Author Archives: Dick Taylor, CRMC/CDMC

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About Dick Taylor, CRMC/CDMC

I’ve been a “Radio Guy” all of my life. My earliest memories were of building a radio station out of tinker toys and pretending I was a disc jockey. Later I would build a radio station in the basement of my parent’s home and using AM & FM transmitters I bought at Radio Shack I would begin broadcasting to my neighborhood for about a three block radius. I began in commercial radio in the 10th grade in high school. A local radio station in my hometown of Pittsfield, Massachusetts decided to start a Junior Achievement company in radio. This was a really new concept in Junior Achievement as all JA companies at that time were production oriented and a radio station would be a service oriented JA company. I was a member of that first Junior Achievement radio company (WJAC) and it quickly led to a part-time job with that radio station (WBEC). Radio would pay for my college education and graduate degrees, both of which were in education. I loved college and could have very easily become a career student. When I graduated with my Masters Degree, there were no jobs in education to apply my earned degrees but there were radio jobs and I went into the radio business full-time as a program director, operations manager and air personality. Deciding what I’d really like to be is a radio station general manager, I knew that I would need to earn my chops in sales and so I quit my job on the product side of the business and started over at the bottom of the sales ladder as an account executive. I quickly rose to sales manager, station manager and general manager. For 27 years, I operated at the market manager level of the radio industry. I’m a Life Member of the New Jersey Broadcasters Association and Radio Ink Magazine has named me one of radio’s best managers. Former professor of broadcasting at the School of Journalism & Broadcasting at Western Kentucky University (WKU) in Bowling Green, Kentucky. I have a successful track record in sales and people development, growing top line revenues, achieving leading audience ratings, reducing expenses and meeting bottom line goals. I’m a recognized expert in radio and media regulations. I’m a turnaround specialist. I'm the founding director of the KBA WKU Radio Talent Institute coordinating a professional faculty of broadcasters who teach broadcast students who qualify and are accepted to attend a ten-day intensive program that trains tomorrow’s broadcasters in all aspects of radio station operations. My specialties include: dynamic public speaker/presenter and sales trainer. I currently teach classes in the Process & Effects of Mediated Communications, Broadcast/Internet Sales, Broadcast Performance/Production, Broadcast Management and the History of Broadcasting in America. I hold a BA in Physics/Education, an MS in Educational Communications, the Diamond CRMC (Certified Radio Marketing Consultant) and the CDMC (Certified Digital Marketing Consultant) from the Radio Advertising Bureau. I’m a graduate of Roy H. Williams Wizard Academy and Gitomer Sales Training. Note: The picture on my blog is when I was invited to do a guest disc jockey appearance on The Legend - 650AM - WSM in Nasvhille, Tennessee (July 2014). For this "Radio Guy" doing a four-hour air shift on this legendary clear channel signal radio station was a dream come true.

Are We Losing the Next Generations?

Growing up in western New England, the transistor radio would impact my life and career. Radio has been in my blood as long as I can remember, but it would be my Zenith transistor radio that would first allow me to explore new stations, new music, new personalities and new ways of delivering content without the supervision of my parents. My transistor radio and ear piece would make me the master of my own radio dial.

Growing up, it seemed like most radio markets had two radio stations battling for the teenage ear. WPTR and WTRY out of Albany, New York’s capital district would be mine. Each of those radio stations would bring their mobile studios to our county shopping center and broadcast LIVE. It was such a thrill.

Hartford had WDRC and WPOP. Boston had WMEX and WRKO. Philadelphia had WIBG and WFIL. Chicago had WLS and WCFL.

New York City would finally be a battle between WMCA and WABC for the Top40 crown in the Big Apple.

What made traveling around in my folk’s car so exciting was that each of these radio markets and radio stations were special and different. The personalities, the promotions, the station jingles and yes, even some of the music was unique to each station and market. Local and regional bands could be heard hoping to be discovered and go national with their music.

Radio stations all did music research back then and printed weekly surveys charting how the hits were doing from week to week with local listeners.

That was then, this is now. Larry Rosin at Edison Research says that today “virtually no radio stations perform formal research for music among teens nor target teens directly in their marketing strategy.”

