Category Archives: Radio

You Can’t Have Too Much Fun

77There are some things in life you can’t have too much of.

You can’t have too much fun.

You can’t have too much wisdom.

You can’t have too much love.

Too Many College Bowl Games

My university invested a ton of money to upgrade to Conference USA. We won our bowl game in Florida this year too. Did you watch our team win? Probably not. Turns out attendance at the plethora of Florida college bowl games is down.

“When the Outback Bowl in Tampa announced an attendance of 51,119 on Monday who watched Florida dismantle Iowa 30-3, it became the sixth college bowl game among eight in Florida to have a decline in attendance from the previous year,” reports the Florida Times-Union.

NFL TV Viewership Decline

Rolling Stone magazine wrote that one of the big stories of 2016 was the decline in viewership of the NFL. How big was the decline? Down 8%.

Prime Time games were down the most with an audience erosion of 10 to 12%.

Commuter Traffic

The Federal Highway Administration says that by 2025 passenger miles traveled will have increased 72%. Why? Because that same agency says our population will have increased by 26% by that same year.

Tell me the road you commute to and from work isn’t already over congested.

Why is Country Music not the Top Radio Format in Nashville?

Nielsen Audio did a research study in 2014 and said the top radio format in America was country music. Ironically, the top radio station in Music City aka Nashville was NOT a country station. And it’s still not.

The latest ratings for Nashville show the highest rated country music station is ranked #7. The following radio formats are all ahead of that country station: Adult Contemporary, CHR, Sports, Urban AC, Talk and Variety Hits.

However, if you combine all of the audience of the many country format radio stations in Nashville, you will have a higher share of audience than the number one radio station commands.

Less Is More

So while you cannot have too much fun, wisdom, or love, you can have too many choices of products and services. Great for consumers’ maybe, but not for business owner/operators. Ask those who are dealing with the increase in college bowl games, NFL games, traffic congestion or playing country music in Nashville.

Radio is experiencing its own issues with supply versus demand.

The FCC will open up two windows for new translators this year. That’s after 750 new FM translators were signed on in 2016. Currently there are 19,778 FM signals beating the airwaves throughout America. Compare that to 4,669 AM radio stations currently on the air.

At the point in America’s history when the same number of AM radio stations equaled the number of FM radio stations on the air in America (end of 1992), 75% of all radio listening was to FM radio.

The Psychological Aspects of Overpopulation

This brings me back to my own undergraduate college days and psychology class. I remember learning about an experiment about putting too many rats into a confined space.

“As the number of rats rose above a certain level, the effects became rather dramatic,” wrote Albert J. M. Wessendorp, Psychologist-Psychotherapist. The rats displays behavioral disturbances, death rates rose, male rats began to show deviant sexual behavior and more. You can read more here.

Whales are known to commit collective suicide in order to control overpopulation.

What about you and me? How are we impacted by overpopulation (or over choice)?

The research says even human population growth is subject to limits. If we fail in controlling things ourselves, mother nature will begin to do it for us. (Think: Climate Change)

Radio Station Overpopulation

I love the radio business.

I share these thoughts because I’m concerned that the current overpopulation of the FM band is not taking into consideration the laws of physics or the impact of anything that gets overpopulated.

The FRC when it was formed (Federal agency that pre-dates our current FCC) it made it its mission to see America have quality radio stations or a large quantity of mediocre ones. We now look back on this period of time as “The Golden Age of Radio.”

Wessendorp writes that Maslow taught us that “People are only stirred into action when they feel their basic needs to be threatened.”

Have you looked at the revenue forecasts for radio for 2017? Are you feeling threatened yet?

What You Can Do

Next week I will continue with this topic and offer up what I believe is a solution to radio’s problem in an overpopulated entertainment world.

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Radio’s Jobs Didn’t Move to Mexico

75It seems like no matter what line of work you’re in, someone is finding a way to take your job away. If you’re in coal mining, you think the EPA is doing it to you. If you’re in manufacturing, you think its Mexico or China or some other country that pays their workers less and offers no benefits. But is that really what’s happening to jobs?

Where are the (Radio) Jobs?

