Tag Archives: Internet

Remodeling Communications

My church recently sent its Annual Report for 2020 to all its members. It reminded me that it was on March 13, 2020 that in-person worship service was suspended at our church, along with all other activities because of the highly infectious nature of COVID-19.

Pastor Martha Sims wrote, “In its 267-year history, this congregation has had its share of difficult times; fires and conflicts and even some changes that resulted from the virus of 1918.”

The 1918-1920 global pandemic, often referred to as the “Spanish Flu,” caused my church to end the use of a common cup for communion during services and begin using little individual glasses. While communicants had the option to either continue to drink wine from the common cup or use the new individual glasses, the record shows that people quickly adjusted to the new normal and both methods did not have to be offered beyond that first Sunday morning of the change.

Permanent Change

I share this story with you, because setting up those little individual glasses for the communion wine, and then collecting them, washing them and putting them back out again for the second Sunday morning service was something my wife and I participated in as part of our church service. But now I wonder what the future will hold regarding more changes in this and other areas of our church life after what COVID-19 has taught us.

We’ve dined out on only a few occasions, mainly due to traveling, and noticed that restaurants now give patrons a paper menu that is disposed of after orders are taken.

Hand sanitizer is found in every store you go into these days, often with signs asking people to use it upon entering. Might we find these changes remain, post-COVID?

Radio Personalities Broadcasting from Home

Broadcast programming consultant, Gary Berkowitz, hosted his first ZOOM call with radio programmers from throughout the United States and Canada talking about how they’re dealing with the global pandemic in their radio operations. What struck me most was that all of the radio stations had equipped their personalities with high quality microphones, processing, laptops and high-speed internet service to do their shows and/or voice track them from home.

Personalities in places like New York City and Philadelphia were broadcasting from their apartment or basement on some of America’s top radio stations.

One personality said he had to get special permission to go into the radio station to do a special Christmas broadcast, taking calls from youngsters who wanted to talk to Santa, because it wasn’t possible to execute this from his home studio.

A Canadian programmer said his radio group spent about $2,500 per personality to equip them with the best equipment to broadcast from home, and that it has worked out seamlessly with no disruption to any of their radio stations normal programming. Might this become permanent?

Bob Van Dillen

It’s not just radio personalities, but television personalities too. Bob Van Dillen is the meteorologist on HLN’s Morning Express with Robin Meade. Since the pandemic hit, Bob has been doing his weather forecasts from the safety of his home.

I also noticed that some of our local TV anchors and reporters on NBC4 out of Washington, DC are doing this too.

COVID-19 Disruptions

I’ve done a lot of reading about past global pandemics, with the intent of trying to learn how they made permanent changes to the world going forward. What I’ve learned is, there really is nothing to compare with what we’re going through, with those of the past.

The Internet

Probably the biggest reason this time is so different is the existence of the internet. Never before has the world been able to continue operating to such a large extent by being so instantly connected as we are today.

Almost everything we need, can now be obtained via this communications innovation.

Our last medical appointment with our doctor was done over a ZOOM-like connection. Our weekly church service is broadcast live on Facebook and on-demand recordings are available for later viewing on YouTube. Our church has already committed to continuing video church services even when in-person services can once again take place.

In my home, all of our television viewing is via streaming, using AppleTV, FireTV, Amazon Prime, Netflix, Hulu and YouTube.

I access the world of radio, via streaming as well these days by simply asking Alexa for the station or audio content I wish to hear.

Audio Tipping Point Crossed in 2020

While we were all consumed with trying not to contract COVID, the average time spent listening to traditional radio (AM/FM) was surpassed by listening to digital audio.

“ When we change the way we communicate, we change society.”
-Clay Shirky

The Future of Radio is to Meet the Listener Where They Are

Today’s audio consumer is more likely to be accessing audio content via digital streaming than through an AM/FM radio set and they are also more likely to want some visual content along with their audio. It will be critical for broadcasters to be offering programming – both audio & visual – that is engaging and delivers what people want.

Broadcasters will have to take into consideration the environment the media consumer is using their product in, and take full advantage of all the technology advances it offers, be it at home, at work or in the car.

In other words, it’s time for broadcast media to start making plans to remodel the way they communicate with their audience. The first question every broadcaster will need to be asking is:

How relevant are we to our media consumer in this environment?

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Your Cell Phone is a Radio

By definition, radio is, a: the wireless transmission and reception of electric impulses or signals by means of electromagnetic waves. b: the use of these waves for the wireless transmission of electric impulses into which sound is converted, according to Merriam-Webster’s dictionary.