I’ve sold “old people radio formats” where the presentation was quick to point out that what advertisers should be focused on is not the age of the audience but the amount of money they control and have as discretionary to spend as they wish.

I’ve also sold “young people radio formats” where we pointed out that kids are the masters of convincing their parents and grandparents to get them anything they wanted, so please don’t focus on how young they are. I mean once my boys were out of the house, I no longer went to Mickey D’s and ordered “Happy Meals.” (That made me very happy!)

Radio has always focused on the “family reunion demo” aka 25-54 adults; though that demo is shifting upwards with the aging baby boomers to 35-64 adults.

When Radio Disney was born and focused on little tykes, it appeared there was now a radio operator ready to pick up the torch for young people listening to radio. But then radio was shocked the day Disney announced it was selling all but one of its owned and operated Radio Disney stations. Radio Disney basically operated on AM radio. AM radio is no longer used for music listening by the public and so was Disney just abandoning AM radio for FM radio? No. Radio Disney had established a strong beach front on two audio delivery mediums; SiriusXM and online listening. (It also benefits from the Disney TV Channel on cable, satellite and streaming via the Net.)

It should also be noted that around the time Radio Disney was coming into existence that the radio ratings company known at that time as Arbitron began to measure listening audiences down to age 6+ with their new PPM device where as the diary previously only measured “adults 12+.” When Nielsen bought Arbitron and rebranded the radio ratings service Nielsen Audio it kept the 6+ listening metric. Nielsen also now is trying to establish a listening service that will measure all audio listening consumption across all platforms. Can you see where this is going?

Radio listening is a habit. My father never acquired it. I was raised on it. My sons were raised on it. But I see my grandchildren are holding iPad-like devices and easily navigate their parents’ iPhones.

You would have thought that with more radio stations on-the-air in America than at any time in history there would be more variety than at any time in our history, but that’s not the case. There’s actually less variety.

After launching two Smooth Jazz formatted radio stations and falling in love with the artists and their music I now can only hear this music streamed online. So like my grandchildren, I’m forming a listening habit that doesn’t require a radio; just my iPad or iPhone.

I believe the future is going to be all about being the best at something, not necessarily garnering the most people. Radio was always about getting the most ears. Everything was based on CPP (cost per point), but in a world of infinite choice, the best will dominate.

Radio can play in this world if programming is turned back over to people who program their passions to others just like themselves.

Steve Jobs made Apple into the world’s most valuable company by focusing on design (in radio, that’s programming) and making products that he and his team wanted to have for themselves (building a radio station that you not only own, but love to listen to yourself).

Radio is either going seize the day or have a seizure.

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Content Creation with Ryan Recker

Ryan WreckerToday, I’m happy to welcome a guest blogger to my blog site; Ryan Recker.

In 2012 Ryan was given the opportunity to program the legendary WOWO Radio in Fort Wayne, Indiana.

Ryan is a hands on programmer… doing just about everything from hosting mornings, doing the afternoon talk show, daily newscasts, running the board, and creating content across all mediums.  In the two years that Ryan has been WOWO’s program director, the station has won:

  • Marconi Award for Medium Market Station of the Year
    4 Spectrum Awards, including Station of the Year, Best Breaking News AND Best Newscast (which Ryan won)
    2 AP Indiana News Awards
    Federated Media Program Director of the Year 

Ryan is a cutting edge radio programmer that’s interested in content creation.  He kicked off a new series of videos on this very subject recently and Ryan reached out to me to be a part of it.  I’d like to share that video with you now.

Here’s Ryan Wrecker to introduce it:

I want to thank Phil Hendrie, Craig Benzine and Dick Taylor who spent some time to share a little part of their craft.  These are some really creative guys in their own rights, and they’re part of a small group of people who just ‘get it’.

For more in this series, visit Ryan’s blog:  http://ryanwrecker.com/content-creation-series/

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The Cockroach of Media

The new CEO of National Public Radio is a man named Jarl Mohn. Before his life in public radio began, he rose pretty high up in commercial radio, only then he went by his “radio name;” Lee Masters.

When he was recently asked if Internet radio would replace terrestrial radio within a decade, he responded with “Broadcast radio is the cockroach of media. You can’t kill it. You can’t make it go away.” But interestingly many radio companies are hiding the name “radio.”