I got into radio when I was in high school because I wanted to be a disc jockey. (Discs were what records were once called. Records were how we played music on the radio off of turntables, after live musicians were replaced by recorded music on the radio.) My DJ days are long behind me, but I don’t remember anyone from my earliest days being upset that records replaced the need for live musicians to play music on the radio. Do you?

Musician’s Union

I was also a musician. Played trombone. This was another way I earned money to go to college in addition to my radio work.

A fund set-up to promote live music from the playing of recordings on the radio is where the money came from to pay for my performances in local community concert bands. It was called the “Musicians Performance Trust Fund.”

To be eligible to be paid under this fund, you had to join the local musicians union AFL-CIO. I was a union member at age 15.

Truck Drivers

As high wage manufacturing jobs were leaving, many turned to the profession of truck driver. Truck drivers are well paid and people thought, let’s see them automate that. Truck driving employees have been untouched by globalization and automation. You can’t send truck driving in Ohio to be done by person living in Mexico. But that other factor, automation, is now on the horizon.

Uber Driverless Truck Delivers 50,000 Beers

I’m sure you’ve heard about driverless cars and that many expect they will be a reality by 2020 (3 years from now). But while many in the radio industry worried about the loss of radio listening in the car if the car starts driving itself and now everyone can watch TV or surf the internet, I worried that more middle class jobs would soon be automated, never to return.

Wired magazine reported in late October of 2016 how OTTO (Uber bought this company for $680 million) was driving the beer truck down the highway in Colorado without a human behind the wheel.

So it doesn’t take a lot of imagination to realize that we soon will see driverless cabs, buses, trains, planes, boats and a whole lot of people formerly known as the middle class will be out-of-work.

This same thing is happening in higher education too via the internet.

The Fate of the DJ

So where did the radio jobs, like being a disc jockey (DJ) go? They were high-teched. Automated. The industry calls it “voice tracked.” The very technology that did away with the need to have live studio musicians playing music now no longer needs the person that played the recordings of those musicians.

To radio personalities this is not news. It’s been that way since the late 20th Century.

To the multi-tasking, hard-working, over-committed and under-paid middle class it might have seemed as nothing had changed. Heck, they might have even seen the change as an improvement. Certainly recorded music was better in some ways than live studio musicians as it provided more variety in musical entertainment.

It’s Technology, Stupid

The wonderful high-tech devices designed to make our lives so much easier are also taking away the well-paying jobs that created the middle class of the 20th Century.

What’s the world’s 21st Century plan to deal with this change?

Ad Supported Media

The current crisis in ad supported media is that in a world of infinite media choices, and unlimited advertising avails, the money that used to be enjoyed from the sale of advertising is now less than previously realized.

About two years ago I wrote in this blog an article about what I saw as the future of ad supported media. I wrote it after reading Thomas Piketty’s book “Capital in the 21st Century.” I went back and re-read that article and see the trend lines of the graph on page 357 still all moving in the same direction and that should give us all pause.Picketty Chart on page 357

21st Century Media Business Model

All media is moving to a pay-for-play model. HBO, Showtime, Hulu, iTunes Radio, SiriusXM, CBS All Access, Amazon, Netflix, Pandora, Spotify etc. The ad supported model is coming to an end and the pay for what you want is replacing it.

The Wall Street Journal reported in the 4th quarter of 2016 that streaming revenues off-set declining sales of CDs and digital downloads.

People now rent what they want versus own.

And where does that leave your business?

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Words Matter

74The words you use can make all the difference in the outcome of whatever you’re trying to do. Visual mediums can get lazy with wordcraft thinking the visuals will carry the message. Radio can’t.

Writing Persuasively

Colleges teach two kinds of writing: creative and journalistic. One is made of whimsy and the other is fact-based. Effective radio ads are written to persuade. Few do.

Cliché Town

In my sales class we spend time exploring how to write messages that cause the listener to see themselves doing what it is we want them to do. People must first envision something in their mind before they will ever actually do it.

Walt Disney said:

“If you can dream it, you can do it.”

So you’d think that when my students produce their radio ads in their sales presentation during finals week they would be filled with persuasive wizardry. They’re not. They’re filled with all of the tired old clichés that comprise most radio ads. Why, because they’ve been brainwashed with them without even realizing it. Even though they have no impact, rating a big zero on the persuasive scale, they are still filling their brains.

