Tag Archives: Dan Ariely

Build Your Rainy Day Fund

The novel coronavirus has eliminated jobs in less time than it takes to read this sentence. Many of those jobs were going away anyway, but COVID-19 sped up their demise.

For real radio people, the phrase “you haven’t really worked in radio until you’ve been fired at least three times,” taught many of us how to deal with a sudden loss of income.

13 Lucky Years

I moved to Atlantic City, New Jersey in 1984 to take over as general manager of WIIN/WFPG radio stations. At the young age of 32, I was promoted to my second general manager job; a job I would perform successfully for 13 years, until one day the stations were taken over by new owners.

Shortly after the closing, I learned that one of the owners would now become the new general manager, eliminating my position.

NJ Transit

I quickly learned that I would receive no severance pay, that my job was ending immediately and that my company car had just turned into a New Jersey Transit Bus if I needed wheels.

My new home with its hefty mortgage was manageable with my former income, but not with an unemployment check.

Job Hunting

While searching for my next radio management position, I traveled to a radio conference in Phoenix, Arizona. There I met another radio general manager who had also recently lost his job through a change in ownership. We were in the same situation, except he wasn’t as stressed out over landing his next position, as I was. Here’s what he shared with me that I never forgot.

Live Below Your Income

He told me as he advanced in the radio business, working in larger markets, and increasing his income, that he and his wife bought bigger houses, better cars and added lots of toys to their lifestyle. Each time when another job would end abruptly, he would become panicked and stressed out about quickly finding his next job. But when he moved to Phoenix, he told his wife that they were going to buy an affordable home and adopt a lifestyle they could manage, even if this job ended tomorrow. This time, they would live below their income and “build a rainy day fund.”

Why Don’t We Save?

Dan Ariely is an Israeli-American professor and author. He serves as a James B. Duke Professor of psychology and behavioral economics at Duke University. Recently a reader of his Wall Street Journal column asked “Many people I know have lost their jobs during the pandemic, which made me realize I needed to set up an emergency savings fund. But my job is secure so far, so it hasn’t felt very urgent to put money in the account. What can I do to make sure I contribute to my emergency savings every month?”

Dan told his reader “research shows that we are much more likely to save money for a specific personal goal than simply because it’s the right thing to do. The better way to look at this is to calculate how much you need to pay your mortgage or rent for three months, or to buy food for your family etc. When you think of saving as protecting those you love and meeting particular needs, you are more likely to commit to making regular contributions.”

I did something very similar after landing my next position, with the caveat of making the saving part, automatic. I calculated how much I would need to live and then directed the remainder to be automatically direct deposited into my “rainy day savings account.”

Sleep Like a Baby

One of the worst feelings you can have as a parent is not having the finances to take care of your family.

The change in my spending/savings habits gave me real peace of mind and I have slept like a baby ever since. I never felt like I was making a sacrifice either, as I would learn that life isn’t about acquiring more and more things, the secret to enjoying life is learning to appreciate the things you already have.

“What is essential is invisible to the eye.”

-from Saint-Exupery’s Little Prince

Pick a Profession, Not a Job

Just as important as financial security, is your health and well-being. For that, you need to be employed in something where you can’t wait to get up every morning.

If you want to become really good at something, you’ll need to spend years honing your craft. Malcolm Gladwell says it takes a person 10,000 hours to really master something, so you better love what you’re doing.

Cleveland radio air personality, Michael Stanley, passed away this week. He wrote a goodbye letter to his WNCX listeners that said in part, “it’s been said that if you love your job then it’s not really work and if that’s really true (and I definitely think it is) then I have been happily out of work for over fifty years!”  

I too was fortunate to have found a profession I made into a lifelong career and have enjoyed for over 50 years. Just like it’s important to live below your income level, it’s just as important to spend your days filled with doing things you’re passionate about.

Today, writing this blog and volunteering as a radio personality on a non-profit radio station continues to be my joy and hopefully provides mentorship and entertainment value to others.

Life is not about the destination, for it’s the same for each of us, it’s about the journey.

Enjoy your journey.

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Would You Like to Participate in Radio Research?

nielsen familyNuVoodoo does some really wonderful research about radio listening. They particularly focus on reaching people who are most likely to keep a radio listening diary or wear a Nielsen Portable People Meter, aka PPM.

During their last webinar, a slide came up quickly in the jam-packed presentation that made me choke on my coffee. It showed how small the pool of radio listeners is that would participate in Nielsen Radio ratings research. An astounding 82% say they would never wear a PPM device and even more listeners say they wouldn’t keep a ratings diary. Ratings Likies 2020

I Was a Nielsen Family

When I was a radio broadcaster, it wasn’t unusual for Arbitron Ratings to ask me about keeping a radio listening diary for a week. Each time I declined because I was actively working in radio.

When I was a broadcast professor at the university in Kentucky, I was approached about keeping a television ratings diary and Nielsen said that being a broadcast teacher was not a disqualifier, so I said “yes.”

I knew that the experience of keeping a ten-day television viewing diary would be one I could share with my students in covering the topic of radio/TV ratings. I was thrilled to be a “Nielsen Family,” even though that thrill quickly dissipated once the survey diary and instructions arrived.

The few dollars Nielsen sent to me with the materials seemed small potatoes for the amount of information they wanted to extract from my viewing habits.

By the end of the ten days, I was sure I’d never want to do this again, and it made me sad because I was a person who should be passionate about doing such work.

A Relative’s Family Wore PPMs

A member of my family living outside of Boston was asked to participate in PPM radio research. The rewards being offered enticed them to say “yes.”

The members of the family ranged in age from 44 to 6.