National Public Radio isn’t called that any more. It’s now NPR. Clear Channel Radio isn’t called that any more. It’s now iHeartMedia. Even Radio Shack tried to jettison “radio” from its name and re-brand as just “The Shack.”

Most radio companies today prefer the term “media company” or “communications company.” Why is that?

The irony is when you look at pureplay Internet companies that stream music content, they glom onto the name “radio.” Pandora Radio, Spotify Radio, iTunes Radio, iHeart Radio, Tunein Radio – even the one I’ve been a subscriber to for six years changed its name from Sky.FM to Radio Tunes.

Petula Clark probably got it right when she sang “The Other Man’s Grass Is Always Greener.”

Commercial radio is suffering because it’s not as good as it can be. It suffers from a lack of innovation and investment. At the very moment that more commercial broadcasters are slashing budgets, eliminating people and consolidating operations, NPR is committing more money to be more local and live according to Mohn.

My university’s public radio service has a four person local news team. They don’t cover national stories, NPR does that. They cover south central Kentucky and they win just about all the news awards for their reporting every year. Their stories are detailed and well told. Their stories are readily accessible online in addition to being heard over-the-air.

Public radio is enjoyed by more people and earning a bigger share of the audience than public television. And when it comes to competing against commercial radio, the public radio station is in the top 5 stations in radio markets that have a public radio service.

Here’s the problem I see with future generations of listeners. Pureplays are redefining the term “radio.” To young people today, Pandora IS radio. iTunes IS radio. Spotify IS radio. Over-the-air broadcast is “media” that their parents still use.

When I was growing up I admit I didn’t listen to the radio stations my parents listened to. They had their radio station(s) and I had mine. But we both were listening to “radio.”

Radio turns 100 years old in the year 2020. To those of us who grew up with the service that began commercially in 1920 with the radio broadcast license issued to KDKA in Pittsburgh, we might see it that way. But to the next generation of listeners, radio might only be 20 years old; the same age as Pandora.

Call me sentimental, but I think that would be a shame.

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How to find RADIO sales people

I worked in the radio industry for over forty years. In that time, I attended a lot of meetings, conferences and worked with radio companies owned by “mom & pop” to iHeartMedia (formerly Clear Channel).

The most often heard question everywhere I went was “How do I find people to sell for my radio station(s).”

Well I have good news and bad news for you. The bad news is, it’s going to get worse. So what’s the good news? You’re not Google.

I was drawn in by an interesting article called “5 Reasons You May Not Want to Work for Google.”  It makes some excellent points from the employee’s point of view. But the bigger question is WHY do so many people aspire to work for Google?

Google has created a powerful employee brand. Google did this by building a culture. The culture then virally spreads the good word about working at Google.

Radio has been good at building cultures over the years. I just finished reading Ron Jacob’s “KHJ – Inside Boss Radio” and Ron pulled back the curtain on this iconic radio station from its Top40 birth in 1965.

Just like Google, KHJ created a powerful employee brand. Every disc jockey aspired to work there. Every performer wanted their record played on KHJ. KHJ went from being the misfit of RKO General (its owner) to becoming the economic engine that would lead the entire media company. It even out-billed KHJ-TV9 in Los Angeles.

Think KHJ’s general manager asked “How do I find people to sell for my radio station?”

When I was managing WFPG in Atlantic City I was often asked where I found my sales people. I used to joke that it was easy, because the station was located in front of a bus stop and we’d just abduct them while they were waiting for the bus. The real answer was, we created a powerful employee brand in South Jersey.

We had the reputation of being a fun, professional and winning place to work. We had applications coming in on a weekly basis for just about every position.

Sitting just a short expressway drive from Philadelphia, many rookies would be told to head for Atlantic City and WFPG to learn the business. We had earned the reputation for producing top talent both on-the-air and in sales.

Most radio stations are afraid to lose people to bigger radio stations in larger radio markets, but not us. We knew that only enriched our employee brand. Word gets around quickly that you’re the path to radio’s big show. That type of buzz helps to keep your pipeline of great candidates full.

Every employee I hired, I told “Tell me where you want to go and I will do my best to get you there.”

I tell my students today what I told my employees for years: “what will you do this quarter that you can add to your resume of successes?” Success only happens if you plan to be successful.