Clichés Have No Father

While we’ve all heard them – like “plenty of free parking,” “committed to excellence,” “fast friendly service,” “these prices won’t last long,” “in business since 19–,” – and know them, we have long stopped connecting them to anyone or any business. They are in a sense orphan phrases that fill-up an advertisement but don’t deliver the goods. And they usually are what cause an advertiser to say “radio doesn’t work.”

You don’t listen to clichés and neither will anyone else.  Stop using them.

Google It

George Johns is a famous programming consultant and he puts it this way:

“He who controls the language controls the budget.

We don’t Bing or Yahoo things we Google them.”

Google means search. It’s why the parent company re-branded itself from Google to Alphabet.

What’s Your Point?

Whether you’re selling advertising for your radio station(s) or you’re writing radio copy for one of your clients, you should distill your message into a single compelling sentence.

The last presidential election had two candidates. One candidate made a consistent, compelling point and the other had a “basket of deplorables.”

Long after people have forgotten all the dry details of the race, they will never forget those red ball caps and that single compelling sentence.

Final Point

It’s a New Year and time to stop using worn-out words and tired old clichés. To quote the great advertising man David Ogilvy:

“You cannot bore someone into buying your product.”

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Best of the Blog 2016

73Before I begin my 3rd year of blogging next week, I thought I’d take a look back of the Top 5 blog posts from 2016 and share with you the posts that received the highest readership and sharing from the year just past.

My Most Read Article in 2016

My most ever shared post received 3,725 views in a single day. It was published on February 28th and was “The Day the ‘Dumbest Idea’ Invaded the Radio Industry.” It told the story of a change in the way we measure business success. Before this new idea was born, Peter Drucker’s measure was the rule. The purpose of a business, said Drucker, was to create a customer. But that went out with leisure suits, the new crop of business wizards would proclaim. What replaced it was something that even GE’s Jack Welch has called “the dumbest idea in the world.” You can read that post here.

This post beat my beat my previous single day record of 1,816 set on September 6, 2015 with an article called “We Never Called It Content.” For my new readers, you  can go back and read that one here.

Second Most Read Article of 2016

Radio Would Be a Great Business…If It Weren’t for the Employees” said radio is a people business. Take away the people and do you really have radio anymore? You can read it here.

Third Most Read Article of 2016

SiriusXM Radio is Now Free” was an article that wondered what would happen if this satellite radio service offered some or most of its channels for free. What would that do to the revenues of the AM/FM radio industry? Even if they only turned on the top five music formats, it would mean drivers could listen to them wherever they drove across America, plus SiriusXM would have the ability to pop in promos for their other channels that remained behind a paywall. It’s almost too scary to consider the possibility. You can read that article here.

Fourth Most Read Article of 2016

Don’t Let Radio End Up Like Yahoo” told the story of how radio could learn from Yahoo’s mistakes. Yahoo went from being a company worth $120 Billion to its sale to Verizon for $4.8 Billion. The article shared the Top 5 Lessons of Yahoo for radio. You can read it here.

Fifth Most Read Article of 2016

Millennials Love Radio” shared how today’s Millennial generation nearly equal Boomers in listening to AM/FM radio. 91.3% of Millennials are reached by radio every week. 94% of GenX’ers are reached by radio and us Boomers come in at 93.5% reached by radio every week according to Nielsen. Radio continues to be the advertising medium that gets results when used correctly. Read the full article here.

Over 52,000 Readers

I’m happy to report that as I ended 2016, my second year of blogging saw over 52,000 readers come to this blog from all over the world. Broadcasters, educators and students have all stopped by to read an article or more that caught their interest.

This blog in media mentorship was created to pay-it-forward to the broadcasting industry that I will have been a part of for 50-years in 2017.

FREE SUBSCRIPTIONS

You can subscribe to this blog for FREE and get a copy delivered to your email IN box every week by going to the bottom right-hand part of the screen and clicking on the FOLLOW button. (If you’re accessing this blog via a mobile phone or tablet, that button may not be visible I’ve been told.)

Next week, I will begin year three of blogging with all new articles.

Thank You for reading.

Feel free to contribute your thoughts to the discussion in the comments. Together we can all learn by sharing our experience, knowledge and wisdom.

