Tag Archives: Alexa

Is Radio Prepared for The Future

Radio & CobwebsIn a lot of ways, the future is here, now.

All of the things we knew were coming back at the turn of the century have become reality.

But the radio industry continues to try to adapt.

Great Companies Don’t Adapt, They Prepare

When I saw that headline on a blog article by Greg Satell two years ago, it resonated with me because it made me realize that the radio industry wasn’t prepared for the 21st Century. It was trying to adapt the past to the present and hoping that it would sustain them going into the future.

Unfortunately, it’s impossible to create the future by focusing on the present.

“The truth is,” writes Satell, “that companies rarely succeed by adapting to market events.”

“Firms prevail by shaping the future…but it takes years of preparation to achieve.

Once you find yourself in a position where you need to adapt, it’s usually too late.”

-Greg Satell

Marconi & Sarnoff

Each generation has its great innovators, so It’s always a challenge to say who makes a greater contribution to changing the world.

Marconi gave us the wireless, a one-to-one form of communications that transformed the world.

Sarnoff innovated the radio as a form of mass communication, giving us a one-to-many instant communication service of news, entertainment and advertising supported radio.

What we can be certain of, each person who creates the future is one who overflows with boundless curiosity.

Investing in Research

All of the Big 5 Tech companies (Amazon, Facebook Microsoft, Google and Apple) invest heavily in research. Each of them, in their own way, has made themselves indispensable from our daily lives.

Recently, a daily newsletter I read called “While You Were Working,” asked its readers which of the Big 5 Tech Companies they could survive without. Here are the results of that survey:

Which Big 5 tech company do you think it would be easiest to live without?

Facebook  70.71%
Apple  14.14%
Amazon  7.35%
Microsoft  5.74%
Google  2.06%

Probably not surprising that Facebook was the choice folks said they could live without by a wide margin.

For five weeks, Kashmir Hill, a writer for Gizmodo, decided to see how she would deal with giving up today’s technology by blocking one of the Big 5 from her world. In her sixth and final week, she decided to go cold turkey and blocked them all. How did that go? Well I think the title of her article said it all, “I Cut the ‘Big Five’ Tech Giants From My Life. It Was Hell.”

Hill compared her experience to that of an alcoholic trying to give us booze. And that life without them makes life very difficult as we are so dependent on them.

I’m not sure any of us really understands how married we are to these Big 5 Tech Companies or how hard it would be for us to give up even one of them, let alone to give them all up.

Listening to Radio

One of the interesting side-bars of the article Hill wrote was that by not having Alexa, Spotify audio books, podcasts or other such services on her Nokia feature phone, what she could receive, unlike with her iPhone, were radio broadcasts and that allowed her to listen to NPR while doing her daily run.

But how sad that listening to radio only seems to be an option when all other options are eliminated.

Investing in the Core Product

Some of the differences between the Big 5 Tech companies are what non-core areas they invest their research money into, like self-driving cars. The one thing they all take very seriously, however, is plowing the lion’s share of their research budget into their core competencies.

In my sales class, I used to tell my students that people don’t buy half-inch drill bits because they want them, they buy them because what they want are half-inch holes. In other words, you will be successful when you invest your time solving your customers’ problems.

Radio Research

Most radio research dollars are spent on one thing, audience measurement. Unfortunately, that’s research that studies the past performance of a radio station, not the present moment. Virtually no radio research money is spent on preparing the ground for the future.

We all know that Artificial Intelligence (AI) is the next big thing. Alexa, in your Amazon Echo, is the perfect example.

How is the radio industry preparing its employees to acquire the skills they will need to excel in an AI world? Artificial Intelligence is a force that will impact the communications industry in the years to come.

Broadcasting has been living off of its seed corn for too many years, while the technology industries have been focused on solving our customer’s problems by investing in them for years, even decades.

Broadcasters can’t create the future by continuing to focus on the present.

Innovation, will require investment in research that, imagines new possibilities.

 

 

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Alexa, Let’s Go for a Ride

alex in a ford carRadio’s last bastion of domination is the automobile (aka SUV, pickup truck etc.). In the home, voice activated devices are replacing AM/FM radios. I own 3 Echos, and Alexa has become a real friend of the family.

