Tag Archives: Don Beverage

Radio’s Disappearing Act

Is AM radio disappearing from new cars the issue the radio industry should be focused on?

I think not and here’s why I say that.

WBZ 1030AM

I grew up listening to WBZ AM out of Boston on my daily college commute in Western Massachusetts. Carl DeSuze, Dave Maynard, Larry Justice, Mean Joe Green in the BZ Copter with Boston traffic reports and Gary LaPierre with the news. It was truly “The Spirit of New England.”

So, when Sue and I were headed to Boston for the graduation of our son-in-law from Berklee College of Music, I put on WBZ as we left our hotel in Spring Valley, New York, and we listened to this station on our three hour drive into Boston, we didn’t listen to it on 1030AM, but via its stream on the StreamS application (App). The station, which is now an all-news operation, sounded fabulous.

The fidelity was of higher quality than FM and there was no buffering or dropout of the signal.

Once in Boston, I tried listening to WBZ over my car’s AM radio and the quality was poor, with noise and interference emanating from our surroundings.

What Does a Radio Look Like?

Back in June of 2017, I wrote a blog article asking what a radio looks like today and the most likely answer to that question was a smartphone. I also addressed in that article of six years ago, I was noticing that hotels were replacing those cheap AM/FM radios with charging stations containing a digital clock, perfect for charging smartphones, tablets and laptops.

Car Radios & The Future

Then in September of 2020, I wrote about how radios first came to be an option for buyers of new cars in June of 1930. But today’s new car buyer wants Bluetooth capabilities more than they want an FM radio; AM radio is not a must-have in 2023 according to the latest Jacob’s Media Techsurvey. What do people connect in the car with that Bluetooth, their smartphones.

What I Recently Witnessed About Radio Use

After COVID began to fade, Sue and I took a trip out to the west coast to visit our children and grand children in that part of the country. What we noticed in every hotel room we stayed was a giant flat screen TV, but no radios, just more of those charging stations with digital clocks.

This prompted another article that same year titled, “Is Radio Up Schitt’s Creek?” Sue and I became big fans of this series out of Canada, that takes place in a fictional town called “Schitt’s Creek,” and takes place primarily in The Rosebud Motel, where the shows characters use televisions, computers and smartphones, but never use a radio.

When watching movies and TV shows, I often look to see if there’s a radio in sight, noticing in British productions they often are, but not in American ones.

Once It Was Radio

When Sue and I stayed in Bethlehem, Pennsylvania we visited the museum inside the Hotel Bethlehem and found that fifty years ago, a hotel having a radio in your room was cutting edge.

The Hotel Bethlehem opened in 1922, two years after the birth of commercial radio in the United States and in 1953, it announced that patrons would enjoy a brand new AM alarm clock radio in every room.

Now seventy years later, Hotel Bethlehem features fiber optic WiFi.

Where Are the Radios?

Last year, Sue and I took a road trip through Atlantic Canada. We stayed in hotels and Bed & Breakfasts (B&Bs) throughout our trip, and found WiFi has totally replaced the AM/FM clock radios.

In Montreal, our room at the Hôtel William Gray, had a Bang & Olufsen (B&O) Bluetooth speaker that easily connected to my iPhone. The fidelity of B&O equipment is legendary and it was a joy to be able to connect any of audio Apps on my phone during our stay.

Radio Set Ownership in the Home

In American homes today, 39% don’t have a single radio set in them, and radio set ownership gets worse for young Americans age 12 to 34, where that number grows to 57% according to Edison Research.

To put this into perspective, the Federal Communications Commission (FCC), says only 6% of the population still lacks access to fixed broadband service at threshold speeds. Meaning, the internet is more accessible than broadcast radio.

Are Broadcasters in Denial?

Valerie Geller, who wrote the excellent book “Beyond Powerful Radio,” recently said

“You can sit down with a broadcaster who rails against podcasting and digital audio and artificial intelligence (AI). Then you get in the car with them, they’re using GPS, they’re listening to a podcast, they’ve got SiriusXM, they’ve got Spotify. Podcasting and radio co-exist now. That’s our truth.

Radio is its own worst enemy. We have not spent or invested in developing talent. Every other business has research and development (R&D) and they spend on it because they are investing in the future. I love radio, but I hate the state it’s in.

A lot of the voice-tracking I’ve heard already sounds like AI. There’s nothing human about it. It’s just a broadcaster playing an actor playing a broadcaster. AI is just as good as those voice-tracks because there’s nothing real being said.”

AM Radio Leaving the Dashboard

Automobile manufacturers removing AM radio from the dashboard ought to be alerting the radio industry to BIGGER PROBLEMS. The AM situation is a symptom of what we should be focused on, and that’s creating GREAT RADIO.

If you think it won’t happen to FM next, you haven’t been paying attention.

