Tag Archives: Millennials

Where Have All the Baby Boomers Gone?

Baby BoomerBill Thomas, a media and branding idea expert and broadcast & radio veteran (@BillThomas), shared a link on Twitter to an Ad Week article about three brands that bought ads in Super Bowl 54, targeting the 50+ demo. It’s not surprising, as the author of the article points out, that this is the age group that is most active and ready to spend online. Any guess on what the three brands are, that were targeting this Baby Boomer age group? Do you think it was iHeartMedia, Cumulus, and Entercom? Stay tuned.

Citizen Insight Academy

The City of Winchester holds a Citizen Insight Academy annually, and I signed my wife Sue and I up for the 2020 edition. We’re only nine weeks into this 16-week program and Citizen Insight Academyit’s been illuminating learning about our city and the way it operates. The other evening, we had a session with the city’s Emergency Management and E-911 departments.

You can imagine my reaction when the head of the E-911 department began her talk with “People don’t listen to the radio anymore, but they’re really into social media.” She went on to say how she grew up listening to the radio but how other forms of communication, like social media, have replaced that habit. Much like smartphones have replaced people’s landline telephones.

She told us that most calls into the city’s 911 switchboard come from wireless phones versus landlines. The percentage was something like 75% wireless to 25% landline. I myself have been a cellphone only household for over a decade, and our class of 35 had only about four people who still have a landline.

Traditional Radio Stations Have Lost Faith of Listeners

If I thought our city’s 911 Director was tough on radio, the BBC’s head of radio and education, recently said “Radio as we’ve always known it, has lost the faith of listeners.” He explained that “where once it was everything, now it is not. In fact, for many listeners, it is no longer their default.”

BBC Chief

BBC Radio Chief, James Purnell

In 1920, when commercial radio service began in America, you were lucky if you had a single choice for wireless communication. In many localities, you might have only had radio service after sunset via the AM skywave phenomena.

As more radio stations came on the air, Americans began to develop a radio habit. Radio listening was something we did while working, riding in the car or while we were at play. It provided the audio accompaniment to our lives. But everything’s changed. Now radio stations need to create an experience that earns a place in someone’s day.

NuVoodoo on Media Addictions

I wasn’t surprised to see NuVoodoo releasing some data from their latest research that shows all age groups today are addicted to their Smartphones. But what caught my eye was how Millennials, Gen X and Gen Z groups were more addicted to a favorite FM or AM radio station than Baby Boomers.

NuVoodoo Addiction to Media 2020

Which got me to thinking, why were the very people who grew up with radio and few other choices, be the age group least engaged with the medium today?

Boomers Know Great Radio When They Hear It

Real Don Stelle

The Real Don Steele

Baby Boomers grew up during a time when great radio personalities dominated the airwaves. Broadcasters like Harry Harrison, Robert W. Morgan, Larry Lujack, Dan Ingram, The Real Don Steele, Ron Lundy and so many more filled our lives with information, entertainment, community and companionship. It was a time when radio stations had local news teams, great promotions, exciting radio jingles, stationality and air personalities. Personalities, so important in our lives that we wanted to meet them more than the recording artists that created the music they played.

Radio for Baby Boomers isn’t like that anymore, so they’re moving on.

The boomer generation now embraces smartphones, smart speakers and social media with a vengeance, taking all their dollars to spend right along with them. Baby Boomers hold around 70% of the disposable income in the United States and they make up 50% of sales for all consumer package goods.

The Big Three

So, who were the media companies that want to gain a larger share of the 50+ demo? The ones that know that Baby Boomers are the most active and ready to spend their dollars online?

Google, Amazon and Facebook, that’s who.Facebook Amazon Google Logos

Facebook advertised during a Super Bowl television broadcast for the very first time in 2020. They hired as pitchmen, Chris Rock (54) and Sylvester Stallone (73). Both men are iconic celebrities and are part of this powerful consumer demographic, the 50+ audience.

Meanwhile, radio continues to jettison the very people that connects them with their local audience, the radio personality.

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Seniors & Technology Adoption

old hands using high techTraditional habit patterns used to be that as people grew older, they grew into the same habit patterns as their parents. Things like reading a newspaper, watching the evening television news, becoming involved in their children’s schools, the community and listening to radio. But new research says, those patterns have been upended by what else but, the internet.