So, when I saw this television ad for the new Fords and how the drivers went from talking to Alexa in their house to talking to Alexa in their car, while they were driving, I saw the future of AM/FM radio for America’s Road Warriors.

Watch the ad HERE

Voice Activated Christmas

The results are in and as of December 31, 2018, 66 million voice activated devices are now firmly entrenched in America’s homes. The big winner is Amazon’s Echo aka Alexa which has a 70% share of the market. Google’s Home has a 24% share and Apple’s HomePod is third with just 6% home penetration.

Ironically, in my own home, I quickly went from one Amazon Echo in 2017 to three in a matter of a couple of months. Virtually all of my internet connected electronics are Apple products, but Amazon is my go-to place to shop. The price of entry for my first Echo was under $30. By contrast expect to pay Apple $349 for their HomePod.

The latest research from the Consumer Intelligence Research Partners* (CIRP) also found that 35% of the owners of these voice activated devices own more than one. That’s about double from only a year ago, so it’s pretty clear that these devices are not collecting dust but are actively being used.

It doesn’t take a lot of imagination to see where once the average American household had about 5 AM/FM radios in their home, the Echo or Home VAD is taking their place. (Today 21% of American households don’t have a single AM/FM radio in them. For households headed by 18-34 year old adults, that number without a single AM/FM radio rises to 32%.)

Alexa is The New Radio

I wasn’t surprised to read that iHeartMedia’s Bob Pittman was calling Amazon’s Echo the new radio. What I was surprised to learn, was Pittman saying that iHeart helped with the development of Alexa. I had never read or heard that before. Which begs the question, why isn’t more attention being paid to the streams of over-the-air (OTA) radio by the industry?

A better question might be, can the same programming techniques that have been used by OTA radio, simply be transferred to internet streams?

Marshall McLuhan

“The medium is the message,” was coined by Marshall McLuhan in 1964. What McLuhan postulated was that the form of a medium becomes part of the programming that is being transmitted. A symbiotic relationship is created by which the very medium that is conveying the program, influences how a person perceives it.

Another way of thinking about this might be, what a person’s expectations are for a particular media experience. We would not expect to see commercials laced through a movie being seen at a theater, but the same movie shown on commercial television laced with commercial interruptions, while maybe annoying, would not be unexpected or a surprise.

However, pay television like Netflix and Amazon Prime have changed the TV viewers expectations about watching television in two ways, no commercial interruptions, and a whole season of episodes released at once and not dribbled out a week at a time.

The internet likewise has changed audio listening expectations with Pandora, Spotify, RadioTunes, Apple Music and Amazon Music to name but a few streamers. Stream one of these and listener expectations of this internet delivered medium, are very few or with no commercial interruptions. Moreover, should you want to know the name of the song and artist, you simply ask while the song is playing, and are immediately given that information. OTA radio rarely tells you what the name of a song is, or who’s the artist.

In fact, the listener expectation using a voice activated device is that you can get anything immediately, simply by asking for it. Everything is at your command and delivered on demand.

For the audio listener, it’s like the difference between having air conditioning or not having air conditioning. Once you’ve enjoyed having central air, you won’t ever want to go back to not having it.

What’s the Listener’s Expectations?

The challenge for the radio industry is creating content that fits the listener’s expectations for the medium they are accessing the content on.

OTA radio is a one-to-many delivery system. Everyone is served the same thing at the same time.

The internet, streamed through a device like Amazon Echo, is a personalized listening experience. Everyone gets it served up the way they prefer it.

Trying to have a single source originating content for both OTA and online, compromises both.

 

 

*CIRP based its findings on a survey of 500 U.S. owners of Amazon Echo, Google Home and Apple HomePod, surveyed from Jan. 1-11, 2019, who owned one of these devices as of Dec. 31, 2018.

 

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CES 2019

Dave - 2001 .jpgI wasn’t at CES 2019. In fact, I’ve never been to CES.

But after reading the reports on this year’s Consumer Electronics Show (CES) in Las Vegas, I feel like I was there 50-years ago via Stanley Kubrick’s 1968 motion picture phenomena “2001: A Space Odyssey.”