Happy New Year!

 

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Your Most Important Sale

71What is selling?

Simply stated it’s the transference of confidence.

Selling is 90% attitude and 10% aptitude.

Self-confidence is having a ‘can do’ attitude.

What Successful Business School Grads Have in Common

Stanford’s Graduate School of Business conducted a study that looked at their most successful graduates over a twenty-year period of time to try and learn what the school did that provided their grads with skills to be successful.

The study boiled it all down to two things:

  • All their most successful grads were in the bottom-half of their class and
  • All of them were popular

Emotional Intelligence (EQ)                   

Schools put a heavy emphasis on grades, standardized tests and trying to measure a person’s IQ (Intelligence Quotient). The irony is that being smart won’t make you successful. Relationship skills are more important in the game of life.

The ability to collaborate will be important in our 21st Century world. Collaboration requires a high EQ.

How’s Your ‘tude?

Another element in success is optimism, your attitude and it’s completely in your control.

“No one can make you feel inferior without your consent.”

–Eleanor Roosevelt

Self-Esteem

Part and parcel with being self-confident is having a belief in yourself; feeling a sense of pride in your gut.

Great salespeople have developed a golden gut.

Ziglarism

One of my favorite concepts comes from Zig Ziglar.

“You are who you are, you are what you are,

by what has gone into your mind.

You can change who you are, you can change what you are,

by changing what goes into your mind.”

Just as important as what kind of food you put into your body, what you feed your mind will also have a huge impact on how your think.

You have to have conviction. You will bring to life that which you believe.

Develop a winning attitude and you will become a winner.

Winners find a way to win. Losers find excuses.

Your Attitude Determines Your Altitude

Your future is in your hands. Believe you are in control of your destiny.

Everything in your life you cause to happen first appeared in your mind.

Your thoughts shape your future.

So the most important sale you need to make to change your life is to yourself.

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I’ll Just Leave My Literature

70Be it just a one sheet with your latest sales promotion or a full color brochure, if you haven’t met with a person, why would you ever leave your company’s literature behind? Worse, most sales people will enter this hit and run as a “sales call.” It’s not.

Selling is Personal

The sales process is personal. You can’t phone it in or email it in. You have to get in front of the person you want to tell your story to. And if after you’re finished, if the person would like some more information, you can give them one of your brochures.

Circular File

I remember the time I returned from a sales call with one of my radio reps. When I entered the building, my receptionist said there had been a copier salesman who wanted to see me stop in. She said, “I told him you were out of the building.” Then she said “he left you his literature.”

I looked at this very expensive full color brochure on copiers and sadly tossed it into the trash can; the “circular file.”

What a waste of money I thought. Only the previous week, we had just signed a new long-term lease on a copier and we were now out of the market for several years.

I wonder how many calls like the one he made on me would be written down on his sales call sheet. That’s not selling.

Words Matter

When you do get in front of a person the words you use matter. David Letterman once asked long-time White House reporter Helen Thomas who she liked in the upcoming election and she replied “I don’t like any of them.”

David was really asking who she thought would be elected president but Helen thought she was being asked who she personally liked.

In Atlantic City, the program director on my music radio station asked if he could ask one question on our survey being sent out by the sales department to our listeners. The question seemed straightforward: “What’s your favorite song?” The program director of this music station was hoping that listeners would give him songs he might consider programming on our beautiful music station. The sales department was seeking qualitative future purchasing information from our listeners.

What my program director got back was a list of songs that could never be programmed on the same radio station, let alone our beautiful music station. The problem was the question didn’t ask what songs you would like hear on our station, but merely what your favorite song was. Taken out of context, the songs people wrote down were quite diverse.

What Are You Really Selling?

If you’re in radio sales and you think you’re selling advertising, you might be wrong.

What do lawyers, doctors and accountants sell? Legal advice, medical care and financial expertise? And how do you know if it’s any good? Most of us can’t answer that question. But what we can tell you is if we feel comfortable in the presence of one of these people. We can sense if the relationship feels good if our questions are answered honestly, our phone calls or emails are returned quickly and if we leave with a feeling that we are valued.

Radio sales are a professional service that is built on relationships.

People don’t care how much you know, until they know how much your care.