Connected Seniors

Perhaps the fastest growing segment of new users on Facebook are seniors. Over half of the people aged 50 to 64 use Facebook, but people over 65 have almost doubled their use of Facebook with now over 32% of them on the social media juggernaut.

It may be why younger generations are moving to other social media platforms, to get away from us oldsters.

You Can’t Turn Back the Hands of Time

Pew Research says seniors who become engaged in social media say they would find it very hard to give up. I’m one of those seniors and yes, I would find it hard to give up. How about you?

Social Media, according to the Consumer Technology Association (CTA) helps seniors to remain independent. Adoption of new technology by seniors goes against the conventional wisdom that only the young want the latest new thing, but these shiny, new, high tech devices attract kids of all ages; even us “big kids.”

Us Baby Boomers were the biggest market segment for all of my life. Only recently have Millennials outnumbered us, but expect Boomers to change the concept of retirement and technology use. Broadcasters take note: Once people discover new technology, it’s unlikely they will return to the days of old.

Social Media Addiction

I don’t remember anyone ever sending out alerts about radio or television addiction, but with social media the world is seeing addictive properties akin to alcohol, tobacco or drugs.

Consider that the average adult now spends nearly 2 hours a day on social media. We can access it on our home computers or away from home on our smartphones. Of the 3.1 billion social media users globally, it’s estimated that almost 7% have a social media addiction problem. This form of addiction is defined as “a proposed diagnosis related to overuse of social media, similar to Internet addiction and other forms of digital media overuse.”

71% of us now sleep with or next to our mobile phone. I know I do and it also is my alarm clock. Worse are those people who check their social media before going to sleep or wake-up during the night to check their social media, estimated to be about 45% of us, making getting a good night’s sleep challenging.

Maybe even more alarming is the fact that 90% of drivers say they use their smartphones while driving. Half to check social media while behind the wheel. (I DO NOT) And according to the Center for Disease Control & Prevention, 9-people are killed and more than a thousand are injured daily by people using their smartphones while driving.

I can’t think of any reports of people suffering the same amount of death or injury listening to their car radio. Can you?

Apple even now tells me how much my weekly screen time is on each of my Apple devices in an effort to make me more aware of how much time I spend with them. I can even set-up my devices to force me to limit my time with them. That’s how different these platforms are from the traditional media of the 20th Century.

If you’d like to do a deep dive into “The Future of Well-Being in a Tech Saturated World,” here’s a link to a long report on all of this by the Pew Research Center.  Click HERE

Reader Question

I share all of this for radio broadcasters, the first social media, to consider the challenge of today’s new communications media. It’s addictive. Broadcast not so much.

A reader wrote to me asking this question: ‘Was radio the dominant media because it truly was a companion or because it was pre-internet, consumers had a lot fewer choices for basic full service information and music?’

Reaching Our Time Limit

Back in the early 90s I was living in New Jersey and AT&T did a presentation for my Rotary Club on a future of infinite capacity in communications. Just to be clear, these scientists defined “infinite” as having more transmission capacity through their wires than they could conceive of what to transmit over them.

I remember asking the question if the future was going to make available so much media product, how would a viewer or listener know what to consume? The answer they gave me was, ‘the media would pay the listener or viewer to listen or watch their program.’

It feels to me like we’re approaching that point in time now.

What are your thoughts?

 

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You’re Not Talking to Me

DAKRSkVkQwumvq7Zd9aTUwI sat on a webinar the other day and when it ended the first thought that crossed my mind was, they’re not talking to me. Their demographics in the study capped at 55-years of age. Really? No one over 55 matters to radio or to radio advertisers?

65+ People

Then I read this World Economic Forum article that was headlined, “For the first time ever there are more people over 65 than under 5.” Think about that for a moment. Economists point out there’s widespread consequences for productivity, inflation and global growth by this demographics shift, to which I would add, consider the impact on ad supported media.

65+ People are Renters

While millennials are buying homes – if they aren’t weighed down with student loan debt and minimum wage level jobs – seniors are becoming renters. People 65+ are empty nesters and find they simply don’t need a McMansion and all the work/expense that goes into living in one. I know that’s certainly been the case for me when I sold my home in 2003. I have been a renter since. Renting is much more economical than owning.

Market Watch reports that Americans will find they will need to spend nearly $9,400 in “hidden costs” to own and care for a median-priced home, based on the latest analysis from Zillow.

Millennials Abandon Brick & Mortar Stores

Tethered to their smartphones and comfortable with buying online, those millennials aren’t necessarily the best customers for their advertisers that radio might have thought.