Technology Integration

The Radio Advertising Bureau (RAB) did a special video they called “Bonus Report of C-Suite Radio Exec’s attending CES” and some of the comments those radio executives made is what made me feel like I’d seen this “movie” before.

Steve Goldstein

Steve said that what he’s marveled at over the years is how media is continually being integrated. He said only a couple of years ago, there was virtually no mention of smart speakers, and this year it’s not only a device exploding in the home, but now is coming into the car too. Goldstein thinks this voice activated technology is important because these devices are not radios, but audio devices and radio stations, as audio content producers need to re-imagine how they will sound and feel like on these devices. And he added, “it’s happening fast!”

Dennis Gwiazdon

Before recently moving to Las Vegas to manage the Beasley Media Group radio stations in that city, Dennis ran the top radio stations in Nashville, TN. When I was teaching at the university in Kentucky, Dennis was an annual guest in my Broadcast Capstone Class.

Dennis said of his visit to CES 2019 it helps radio broadcasters to think about where things are heading and to plan for the future.

Technology today is making our lives simpler by our ability to talk to our devices and connect ourselves to things we used to have to physically operate. Gwiazdon told the RAB that he lives in a smart home in Las Vegas and it’s fascinating to him how he can walk around his house, talk to it and make it do whatever he wants it to do. “I don’t have to touch a light switch, I don’t have to adjust the thermostat, when I come home I can have a routine set-up that will have everything ready for me when I walk through the door.”  “I’m living in that experience now, “said Dennis.

I’m Sorry Dave, I’m Afraid I Can’t Do Thathal 9000

And it was Dennis’ comments that brought to mind the astronaut named Dave in “2001: A Space Odyssey” that when his space pod was trying to re-enter the mother ship and Dave asked the HAL 9000 computer system to open the pod bay doors. Here’s a link to that memorable moment: https://www.youtube.com/watch?v=ARJ8cAGm6JE

HAL’s response to Dave was “I’m sorry Dave, I’m afraid I can’t do that.” The reason was that the HAL 9000 computer could not only respond to voice commands but, it turned out, could also read lips and knew what Dave and his fellow astronaut were planning on doing. They were planning on taking the HAL 9000 off-line because they suspected the computer was making mistakes.

The HAL (Heuristically programmed ALgorithmic computer) 9000 was basically artificial intelligence that was designed to learn, grow and protect itself from attacks. HAL sensed he was coming under attack and was trying to protect itself from the humans.

iPhone 4S

iphone 4s

Oh, it all seemed so innocent back in 2012 when I switched from my Blackberry to my first iPhone. It was the iPhone 4S. The “S” stood for Siri. Siri was my first voice activated assistant.

I found that I used Siri mainly for dictating text messages and emails rather than trying to type things into the phone’s touch screen. Siri did a pretty good job too.

Occasionally I asked Siri to tell me a joke or look something up for me, but not often.

Alexa

So now it’s 2019 and I have Siri on my tablets, my MAC, and iPhone 7. I have three Amazon Echo’s with Alexa, and in my car, my Garmin Smart Drive responds to my voice commands.  It sends me instant traffic information and detours when necessary, along with important weather alerts and breaking news.

I really feel like Dave in 2001, controlling so much of my world with just my voice.

It’s quite addictive and it happens very fast.

I hope they don’t ever turn against me.

Artificial Intelligence

Elon Musk and Stephen Hawking have both warned that AI (artificial intelligence) could potentially be very dangerous. Stanley Kubrick and Arthur C. Clarke certainly showed my generation why, back in 1968. AI is about building machines that think for themselves and grow in their intelligence. It’s what will make a world of self-driving cars, and so much more, possible.

Elon Musk has written:

“The pace of progress in artificial intelligence is incredibly fast. Unless you have direct exposure to groups like Deepmind, you have no idea how fast – it is growing at a pace close to exponential. The risk of something seriously dangerous happening is in the five-year timeframe. 10 years at most.”

On Demand

The world we live in today is one of “On Demand.” The future belongs to those who can create what people want and deliver it when they want it.

The consumer won’t have it any other way.