AM/FM radio sets are vanishing from hotels, B&Bs, American homes and big box retailers.

If your listeners aren’t up in arms about that, then losing AM radio in their dashboard won’t be a big deal to them either.

To paraphrase the great sales trainer Don Beverage:

Make your radio station so valuable to a listener,

that they want to hear your programming more

than you want to broadcast it to them.

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Combined or Separate?

When I started in radio sales, the company I went to work for after leaving programming and operations ran an AM/FM combo that simulcast all of their programming. Selling for these two stations meant every spot sold was heard on both broadcast bands. (Piece of cake)

Then one day, the owner announced the signals were being split apart. The AM station would program an entirely different format from the FM station, but the sales team would be selling both separately programmed radio stations. (A two layer cake)

Anyone who has some history in the radio business will tell you the answer to the age old question of whether it’s better to field two separate sales teams for an AM/FM combo versus having one sales team. In fact they will give you a definitive answer: “it depends.” (Did someone leave my cake out in the rain?)

Before the radio industry could wrap their brain around this puzzle regarding sales staffing, along comes the Telcom Act of 1996 and companies now own clusters of radio stations. It was now possible for a cluster to number 5 or more radio stations serving a metro. (My cake is melting, melting. Did I mention I never really understood the lyrics to MacArthur Park?)

One brave company in Florida announced they were going with the single sales force concept for their nine station cluster. That got my attention as I was now in management. Well you can imagine I wanted to catch up with these folks at the next RAB Managing Sales Conference to find out how it was going. I did. I asked. The answer they gave me? “Oh well.” “Oh well?” I asked puzzled. They then explained it was very difficult to find radio sales person who could manage selling multiple formats (music, talk, sports, etc). They maybe had one person on their rather large sales team that could do it. A couple could handle maybe 50% of the cluster at the same time, but the rest maybe two radio stations in the cluster at most. The result was they abandoned the idea of one sales team selling everything.

Closer to home, I launched a print program at a cluster I was managing that had an AM station, an FM station and an LMA’d FM station. We had separate a separate sales team selling the LMA’d FM station and a combo sales team selling the owned AM/FM stations. It was decided that all sales people would now sell the new print program. I should explain the print program was actually two components. It was a quarterly coupon book distributed in five different mailing zones in the metro and then there was a calendar that was sold in all the mailing zones on an annual basis.

So, my sales force was now responsible for selling radio spots (and promotions) where you saw the advertiser today and he started in the next couple of days. A print coupon book where you saw the advertiser today and the ad would come out in the next quarter. And an ad in a calendar you sold today and it came out next year.

So how did that work out? Fabulously, actually. Till it didn’t.

What we would learn is it was a good way to launch and put immediate new revenue on the books. Over time the print program re-trained our radio sellers; which was an unintended consequence. They soon learned when an advertiser said they didn’t want radio ads; they had found themselves a print customer.

After an ownership change, I made the decision to break away our print program into a separate entity with its own management and sales people.

So it was no surprise when Borrell Research came out with their latest research study this week “2015 UPDATE: Assessing Local Digital Sales Forces” and it said that those companies that had sales people who were digitally focused produced more digital revenue than those that had one sales team selling everything. You can find the full report clicking on the hyper-link.

Quoting from Borrell’s Executive Summary: “The result is stark: Those with digital-only sellers report far greater confidence in their staff’s ability to understand market trends and clients’ digital needs, and they generate four times as much digital revenue. For instance, two different newspapers, each with a total of 22 sales reps, reported $7 million in digital sales last year and $360,000 in digital sales. The difference? One had seven digital-only reps; the other had none.

But before you get the idea that I’m taking the position separate is best, it really depends…..depends on the skill level of your sales people and their embracing of new technology and new ideas.

When I was starting out in radio sales I got to see and hear a lot of great sales trainers. One that I really liked was Don Beverage. Don would categorize sellers in one of four ways. They were “Commercial Visitors,” “Product-Oriented Peddlers,” “Problem Solvers,” or “Sustaining Resources.” See the snake in the wood pile when it comes to answering the question “Combined or Separate?”

If your sales team is made up of first three types of sellers, separate your sales force. If they are level four sales people, “Sustaining Resources” then you might win with a combined force.   But here’s one more twist. The very best sellers will be “Problem Solvers” with some of their clients and “Sustaining Resources” with others. Even Don Beverage was quick to point out that reaching the level of “Sustaining Resource” was being in rarified air.

So you know a “Sustaining Resource” level of selling is when the client believes in you so much that they pick up the phone and call you in BEFORE they take the first step in the advertising/marketing program. YOU are part of the team that will create and design the strategy and then plan out the tactical steps to get to the finish line and win.

So there you have it. Put on MacArthur Park by Richard Harris and spend the 7-minutes, 25-seconds and ponder what’s best for your operation.

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Filed under Radio, Sales