Tag Archives: Jeff Bezos

What’s NOT Going to Change About Radio?

It’s human nature to wonder about how our world will change and most times, what we think will change or maybe what we worry might change, doesn’t.

So, why do we do this?

Most likely because we all want to know what the future will bring and this is why fortune tellers are still in business or why we watch The Weather Channel. It’s definitely not because they always get it right.

What’s Going to Change in 10 Years?

I just finished listening to Bob Pittman, CEO of iHeart, on the Borrell Local Marketing Trends podcast on how radio will change in the years ahead. Gordon Borrell and Corey Elliot wanted to know “how radio will remain unique over the next 10 years, whether its dependence on advertising revenue might need to change, and whether we should be calling it ‘radio’ at all.”

What was his answer? Well you can listen to the podcast HERE, if you really want to know. But I can save 23-minutes and 15-seconds of your time by telling you it doesn’t matter what he said, because he’s probably wrong, and that’s OK, because no one will remember what he said a month from now.

What’s NOT Going to Change in 10 Years?

I remember reading that Jeff Bezos said people constantly asked him the “change in 10 years question,” and he said the question they should be asked is “what won’t change in 10 years.” Both Bezos and the brilliant investor, Warren Buffett, believe this is a very important question you should be asking yourself about your business or industry.

“When you have something you know is true, even over the long term, you can afford to put a lot of energy into it,” says Bezos.

Radio Personalities

Over the Labor Day holiday weekend, Rewound Radio presented the sound of classic Chicago Top 40 radio with air checks of WCFL (Super CFL) and WLS (The Big 89 – The Rock of Chicago).

When I was growing up both of these radio stations greatly influenced me and were responsible for creating the desire to make radio my lifelong career.

Listeners to this special Labor Day Weekend presentation on Rewound Radio said they loved hearing their favorite radio personalities once again.

The program was not broadcast over any AM or FM radio signal, but was only streamed on the internet to a worldwide audience.

In fact, this past July 2022, more people watched their favorite programs by streaming them versus a cable TV subscription. Streaming, says Nielsen, is now “the most popular way to consume content.”

The one thing that Bob Pittman did share in his Borrell interview worth noting, was that in focus groups people didn’t call our medium, “radio.” They called what they listened to by the station’s brand, as much as we don’t refer to our mode of transportation as a “car”, but as a Ford, Chevy, Honda etc.

So, having a unique brand for your radio station is very important. The one unique brand every radio station in America has are its FCC call letters, like WCFL or WLS.

Dan Mason

Dan Mason was recently inducted into the Broadcasting & Cable Hall of Fame 2022. Dan said he grew up in Louisville, Kentucky listening to Cawood Ledford, the voice of the University of Kentucky sports for decades. It was Cawood that created the desire in Mason to be on the radio and he never pictured himself in the executive suite. But Dan Mason would rise to the president and CEO of CBS Radio, which he retired from at the age of 64.

Upon retiring that position, Mason quickly return to his first love, that of being on the radio and broadcasting sports play-by-play.

Dan Mason believes that great radio depends on two things: 1) community & companionship for the listener, and 2) having integrity.

For the listener, both of these are created, and earned, by the radio station’s air personalities.

And that’s something that’s never going to change.

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Invest in the Future

In life we have three important choices: 1) accept things that can’t be changed, 2) muster up the courage to change the things that can be changed, and 3) be blessed with the wisdom to know the difference.

Radio’s WHY

In last week’s blog, I asked “What is Radio’s WHY Today?” In reviewing blog reader comments, I saw a common theme expressed, that radio should be LIVE & LOCAL. But does being “live” really make a difference in and of itself? If seasoned radio people are being honest with themselves, they would have to admit they had heard lots of bad “live radio” over the years. When it comes to being “local,” what is local today? We live in such a connected world, that in order to live the lives we’ve become accustomed to, requires a global supply chain. Any disruption, will negatively impact our happiness faster than a bee sting.

Radio’s guiding principle is relevance. People will gravitate to things that have relevance to them and their lives. Let me give you one example…

Fundraising

When it comes to raising money for a good cause, radio stations continue to turn in an outstanding performance, why? Because people feel these causes are very relevant, so they support these events.