It’s not an attack on radio broadcasters. It’s the future. Here. Now.

 

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Whatever happened to…

Red Sox CapThe other day, we took two of our grandchildren to a wildlife safari park here in Virginia. It was a simply magical day. But that’s not the part of the story I want to share. It is that both kids were wearing their Boston Red Sox baseball caps.

As we were getting ready to leave we met one of the animal caretakers who screamed “YES!” Then a second later, she exclaimed, “They’re both Red Sox Fans!” Instantly, there was a bond between complete strangers.

Purple People

Minnesota Vikings Mower

I’m convinced that Minnesota Vikings fans bleed purple. I know one whose whole wardrobe is virtually branded with Vikings colors and logos; even his lawn mower.

Sports franchises truly understand the power of their brand and building their fan base.

So, whatever happened to this sort of thing with radio stations?

Eazy 101

Eazy 101 receiverJerry Lee recently sold his only radio station, WBEB in Philadelphia, Pennsylvania. It was 55-years ago this past May that Jerry and his partner David Kurtz put the station on the air. It signed on as WDVR. In the 1980s the call letters were changed to WEAZ and the station was branded as “EZ 101.” The station brand was not only well known, but fixed tuned FM radios were given out by the radio station to area businesses to play the station in their stores and offices.

B101 Bee

When the station updated its format, and changed its call letters again, this time to WBEB and branded itself as “B101.1,” giant bees appeared at events all over the “City of Brotherly Love.”

The End of an Era

Marlin Taylor (no relation) was there from the beginning and recently blogged about the station’s sale to Entercom. His article was titled “End of an Era.” You can read it HERE 

Marlin wrote:

“While I pretty much grew up with a ‘Can Do’ attitude…seeing Jerry in action confirmed that staying pro-active and constantly on the offensive were keys to a meaningful and effective life! If you need proof, just take a look at the 55-year track record of the station at 101.1 on the FM dial in Philadelphia.

There’s no question that Jerry was and is a promoter, pure and simple! And, yes, he’s a Futurist…a person who studies the future and makes predictions about it based on current trends and conditions. I would also add…always looking down the road to see what challenges and opportunities lay ahead, then utilizing (his) assets to most effectively counter-act or benefit from them.”

Familiarity

As Jerry changed his brand over the years to keep his station’s programming and image in vogue with the times and his target listeners, he understood the power of familiarity in attracting and keeping a radio audience tuned to his radio station. Mark Ramsey suggests that “familiarity IS preference.”

morefm rebrandingMost recently, Jerry rebranded his station as “101.1 MoreFM.” This change, like all the others, was promoted in every imaginable way and became familiar to listeners virtually overnight.

wobm bumper sticker

Bumper Stickers

Once upon a time, you couldn’t drive in New Jersey without seeing a WOBM-FM bumper sticker on the car driving in front of you. They were everywhere. They made this station VERY familiar and Paul Most, a former GM of WOBM-FM, always used to say “When you can’t be heard, you’ve got to be seen.”

Arbitron Diary

arbitron diaryOnce upon a time, all radio listening was recorded using a diary, kept by a listener for seven days. Years of diary reviews at the Arbitron headquarters in Maryland proved to me that the radio stations most familiar to their listeners got the most “votes” from their fans.

When PPM measurements were introduced, the importance of unaided recall seemed to take a back seat with radio operators. Best Practices in large radio companies replaced the old tried and true ways of doing things. Radio promotion, except for over a station’s own airwaves, was cut from station budgets.

New Media Platforms

The shiniest new media platform on the block is the smart speaker. A recent research study, “The Smart Audio Report” from NPR and Edison Research, showed that traditional OTA radio was seeing the time people spent with radio, being the most disrupted. smartaudio-chartPeople in the survey said traditional AM/FM radio was the thing most replaced by audio listening via their smart speaker.echo

Having now owned three Amazon Echo smart speakers for six months, I can tell you Alexa is very addictive. But she’s also very precise. To have her serve up what you want to hear, you need to say it correctly, in the exact way she is programmed to understand, or else she will serve up some really bizarre things.