Millennials are the largest generation in American history, and their shopping habits are worlds away from those of their parents. Thanks to the rapid pace of digitalization and new shopper-friendly tools, like browser extensions and voice assistants, retailers must be ready to embrace significant change.

PR Newswire, March 19, 2019

Only 18-months ago, research indicated that millennials were still going to brick & mortar stores, but that’s changed dramatically, and in a very short time. You can download the full report HERE.

$164.55 a Day

Jessica Dickler reporting on CNBC writes, “Between housing, food, cellphone bills and other expenses, Americans shell out $164.55, on average, in a given day.” Punching that number into my calculator, I quickly saw that’s over $60,000/year, but averages are funny things and you can be sure ‘your mileage may vary.’

Putting that number aside for a moment, we find that the bulk of that money is spent on housing. That fabled ‘American Dream’ can be a boat anchor on the pocketbook.

While seniors are moving from being home owners to renters, you might be surprised to learn how similar the senior household expenses are to the average household according to the Bureau of Labor Statistics.

Item

Food
Furniture
Major Appliances
Small Appliances
Household Textiles
Apparel
Transportation
New Vehicles
Old Vehicles
Health Care
Drugs
Entertainment
Insurance
Other ExpensesTotal
Senior Household

$13,432
​$401
​$196
​$88
​$113
​$1,640
​$7,781
​$2,052
​$1,611
​$2,416
​$467
​$2,060
​$4,055
​$4,093$40,817
Avg.  Household

$14,403
$460
​$200
​$81
​$108
​$1,870
$8,354​
​$2,055
​$1,904
​$1,758
​$266
​$2,142
​$4,505
​$3,956​$42,631

Source: Advertising Age’s American Demographics, based on Bureau of Labor Statistics’ Consumer Expenditure survey. (1) Includes social security contribution (excludes health insurance, which is classified as health-care expense).

Not all that different, is it.

And far from that other analysis of the average adult spending over $60,000 a year. So why aren’t more radio companies focusing at least one of their radio signals on seniors?

Retirement Epiphany

All my life, the focus was on planning for and saving for retirement. I’d like to say I did everything right, but the reality is far from that.

The great wealth destroyers are divorce, moving and changing jobs.

In my personal life, I’ve gone through two divorces. As the radio industry was dramatically changed by the Telcom Act of 1996, I would spend a decade moving around the country about every two years. That communications act also found me changing companies with just about every move too.

The final chapter of my working life, as a university professor of broadcasting, gave me seven years of stability and an opportunity to save as much as I could for retirement.

Now I’m retired. The goal is no longer to save for retirement, but to spend in retirement. My wife and I are in good health and taking zero medications, which affords us the opportunity to spend on our new found passion of traveling. Spoiling the grandkids, eating out, and redecorating are also high on our list of things to do. I’m sure we’re not alone.

The irony is, the radio media seem to ignore us. And they do so at their peril.

We’re retired, not dead.

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Radio’s Money Problem

Abandoned Radio StationFor the radio listener, your next break is all that matters. Does it speak to your listener? Does it have relevance to your listener’s life right this second? How do you know?

Homogenized America

With the growth of fast food establishments, big box stores and online shopping, one might think that America is now homogenized. That we’ve become a “one size, fits all” society. However, nothing could be further from the truth.

Defining Generations

Before we discuss what specific age group goals are, let’s first define those groups.

  • Millennials (ages 18-34)
  • Generation X (ages 35-52)
  • Baby Boomers (ages 53-72)
  • Greatest Generation (ages 73 and older)

I’m part of the Baby Boomer generation, so let me speak about a group that I personally know something about.

Boomer Goals

Harris Poll surveyed 2,002 American adults to learn what we want as we get older. The number one thing was to travel abroad (57%). I know that travel is #1 on my list and that’s why this spring I set out with Sue on a cross-country trip across America that racked up 11,175-miles on our Honda Accord.

The next bucket list item the Harris Poll found was that American’s want to take up a new hobby (52%). In my case, that has manifested itself by working on my blog and volunteering at my church.

The other items on the list were tracking one’s health using a wearable, joining new social circles, living abroad and participating in extreme sports (28% to 3%). What these things all say is that growing older doesn’t mean we have to stop having fun.