Your cell phone sends signals to (and receives them from) nearby cell towers (base stations) using Radio Frequency (RF) waves. This is a form of energy in the electromagnetic spectrum that falls between FM radio waves and microwaves.

My First FCC License

When I studied for and passed the Federal Communications Commission (FCC) test to obtain my 3rd Class Radio-Telephone License, I initially wondered why it said “telephone” on it.

Telephones in 1968 were all wired devices, like in my parent’s house in which our family phone was connected by a copper wire and bolted to the kitchen wall.

When I began to study the history of radio, I learned that an early experimenter in radio broadcasting, Kentucky melon farmer Nathan Stubblefield, wanted to be able to talk to his wife while he was driving his automobile while away from their farmhouse. In those early days, no one had a clue what this new technology would become.

Radio’s Metamorphosis

The podcast “Local Marketing Trends” hosted by Corey Elliot and Gordon Borrell, recently featured an interview with the Radio Advertising Bureau’s (RAB) President/CEO Erica Farber in which she said the radio industry’s sales arm was going through a metamorphosis; today the RAB thinks more broadly, to include all things audio.

Gordon asked Erica if she meant podcasting and streaming audio like Spotify and Pandora, to which she said “Yes.” When might this happen, Gordon asked, to which she responded, “maybe today.”

Farber explained how she feels radio is ahead of the curve in not just delivering content, but in delivering services too. Radio is no longer just about selling thirty and sixty second spots but it’s a very different business now, with radio’s core product today being “delivering results.”

Audio Advertising Bureau

Might the Radio Advertising Bureau change its name to become the Audio Advertising Bureau?

I hope not. Here’s why I say that.

Radio suffers from traditional broadcaster thinking that it needs an FCC license, radio tower, antenna and transmitter which sends a signal out over the AM or FM radio bands. But if you ask a young person, what is radio, they will tell you about their favorite stream or podcast which  they listen to through their smartphone.

Radio is not a dated identifier, it’s very much in vogue in the 21st Century, but what imagine comes to mind when one says the word “RADIO” will differ depending upon a person’s age.

1940s Floor Cabinet Radio (what my parents listened to)
1970s Transistor Radio (the radio of my youth)
21st Century Smartphone used as a radio & a whole lot more (the “radio” I use today)

Apple Music Radio

You might have missed Apple’s August 2020 Press Release about how they were changing the name of their radio service from Beats 1 to Apple Music Radio. In spite of trying to invent a new name for their streaming music offerings, their users called it “RADIO.” And now, so does Apple.

Beats 1, has been Apple’s flagship global radio station since its launch in 2015. Five years later, it’s been renamed Apple Music 1. Oliver Schusser, vice president of Apple Music, Beats and International Content, explained

“Apple Music Radio provides an unparalleled global platform for artists across all genres to talk about, create, and share music with their fans, and this is just the beginning. We will continue to invest in live radio and create opportunities for listeners around the world to connect with the music they love.”Beats

Now is NOT the time for AM/FM Radio broadcasters to abandon the sonic brand known as “RADIO.”

Adapt or Die

When people started streaming over the Internet and calling it “radio,” traditional broadcasters looked down their noses in much the same way that print journalists looked down their noses at the new media platforms like Buzzfeed and Vice Media invading their world.

Traditional media survivors will learn to accept and embrace the new platforms that disrupt the world as we knew it and are creating the world that will be.

An inability to adapt to new platforms is what causes both people and industries to fail.

AM, FM, internet streaming, smartphones, connected cars are all platforms. Radio, newspapers, magazines and the like, are all media products. Understanding this dichotomy is critical.

And so, the challenge for radio is not changing its name, but adapting its product to today’s platforms.

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Will the Radio Industry Turn Around?

A long time reader of this blog, who is a major market personality, asked me “in your opinion is there any chance the industry will turn around?” This question assumes that the radio industry is going in the wrong direction. Is it?

The World is Constantly Changing

I often pondered if the town blacksmith ever wondered, as he saw motorcars become more common, if America’s transportation system would one day “turn around”  and return to one powered by horses? For many Amish people, horse power remains as vital to their lives as it has always been. Horsepower in our time has been a way we measured the output of our fossil fueled engines, in our motorized vehicles.

We need to realize that changes and evolution are the realities of life. Nothing stays the same. Does anyone think the radio industry is exempt?