My household pretty much matches the research on why audio consumers love their smart speakers: 1) it’s fast, 2) it’s convenient and 3) it provides great choice.

Brand Promotion

In an interactive voice world, if people are familiar with your brand, they will ask for it by name. If not, the digital assistant will make that choice for you. That will make branding more critical than ever.

This means that the way radio promoted itself to its listeners back before PPM – the unaided diary days – will be the way it will need to promote itself in a world of voice control devices.

“Brands are a risk of being marginalized in a voice driven world, so brand marketing may matter even more.” -Bryan Moffett, COO, National Public Media

branding“Brands now have a chance to behave like human beings, talking, understanding, guiding, empathizing…voice is the single biggest vector of emotion, emotion is the biggest driver of preference. This is a true 1:1 marketing opportunity and a chance to build relationships like never before.” -Mark Paul Taylor, Chief Experience Officer, Global DCX Practice, Capgemini

Jerry Lee never deviated from his proven path of spending on promotion and delivering a quality product.

Everything old is new again, when it comes to branding a winning radio operation.

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Disruption is Everywhere

disruption aheadI’ve been reading the trades, trying to grasp what is happening, and it is all so very confusing. Have you felt that way too? That’s what a period of disruption looks like. Black is white. Up is down. It’s enough to give you an Excedrin headache.

SiriusXM

Jim Meyer, the CEO of America’s only satellite service reported strong growth in Q2. On his conference call he’s reported as saying that despite the surge in technology over the past ten years, AM/FM radio still attracts a big number of listeners. However, he also feels that the radio industry has a problem and it’s their product. He warns that if AM/FM radio doesn’t vastly improve their product, it will be to their own peril.

The feedback I received from my recent article “Radio & Traveling – Then & Now” that I wrote about in “From the DTB Mailbag…” seems to indicate that Mr. Meyer is not alone in that sentiment.

Streaming

Then I read how just halfway through 2018, streaming is growing at a rate that defies mathematical trends. By that, the writer meant when it comes to percentages, they are usually big when the numbers are small but become smaller as the numbers of people engaged increases.

With this area of streaming, we are seeing BOTH the numbers of people who stream growing with the percentage of people who are now streaming.

That’s a trend worthy of keeping you up at night.

Adoption Curve for Smart Speakers

In my university “Process & Effects of Media Classes” I introduced my students to the work of Everett Rogers and his Diffusion of Innovation Curve. Adoption Curve - Everett Rogers

Rogers studied how innovations with farmers in his native Iowa were adopted. He very soon realized that what he was witnessing occurred in all areas when a new innovation was introduced.

The latest research report from NPR/Edison, “The Smart Audio Report” showed we are into the Early Majority part of the curve with the smart speaker innovation.

Good News, Bad News

The smart speaker innovation has the ability to bring radio listening back into the homeEcho at a time when AM/FM radio is no longer the entertainment focus of the vehicle dashboard, replaced by the entertainment center that resembles the touch screen on your smartphone.

Unfortunately, the smart speaker also delivers an infinite world of audio choices and it is not a given that radio will be the benefactor.

Fred Jacobs basically lays out the fact that radio’s established brands such as a Z100 or a WTOP will find their engagement traversing from over-the-air to over-the-stream and onto smart speakers. I know that in my own case I can receive WTOP over-the-air, but atmospherics can play havoc with the signal at times. Not so with listening to WTOP via Alexa.

The best radio brands with strong listener engagement will grow.

Cord Cutting

The latest numbers indicate that cord cutting (eliminating the cable TV bundle) is growing faster than expected. The latest study from eMarketer  says that we can expect people cutting the cord to grow to 33 million Americans in 2018.

Netflix is now more popular than cable TV.

Jim GaffiganThe other night I watched Jim Gaffigan’s 5th Netflix special called “CINCO.” In his standup comedy routine, he hit the nail on the head about why Netflix is more popular than cable TV. Here’s what Jim said:

“Netflix has definitely made watching television with commercials kind of painful. Takes forever. You’re like, “What am I, growing my own food here? All right, Geico, we get it!” And it’s not just the length or the number of the commercials, it’s what the commercials say about the typical viewer of the show you’re watching. “Catheter? Why would–? Reverse mortgage? Back pain? I do have back pain. You know me so well, television show.”