Unfortunately, much like a retailer’s weekend sale, when the radio station’s fundraising ends the people depart for other activities that are higher on their relevancy scale.

The Amazon Lesson

In Seattle several decades agao, Jeff Bezos began Amazon in his garage. His guiding principle in building this company into the behemoth it is today was to invest in the future. Identify the constants of the people who use your product or service and build on them with relentless focus. In other words, be relevant to your customers.

For Amazon, it meant offering everything at the lowest possible price and delivering it to people’s homes faster and faster.

“When you have something that you know is true,

even over the long term,

you can afford to put a lot of energy into it.”

-Jeff Bezos

Great Radio

Great radio will always be about the listener, knowing what is relevant to them and delivering it 24/7.

Great radio provides community and companionship.

Great radio creates FOMO (Fear Of Missing Out) in the listener.

Great radio stations are highly focused on the audience they have set out to serve. They’re not trying to please everyone, but only to super-serve their target audience.

Less is More

The venture capitalists thought the way to riches was by putting more and more radio signals on the air,  quantity over quality and in so doing abandoned the very essence of what makes great radio.

“Successful businesses are those that continue to find ways

to best fulfill (their customer’s) core needs.”

-Jeff Bezos

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July 5th – Today in History

FlagI hope you are enjoying this holiday weekend celebration of America’s independence 244-years in the making.

As I was thinking about what I’d write this week, I came across this radio item, dateline Fort Wayne, Indiana that said on July 5th in 1929 radio station WOWO returned to the air one day after its transmitter site burned down. Obviously, that wasn’t a very WOWOjoyous time for the staff and management at that radio station. It was only four years earlier that WOWO signed on the air for the first time in its storied broadcast history, March 25, 1925.

July 5, 1951

It was on this date, 69-years ago that Bell Labs, and primarily William Shockley, announced the invention of the junction transistor during a press conference the company held in Murray Hill, New Jersey.

July 5, 1956

William Shockley and three others were awarded a Nobel Prize in Physics on this date for “their research on semiconductors and their discovery of the transistor effect,” a discovery that allowed radio to be reborn in car dashboards and on portable, hand-held receivers.

Regency TR1 (GREE)It was a joint venture between Texas Instruments and Regency Electronics that would produce the world’s first transistor radio, the TR1, in 1954. However, it wasn’t until three years later when SONY would introduce its smaller and cheaper TR-63 transistor radio that this new communication device would become the 1960s/70s mass market success story.SonyTR63 (HAND)

Steve Wozniak (Apple Computer Co-Founder) said he had a Regency TR1 transistor radio as a kid and was a big fan. “My first transistor radio…I loved what it could do, it brought me music, (and) it opened my world up,” said Woz.

July 5, 1963

The second Beatles song released in America which climbed to number 87 on the Hot 100 was “From Me to You,” and would mark a second “invasion” by the British kingdom.

It was the transistor radio that gave young people the opportunity to easily access “their music” without garnering their parents disapproval, being able to listen to the radio in their bedrooms, cars and anywhere they went.

The transistor radio opened up a world of new artistic expression along with the dissemination of new ideas. These hand-held radios played rock and roll, delivered the news, connected Americans to the Civil Rights Movement and kept citizens abreast of the ongoing Vietnam War.

I’ll come back to the transistor and William Shockley in a moment, but first, let’s look at some of the other things that changed our world on this day.

July 5, 1971

fightvote

The 26th Amendment to the United States Constitution was certified, reducing the voting age in America to 18.

July 5, 1989

SeinfeldThe successful television sitcom “Seinfeld” debuted on the NBC television network. The show “about nothing” ran for nine years and has grossed more than $4 Billion, making it the most profitable half-hour television program in history.

July 5, 1994

amazon

Jeff Bezos begins a new venture in Bellevue, Washington. On this date, “Amazon.com” was born. In just 26-years, Amazon is only the fourth tech company to join the “$1 Trillion Club.” Jeff Bezos’ net worth is now estimated at $111 Billion.

July 5, 2003

On this date, the World Health Organization (WHO) declared that the SARS virus, known technically as SARS-CoV (coronavirus), was “contained” after affecting 26-countries and resulting in 774-deaths.