Now you may be wondering if I ever lost a sales person to another radio station in my market and the answer is yes. I lost sales people to other stations when they were offered the job of sales manager or general manager. I celebrated their good fortune right along with them.

I also remember some people who left because they thought all radio stations operated the way we did only to learn that they didn’t. Some of those people returned and became even better employees than when they left.

It’s never been more important for radio station owners to focus on creating a strong employee brand. A recent study by the Career Advisory Board says 93 percent of hiring managers feel they can’t find the right talent for their jobs. The job applicant pool hasn’t been this lean since 2008. You can’t stop the aging process of 77 million Baby Boomers set to retire and the brain drain that will be created as they walk out the door.

The companies that put their focus on creating a strong employee brand will be the winners.

Remember, if you ain’t the lead dog, the scenery never changes.

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On The Road in Las Vegas

8

What I learn in Vegas, won’t stay in Vegas.

Back next Sunday with a NEW post.

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Attention to Detail

I just finished reading Ron Jacob’s book “KHJ Inside Boss Radio.”  It’s an excellent read and I highly recommend it.  It’s out of print, but a new & improved Kindle version is now available from Amazon that brings in more detail about the birth of this legendary Los Angeles Top 40 radio station.

May 2015 marks the 50th anniversary of the launch of Boss Radio – 93 KHJ.

One of the really unique aspects of this book, that will have any radio geek savoring, are the volume of memos written by Ron Jacobs and sent to his Boss Jocks; Robert W. Morgan & The Real Don Steele among them.

Ron Jacobs competed against Bill Drake in Fresno, California. When Drake was hired by RKO Radio to turn things around at their decrepit AM 930 “K-indness H-ope & J-oy” he hired the guy who gave him the most competition; Ron Jacobs. Together they would launch a new contemporary sound on the radio and Top 40 Radio would never be the same.

Ron Jacobs later in life would interview Bill Drake and that’s also quite an interesting read.

What I learned as I poured though the memos Ron Jacobs wrote over his four years at KHJ was his tremendous attention to detail. Ron was a talented air personality in his own right, but he never did an air shift at KHJ. I asked Ron that very question and he said the only time he was ever heard on KHJ was in a promotional bit involving his most famous summer promotion “The Big Kahuna.” What Ron DID do was listen to his radio station. Relentlessly.

Think about that for a moment; one radio station and disc jockeys with 3-hour air shifts and a program director that wasn’t on the air.

Ron worried about EVERYTHING. He also dreamed up incredible promotions for the station; so many in fact, that a new one might be beginning before the current one ended. Oh and Ron told me he had a $50,000/month promotions budget (1965-1969).

RKO had two media properties in Los Angeles in the 60s; KHJ-TV9 and 93-KHJ. All the money was made on KHJ-TV, until the team of Jacobs/Drake launched Boss Radio. The station became so successful that it would out-bill the TV property and of course, the format would be placed all across America on other RKO owned and operated radio stations (The Drake Format).

But it’s not just radio that has lost this attention to detail. A headline caught my eye that read “And then there were none.”  It was a news story about how the copy desk at The Cincinnati Enquirer was no longer going to be staffed.

For those of you, who may not be familiar with what a copy desk is or does at a newspaper, let me explain. The copy desk is where the copy editors work. Copy editors read over the copy composed by journalists for things like spelling, punctuation, grammar, usage and a continuity of style that make a newspaper’s published prose look polished and professional. Copy editors also ask those awkward questions like: Is this clear? Is this right? Is this plagiarized? Is this libelous? Is this a story? Is this true?

Sounds like a lot of attention to detail, much akin to what I read in the memos of Ron Jacobs to his Boss Jocks.

I’m sure there are similar stories in TV land too.

Watching the Golden Globes the other night, I couldn’t help but notice the TV winners were from places like Amazon, Netflix, Showtime and HBO, and not ABC, CBS, NBC, FOX et al. What separated the winners from the losers? I would profess it was attention to detail.

If TV viewership, newspaper readership, radio listenership are down, might it be the fault of the decision of trying to save your way to success?

I’m sure you know of a TV station, newspaper or radio station that sees the world differently. Pays attention to detail and owns the loyalty of their audience.

Call me naïve, but I believe if you build a media property with attention to detail, they will come.