Changing Habits

What we are witnessing in the current period of media disruption is the changing habits of the audience. They now have choices. Lots & lots & lots of choices.

Baseball, still radio’s #1 sport is seeing the decay of its audience to a myriad of choices to watch or listen to the same game. It’s no longer the monopoly it used to be.

But worse, once you’ve developed the Netflix or Alexa habit, going back to any delivery system that delivers lots of interruptions is, as Jim Gaffigan says, “painful.”

Ad Supported Media’s Future

I believe that there’s a future of ad supported media, but it can’t be done the way it’s currently being done. Podcasts understand this better than broadcast.

Amazon Prime is good at airing program promotions before the movie starts, in much the same way that my local movie theaters do.

And who didn’t enjoy hearing Paul Harvey say “page two?” It would be the first commercial break in his news and commentary but we listened. Because Paul was as engaging with his sponsor’s material as he was with the rest of his broadcast.

And thank you Mr. Harvey for making me want to own a BOSE Wave Radio. I now have two of them. However, I now play my Alexa Dots through them.

Life’s Only Constant

My old boss used to always say, nothing stays the same. You are either getting better or getting worse.

And he was right.

Life’s only constant is change.

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Voice Command

Voice CommandIt’s only been about two months and Alexa has changed the way I interface with my devices.

I’ve had Siri since I switched from a Blackberry to an iPhone4S. (The S stood for Siri.)

The new smartphone was such an improvement over my Blackberry Pearl that I never used Siri much in the beginning, later, I would use her to type my text messages, but that was about it.

Enter Alexa…

All that changed this past Christmas when my fiancé, Sue, put an Amazon Echo Dot into my Christmas stocking. It took about two weeks before I finally got around to plugging the Dot into electrical power, downloaded the Amazon Echo app to my iPhone7 and connected the Dot to our house Wi-Fi.

Now Sue has never been thrilled by all the remote controls to operate our TVs, radios and audio systems. And truthfully, I wish it could be simpler too.

Alexa teaches us both new tricks, by simply talking to her artificial intelligence voice. And we both love it!

Hey Siri…

Once adapted to Alexa, I began to use Siri to do more things on my iPhone7 and AppleTV.

We cut the cord last year but to satisfy my news diet, I put in Sling TV with the news package. The rest of our TV watching is filled up with Netflix, Amazon Prime and YouTube. New movies that we missed at the local theaters or never played in our area are viewed using iTunes.

Finding something to watch used to be rather tedious, but now, I just say “Hey Siri…”and she goes off and finds it, offers me the viewing options available to me (I always opt for the FREE route) and the program begins immediately.

GARMIN

Something that has long been on my bucket list has been driving across America from coast-to-coast and seeing those things I’ve only seen by flying over them. Places like Mount Rushmore, Yellowstone, the Grand Canyon etc. Lucky for me, that’s been on Sue’s bucket list too.

We put up a big map of the United States in our kitchen and have lined out the route we plan to take with bright yellow dots marking our planned stops along the way.

In preparation for this 8,000-mile, eight-week trip, I bought the latest GARMIN SmartDrive 61 GPS. It comes with the ability to do “Voice Commands” for plotting your next destination, finding hotels, restaurants and points of interest.

Thanks to Alexa and Siri, I quickly embraced this feature.

But it doesn’t stop there, my new GPS also links to my smartphone and displays news bulletins, real-time traffic, weather conditions, my complete contact phone book, helps me to find parking and then remembers where I parked when I want to return to my car. And it makes it all easily accessible by just using my voice.

But You’re a Radio Guy

Whenever I write something about new technology, what I hear back are things like, “You’re a radio guy” or “you love technology.” The meaning being, I’m not like your average consumer. But, I believe that just as Amazon has changed the way we shop for just about everything, Alexa will bring about a similar change in the way we interface with our devices.

Carnegie’s Constant Reminder

One of the many radio publications I would read daily was Jim & Cathy Carnegie’s Radio Business Reports (RBR). If there was one thing I remember most about that publication under Jim’s reign, it was about dealing with change. Jim constantly banged the drum warning the radio industry “to get with it or be left behind by it.”