And you will never build a relationship with anyone by leaving your literature.

 

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Radio’s Non-Compete Contracts

69Have you ever thought about how Silicon Valley became such a powerhouse in the world of technology?  Back in the 80s, my home state of Massachusetts was home to world class research with institutions such as MIT, Harvard and the Route 128 corridor. So how did Boston cede its leadership to California and Silicon Valley? Employee non-compete contracts that held employees bound to these vertically integrated firms.

Meanwhile, taking a different approach companies such as Hewlett Packard and Sun Microsystems were embracing their people to job hop. They encouraged open technologies and building alliances.

Cross-Pollination of Ideas

In her book Regional Advantage AnnaLee Saxenian writes that these same phenomena took place in all kinds of industries all over the world; that being that these companies in California allowed cross-pollination of ideas to occur by the movement of people between them.

Ironically, radio enjoyed this same kind of cross-pollination up until 1996.

The Telecommunications Act of 1996

President Clinton signed sweeping communications reform in America with the Telecommunications Act of 1996. The radio industry consolidated almost overnight with a handful of major companies owning virtually all of the best “beachfront” radio properties.

The radio business, is not about just having a license to broadcast, but is about transmitted power and – like the real estate business – location, location, location. Unfortunately, that’s not how the FCC looks at license assignments.

Federal Radio Commission

The first regulatory body for communications in the United States was the FRC (Federal Radio Commission) and it divided the country into five equal regions and assigned the same number of radio services to each region. Why was this a bad idea? Because most of the people all lived in one or two regions of the country at that point in time and so more radio service was needed in them than in regions where it was mainly wildlife.

History Rhymes Again

I fond of saying that history doesn’t repeat but usually rhymes and in the case of radio’s number of AM or FM licenses a single company can own in a metro area we are repeating the same mistakes made by the FRC.

It’s not about number of signals but the power of those signals and location.

Cross-pollination of People

Part and parcel with the Telcom Act of ’96 was the loss of cross-pollination of people. If a person was RIF’d (Reduction In Force) by his company, he was under a non-compete to walk across the street or maybe some place else in the country as the same companies were now competing against one another all across this great land.

Before the Telcom Act, a single radio company could only own 12AM-12FM-12TV stations in the entire USA.  After the act, pretty much as much as they could afford to buy (with certain limitations).

BEST PRACTICES

Worse, these huge new radio companies would introduce across their footprint the concept of “Best Practices.” This is a code word for putting a knife in the heart of innovation.

Innovation requires risk.

Wall Street investors are basically risk adverse.

Playing it safe becomes the rule of the day and anyone that can’t play by the new rules is quickly shown to the exit doors.

Innovation requires three things according to the author of The Rise of the Creative Class, Richard Florida. Those are talent, technology and tolerance.

Consolidation and the new goal of “increasing shareholder value” would chop the talent pool while replacing people with technology. And the tolerance for anything new was likewise reduced to nil. Welcome to “playing it safe” radio; sterile, predictable and boring.

The Day I Tore Up My Employee’s Non-Competes

Back when I was in Atlantic City, I had an employee walk across the street to a radio competitor of mine. I wanted to pursue this employee because I had them under a non-compete contract. My new owners said that if a person didn’t want to work for them, to just let them go. I said then if they didn’t intend to enforce my employee’s non-compete contracts why did they keep them in place when they bought my stations from the previous owner. The president’s response to me was, “darn if I know.” I said then I’m going to tear them all up and he said, “go ahead.”

Life Without Non-Competes

I have to tell you, as a young manager, the realization that everyone at my radio stations could walk across the street to competitors was scary.

However, something wonderful happened.

People who now worked for me knew they no longer were working under non-competes and they now worked for me because they wanted to. It also made me realize that I too needed to provide a style of management that made people want to stay with me more than going someplace else. That, I would learn, is the best way to run a business.

Even better, having this type of work environment saw lots of talented people waiting in line to come work at my stations.

Make Radio Great Again

Radio became the force in America it is by being open to risk, new ideas and innovation. It kept the things that worked and jettisoned the ones that didn’t.

In other words, before radio was encumbered with huge debt brought on by consolidators, it invested in its future.

Radio can only win the future by investing in it.

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