Boomer Priorities

I really can identify with what the Harris Poll found as the top priority of aging Americans, spending more time with friends and family (62%). Previously my radio and teaching careers had been my primary focus for over 50-years, but not any longer. Now, being a grandpa is Job One.

Other priorities we have as we age, is the desire to seek out new experiences (51%), which explains our desire to travel and see more of the planet. To travel, one must be healthy and so health and wellness (51%) is also a priority.

Aging Positives

Americans agree that as we age we gain wisdom (65%) and experience (62%). Which begs the question, why do  companies seem to undervalue their senior employees or try to unload them with offers of early retirement and buyouts.

Other positives of growing older are that we feel more trustworthy, independent, are more comfortable in our own skin and feel more in control of our lives.

How Old is “Old?”

I think the answer to the question “How old is old?” has always been a moving target depending on the age of the person being asked that very question. The Harris Poll found that Millennials think old is 67, Generation X thinks it’s 72, Baby Boomers think it’s 79 and the Greatest Generation think it’s 82.

Usually the day after my fitness class, I think it’s my current age.

“Between now and 2029, one Baby Boomer will turn 65 every eight seconds,” says management guru Tom Peters. In his new book, The Excellence Dividend, Peters says “Most firms seem clueless – or worse, even seem to turn their back on the opportunity (of serving this huge population).”

Radio & “the Oldies” Market

Tom Peters is pretty adamant about what companies need to do to serve this segment of the American population.

  • Do a stem-to-stern assessment of the skills, assets, and culture that are needed to serve this market
  • People aged 50 or older have 47-times more net wealth than households headed by a person under age 35

It appears that some companies have done this and are enjoying the profits of their efforts. SiriusXM’s Q3 Conference Call saw that company’s CEO Jim Meyer telling analysts that audio is thriving like never before saying “the entire pie of audio consumption is actually growing.” Net income is up 24%, margins are up 40% and they plan to increase their dividend to investors.

Willy Sutton robbed banks, he said, because that’s where the money was.

The money is with the Baby Boomers and the Greatest Generation, the very population that was raised on radio.

I’m not saying every radio station needs to cater to this senior segment. Obviously, if radio is to be relevant to the generations following the Boomers, it needs to offer programs that are relevant to this age group too. However, in my travels around this country I’ve heard a minuscule number of radio signals appealing to the money age groups. In my opinion this is a missed opportunity, for the radio industry’s future and its current economic stability.

Another Place, Another Time

I started my radio management career back in early 1980, still in my twenties, as the general manager of an AM daytime radio station that programmed Al Ham’s “Music of YOUR Life.” Next to Rush Limbaugh, Al Ham’s music format was the next best thing one could program on an AM radio station to attract the older audience of that time.

Our FM station in that AM/FM cluster was programming the current top hits of the day, and between us, we pretty much covered all the demographics. The hardest part of attracting new advertisers to my daytime radio station, was convincing them to try it. Once they did, they quickly became regular advertisers because the people we attracted to our programming had the money to buy everything our advertisers sold. My company president always liked to say, “money makes honey,” and my success with this little 1,000-watt daytimer led to my promotion to market manager in Atlantic City running a news/talk AM radio station and a 50,000-watt FM Bonneville Beautiful Music radio station. Both stations were programmed to an older, well-heeled, audience. We were a million dollar cash flowing property.

The Time is NOW

Tom Peters pretty much sums up radio’s action plan by saying, “Cut the B.S. Can the excuses. Forget the fancy reports. Get moving now. Get the job done. On this score, nothing has changed in 50-years, including the maddening fact that all too often a business strategy is inspiring, but the execution mania is largely AWOL.”

Pay attention to the culture inside your radio operation. IBM’s turnaround CEO Lou Gerstner put it this way, “culture is not just one aspect of the game – it is the game.”

And finally, train your people.

“Training is any firm’s single most important capital investment.”

-Tom Peters

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What’s Radio’s Why?

WHYSimon Sinek says people don’t buy what you do, they buy why you do it. Watching the live streams of the 2018 Radio Show sessions and reading all of the reporting on the meetings in Orlando this past week, left me asking the simple question: “What’s radio’s why?”

College Kids on Radio

The RAIN Conference in Orlando put four college kids from the University of Central Florida on stage and asked them about their radio listening habits.

Spoiler Alert: They don’t have any radio listening habits.

These four students said things like “radio is obsolete,” “there’s no need for radio,” and “it’s very rare that I listen to radio.”

To these kids, radio doesn’t have any “why.”