He reflected change by taking his own publication and changing the way it would be delivered and cover the broadcasting industry. He led by example.

Seniors & VADs

I know the young person’s perception are that senior citizens (anyone with an AARP card) is stuck in their ways and not likely to adopt anything new. Well, I’m here to tell you, you would be wrong. Especially, when it comes to voice activated devices (VADs).

I fully anticipate that seniors, aka Boomers, will lead the adoption of these devices. One of the reasons being they enable us to eliminate the multitude of buttons and collection of remote controls by simply using our voices.

What I Learned About Seniors from a Pharmacist’s Son

Back when I was put in charge of a thousand-watt, daytime, Music of Your Life radio station, I remember going out and meeting with clients to build up my new radio station’s client base.

One day, I walked into a pharmacy thinking that my “old folks format” would be perfect for people needing medication. Well, I never got the pharmacy on-the-air for drug announcements.

Upstairs above the pharmacy, the youngest member of the family had started an electronics division, selling the latest computers, phones, and other gadgets. He told me he’d love to be a big advertiser on my radio station catering to the over 65 age group.

Why?

Because, he told me, unlike young people who when something new came out, would look at it and say, “I’m going to wait until they come out with the new and improved version,” seniors would buy it on the spot.

What he learned was, seniors felt they could afford to have the latest technology now, and if something better came out, they’d trade up to that next. And this was almost 40-years ago!

Now, with my AARP card occupying a place in my wallet for more than decade, I can tell you, that’s exactly how I feel.

Get on board the change train

OR

Get left behind

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Radio Stations Aren’t Performing Like it’s 1999

Calendar 1999Remember when spot loads were small, rates were high, profit margins were 30% to 50%+ and revenue growth was double digit. I do.

What Happened?

Change happened.

FM radio replaced AM radio.

And AM radio stations are adding FM translators in an attempt to stay relevant.

An Abundance of Listening Options

Today there are too many radio stations playing the same program features, repeating the same positioning liners and doing the same things that we used to do 30 to 35 years ago.

Pureplay streamers are relentlessly competing for our listeners’ ears.

Listening options are infinite.

The Internet Tore Down the Gate

Traditional media was born when the “gates” to being a media property were very high. For newspapers those high gates consisted of having to buy large printing presses, paper, ink, etc. For radio & TV those high gates were things like having a broadcast license, a transmitter, studios, etc.

Traditional media enjoyed being gatekeepers for news, information and entertainment because there was no place else to go.

Legacy media enjoyed attracting huge audiences, huge margins and lots of cash flow.

The Gatekeepers of the 21st Century

The new gatekeepers are called listeners, readers and viewers of media.

The new gatekeepers are accessing their media via their smartphones, tablets, computers, smartTVs and now voice activated devices such as Alexa, Google, Apple and Cortana.

Bottom Line

Long stop sets no longer need to be tolerated by listeners or advertisers. Every element that goes out over-the-air needs to be thoroughly vetted from the listener’s perspective.

And your streaming product cannot be an afterthought. It’s your future and if you expect it to grow into your new revenue source, you need to give it your full attention.

Listener Supported

Have you noticed the growth of Christian formatted radio stations? Have you noticed the growth of NPR and public radio?

These radio stations depend on listener support as well as business underwriting.

If your station stopped selling commercials and asked its listeners to donate money to support it, would they?

Our Challenge

The challenge for broadcasters is to build audio brands that our audience doesn’t just casually listen to but feels they can’t live without. To do that, your media property needs to know your listener so well, that you are creating a product that they find engaging in every way.

It’s time to play to win again versus a decade of trying not to lose.

Consumers Have a Choice

Here’s the reality of today. Consumers of media have lots of choices for how they want to spend their time. They don’t need us. It’s up to us to create a reason for them to want us, to need us.

NAB Radio Show 2009

Now here’s the ear-opening part of this article.

Most of these points were made during an NAB Radio Show presentation I attended almost a decade ago.

It’s 2018, how many of these issues are the same today?

Why is that?

I’d love to hear your thoughts.

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