tech Poll 4 from this past February to run the same numbers for our Rock sample.  The same phenomenon is occurring (although not quite at the meteoric rate that Nielsen Mobile shows).

The striking thing about this new data is that texting isn't just a teen thing.  Look at how text messaging is usurping phone calls among older demographics:

Among 35-44s, more wireless phone users opt for texting over actual calls, and 45-54s aren't far behind.

So if you're programming an Active or Alternative station, texting has to be part of your digital communication fabric.  But even if your most played artist is CCR or the Stones, texting needs to have presence on your station, too. 

These are the moments where we would love to replicate "The Bedroom Project" among Boomers.  Hey, you never know.

I'll Text You

Most of us get pretty insignificant texts throughout the day - where to meet for dinner, reminders to pick up milk on the way home, or notes about running late.  But starting early Saturday morning, a huge number of texts were sent by the Obama campaign to cell phones all over the world, heralding the decision to select Joe Biden as his Vice Presidential candidate.  It was a historic text message, and it suggests new and exciting applications for texting and digital communications moving forward.

To some, this was a cool idea that may have gotten a little botched in the execution.  Some people didn't receive a text even though they had signed up.  Most others received their text in the 3am-5am range - not exactly the time when you're going to call a friend or tell others about the decision.  For some unknown reason, Obama's people held the decision until after midnight, and of course, there were leaks earlier in the evening.

But the main takeaway from this event is that, for the first time in history, this type of momentous news was communicated via text to millions of cell phones.  Obama now has shown the country and the world that he knows how to utilize technology to his best advantage, and for greater connectivity with his minions.  In many ways, his campaign is answering the question: "What's the digital application?" Not every aspect of their execution was spot-on, but the contrast that he is developing with his opponent is obvious to anyone who uses email, sends and receives texts, likes to participate in a chat, or respond to a blog. 

And for radio stations out there that are still wary of starting a texting program, think about how the Obama campaign is breaking new ground, opening technology doors, and integrating fans into the process.  These are the same basic moves that stations can, and should, be making. 

It's why we're devoting a significant hunk of our Summit on Thursday afternoon, September 18th, to technology applications, featuring tech guru, Leo Laporte.  And why Leo, Tim Davis, and I will be participating in an NAB panel on Friday, September 19th called "60 Digital Applications in 60 Minutes." In fact, if you look at the collective agendas for the NAB, the R&R, and the Summit, you should come away thinking that there are some strong sessions worthy of your time and money.

And yes, if it was a radio programmer running the Obama campaign, that text would have gone out at 7:20 Thursday morning.  But, hey - it's a start.