What does?

YouTube, Apple Music, Spotify…in other words things that stream what they want, when they want it.

Write The Wrongs About Radio

George Johns and Bob Christy are getting together to write a blog aimed at fixing radio, by writing about the things they hear radio is doing wrong.

“(Radio) has to evolve to be relevant in today’s world,” they write. “There has been almost no evolution in radio (and) what George and (Bob) want to do is challenge radio to evolve and become relevant again.”

They write the  3 basics of great radio are: 1) be professional, 2) be interesting and 3) be entertaining.

The 25-54 Demo

Fred Jacobs wrote about the fabled radio demo of 25-54, also known as, the “family reunion demo.” It never really existed, except as a way for an agency buyer to get the C.P.P. (Cost Per Point) down for a radio station they really wanted to place their client on.

You would have thought as the number of radio signals increased, that the variety of programming choices would have too, but the reverse happened. Radio offered less choice of programming and music formats. As Fred writes, “broadcast radio surrendered its Soft AC, Smooth Jazz and Oldies stations to SiriusXM and streaming pure-plays.”

Millennials are not kids. I know, both of my sons are part of the millennial generation. They are both well-entrenched in successful careers and raising families.

The college kids referenced earlier are part of Generation Z. And those kids don’t know (or care) what radio even is. They don’t even know what life was like before smartphones. And smartphones have really replaced just about every other device Millennials and Boomers grew up with.

Norway Turns OFF Analog Radio

Norway is a country of about 5.5 million people. Norway turned off their FM signals almost a year ago and went all digital using DAB+. So what’s happened to radio listening in Norway?

Jon Branaes writes, “Norwegians still choose radio when they think it’s worth choosing. Radio has not lost our biggest fans but the more casual listeners.”

Norway has also seen FM listening replaced by internet delivered radio, which grew significantly after turning off analog FM signals. They expect smart speakers to contribute to even more of that type of listening in the future.

The Takeaways

Radio first needs to know its “WHY.” Then it needs to communicate it, clearly and simply or suffer the consequences.  Bud Walters of Cromwell loves to say, “If you don’t know where you’re going, any road will take you there.” Until the radio industry figures this out, getting new people to listen (or former listeners to return) will be a challenge.

“FM is not the future. DAB+ (digital broadcasting) can keep radio relevant in a digital future of endless choices.” But Jon Branaes adds, “Radio must respond with its core strengths – being live and alive, useful and present in listener’s lives.”

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Best of the Blog 2016

73Before I begin my 3rd year of blogging next week, I thought I’d take a look back of the Top 5 blog posts from 2016 and share with you the posts that received the highest readership and sharing from the year just past.

My Most Read Article in 2016

My most ever shared post received 3,725 views in a single day. It was published on February 28th and was “The Day the ‘Dumbest Idea’ Invaded the Radio Industry.” It told the story of a change in the way we measure business success. Before this new idea was born, Peter Drucker’s measure was the rule. The purpose of a business, said Drucker, was to create a customer. But that went out with leisure suits, the new crop of business wizards would proclaim. What replaced it was something that even GE’s Jack Welch has called “the dumbest idea in the world.” You can read that post here.

This post beat my beat my previous single day record of 1,816 set on September 6, 2015 with an article called “We Never Called It Content.” For my new readers, you  can go back and read that one here.

Second Most Read Article of 2016

Radio Would Be a Great Business…If It Weren’t for the Employees” said radio is a people business. Take away the people and do you really have radio anymore? You can read it here.

Third Most Read Article of 2016

SiriusXM Radio is Now Free” was an article that wondered what would happen if this satellite radio service offered some or most of its channels for free. What would that do to the revenues of the AM/FM radio industry? Even if they only turned on the top five music formats, it would mean drivers could listen to them wherever they drove across America, plus SiriusXM would have the ability to pop in promos for their other channels that remained behind a paywall. It’s almost too scary to consider the possibility. You can read that article here.

Fourth Most Read Article of 2016

Don’t Let Radio End Up Like Yahoo” told the story of how radio could learn from Yahoo’s mistakes. Yahoo went from being a company worth $120 Billion to its sale to Verizon for $4.8 Billion. The article shared the Top 5 Lessons of Yahoo for radio. You can read it here.