The Internet

I’m communicating with you right now via the internet. When I first started on the internet, it was by using a dialup modem over the same telephone line my house phone used to make and receive telephone calls.

My first internet service was an interactive personal service called “Prodigy.

Dial-up was very slow, crashed a lot and sometimes it took several attempts to get a phone connection for your computer.

Prodigy’s business model depended on rapidly growing its advertising and online shopping business. It created email and message boards primarily to aid people in shopping, not for general communication between users, which in practice is what it became. Ironically, at a time when long distance calls were billed by the minute, Prodigy’s message boards exploded in popularity with users who would stay connected to the service far longer than projected with the result of driving up Prodigy’s operational expenses and negatively impacting cash flow for its stakeholders.

Prodigy, which began operations in 1984, would finally disappear in April of 2013. (That’s a life span of less than thirty years.) By that time, I had long departed the service for the much more robust America On Line (AOL).

Digital Fiber

At the end of 2020, my street was wired with fiber optic cable and our house abandoned Xfinity’s copper wire and download/upload speeds of 117/5 Mbps (Megabits per second) for the more symmetrical offering from Glofiber of 300 Mbps upload/download speed for around $15 less per month in cost.

I tell you this because back in the 90s, dialup access to the world wide web was amazing. It was like experiencing AM radio in the days when all that was available were newspapers and magazines to connect daily with the world. We gladly suffered through busy signals when trying to connect our computer modems and never realized how slow our connection speeds were. Like AM radio, it was good for its day but I seriously doubt you would want to return to that type of internet service after you’ve experienced high speed digital via fiber optic cable.

Just in case you are wondering, the 300 Mbps symmetrical connection speed I signed up for is the slowest speed offered. They offer up to 2 Gigabits per second but not being a gamer, I seriously have no need for anything that robust for what I use the internet for.

AM, FM, Streaming

AM radio was incredible 100 years ago when commercial radio service was licensed to begin operating in the United States. AM radio listening was eclipsed by FM radio listening in the late 70s, which is the dominate way most American’s hear broadcast radio. However, we’re now  fifty years beyond that time and living in a world where audio listening can be fully customized and on demand whether you want music, talk, the sound of ocean waves, or crickets.

Stimulus Checks

January 2021 is seeing another round of stimulus checks coming out from the Federal government. When Generation Z and Millennials were asked how they planned to spend their $600 check, after some basics like groceries, rent and overdue bills, their next most important  expenditure would be for video games/consoles that filled their entertainment passion while they socially distanced at home.

Car Buying

COVID-19 changed the way people bought a new car. As we were all forced to work, play, shop and communicate online, consumers found they could just as easily shop for cars via the internet as well. Moreover, surveys have shown that consumers really liked it and don’t plan to return to the old ways of buying a car. Car dealers, which had been resisting doing business this way for decades, now find themselves having little choice but to embrace this disruptive change or go out-of-business.

GYMS

59% of Americans say they plan to continue working out in their own home when asked about returning to a physical gym after the pandemic subsides. Among Millennials, that number grows to 81%, according to a survey by The New Consumer.

Interestingly, gyms are now finding themselves in the same situation as arcades. Once upon a time, people went to malls or amusement centers to play video games, but that’s been replaced by playing those games on a video gaming system, like Xbox or PlayStation.

The Power of Talent

I’ve often written that the “secret sauce” of great radio stations are their air personalities behind the mic.

Alexandra Bonetti, a fitness studio owner in New York, observed the bond that fitness clients formed with a particular instructor. This led her to create a tech startup called “Talent Hack.”

When COVID closed down gyms, fitness instructors suddenly found themselves on their own. (Not so dissimilar to the radio industry jettisoning their air personalities.)

Bonetti’s “Talent Hack” allowed fitness instructors to continue to serve their clients and monetize their talents.

It’s in challenging times like these that new business models like Talent Hack emerge.

The New Nature of Work

While technology accelerated the pace of our work lives, it never fundamentally changed the nature of the way we work. However, COVID-19 mandated changes to the nature of work in all industries.

For many, working from home was no longer a luxury but a necessity, due to social distancing.

Once business owners and their employees learned they could do their jobs remotely, real change to the nature of work was in the wind. Now it has been proven that people could work from anywhere, and that epiphany will produce profound changes for our cities, our transportations systems, our communications networks, the work week, and the work day going forward.

Accelerated by this global pandemic, the challenge has become NOT to turn things around, but to implement the changes needed to thrive in this changed world.