It’s a universal law of success.

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Choices Radio & Colleges Should Be Making Right Now

Every day the radio business and the business of higher education are faced with lots of choices that will affect them in the years ahead. Here are my thoughts about some of the choices they should be making right now.

Do what only you do best.

 Before the era of instant communication and search engines, both radio and colleges provided many services that people couldn’t get anywhere else. If you wanted to know if the snow storm cancelled school, you turned on the radio. If you wanted to earn a college degree, you attended college.

Today, schools will text message the status of school opening to teachers, students and staff the moment a decision has been made following a big storm. Radio is no longer necessary to fulfill this message delivery task. Likewise, anyone who wants to learn about anything – including earning a diploma in that discipline – can do it online. You don’t need to go any further than your computer.

Radio needs to take a hard look at everything it does that was important to their listeners and eliminate all of the things that the listener today gets faster and easier from someplace else. Colleges likewise need to re-think their mission and focus on those things that it does best and that only they can offer.

Thinking you can stop a changing world.

 People have been warning the radio industry for years at annual conferences that the Internet was going to change things for them BIG TIME. I know, I attended most of those meetings regionally and nationally over many years. But radio continued to do what it had always done and thought that the changing world would stop at their door. Higher education pretty much is doing the same thing. Both are highly computerized, but only to do what they’ve always done a little faster than before.

Think of the possibilities.

 The Internet provides every business the opportunity to do things that were not possible before there was an Internet. Did established businesses like radio or colleges seize this new opportunity? No. Google, Amazon, eBay, Facebook, Twitter, LinkedIn etc did.

But it gets worse. Pandora used the capabilities of the Internet to build a streaming juggernaut. Listeners can build their own “radio stations” and skip songs that they don’t like.   University of Phoenix grew to 600,000 students* in over 100 degree programs. A website I visited listing the top online colleges framed the issue of an online education this way:

“It’s up to you to decide whether you want to attend a large, recognized online university or a smaller, less known college. As long as your program is accredited by an authorized agency, you can receive an education online that is as valuable as your campus experiences.”

The radio industry could have created Pandora. Higher education could have created University of Phoenix. Heck, Kodak could have created the digital camera – oh wait, they did, but didn’t pursue it because they were invested in making and selling print film.

History is a great teacher.

 When TV came along in the 1950s, it stole radio’s programming and people. All those must hear radio shows in the evening prime time hours moved to television. The family that gathered around the radio in the living room now sent the radio packing to another location in the home and TV took its place. Radio operators quickly began developing programming that only radio could do. They found a niche and filled it.

Colleges did this too. Many began as normal schools and grew to teachers colleges. As the needs of the nation changed, colleges grew to universities.

What makes today’s world different is the changes both radio and colleges made might be called evolutionary. Today’s world has brought on a revolution in communication and learning.

Make mistakes.

 The pressure to not make mistakes is daunting. The big radio companies have large debts to service. Public colleges and universities are more privately funded by tuitions, alumni, endowments, grants etc than they are public tax dollars. In order to play it safe institutions try to avoid risks. Avoiding risks means keeping things status quo.

Nothing stays the same. Things are either getting better or getting worse.

There’s no time to waste.

 Both radio and colleges need to be creating incubator programs that are allowed to make mistakes and fail. Thomas Edison put his research activities on finding the right filament to power his light bulb this way: “I have not failed, not once.  I’ve discovered ten thousand ways that don’t work.”

If there’s one lesson history has taught us it’s that if existing industries don’t create the future, somebody else will.

*University of Phoenix’s numbers have declined almost 60 percent since 2010. The enrollment drop has been attributed to operational changes amid criticism of high debt loads and low job prospects for university students according to published reports.

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It’s too soon…

DT WBEC (1970s)I knew from the time I was a little boy, I wanted to be on the radio. I built a radio station in my parent’s basement and broadcast to my neighborhood using AM & FM transmitters I bought at Radio Shack. Besides being on the radio, the other thing I wanted to do was drive a car.

I was fortunate that my opportunity to be on the radio happened in the 10th grade in high school and when my moment came, my only thought was “it’s too soon,” I need more practice, I’m not ready yet.