Transistor & Shockley

Getting back to William Shockley and his development of the transistor, he would not only change the way Baby Boomers would grow up, listening to their transistor radios, but he is also credited as being “the man who brought silicon to Silicon Valley.”

For you see, one of the key benefits of the transistor was the ability for electronics manufacturers to create smaller and smaller devices, that eventually gave us the computer in our pocket, better known as the smartphone.

1980s to Today

In time, these little transistor radios would be replaced by the Boom Box. Then along came the SONY Walkman (and headphones), followed by the Discman, iPod and today’s internet powered iPhone.

iPhone12Each new generation of technological development has moved media consumers away from traditional broadcast radio’s position as the leader for reaching the masses with new music, news and cultural trends.

The broadcast industry has been slow to adapt to the 21st Century. As greatest hockey player of all time, Bobby Orr might put it, to skate from where the puck is to where the puck will be.

Let’s hope it’s not too late.

“You have to change with the times

or

the times will change you.”

-Marv Levy, Buffalo Bills Coach

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Who Will Keep the Light On?

Hudson Athens LighthouseIt was the radio commercial that planted Motel 6’s “We’ll keep the light on for you,” in your brain. The frequency and repetition of that phrase, along with a well-crafted and ever changing script always kept you wondering what Tom Bodett was going to tell you next, that you already didn’t know about this motel chain.

Lighthouses

Long before there were wireless communications at sea, the lighthouse was the way sailors kept their ships on course and away from danger.

Lighthouse keepers kept these sentinel beacons operational through the darkness and all kinds of weather. Lighthouses, those keepers thought, were never going away.

And they haven’t.

But with lighthouse keepers, today’s technology has basically eliminated the need for them.

Radio Stations

Radio stations are also not going away, but the need for radio personalities, for staffing of any kind on weekends, nights and holidays, has.

Radio stations and lighthouses are both communication centers people depend on. Often for their life.

Bob Christy recently wrote about “Real Life in the Fire Zone…” about his own personal experience during the California wildfires near his home in Southern California. He told of the incredible radio coverage provided by two Los Angeles radio stations, KFI AM640 and KNX AM1070. Due to the fires, they had no wired communication in their home. Bob said he dug out an old boom box, loaded it up with batteries and tuned in the AM radio news and news/talk stations for updates about the fires.

Like a lot of us Boomers and members of the Greatest Generation, Bob grew up on AM radio. But I wondered if many who might have benefitted from the coverage even knew about those AM radio stations or if they even had any type of OTA radio in their home.

Hudson-Athens Lighthouse Preservation Society

My older brother is active in the Hudson-Athens Lighthouse Preservation Society. He’s also a photographer and in addition to working as a volunteer at the HALPS, he travels frequently around the world seeing and photographing lighthouses.

The annual season for touring Hudson-Athens Lighthouse concluded this fall. The lighthouse is located in the middle of the Hudson River between Hudson, New York and Athens, New York. The Coast Guard has an automated LED light on the lighthouse that is still used by ships to navigate that part of the Hudson River but no person physically is needed to man the light. In fact, no person has been needed for years due to technology.

This historic lighthouse, like almost all lighthouses around the world, are maintained by local volunteers that love and care for these critical communication centers of the past.

I wondered if one day, something similar might be the case for some of America’s heritage radio stations, maintained as museum pieces, as another part of communications history.

Amazon

I often hear radio people say things like “Radio will never go away.” I think lighthouse keepers probably said that sort of thing once too. The navigational beacons remain, but the nature of what used to be called a lighthouse, does not. All that’s needed today is an automated LED beacon mounted on any kind of tall structure.

At an all-hands meeting in November, Amazon CEO Jeff Bezos was asked by an employee about the future of the company, to which Bezos stunned his people by responding, “Amazon is not too big to fail, in fact, I predict one day Amazon will fail.

If such a thing could happen to the world’s biggest online retailer, what makes us think it would never happen in our industry?

Prolonging Amazon’s Demise

Bezos said, the key to prolonging the demise of Amazon was to “obsess over customers and to avoid looking inward, worrying about itself. If we start to focus on ourselves, instead of on our customers, that will be the beginning of the end.”

