Tag Archives: Internet

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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Radio’s Best Feature

96The one constant in life is change.

What makes our world different than the world we grew up in is the rate of change in technology.

Adoption rates for technology over time according to the U.S. Census,  shows us that it took about 45 years for 25% of Americans to adopt electricity, 35 years for 25% of Americans to adopt the wired telephone, about 32 years for 25% of Americans to adopt radio, 25 years for TV, 15 years for personal computers, 12 years for mobile phones, 8 years for the internet and about 5 years for 25% of Americans to adopt smartphones.

Nearly nine in ten Americans today are on the internet and 77% of Americans now own a smartphone according to Pew Research.

K.I.S.S.

Most people who have any sales training at all know all about “KISS.”  Some say it means “Keep It Simple Stupid” and others will tell you it means “Keep it Short & Simple.”

But either way the message is the same, keep things simple.

“You have to work hard to get your thinking clean and make it simple.”

-Steve Jobs

Quite possibly our biggest challenge in the 21st Century is to keep up with the rate of accelerating change.

The More Things Change, the More They Are the Same

I’m sure you’ve heard this phrase uttered more than once in your lifetime. Every generation has thought that the rate of change was beyond their ability to cope.  A couple of centuries ago Henry David Thoreau told his contemporaries to “Simplify, simplify, simplify.”

Technology – especially information technology, the basis of our social networks – is speeding up exponentially. The famous Moore’s Law predicted this for computer chip development.

Exponential growth rate is an evolutionary process.

In his book “The Singularity Is Near” Raymond Kurzweil showed how civilizations advance through building on the ideas and innovations of previous generations, a positive feedback loop of advancement.

Each new generation is able to improve upon the innovations of the past with increasing speed.

Kurzweil wrote in 2001 that every decade our overall rate of progress was doubling, “We won’t experience 100 years of progress in the 21st Century – it will be more like 20,000 years of progress (at today’s rate).”

Only 17 years into the 21st Century and it feels like Kurzweil nailed it with his prediction.

It Still Takes 9 Months to Make a Baby

While it’s true so much of our world is uncontrollably speeding up, we are still human beings and we still pretty much move at the same pace biologically as we always have. Technology doesn’t transform our human nature.

Our need for love, touch, companionship and community will always be part of our humanity no matter what technology brings.

Radio Reaches 93% of Adult Americans Every Week

The latest Nielsen Audio research reports “radio leads all other platforms when it comes to weekly reach (93%) among adult consumers – and with new insights available to compare radio to other platforms on a regular basis, it’s clear that radio is an integral part of media consumption for millions of Americans.”

Great radio makes a human connection, engages its community and is a companion.

Radio’s best feature in a world of complex technology is that it’s simple to use.

It’s that simplicity I believe that makes it the #1 media favorite.

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It Was the Best of Times & the Worst of Times

65Radio broadcasting began in the “Roaring 20s.” A time in America that saw the first tabloid newspaper appear. Reader’s Digest, New Yorker Magazine, Time Magazine would also be born right along with radio. It was a time of unprecedented economic prosperity and social change. It was a time of a strong backlash of racism, fear of immigration and morality.

The 1920s and the world we are living in today are not all that dissimilar. Today, the wealth inequality is greater than it was in the early 1920s.

And just like those times, almost a hundred years ago, that gave birth to radio we are living in times that are giving birth to the “Internet of Things.”

Immigration: Then & Now

After World War One ended, America got tough on immigration. The most stringent set of immigration restrictions in American history was enacted with “The National Origins Act of 1924.” It restricted the flow of immigrants from Europe (and elsewhere) to less than 200,000 per year. This fear of immigrants reignited the Ku Klux Klan. The KKK membership saw its membership rise to a new high in 1928. Reformers advocated for a more militant, less conciliatory stance.

Today the battle rages on over building a wall between Mexico and the United States and over immigration of Muslims.

Women’s Rights

While women had won the right to vote, they still couldn’t go to college and most professions still excluded women. While women could now own property, they couldn’t establish credit with a bank or get backing for a business venture.

Many felt that the only thing that changed in America when women were given the power to vote was prohibition; the 18th Amendment to the Constitution.

War on Illegal Substances

So while the United States tried to control alcohol in the 20s and failed, today we find America battling another illegal substance battle, marijuana, with much the same results.

People will find a way to do something they really want to do.

Modern Mass Media

The 20s ushered in the first decade of modern mass media. American-made films not only captured the attention of American audiences, but the whole world. Every city would have at least one movie house by the end of the decade.

Because the movies were silent, musicians were in high demand for the movies. And because radio was all live, it too needed musicians to perform during each broadcast day.

Radio Jingles

The 20s also saw advertising agencies now develop departments devoted to the creation of radio advertising and soon the commercial radio jingle was born.

The Worst of Times

The Roaring 20s would end with Black Tuesday, October 29, 1929, the stock market crash and the beginning of the Great Depression.

While this decade created favorable conditions for big business to prosper, the alliance of government and industry left labor unions out in the cold.

It was these times that radio was born.

The Great Recession of 2008 would be the environment that would see the Internet of Things born.

Today’s Big Regulatory Difference

The big difference I see today for radio versus its toddler years is how it is regulated. The Radio Act of 1927  provided the foundation for all broadcast regulation right up until today. While more Acts were passed and made law over the years, the basics remain much the same as when they were first made law.

Some of the key provisions in the original Act that we’ve deviated from today are:

  • Limiting the number of broadcasters to foster higher quality radio broadcasts versus having more stations of poor or mediocre qualities
  • Radio broadcasters would operate in the “public interest, convenience and necessity”
  • Radio would be a regulated medium to assure high quality and operating in the public interest
  • Radio would be commercial and privately owned (a condition that made radio broadcasting in the USA different from every other country in the world)

Those who complain that radio isn’t like it used to be only need look at how broadcast regulations have been changed over the past century; the biggest change being the Telcom Act of 1996.

Utopian Hopes, Dystopian Fears

When commercial radio was born in 1920, it was hoped that it would bring about national unity. Those utopian hopes and dystopian fears would fall basically into four different areas.

  1. Radio would create a physical unity in the country bringing people together as one
  2. Radio would bring about a new cultural unity as Americans
  3. Radio would make America a one language nation providing linguistic unity
  4. Radio would bring about institutional unity where everyone wanted the same things and held the same vision

I will let you draw your own conclusions on the success or failure of these goals for radio.

Internet of Things

Broadcasting in America started out as a government-assisted oligopoly. The internet did too. Both, I would argue, now fall into the unlimited category. While I realize this is definitely true for the internet, I know others would quickly point out the limited amount of spectrum for AM and FM radio broadcasting. However, with the growth of FM translators and LPFM stations, it feels like it’s unlimited.

The original system of a government preferred broadcasting system is being challenged today by the Internet of Things.

And covered in dust, is the original fundamental principle of operating in the public interest, convenience and necessity and not merely for maximum profits.

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