More to the point, the question is not whether the radio industry will turn itself around, but rather is it headed in the right direction? And from my vantage point, the jury is still out on that question.

“What you are going to be tomorrow

you are becoming today.”

-John Maxwell

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Media Convergence, As Cold As Ice

When I was working on my undergraduate degree back in the early 70s, I did a research paper on media convergence. At that time, we thought that convergence would occur around cable television. But not today.

Even in the 90s, the concept of media convergence seemed like the world of Jules Verne. People consumed each source of information, on its own separate platform. Print came in the form of a magazine or newspaper. Radio, via a reception device designed to pick up only AM or FM radio signals and television, through a big picture tube encased in a giant wooden cabinet. It was beyond most of our imaginations that print, radio and television would ever be delivered to us on a single device that we could carry in our pocket; like today’s smartphone.

Even more amazing is the fact that our smartphones can also publish our written thoughts, broadcast our spoken word and even transmit our pictures/videos to today’s global village.

Maybe even more shocking to us as Boomers, is the fact that the Millennial generation doesn’t even have memories of the fragmented media world we grew up with.

How Innovation Changes Our World

In order to try and help media people understand how innovation can change the world as we knew it, let’s take a look at how bringing “cold” to the south set-off a change reaction of change.

Two hundred years ago, if you lived in the south, there was no way to escape the heat. Frederick Tudor, Boston’s “Ice King” would spend a decade figuring out how to transport ice from New England to the south and even around the world. New England’s natural ice would become so treasured, that in the early 1900s, it would become America’s second largest export after cotton.

Then a physician, Dr. John Gorrie, wanted to try to cool the hospital rooms of his Florida hospital, in order to make his patients who were burning up from fever more comfortable in the sweltering heat of the south. Gorrie invented a refrigeration machine, and when he applied for a patent on his invention, he wrote: “Artificial cold might better serve mankind. Fruits, vegetables and meat, would be preserved in transit by my refrigeration system and thereby enjoyed by all.”

When ice fishing, Clarence Birdseye learned how the Inuit Indians of the north flash froze the fish they caught, by leaving them out in the frigid air. This caused their catch to be instantly frozen and allowed the Inuit to keep their catch fresh to eat at a later time. This inspired Birdseye to improve artificial refrigeration to enable the flash freezing of all kinds of produce,  creating the frozen food industry.

Fred Jones, created refrigeration units that could be placed on tractor trailer trucks, shipping containers and railroad cars, allowing for long-haul transportation of perishable goods.

Innovation Eats Its Own

In the 1800s, having an idea to bring cold to a part of the world that was always hot, was considered an insane idea. Everyone thought Frederick Tudor was an oddball. His efforts to perfect the transportation and storage of natural ice at one point put him in debtors’ prison, but his persistence would eventually make him a very wealthy man, until the birth of mechanical refrigeration. Gorrie, Birdseye and Jones would bring an end to the natural ice industry, with their innovations in cold.

Big ideas don’t come from a “Eureka moment.” They come from one person asking themselves, “I wonder if…” From having a hunch that just won’t go away. Big ideas are created from many other people having small, incremental ideas, that then get networked together, and over time become the next big thing.

The Internet

Fifty-one years ago, at 10:30pm, the internet was born with the transfer of one simple message. Charley Kline, a student programmer at UCLA, would type the letters “L” and “O” and electronically send them more than 350 miles to the Stanford Research Institute’s computer in Menlo Park, California. The computer system immediately crashed after they were sent, but a communications revolution had begun.

Now if you think of analog communications as “natural ice” and digital communications as “artificial ice,” you can see it really isn’t unusual for new innovations to extinguish original big ideas.

While today, we’d never consider putting an old fashioned ice box in our modern kitchens, the business of selling ice still exists. I for one, still frequent my local convenience store’s ice box, to pick up a couple of bags of ice cubes for my picnic cooler.

Likewise, I think a need for a few local radio stations may remain, but only if they provide a unique and unduplicated service to their listeners.

But I also believe that the analog communication model will slowly fade into the background as new communication innovations come along and replace it.

AM/FM radio’s days, as we Boomers knew it, are numbered.

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Nobody Wins Until We All Do

COVID19 ImageThe current pandemic is not a sporting event. We are either all winners or we are all losers. Unlike anything in our lifetime, we are all in this together, at the same time, on every continent.

I believe COVID-19 is the worldwide wake-up call, that we all needed. That we need to embrace the rule that nobody wins until we all do.