When I learned to drive a car and that day came when it was time for me to drive away by myself, I thought, “it’s too soon.” When I made the transition from radio disc jockey into radio sales and the day came for me to go out on my own and begin calling on businesses to sell radio advertising, that day came WAY too soon.

I was successful in radio sales and they made me sales manager. Too soon I thought, but sales manager led to station manager and then general manager of the AM side of an AM/FM combo. The general manager of the FM side of the operation was also part-owner so I always thought of myself as the “baby gm.” Then the day came when the majority owner of my radio station offered me the position of general manager in Atlantic City at another pair of radio stations he owned. Now I would have to make it on my own. No more baby gm, I would be the only gm. Too soon!

After 42-years in radio, thirty of which were as a market manager, I made a career change into higher education by becoming a professor at a university. I spent the summer preparing and planning every lesson in every class I would teach that fall. When the first day of classes arrived, my only thought was – you guessed it – too soon.

What’s interesting about everything I’ve share with you up to this point in time is that nothing was really life threatening. Even getting married and having our first child (too soon times two) was not life threatening. Having the second child – seemed too soon since we were just getting good a taking care of one baby – wasn’t life threatening.

Then I took flying lessons.

I found I was really enjoying my flying lessons. Those weekend lessons over South Jersey, along the beaches in the summertime were exhilarating. I was making great progress. Keeping the nose up, learning to trim the aircraft, scan the horizon for other planes in my proximity and learning how to land in the strong cross winds that came in off the ocean at 90-degrees to the only runway at Ocean City, New Jersey’s airport.

And then it happened. I had just landed the plane when my flight instructor hopped out and said, take her around again and slammed the door. Gulp!

I powered up the engine to full throttle and picked up airspeed down the runway and took off all by myself. All the while thinking, it’s too soon. I hope I can do this.

I’ve always heard that a student pilot’s best landing is their first one after their first solo flight. That was certainly the way it was for me. That single engine Piper landed ever so softly onto the tarmac and I taxied to the terminal building in a moment I will always remember. (The moments that I would almost not live to tell about would come much later in my brief flying career.)

The point of my story is that everything that happens to us, which will help us to take the next step forward in our careers, our business, our education and our life always seems to come too soon.

We will never really feel as prepared as we think we should be. Do it anyway.

Seth Godin puts it this way:

“There is a fundamental difference between being ready and being prepared.

You are more prepared than you realize. You probably aren’t ready, and you can’t be ready, not if you’re doing something worthwhile.

Because we always do our best work and take our turn before we’re ready.”

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The Future of Ad Supported Media

I’ve just finished reading Thomas Piketty’s book “Capital in the Twenty-First Century,” which I highly recommend everyone read, and Piketty stops me cold on page 357 with this graph (see below). I’ve highlighted in yellow two things for you to take note of. In a moment I’ll explain why this hit me so hard.

This same week, I was reading Seth Godin’s blog post “Mass production and mass media” where he explains that mass media exists because it permits mass marketers to do their job and how mass media is going away. If you’re in radio or TV, that kind of proclamation will get your attention; BIGTIME.

Godin is predicting that the “mass” part is what’s going away and that it is being replaced by “micro.” In essence that it’s better to be important to a few than be irrelevant to the many.

Then this article appears in AllAccess “Radio’s Dying…But The Cause Isn’t What You Think.” Seth Resler writes that radio isn’t going to die because it has been abandoned by listeners, but it’s going to die because it’s been abandoned by advertisers. Resler goes on to make the case that advertising is moving away from the Mad Men era art form that it was, towards a keyword and search scientific algorithm metric of today.

“…there has been little doubt for more than a decade that the advertising model that traditionally supported an industrial-age news and information system is evaporating,” writes Anderson, Bell and Shirky on pages 11-15 in “Post-Industrial Journalism: Adapting to the Present (2012)”

Mark Perry, blogging at the American Enterprise Institute writes: “The dramatic decline in newspaper ad revenues since 2000 has to be one of the most significant and profound Schumpeterian gales of creative destruction in the last decade, maybe in a generation.”

Well, I’m here to have you consider a 3rd possibility, one that stopped me in my tracks as I was reading Piketty’s book. Now, I may be putting words in Professor Piketty’s mouth when I tell you what I’m about to say. Piketty did not write about radio or TV, or mass media in general in his book. He writes about wealth inequality in our world from antiquity to the present day and then makes some predictions about where things are headed based on current trend lines.