I remember when one of the radio station clusters I managed was taken over by one of the big C companies and the company leader told us that we should be focused on making money for the company. It was 180-degrees from the kind of radio I was raised on, where if you took care of your employees, your listeners and your advertisers, the company would get their reward in the end from doing those other three things right.

Where Will They Come From?

Sometimes when we look at another industry or occupation, it gives us insight into the future of our own specialty.

In America, the last officially manned lighthouse was the Boston Light. The United States Coast Guard manned it until 1998. During the last twenty years, volunteers have maintained the light and given tours.

What these volunteer groups are now finding is that with each passing year, fewer and fewer people are doing more and more of the work. New volunteers are increasingly harder to find and often depart quickly when they learn of all the work needed to keep these facilities operational.

And sadly, some of these lighthouses may soon be closing their doors for good due to lack of interest.

It Can Happen Here

There are lessons to be learned from both the story of lighthouses and Amazon.

Will the leaders of radio take a Jeff Bezos approach to the radio industry’s future or end up like lighthouse keepers?

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Radio’s Wizards

Wizard NotebookI remember how a weekly fax changed my radio life. It was called the “Monday Morning Memo,” and it was written by a guy in Texas by the name of Roy H. Williams.

Every Monday, I couldn’t wait to get into the radio station and check the fax machine for his latest missive. It never failed to ignite my soul.

Things That Won’t Change

I’ve written in this space about Jeff Bezos of Amazon and what he considers to be the most important question most people don’t ask about their business and that is “What won’t change in ten years?”

Roy’s Monday Morning Memos are an excellent example of focusing on those universal things that won’t change about branding, marketing and selling. They are those universal concepts that will don’t change with the latest technology.

Secret Formulas

In my broadcast sales class at the university, I would spend the end of the semester with each class reviewing principles of Roy’s book “Secret Formulas of the Wizard of Ads.” All of Roy’s books are a must read for anyone in radio sales.

Here’s an example of some of the things that won’t change for great radio advertising:

  • Surprising Broca – most radio ads are predictable and use clichés that listeners have become adept at tuning out. Great radio ads seduce the listener and then persuade.
  • Words are Keys – you know the product, just by the ad keys used by the brand. Let me give you a couple of examples: “We’ll leave the light on for you” or “Just Do It.”* Do I need to tell you the brand name or what they sell? Do these two companies surprise you with their ads?
  • Engage the Imagination – people only go to places they’ve already been in their mind. The skillful ad writer will engage the listener’s imagination and take the listener where they want the listener to go.
  • Sleep is the mind’s eraser – when we go to bed, sleep is the process where the mind clears itself for the next day. Like an eraser on a chalkboard, sleep wipes away all of the advertising messages a listener is exposed to that day. Knowing this is why, building a radio schedule that delivers the minimum frequency to be effective, is so important.
  • Power Verbs – present tense and present progressive tense verbs conjure up powerful images in the mind. How often to most radio ads use them? Sadly, not very often.
  • The Secret Path to Miraculous Ads – Roy says “journalistic writing is an objective presentation of the facts in an attempt to inform, not persuade. Creative writing is the telling of a story with wit and charm in an attempt to entertain, not to persuade. And Poetry is writing to communicate a new perspective in a brief, tight economy of words. An attempt to persuade.” Will your ad persuade a listener when they hear it? Emotion is KEY. They may forget what you said, but they will never forget how you made them feel. How do you feel after viewing this ad for State Farm called “Never”?

Fearless Flyers

Fearless-Flyers_Chet-Young-at-the-Beach_780This past Tuesday, September 11, 2018, America remembered the 17th anniversary of the 9/11 attack on America in New York City, Washington, DC and Shanksville, Pennsylvania. My class at the Wizard Academy was supposed to have 29 students. Only four of us showed up: Dr. Kevin Ryan, a famous writing coach from Utah; Chet Young, a big salesman with a booming voice from Burlington, Iowa; Akintunde Omitowoju, a senior programmer of Nintendo games from Kyoto, Japan and me, a radio station general manager from Atlantic City, New Jersey.

It took place in a small, converted gym in the offices of Williams Marketing in Buda, Texas just one week after 9/11 in 2001.