Today’s Heroes

The real heroes of this pandemic are the healthcare workers, the truck drivers, the delivery people, the grocery store workers, garbage collectors, the scientists working on a cure, the journalists keeping us informed, the people who keep our infrastructure of water, sewer, electrical and other power grids operating and our internet working.

The real heroes are those people we took for granted, the people we never cared about or understood the vital role they play, we just assumed they would always be there.

COVID-19 is teaching the world the true meaning of what it means to be an “essential worker.”

An Interconnected World

In a world so interconnected, we’ve never been more dependent on others. The world before COVID-19 rewarded the few with untold riches, while the many lived paycheck-to-paycheck.

It’s time for the world to embrace what all of the world’s great religions have taught.

In the Gospel of Luke, we read that Jesus’ last words as he hung on the cross were “Father, forgive them; for they know not what they do.”

Jesus understood that nobody wins until we all do.

Stay home, stay safe.

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The Competition for Attention

County_Cricket_BoardsA recent news item caught my attention. The English Cricket Board says “There are 200 million players of Fortnite…that is who we are competing against.” Welcome to the 21st Century and the attention economy, where everyone – yes, EVERYONE – is competing against everyone else. This blog competes for attention against not just other blogs, but everything else in our over mediated, world. It is our technology that has caused us to be over-saturated.

Blame Gutenberg

Johannes Gensfleisch zur Laden zum Gutenberg was a German blacksmith, goldsmith and inventor. It was Gutenberg’s introduction of movable type and oil based ink printing that ushered in the communications revolution via his printing press. This was the beginning of mass communication.

Wireless Communication

The next big development would come in the form of wireless communication. First Marconi, turning wired Morse code into wireless transmission. Then the advent of voice communication followed by voice and picture communication via radio and television.

The series Downton Abbey perfectly captured how was received in the home during season five.

Smartphones

The introduction of the smartphone bumped the radio off its perch as the #1 invention of the 20th Century. The smartphone, along with the internet, changed the way we communicate with one another. They would destroy the original communications concept that professionals would communicate to amateurs. Those days are gone. Social Media Theorist, Clay Shirky, says “in a world where media is global, social, ubiquitous and cheap” and where audience is now a full participant in the communication process, it’s no longer about “creating a single message to be consumed by an individual but about creating an environment for convening and supporting groups.”

Gaming

The advent of online video gaming, such as Fortnite, is not just creating that environment for convening and supporting groups of like-minded video game players, but is competing for our time and attention. “There’s 200 million players of Fortnite,” says Sanjay Patel, managing director of The Hundred, part of the England and Wales Cricket Board. “That is who we are competing against. So, if you don’t interrupt young people in a different way, if you don’t engage them in a different way and you don’t talk to them in a different way, they’re not just going to automatically come into your sport.”

And it’s not just Cricket or something happening overseas, America’s national pastime, Major League Baseball, has seen an attendance drop of 233,000 at their ballparks from the same time period in 2018. And the 2019 NFL preseason opener, the Hall of Fame Game from Canton, Ohio broadcast on August 1st, looks to be at an all-time low in TV ratings, for the second year in a row. Down about 15% from last year’s game. Crikey, what does this mean?

Too Many Choices

We live in a world with too many choices and as broadcasters, we need to face that reality. Again, to quote Clay Shirky, “the decision we have to make is not whether this is the media environment we want to operate in, it’s the one we’ve got. The question we all face now is how can we make best use of this media?”

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Where Have All the Salespeople Gone?

emptydeskFact: the number of people working in the advertising industry is in decline. What makes this noteworthy is that America has been in an economic expansion.

For the past thirty years, advertising jobs have grown in line with the economy, why not now?

I See/Hear Lots of Ads

In my youth during the 60s/70s, it was estimated that the average American was exposed to around 500 ads per day. Those were the days where advertising was delivered by what we now quaintly refer to as “traditional media;” newspapers, magazines, billboards, radio, television and direct mail.

In today’s world of smartphones and internet, digital marketing experts estimate that the average American is exposed to somewhere between 4,000 and 10,000 advertisements per day.

With this explosion in advertising, why are salespeople disappearing?

Google It

Or Facebook it. Or Amazon it.

In reality, the world’s largest advertising companies are these three technology giants and they have realized virtually all of the growth in digitally based advertising.

Programmatic Buying

The advertising business has always been one based on building relationships, be it directly with the business owner or with an advertising agency. Programmatic buying eliminates these relationships by the use of algorithms. This allows for the placement of more advertising, on a variety of platforms, with the need for fewer people.

