Tag Archives: gatekeepers

What Happened to the Gatekeepers?

While radio advertising is still being heard by radio listeners, the relevancy of those ads to listeners is low. In contrast, the audio ads heard by podcast listeners were deemed highly meaningful.*

The Radio Ad Disconnect

Once upon a time, radio stations employed gatekeepers. (Gatekeeping – “the process of controlling information as it moves through a gate.)

Let me give you a personal example of what I’m talking about. In the 80s, I was managing WFPG-FM in Atlantic City, New Jersey. WFPG-FM programmed a Bonneville Beautiful Music format and was the market leader in the Atlantic City-Cape May, New Jersey Metro. Walter Powers, Vice President of Operations at Bonneville Broadcasting System, was our music gatekeeper. But just as important as making sure that the music was well targeted, WFPG-FM’s program director was the gatekeeper of every other element of content that would be heard on the radio station. Every advertisement was reviewed to insure it was appropriate and relevant to our audience. We employed these same standards when it came to our promotions and air personalities too.

Paul Harvey

Paul Harvey News and Commentary on the ABC Radio Network was an advertising powerhouse. Paul considered himself to be a salesman first and a broadcaster second. Harvey wrote and voiced the radio copy for the products and services he told his listeners about and it was well-known he would not advertise a product or service he did not personally use.

Today, we see this happening with podcasters who likewise voice the ad copy for the company that sponsors their podcast. I believe this is why podcast ads resonate with podcast listeners versus radio advertising.

Howard Stern

When Howard Stern was the afternoon air personality on 66-WNBC in New York City, he often read live copy for his local advertisers.

On one of my trips to New York City to meet with advertisers, I stopped into the broadcast facilities of WNBC and met with their local sales manager. I will never forget asking her this question: “What are fewest number of commercials you will sell an advertiser?” She answered: “one, if it’s on Howard Stern’s show.” One, I asked? Is that effective? She told me that Howard Stern was such a good communicator and had such a loyal audience, that if he promoted a product or business, even just once, they always got results. But then again, Howard had the authority to accept or reject any advertiser.

Both Paul Harvey and Howard Stern were gatekeepers for their radio programs.

Randy Kabrich

This past week, we learned of the passing of one of radio’s great CHR/Top40 programmers, Randy Kabrich.

In reading an article about his life, I couldn’t help but notice that the twice named Billboard magazine CHR/Top40 radio programmer of the year was a serious gatekeeper.

When Kabrich was Program Director at WROQ-AM/FM in Charlotte, North Carolina, the station management planned to accept an advertising buy from Planned Parenthood. Randy felt the ads were “too volatile and blatant” to appear on a “family” radio station. Inside Radio reported that Kabrich said “I’ve been trying to make WROQ a fun, family radio station – an escape from reality, from the conflicts in life – and I felt these spots were inappropriate for the station’s audience.” This resulted in Randy resigning.

Anything For a Buck

There was a time when radio operators employed gatekeepers that weren’t afraid to say “NO” to an advertiser and his money when their product, service or simply the way they wanted to deliver their message was not in concert to the goals of the radio station.

Those were the days when radio operators understood that EVERYTHING

that came out of the listener’s radio speaker mattered. Spoiler Alert:

 It still does!

*  https://soundsprofitable.com/research/the-ad-bargain/

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How is Radio Affected by Being Efficient?

EfficiencyI started my professional radio career in the 10th grade of high school. However, I started dreaming about being a disc jockey for as long as I can remember. I built my own AM/FM radio station in the basement of my parent’s home and broadcast to about a three block radius around my house.

Lots of People

In my early professional days, radio was people, lots of people!

Every aspect of running a radio station required people to make things happen. Sales, bookkeeping, reception, disc jockeys, copywriters, news anchors, reporters, engineers, production and promotions people with layers of management on top of every department, up to the general manager who oversaw the entire operation.

As an example, CKLW a stand-alone AM radio station in the Detroit metro, had 23-people just in their news department. Today that’s about double the total number of people running a cluster of AM/FM radio stations in any metro.

Was radio efficient back then? No.

Was radio effective? YES!

Did radio make money? Tons of it!

The Gatekeepers

What traditional media had back then, were gatekeepers. Newspapers, magazines, radio and television had people charged with making sure there was a good flow of information and entertainment. These people acted as filters, and overtime they developed standards and ethics that all Americans could rely on.