Roy has the students come up with a special name for their class and ours became the “Fearless Flyers.” Each of us flew on a commercial airliner whose crew outnumbered the passengers.

This past week I learned of the passing of Chet Young. His niece dropped by the Wizard Academy to see if this magical place her Uncle Chet always talked about really existed. It does.

Roy shared a memory of our class in this week’s Monday Morning Memo’s “Rabbit Hole.” You can read more about it HERE.

Positive Things YOU Can Do

Roy H WilliamsWant to make your radio station more effective for your advertisers and more engaging for your listeners? Then do those things that will not change for effective radio in ten years.

Subscribe to Roy H. Williams’ “Monday Morning Memo,” read the Wizard of Ads book trilogy and make plans to spend a week at the Wizard Academy to learn directly from the Wizard of Ads, Roy H. Williams.

Thank You and God Bless You Roy.

Wizard of Ads Coin

*Motel 6 & Nike

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Why Do People Love Radio?

We-Love-RadioI read a recent article in Bloomberg about how in an age of cord cutting, where millions of Americans are leaving the cable bundles and abandoning traditional TV, others are staying put.

Why?

The big reason should scare anyone working in ad supported media: “Our customers don’t want to cut the cord because they’d have to give up critical features like the ability to skip commercials…” said Jay Roth, chief marketing officer at Dish Network Corp.

Commercials = Clutter

A former colleague of mine at the university wrote to me the other day about the changes going on in higher education and the field of radio broadcasting. He wrote:

“I’ve also had it with local radio and TV, too. Too many commercials back to back to back – it’s like classified ads. Who remembers the 5th ad in a spot set, even if it is well written? (most are not). Thank goodness for SiriusXM. That’s where I am, unfortunately.”

Here’s the concerning point of sharing my colleague’s comment, this person grew up, worked in and taught AM/FM radio, and is of the age group that should still be “in love” with the business.No Ads

We have plenty of data showing how the younger age groups don’t even own a radio, instead listening to audio content via their smartphone or some other connected device.

So, what makes radio listeners stay?

The Radio Habit

A 2017 Jacobs Media survey found that AM/FM listening is pure habit. 91% of survey respondents said they listened to radio for an hour or more per day, but TV/video and the smartphone usage came in at 87%.AM FM Radio

Digging a little deeper, respondents cited hearing their favorite music and a connection to their favorite air personalities as reasons they listen to AM/FM radio.

Radio’s Free

The 2018 Infinite Dial  study from Edison Research and Triton Digital reported that 82% of respondents who have ridden or driven in a car in the past month listened to traditional car radio.

Pandora For Brands authored a “State of AM/FM Radio: What Advertisers Need to Know” piece that said:

“True, America’s oldest electronic mass medium – AM/FM radio – is still alive, kicking and serving throngs of listeners every day, but it’s also being disrupted by today’s growing digital media landscape. Radio has prospered for so many decades because it’s free, easy-to-use and there are tons of them around. In fact, it used to be the only way to enjoy music without having to invest in a record collection or to hear news, sports and traffic information on-the-go.”

But the real shocker was this data point:

“Currently, people between the ages of 50-60 years old who have mobile devices are spending more time with mobile apps than they are listening to AM/FM radio.”

-Nielsen Total Audience Report, Q1 2017

This age group was raised on AM/FM radio!

New Habits

I bring this all up because we are seeing new habits being formed with the new disruptive media technologies.

It’s like the old saying “Once they’ve seen New York, how are you going to keep them down on the farm?”

Once you experience Netflix or Amazon Prime, it’s hard to return to ad supported TV. And those folks who still buy the cable bundle, do so in part to have a way to eliminate the commercial clutter and to produce a more Netflix type of viewing experience.

Once you listen to your music on Pandora, Spotify, Apple Music or access your music via a smart speaker, you will be hard pressed to go back to a cluttered listening environment.

But the biggest new habit in our short-attention-span world is On Demand.

Whether we are talking about TV or audio, we are now a culture of wanting things when we want them, not when they are served up, and that’s the juggernaut all traditional media are faced with.

Newspapers, television and yes, radio, serve what they want you to have.

