Tag Archives: Edison Research

What Ronald McDonald Could Teach Radio

Today in America there are more radio stations on the air than at any time in its almost 100 year history. More radio stations are taking to the air every day. That’s a good thing, right? I would argue it’s not.

When I was working for Clear Channel Radio (yes, it was once called that – now it’s iHeartMedia), the President was a man named John Hogan. Hogan came up with a plan to reduce clutter. He called it “Less is More.” On the surface it sounded like a grand plan. However, the devil is always in the details and the devil was Clear Channel was now going to move away from a unit based inventory management system to a one that included half-minute long commercials, ten-second commercials, five-second long commercials it branded as “adlets” and one-second long commercials it branded as “blinks.” In the “blink” of an eye, the amount of units grew and we would learn that people don’t notice the length of commercials as much as they do the number of interruptions they are confronted with. “Less is More” would inadvertently introduce more clutter in the name of reducing clutter.

Well some clown named Ronald McDonald must have been watching us because at the end of last year, McDonalds announced that its menu had become so unwieldy that even the chain’s president had no clue as to how many items it contained.

In his book, “The Paradox of Choice – Why More is Less” psychologist Barry Schwartz argues that eliminating consumer choices can greatly reduce anxiety for consumers. That while autonomy and the freedom of choice can be healthy and good for our well being, modern Americans are faced with more choices than any group of people in the history of the planet and all this choice is having the reverse effect.

I remember the headline in Forbes “You Can Now Play 100,000 Radio Stations On Your TV with Google’s Chromecast.” A hundred grand? I have trouble finding enough radio stations I want to listen to, to fill the pre-sets on my car radio and they only give me pre-sets for 6 AM stations and 12 FM stations. I have a 10-minute commute on a bad day, so I don’t do a lot of button pushing.

Edison Research now calls their radio study the “Infinite Dial” because with the advent of streaming audio, we have the ability to listen to radio stations all over the world. I have ten Apps for listening to streaming radio on my iPhone and iPad. Of those, I primarily use three of them the bulk of the time. Of the three, one dominates. That single App now curates over 90 different genres of music. The good news is that I can create a “Favorites” section so I only need to choose from a limited number of genres to match my mood.

When radio began consolidating into clusters, adding HD signals & sub-channels and then streaming, the complexity proved to be a challenge to an ever shrinking workforce challenged with programming and selling all of those product offerings.

Schwartz tells us that modern psychology shows that happiness is affected by success or failure of goal achievement. Radio workers and McDonald’s folks probably aren’t all that happy; not like they once were.

McDonalds last year recorded its worst domestic comparable sales figures in more than a decade. In radio, being even with last year’s numbers was being called the new “up.”

McDonalds plan is to reduce the number of choices, focus on those items they will serve to improve their quality to delight the customer.

Most people’s cable or satellite TV package delivers hundreds of channels and yet, the most common thing people are heard to say “there’s nothing GOOD on to watch.” “Good” being the operative word. What a change from when I was growing up and my biggest problem was a GREAT show was playing on all three television networks; at the same time (days before VCRs and DVRs).

Radio in that same era was exciting, innovative and totally focused on delivering great content. These were the days when a Top40 radio station like CKLW had a 20-person news department on a radio station that was all about music not news. Had an air staff that was refreshed every three hours with a new disc jockey, had an off-air program director, a music director & assistant that did music research, a promotions department & promotions budget, plus consultants all for a single radio station.

Less is more works if more people can focus their attention on less.

Take it from a famous restaurant clown, “Less IS More” in more ways than one.

2 Comments

Filed under Education, Mentor, Radio

Who’s in Their Ear?

When radio was first introduced, to listen to it, you needed to wear headphones. Radio was one-to-one and very intimate. As the technology evolved the radio speaker would change the medium from one-to-one to group listening. Radios were expensive. If you owned a radio you shared it. A family would gather around the radio and listen together. Families would transfer this together media habit to TV and the transistor radio would become the refuge of teenagers who wanted to go in a different direction.

Zenith Transister Radio

My first radio was a Zenith transistor with a little ear piece for one ear. I would go to bed and turn it on under the covers and listen to “the world.” It was all AM radio and after sunset, the DX’ing of the nighttime skywave would always bring a new radio station into my ear to savor.

In the mid-70s the Boombox would be introduced to America and these radios grew both in size and the amount of bass they 1could produce. By the 80s they could be as big as a suitcase and carrying them around on your shoulder was a status symbol.

Go to a beach resort, and whether you were walking the boardwalk or on the beach, radios were blasting music from every direction.

When Y2K didn’t impact our fully computerized radio stations, we all breathed a short-lived sigh of relief because it was quickly followed by a new threat; the iPod and ear buds. Once again listening to music became a very personal activity.

The ear buds would transfer to the iPhone and iPad. The introduction of the iPhone6 may have killed the iPod, but not the use of headphones or ear buds to listen to your audio.

So what exactly are all those people listening to? lady listening with ear buds

The latest research from Edison Research says American Teens are spending more time with streaming audio services from places like Pandora and Spotify, than they are listening to either streaming AM/FM radio or over-the-air radio. Edison reports this finding in their fall 2014 “Share of Ear” report.

Remember it was my generation that grew up hooked on radio & TV that were credited with eroding newspaper readership. (Full disclosure: I read all my news online using my computer, iPad or iPhone.)

It’s not all bad news for AM/FM radio. It is still popular Edison tells us “by a significant margin among all other age groups.” So where did the teens go? Pureplay Internet streamers. What do they love most? The ability to skip a song they don’t like.

That’s really not hard to understand. I love my DVR for a similar reason. Especially when it comes to award shows. I never watch them live anymore. I record them for later viewing and I can watch a 3+ hour awards show in about 20 minutes time. I skip all the bad parts.

In fact, I rarely watch anything on TV live anymore. Everything is recorded so I can control it. So is it any surprise that teenagers once they are given this kind of control will ever want to give it up. A new habit is being formed.

The other aspect about pureplays that AM/FM radio could be addressing is their complete focus on the quality of their streaming product. What I’m hearing is a clean commercial insertion. Nothing gets cut off in the middle or repeated multiple times in the same long break. Pureplays deliver their commercial messages in a style that compliments the music programming; in a way that actually has you enjoying listening to the commercial message.

The teenagers have moved their listening to streaming and podcasts. The spectrum auction being held by the Federal Communications Commission is all about creating more wireless connections for all kinds of mobile devices.

I live in South Central Kentucky. I can stream my iPhone into my car’s seven speaker sound system through Bluetooth and everywhere I drive it’s clean and clear with no dropout or buffering. It’s scary good. It’s as easy to do as turning on my car’s audio system. Nothing to plug in or connect. It happens automatically.

South Central Kentucky is also blessed with some excellent over-the-air radio stations. So they very effectively compete, in my opinion, with streaming. But I wasn’t raised on streaming. I also like a good air personality.

The next generation is being raised on streaming that they have some power over to skip things they don’t wish to hear. Reminds me of the old saying “How are you going to get the kids back on the farm, after they’ve seen New York?”

baby listening to ear buds

2 Comments

Filed under Education, Mentor, Radio