It wasn’t perfect and mistakes were made, but it got us through the 20th Century and unified us as a nation.

The New Gatekeepers

The birth of the internet ushered in a new gatekeeper, the algorithm. Now lines of code would replace people as the filter for what Americans read, see and hear. Unfortunately, these lines of computer code lack transparency in how they filter the flow of information.

Have they been encoded with a sense of civic responsibility? Who knows?

Is the flow of information the same for everyone? No, it has been personalized to our likes and dislikes. It has put each of us in our own information silo.

Bowling Alone

In 1995, Robert D. Putnam wrote an essay entitled “Bowling Alone: America’s Declining Social Capital”. The essay chronicled the decline in all forms of in-person social interchange. What Putnam saw in his research was that the very foundation Americans had used to establish, educate and enrich the fabric of their social lives was eroding. People were now less likely to participate in their community, social organizations, churches, and even their democracy.

This trend has only been accelerated by social media and the internet. The unintended consequences of the internet are, that it has isolated each of us to a web of one. Algorithms have taken what Putnam saw happening in the last century and put it on steroids in this century. All in the name of driving more efficiency.

Efficiency Bubble

The “efficiency bubble” means that efficiency is valued over effectiveness in today’s world. It’s a term coined by Will Lion of BBH advertising.

Rory Sutherland, Vice Chairman of Ogilvy in the UK, recently shared this personal experience that demonstrated the efficiency bubble.

“The absurdity of the efficiency bubble was brought home to me in a recent meeting with an online travel company. The conversation repeatedly included the mantra ‘the need to maximize online conversion.’ Everyone nodded along. Clearly, it is much more efficient for people to book travel through the website than over the telephone, since it reduces transaction costs. But then someone – not me, I’m ashamed to say – said something revelatory: ‘Ah, but here’s the thing. Online visitors to the site convert at about 0.3%. People who telephone convert at 33%. Maybe the website should have a phone number on every page.”

“Perhaps the most efficient way to sell travel is not the most effective way to sell travel. What, in short, is the opportunity cost of being efficient?”

“Nobody ever asks this question. Opportunity costs are invisible; short-term savings earn you a bonus. That’s the efficiency bubble at work again.”

Consolidation is Just Another Word for “Efficiency”

During radio’s massive consolidation, Excel spreadsheets produced by new minted MBAs screamed a multitude of ways to have radio stations become more efficient. Unfortunately, the fast-lane involved the elimination of tens of thousands of radio jobs.

And it’s still going on as I write this article.

I don’t ever remember anyone asking about “opportunity costs” being sacrificed in the process.

In the last radio property I managed before entering higher education as a broadcast professor, I would spend my final year going to corporate meetings about Reductions In Force (RIFs) and coming home with a thumb drive that had dates to open new pages in an Excel spreadsheet, that listed what people and what departments were to be eliminated next.

It’s my belief that efficient radio chases away listeners, effective radio creates them.

Blame It on Competition

Tech Guru Pete Thiel blames the efficiency chase on competition. “More than anything else, competition is an ideology – the ideology – that pervades our society and distorts our thinking,” says Thiel.

When all radio companies chase the same efficiency metrics, they all end up sounding the same, their websites end up looking the same, and in essence, they’ve turned the creative medium of radio into a commodity.

Deregulation of broadcast, as I wrote about in The Birth of Radio in America article, now has virtually all of the radio stations in a radio market owned by one or two companies.

Radio always stole great ideas from other radio stations around the country, but most often those stolen ideas were massaged and improved upon in the process. Everyone was upping the game through their own creativity lens, and each radio station had its own unique sound.

Unfortunately, along with corporation radio came the concept of “Best Practices”. This would be yet another contributor to the end of personal creativity at radio stations, all in the name of more efficiency.

Emotions

Roy H. Williams, the Wizard of Ads, says we buy things emotionally and justify those buying decisions rationally. The pursuit of efficiency is a rational answer to an emotional problem.

The radio business was never built on Excel spreadsheets and doing what was most efficient, it was built by creative people who touched others emotionally. Be it station imaging, air personalities, promotions, contests, community events, advertising or marketing, radio always went for people’s hearts.

The successful radio stations today still foster those emotions in their listeners and advertisers.

They’re just becoming harder and harder to find.

 

 

 

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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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