I remember looking at this 6-year old playing on his swing-set and thinking, Boston radio 6+ radio ratings depended, in part, on little kids like this. It sent a chill down my spine.

Well, the family grew tired of participating very quickly. In the nutshell, they didn’t feel the inconvenience was worth the small reward paid for wearing the PPM devices.

They said the experience hardened them from ever participating in future radio or TV ratings research, besides now they rarely listen to radio anymore with Spotify being the family choice for streaming. The Spotify App keeps track of each member of the family’s listening habits, serving up just what they want to hear.

Ratings Likelies: Rare & Vital

In late June 2020, NuVoodoo fielded their sixteenth Ratings Prospects Study and they write: “we drilled down to the small segment of radio listeners likely to accept a meter or diary from Nielsen. As has been the case in every past NuVoodoo study, when we model for the subset of respondents who would say ‘yes’ to Nielsen, the opt-in rate even among our already research-inclined sample is staggeringly low – with the percentage of likely ratings respondents who spend an hour or longer with radio each day even rarer still.”

That’s pretty disturbing to hear.

Share of Ear

Then the news breaks that COVID-19 has tipped the consumer listening habits to digital streaming. Now 53% listen to on-demand/digital devices versus 47% who listen to linear/non-digital devices, like AM/FM radio. Edison Research began tracking audio consumption on digital devices in 2014 and now, only six years later, people over the age of 13 spend more time with these devices than traditional OTA radio.  Digital Devices Cross 50%

It’s another case of the inevitable happening anyway, but COVID-19 is causing changes to occur on an accelerated time frame.

Edison Research also found in their latest Infinite Dial research that new music seekers are using YouTube for music discovery versus AM/FM radio, 68% to 46%.

Dan Ariely Explains

Dan Ariely is a psychology and behavioral economics professor at Duke University. I first became aware of Dan’s work with his book Predictably Irrational.

Dan explains that “the interruption of everyday life has been an experiment showing that habits aren’t just desires; they’re behaviors cued by reminders in our environment. When we change the way we interact with our environment, a lot of seemingly ingrained habits fade away. Some of them we are better off without, like thoughtless consumption and spending.”

Since the pandemic more people who used to commute to work, began working from home. The AM/FM radio cue for listening was their vehicle’s dashboard radio, but since they were spending less time in the car and more time at home, the device for audio consumption used in the home now became dominant.

While one hopes that once people begin to commute to work again, if that even happens, the old routines – including listening to the car’s radio – might return.

However, many companies, especially the high tech ones like Google, Amazon, Twitter, and Facebook, are moving to a permanent WFH (Work From Home) model.

Dr. Ed Cohen

One of the most recent high profile layoffs was that of Dr. Ed Cohen from Cumulus as its VP for Ratings and Research.

Radio Ink asked him about the future of AM/FM radio to which he responded:

“It’s a question of whether (the radio industry is) cutting bone and muscle rather than fat. If the radio industry continues to cut, can we put our best foot forward to not only keep current listeners spending as much time with the medium as they have in the past, but can we also convert light listeners to spend more time with radio? Commercial radio is not a charity and faced with the revenue challenges of (COVID-19), layoffs and furloughs are inevitable, but listeners don’t understand that and don’t likely care. They want to be entertained and informed. If they perceive a degradation of what they expect from us in a world of increased competition from other sources (streaming, podcasts, etc.) some will go elsewhere, accelerating a downward spiral. I hate to sound pessimistic about a medium where I’ve spent nearly my entire career (even my Ph.D. dissertation was about radio) and have no claims to be Nostradamus, but that’s the logical conclusion. I hope I’m wrong.”

Sadly, Dr. Cohen, I think you’ve got it right.

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Podcasts & Homework

33On the surface these two things appear to have nothing in common. Right? But stay with me as I explain. I follow Duke Professor, celebrated author and student of human nature Dan Ariely. Dan writes a regular column for the Wall Street Journal in which he answers people’s questions. A recent question was “Any tips for encouraging kids to view their homework as play?”

Being that my second career is teaching at a university, subjects dealing with learning catch my eye, so I read what Dan had to say about this.

Can Homework Be Viewed As Play?

Two words: Not really.

However Dan goes on to explain why this is. While you can get kids to maybe enjoy homework more or to hate doing homework less, it is still work. Play is something else entirely.

So what does this have to do with Podcasts?

Hold on, I’m getting to that. Dan goes on to tell the story of how in a part of the world that has little water; deep wells need to be dug to find water. Pumping water out of these deep wells is a lot of work. A person noticing how children at a playground near the well loved to push a merry-go-round around for hours on end while at play had an idea. What if the children’s merry-go-round were connected to a pump that would draw water out of the well? Are you with me so far?  Well, that’s what they did.

A Not So Bright Idea

The result of this new “PlayPump” was underwhelming. And here’s the key point of the story. Dan says that “when you take a play activity and force children to do it, you change the activity from play to work, and the fun goes away.”

Podcasts = Work

In my honest opinion, Podcasts take work. You have to remember they are there. You have to download them onto your device. You have to schedule a time you’re going to listen to them. You have the ability to fast-forward or repeat them – which I’m sure you would say is their benefit – and that means you have control over them. You have a role to play. You have to work. So if Podcasts are to be a threat to over-the-air radio, listening to them is going to have to get a whole lot easier.

Don’t Discount Curation

Over-the-air radio is easy, just an on/off button, volume control, and your favorite stations ready to listen to at the push of a button. Someone else does all the work. They pick out the songs, they tell you the weather, they give you the time and traffic conditions, they entertain you, and they alert you to anything important happening in your world you should know about. All you have to do is play.

Who wants to do homework anyway?

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