The downside of programmatic buying is that a company’s ads may be placed in low-quality or even offense editorial material. That’s been very troublesome for advertisers.

The High Tech/High Touch Pendulum

Throughout my broadcast career, I’ve watched the pendulum of change oscillate between a communications industry that is “high touch,” aka people talking to people, to one that is “high tech,” aka machines/automation talking to people. This pendulum oscillates on a fairly regular cycle between the two extremes.

Maybe we’re close to the apex of the pendulum swinging in the direction of high tech, and it will be moving back toward a world that demands people interacting with people again. We’ve been here before.

Digital Truths

In the current generation of digital media, we know that two things are true:

  1. No one is looking for more ads
  2. High Quality Content Rules

So, what’s the answer?

Every form of media needs to look in the mirror at itself and be honest about its advertising content and the quantity of ads it’s running. (Note: Running more low quality ads was never a solution to making your budget number.)

Whether we’re talking about the songs we program, the banter of our personalities, the content of our talk shows or the quality/content of our ads, it’s ALL important in a world where high quality content rules.

Media sales today is more about building partnerships than transactions. It is one where consistency and trust are the foundation upon which today’s sales professional becomes a sustaining resource to the businesses they serve.

Human Relationships

Advertising is influencing and influencing is fueled by relationships.

Whether it’s the relationship between an air personality and the audience, or the sales professional and the client, there’s real value in building human relationships and partnerships.

The airline industry today could save as much as 35 Billion Dollars employing the use of pilotless planes. But according to Fortune “54% of passengers refuse to board a remote-controlled plane.”

Representative

I know I’m not alone when I call a company for help and find myself frustrated having to deal with an automated voice system. Very quickly I find myself yelling over and over and over “REPRESENTATIVE.”

Are we approaching the age of algorithm burnout?

We will always opt for a real live human to work with, over a digital one.

That’s why there will always be a job for media sales professionals who are both knowledgeable and emotionally intelligent.

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You Can’t Roller Skate in a Buffalo Herd

you-cant-roller-skate-in-a-buffalo-herdRoger Miller was a very creative guy. His 1966 hit song, “You Can’t Roller Skate in a Buffalo Herd” was a crazy list of things you could not do to be happy, but did offer a remedy on how you could be happy, if you had a mind to.

It got me to thinking about other things you can’t do, especially when it comes to radio.

You Can’t Combine WINS & WCBS

New York City has two all-news radio stations, 1010 WINS and News Radio 88 WCBS. They’ve competed against each other since Westinghouse owned WINS, and CBS owned WCBS.

Even when both radio stations found themselves under the same ownership several years ago, they were run and staffed independently, and continued to compete for audience and ad dollars.

Now Entercom owns both, and would like to implement plans for “cross-utilization” of personnel. The New York Daily News provides all the details in their recent story and you can read it HERE.

You Can’t Be Serious

Recently James Cridland tweeted this news story: “Black day for UK radio. 43 local breakfast shows to go by the end of the year. 24 drivetime shows. 10 studio buildings gone.” In the UK, consolidation fever was spreading among the commercial radio operators after securing deregulation. Owners say it’s a huge step for the commercial radio sector and you can read all about the changes HERE.

“When we change the way we communicate, we change society.”

-Clay Shirky

You Can’t Shrink Your Way to Success

One of my mentors is Roy H. Williams, aka The Wizard of Ads, who writes a weekly Monday Morning Memo that I’ve been reading since the 80s.

Recently, Roy’s subject was “Shrink Your Way to Success?” The article said that “when a business is struggling financially, cost-cutting looks like a brilliant move.” Unfortunately, you can’t cut your way to success. This is something that has been born out over the decades, and in all kinds of industries. So, what’s the alternative? Increasing revenues. “Cost-cutting comes at a very high cost,” says Roy. The Wizard’s prescription is worth your time to read and you can find it HERE.

You Can’t Become Intimate Without Repeated Contact

Then Fred Jacob’s JACOBLOG published an incredible two-part blog piece on “Can Radio Achieve Brand Intimacy?” Part one looked at the twelve brands that consumers say they can’t live without. #1 on the list was Apple. Then Fred shared the top ten list of the brands people say they are most intimate with, Disney was #1 and Apple was #2.

Part two of Fred’s daily blog then went on to share twelve things RADIO could be doing to achieve brand intimacy. You can read Part 1 HERE and Part 2 HERE.