But this graph on page 357 haunts me.

Picketty Chart on page 357

That graph, from the period of 1913 to 2012 includes the period in which radio and television were born. It’s the era when advertising supported media took off. I worked the last forty years of that graph in the radio business and experienced the change in business that this graph shows.

Commercial radio was born in 1920. Commercial TV took-off in the 1950s. And I quite agree with Seth Godin when he writes “Mass production, the ability to make things cheaply, in volume, demanded that we invent mass marketing – it was the only way to sell what was being made in the quantity it was produced. Mass media exists because it permits mass marketers to do their job.” To which I would add to Seth’s thoughts that mass media and mass marketing both existed because there was a strong American middle class of consumers.

If Piketty is correct, the concept of a middle class consumer economy that existed between 1913 and 2012, was an anomaly. It didn’t really exist anywhere in the world before 1913 and it’s very likely not going to exist anywhere in the world as we journey away from the year 2012. The middle class consumer economy will evaporate and along with it, advertiser support for mass media.

1913-2012 was a unique period in world economic history. It gave birth to consumers who had money to spend, mass production that could produce lots of goods and mass media that could advertise those goods. All three were simultaneously occurring at the very same moment.

The new buzz words are “shared economy” and “collaborative economy.” What roles will large corporations, universities and mass media play when people are getting what they need from one another?

In 2014, Nielsen Music reported a staggering drop in music sales where as much as a fifth of music buyers didn’t buy anything.   2014 also saw box office ticket sales plunge to their lowest level in three years. The home ownership rate reached its lowest point in 25 years at the end of 2014. More people were now living in shared living arrangements or going back home to live with mom and dad. And NYC Mayor Bill de Blasio appearing on “The Nightly Show with Larry Wilmore” told viewers that:

“The wealth gap in New York City today is worse than during the Great Depression or The Roaring 20s – and the gap is growing bigger. Today over half the people in NYC pay over a third of their income for housing. The reality is, (according to the mayor) if we don’t change course middle class families won’t exist in New York City.”

Are these reports canaries in the consumer coal shaft?

Medialife Magazine, a magazine devoted to media buyers and planners, reported that 2014 wasn’t good for advertising. Total spending was up 3.0 percent, but if you take out political spending and the Winter Olympics, the number shrinks to 1.6 percent. “That’s the worst yearly growth pace since the recession began in 2008,” said writer Bill Cromwell. Traditional media is struggling and according to Magna Global, “this appears to be a lasting trend.”

Only recently have broadcast operators said things like “flat is the new up” when comparing year-over-year revenues. I realize there are exceptions to what I’m saying. Your broadcast property might be one of them. But what are the trends that are taking place and how will they impact you in the years to come?

It took two world wars to re-set the wealth inequality gap and put into place FDR’s New Deal. Changes that have in more recent times been stripped away returning things to the way they were in the 19th Century; a period of time when the concept of a middle class of consumers didn’t exist.

Roy H. Williams, aka The Wizard of Ads wrote recently (Monday Morning Memo, March 2, 2015) about “the shrinking of mass media” and “the growing reality of gender equality.” America went from being 16% single to 46% single in just one generation, Williams writes. “A once-proud nation of families is evolving into a proud nation of individuals.” And Williams sees “The trend toward singleness is sociological (while) the erosion of mass media is technological (as) each trend accelerates the other.”

Williams comes to this conclusion:

“We’re approaching the end of a golden time when courageous advertisers can invest money in mass media and see their businesses grow as a result. My suspicion is that we’ve got perhaps 5 to 7 more years before retail businesses and service businesses will be forced to begin playing by a whole new set of rules. Buy mass media while the masses can still be reached.”

The future of ad supported media is tied to consumerism. Consumerism is tied to having a strong middle class.

Does the Piketty graph on page 357 of his book “Capital” send a chill down your spine like it does to mine?

P.S. Thomas Piketty published an amplification on his r>g theory. You can read that here.

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Spring Break Week

Will be back next week with a new post about “The Future of Ad Supported Media.”

Crystal Balling is always open to interpretation and I look forward to your participation in the discussion it stimulates.

Thank You for visiting.

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