Tag Archives: Infinite Dial

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.


Filed under Education, Mentor, Radio, Sales

Radios Go High-Definition

37That was the headline that appeared in the Baltimore Sun on January 7, 2004. Unfortunately, unlike HDTV (High Definition Television) HDRadio never stood for “High Definition” radio. And maybe that was the first mistake. HDRadio was simply a name they chose for the digital radio technology.

The iPod was introduced in October 2001. Steve Jobs introduced this music delivery changing device this way. Only a month earlier, XM began broadcasting the first satellite radio programming to be followed four months later by Sirius satellite radio. So by 2004, digital radio was already late to the party.

KZIA-FM Z102.9 saw Kenwood USA sell its first digital receiver in Cedar Rapids, Iowa to take advantage of KZIA-FM’s HDRadio broadcasts. “This is a significant move,” Michelle Abraham, senior analyst at In-Sat/MDR, a market research firm in Arizona, said of the roll-out of digital radio equipment. “It may not seem duly significant in the beginning, but in a few years from now, it will be a huge leap.” The hope was it would prove to be competitive to the newly launched satellite radio offerings from XM and Sirius (now merged into a single satellite company). HDRadio was also seen as improving FM to have CD quality sound and making AM sound like FM. It was heralded to help struggling AM radio stations.

Solving a Problem That Didn’t Exist

What HDRadio did for FM radio stations was solve a problem that listeners to FM didn’t feel existed. No one who listened to FM radio was complaining about the quality of the sound of the transmission. (They were complaining about other things, like too many commercials.) And for AM radio stations, it meant people buying radios for a service that didn’t offer anything they really wanted to hear or couldn’t get from someplace else. AM radio was now the service of senior citizens who already owned AM radios, who grew up with AM radio’s characteristics and whose hearing was not the best now anyway. So HDRadio for AM wasn’t something they were asking for either. Worse, AM radio stations that put on the new digital signal found it lacked the benefits of skywave and often interfered with other company AM radio stations as the industry quickly consolidated radio ownership.

Industries Most Disrupted By Digital

In March 2016, an article published by Rhys Grossman in the Harvard Business Review listed “Media” as the most disrupted by the growing digital economy. Turns out if you’re a business to consumer business, you’re the first being most disrupted by digital. The barriers to be a media company used to be huge, but in a digital world they are not. The business model that media companies depend on has not adapted well to the digital economy.

Education – Disruption Ahead

Having moved from media to education I only got ahead of digital’s disruption for a while. But even those industries that had perceived high barriers of entry are finding those walls crumbling quickly. Grossman says fifty percent of executives see education being impacted in a big way in the next twelve months.

Where Are The Radios?

Edison Research did their latest “Infinite Dial” webinar and the slide that most impacted me was the one about radio ownership. From 2008 to 2016 the percentage of people in America that don’t own a single radio in their home has gone from 4% to 21%. When Edison narrowed this down to household between the ages of 18-34, non-radio ownership rose to 32%. Mark Ramsey’s Hivio 2016 Conference had one Millennial describe a radio set as being “ancient technology.” Ouch!

It doesn’t seem all that long ago that Jerry Lee’s WEAZ in Philadelphia was giving away high quality FM radios to increase listenership to not just his radio station but to FM radio. And KZIA in Cedar Rapids gave away HDRadios to allow people to hear their new signal. It now appears time for the radio industry to begin giving away AM/FM radios every time they are doing station remotes, contests or appearing at venues that will attract lots of people.

Elephant in the Room

But the elephant in the room remains the broken media business model. Newspapers, magazines, radio, and television – any media that is ad supported – will be challenged to find a way to capture revenue to continue.

As Walt Disney famously said “We don’t make movies to make money, we make money to make movies.”

To anyone in ad supported media, we would agree we do it for the same reasons.

The $64,000 question is how.


Filed under Education, Mentor, Radio, Sales, Uncategorized

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.


Filed under Education, Mentor, Radio