After reading the two-part blog, I commented back to Fred with the following observation:

“Intimacy takes time, but just like in personal relationships, it’s worth it.” Unfortunately, radio’s consolidation years under valued the intimacy that its personalities and brands had built up over time, and quickly discarded both.

The real success stories in radio today are those properties that have carefully maintained and continued to nurture their place in their listener’s lives.

Radio Can’t be “Just OK”

I recently have been amused by a new television advertising campaign by AT&T that says being “Just OK, Is Not OK.” You can view one of their ads HERE. In a field that has very limited competition for its services, the ads clearly portray that you deserve the best and AT&T is here to deliver it.

Radio used to be in the business of competing with other radio stations in its city of license, and stealing as much advertising as it could from the local print media. Print media always grabbed the lion’s share of the local advertising budgets. Today, all traditional media competes with the internet delivery system, which means it now competes with the world.

If there was ever a time when radio could not afford to be “just OK,” it’s now.

“As great and pressing as change and betterment may be,

we can’t toss away the very bedrock

upon which the radio industry was built.”

-DickTaylor

 

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What a Radio Looks Like in the 21st Century

first iPhone introducedIt was only 11-years ago that Steve Jobs took the stage and held in his hand the future. It was an iPhone.

Many people were skeptical that this device could compete with the very popular Blackberry. I think I may have been one of them, as I was a Blackberry owner/user until 2012.

I quickly realized that I knew how to operate an iPhone, after buying an iPad in the fall of 2011.  All Apple devices share a core eco-operating system that makes learning them fast and easy. My first iPhone was the 4S. The “S” stood for Siri and I quickly learned to use Siri to type all of my text and emails via dictation. In 2017, I upgraded to an iPhone 7.

OK, so I’m probably not telling you anything you don’t already know. But in just a decade, have you ever stopped to think about the impact that the smartphone has had on our lives and the technology we use?

RADIO

In America today, 29% of households don’t have a single working AM or FM radio. But it gets worse. The percentage of households without a single working AM or FM radio grows to 50% for the 18-34-year-old age group.

Edison Research recently reported that even 63% of heavy radio listeners now consume their audio online. 82% of those listeners own a smartphone and the most commonly downloaded App is Pandora (40%).

For many, a radio in the 21st Century looks like a smartphone.

SMARTPHONES

Crosley AM FM Radio

Often it appears like radio people think they are the only ones who are not affected by the innovations of technology. Such as, no matter what comes along, AM/FM radio will always be there. Unfortunately, that kind of thinking is like sticking your head in the sand.

Let’s think about how smart phones have replaced other “must have” technologies:

  • My Nikon camera no longer goes on vacation with me, it has been replaced by the pictures I take on my iPhone
  • Same for videos using my very expensive camcorders
  • My iPod is now my iPhone
  • My newspaper is my iPhone
  • My calculator is my iPhone
  • My eBook reader is my iPhone (or iPad)
  • My pocket voice recorder is now my iPhone
  • My GPS when on foot is my iPhone, though I still prefer my Garmin SmartDrive 61 in the car
  • My flashlight is now my iPhone
  • My iPhone is my compass, barcode scanner, and portable video player
  • My iPhone is the way I access Facebook, Twitter, and LinkedIn away from home
  • My iPhone is the way I get both my local weather forecast as well as access weather radar. Weather alerts come in immediately to my iPhone replacing the need for my weather radio.
  • I’ve been a cellphone only household since 2000
  • My smartphone is my household answering machine
  • My smartphone is my alarm clock
  • I no longer wear a wrist watch, as my iPhone is my watch
  • I use my iPhone as a timer when I’m cooking
  • I have my digital library on my iPhone
  • My work and personal calendars are all on my iPhone
  • I keep notes and other records on my iPhone
  • Since I take all my pictures with my iPhone these days, my photo album is also my smartphone. (Note: I have 2-TerraBytes of iCloud storage to back up everything)
  • My entire “rolodex” (contact list) is now on my iPhone (I started with a Day-Timer and went digital in 1989 with a Casio Boss. Then moved to a Palm Pilot. Then to the iPhone.)
  • I check my email when not at home on my iPhone
  • I surf the internet frequently on my iPhone
  • When I call the kids & grandkids, it’s using Facetime on my iPhone
  • My credit cards, plane tickets, show tickets are now all in my Apple Wallet on my iPhone
  • I can even use my iPhone to run my Apple TV as a remote control

SMARTPHONE ADDICTION

A new research study by Pew finds that 54% of U.S. teenagers, age 13 to 17, worry they may be spending too much time on their phones. While they also say they are trying to reduce their smartphone and social media time spent, 56% of teenagers find that doing so makes them feel anxious, lonely, or upset.Group Of Children Sitting In Mall Using Mobile Phones

And it’s no better for parents (and may I add, grandparents). Pew’s survey tells us that we are struggling with the same impulses over the time we spend on our phones and social media, sometimes with even worse results than teenagers.