Today’s media consumer knows they have choices and they don’t have the time or patience for the way it used to be.

The Future is…

In 1967, the movie “The Graduate” had a scene where the Dustin Hoffman character was taken aside by a family friend who advised him about where the future was for a person his age. The answer was one word: “Plastics. There’s a great future in plastics.”

What might a friend advise a young person today to focus on? Podcasts?

Focus on the Things That Don’t Change

BezosJeff Bezos’ secret sauce has been to focus his efforts on things that would not change.

He said the question that he’s always asked is “What’s going to change in the next 10-years,” but the question that’s rarely asked is “What’s not going to change in the next 10-years?”

It’s that second question he feels is most important.

Bezos doesn’t concern himself with what will change, but on what won’t change. Then working to make those things better and better and better.

With this strategy, Bezos has become the richest man in the world.

This is what the radio industry should be doing.

 

 

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Radio’s Serenity Prayer

Serenity Stained Glass Window

 

In everyone’s life, there are trials and tribulations.

During a particularly trying moment in my life, I found comfort in Reinhold Niebuhr’s Serenity Prayer.

 

Niebuhr’s Serenity Prayer

God grant me the serenity to accept the things, I cannot change; courage to change the things I can; and wisdom to know the difference.

The prayer is actually made of three parts: 1) accepting things that can’t be changed, 2) courage to change the things that can be changed, and 3) wisdom to know the difference.

So how does that apply to those of us in radio broadcasting?

Somethings Never Change

I’m sure, like me, you’ve been reading a lot about the future of radio and all the changes it faces on the horizon of 2018 and beyond.

It can be overwhelming.

But I fear that too many in radio are too focused on changing the things that are beyond our control or are working hard to change the things we believe we can change, and are missing the bigger opportunity, the things that won’t change.

In my long radio career, I’ve seen the consistency of radio’s power to make a difference in a community.

I’ve also seen the number of radio stations on-the-air multiply like bunnies, and the number of radio pre-sets on a car radio expand to 30, but the number of favorite radio stations a person has remains at about three. And one of those three favorite radio stations will dominate with over 80% of the time spent listening to radio.

Nielsen confirms this is still the case.

“I very frequently get the question: ‘What’s going to change in the next 10 years?’ And that is a very interesting question; it’s a very common one. I almost never get the question: ‘What’s not going to change in the next 10 years?’ And I submit to you that that second question is actually the more important of the two — because you can build a business strategy around the things that are stable in time.”

– Jeff Bezos, Amazon CEO

Radio’s Constants

Great radio will always be about the listener.

Great radio personalities will be great entertainers and a friend to the listener.

Great radio will not only serve listener needs but also their wants and desires.

Great radio will be dependable, in good times and bad.

Great radio will always be about community and companionship.

Great radio will always be surprising and unpredictable.

Great radio will attract listeners who don’t want to miss out.

Great radio adds value to everyone it comes in contact with.

Invest in the Future

Jeff Bezos is a very rich man.

Jeff began Amazon in his garage in Seattle twenty years ago.

Jeff bought the Washington Post with his pocket change and infused it with a new spirit by focusing on a newspapers’ constants.

Bezos says the way to invest in the future, is to identify the constants of people who use your product or service and build on them with relentless focus.

For Amazon it’s lower prices, and speedier delivery for example. Do you see either of those going in the opposite direction, with respect to consumer expectations, in the years ahead?

And so, it is with radio.

The very constants that made radio great for nearly one hundred years will continue into the next century. The secret is not to take your eye off the ball.

“When you have something that you know is true,

even over the long term,

you can afford to put a lot of energy into it.”

-Jeff Bezos

Radio needs to live one day at a time, enjoying the special place it holds in people’s lives.

Radio needs to accept the hardships, knowing they will lead to a better place.

Trust that if you focus on the radio constants, the future will be alright.

Or as Bezos put it in Forbes, “Successful businesses are those that continue to find ways to best fulfill core needs. Does our business fulfill one or more core human needs? Are we meeting that need in the most effective and efficient way possible given the changes in technology and people’s expectations?”

(Hat Tip to John Frost’s Frost Advisory #390 for the inspiration)

 

 

 

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