Adults lose focus on their work and students lose focus in the classroom, by the constant need to check their smartphone.

SMART SPEAKER

echoMost research today indicates that since the introduction of the smart speaker, the device that’s getting a little less use is the smartphone. I would concur that is the case in my home as well. Our 3 Amazon Echoes are the way we access at home radio listening, get flash briefs, find out the time and latest weather forecast.

At home, 100% of our radio listening is streamed through a smart speaker.

Speaking of Voice Command devices, my Garmin GPS SmartDrive 61 is now programmed by my voice and I can add via points while driving simply by telling my Garmin where I want to go next. It’s the best improvement in automobile navigation since the GPS itself.

ON DEMAND

on-demand-cpeWhat the smart speaker and the smartphone have in common, are both devices give the user what they want, when they want it. On Demand is the real game changer of the 21st Century communications world.

Netflix, Hulu, Amazon Prime, Apple TV etc. are delivering on demand television. The smartphone and smart speakers are doing that same thing for podcasts, radio, news, weather and everything else.

Edison Research noted, in their recent research, that the hardware challenge in the home is significant. Getting analog radio back into the home (and I would add, in the very near future, the car) seems unlikely

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When TV Disrupted Radio

97I grew up with TV.

Essentially, we were “born” in the same year.

I don’t remember a time when TV didn’t exist.

TV was supposed to put radio out-of-business. It was the “great disruptor.”

Why TV Didn’t Put Radio Out-Of-Business

While I loved my TV shows and even remember planning my life around TV GUIDE and the new fall shows, I still fell in love with radio and wanted to be a radio personality since elementary school and my first Zenith transistor radio.

Radio for me was never about Jack Benny or Groucho Marx or Amos & Andy or radio dramas like Orson Welles “War of the Worlds.”

Radio was exciting execution, engaging personalities and the best of new music from all genres.

Radio was addictive because it was so engaging.

Disruption Knows No Loyalties

It’s reported that as this decade began only 67 of the original Fortune 500 companies were still in business. Welcome to the 21st Century of Disruption.

The reality in today’s world of accelerating change is that the very success that rockets a company to raving success usually becomes the dagger that runs through its heart when the market environment shifts. Then new firms take over and former leaders fade into the history books.

The business truth is eventually every business sees its model fail.

Radio’s New Business Model after TV

Can you imagine a more difficult time than when TV swooped in and stole all of radio’s programs and talent? It was a time when people said things like “The last person to leave, please turn off the lights on your way out.”

It was a dark time for radio.

But not for all.

Only those who couldn’t see their way past the way it had been.

New broadcasters were quick to develop new formats.

1965 saw the birth of BOSS RADIO in Los Angeles with Bill Drake & Ron Jacob’s 93-KHJ.

At the same time 1010-WINS in New York would pioneer the all news format and everyone would know the phrase “You give us 21-minutes and we’ll give you the world.”

These new broadcasters would be the ones that inspired me to want to be a radio guy.

The Transistor Radio

Radio took advantage of the transistor radio. The youth of my day would all want a transistor radio of their very own and radio owned the youth generation.

The Car Radio

As we grew older and bought our first car, the car radio was a MUST HAVE accessory.

Movies like American Graffiti would romance the glory of the young and their radio.

The Internet of Things (IoT)

Today’s 21st Century finds radio with a new disruptor, the internet. It’s not a new product but an ecosystem.

Amazon and Walmart sell many of the same products and are quite competitive on price. The big difference is Walmart is a brick and mortar ecosystem and Amazon is internet based.

For radio to compete the industry needs to have a vision for how its product fits into a complex network of components, systems and user experience.

That’s the 21st Century radio challenge. (TV faces the same challenge.)

Today’s radio must seamlessly fit into a listener’s life on any platform the listener uses.

Disruption will crash and burn any business model that wants to hold onto the past.

Disruption will clear a path for those who are innovative, nimble and responsive to a changing marketplace.

For those broadcasters, the opportunities are limitless.

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