Fifth Most Read Article of 2016

Millennials Love Radio” shared how today’s Millennial generation nearly equal Boomers in listening to AM/FM radio. 91.3% of Millennials are reached by radio every week. 94% of GenX’ers are reached by radio and us Boomers come in at 93.5% reached by radio every week according to Nielsen. Radio continues to be the advertising medium that gets results when used correctly. Read the full article here.

Over 52,000 Readers

I’m happy to report that as I ended 2016, my second year of blogging saw over 52,000 readers come to this blog from all over the world. Broadcasters, educators and students have all stopped by to read an article or more that caught their interest.

This blog in media mentorship was created to pay-it-forward to the broadcasting industry that I will have been a part of for 50-years in 2017.

FREE SUBSCRIPTIONS

You can subscribe to this blog for FREE and get a copy delivered to your email IN box every week by going to the bottom right-hand part of the screen and clicking on the FOLLOW button. (If you’re accessing this blog via a mobile phone or tablet, that button may not be visible I’ve been told.)

Next week, I will begin year three of blogging with all new articles.

Thank You for reading.

Feel free to contribute your thoughts to the discussion in the comments. Together we can all learn by sharing our experience, knowledge and wisdom.

Happy New Year!

 

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Millennials Love Radio

52News is about the exception. A car driving down the main street of your hometown is not news. But let that “radio on wheels” run into something and that’s news.

It’s the same with radio listening. The fact that 92% of the population of America listens to radio every week is not news, but finding out one of them listens to something other than radio grabs the headline.

Millennials Outnumber Boomers

It was just a year ago that Millennials outnumbered us Baby Boomers. That was news, because the Boomers have ruled the roost for several decades. So how does radio listening stack up for the Millennial generation? 91.3% of Millennials are reached by radio every week. 94% of GenX’ers are reached by radio and us Boomers come in at 93.5% reached by radio every week according to Nielsen.

Millennials Don’t Hate “Old Media”

MediaLife magazine just reported on what’s really happening with Millennial media usage versus what many believe is happening. Example: Newspapers – more Millennials read a newspaper once a week than use a tablet. Another example: Radio – more Millennials crank up the radio (80%) than have an MP3 player (45%).

What Millennials Aren’t In-Love With

What you might find surprising is that Millennials aren’t swooning over Satellite Radio, smartwatches and connected cars. In fact, Millennials would rather ride share or use public transportation than even own a car.

Time For Another Paradigm Shift

It was Thomas Kuhn who is credited with coining the term “paradigm shift.” He defined it as changing from a set of beliefs or views that members of a community all shared.

It’s hard to predict the future and many of the models people develop to predict levels of risk really miss their mark. Two examples are the Fukushima nuclear disaster where the “experts” said a twenty-foot wall would protect the plant from any Tsunami. However it was a twenty-four foot wall of water than would take out the plant. And everyone knows that insurance companies are in the business of predicting risk, its how they come up with the premiums people will pay them. So how did AIG miss the financial collapse in 2008 that would bring down the company?

The Lesson of Procter & Gamble

Procter & Gamble aka P&G is a huge company. They primarily make cleaning products; soap.

When commercial radio was born in 1920, P&G was quick to move their advertising monies from print to radio.

When TV came along, again P&G would lead others in moving their advertising monies to TV. (The radio & TV “Soap Opera” name comes from the creation of serial dramas that were created by P&G to sell their soap products in.)

When the internet came along, P&G was a leader in moving their ad monies from traditional broadcast to online.

Except this time, it didn’t work as it had in the past.

The Wall Street Journal ran a story entitled “P&G to Scale Back Targeted Facebook Ads.”

“Procter & Gamble Co., the biggest advertising spender in the world, will move away from ads on Facebook that target specific consumers, concluding that the practice has limited effectiveness.

Marc Pritchard, P&G’s chief marketing officer, said the company has realized it took the strategy too far. ‘We targeted too much, and we went too narrow’

P&G could be the bellwether on how consumer goods companies and big brands use digital advertising. Over the past year some marketers, specifically consumer product companies, have discovered they need to go ‘much more broad’ with their advertising”

Bob Hoffman, “The Ad Contrarian” has been predicting this for some time. He recapped his prediction on a recent one of his blogs that you can read here.

Advertising Is Sloppy

The problem with today’s “targeted advertising” is that it misses lots of targets. Great advertising works, in part, because it’s sloppy. By that I mean it produces results because it reaches a large and diverse audience through a mass medium like radio.

Radio is the number one reach and frequency medium in America today.

I’ve advertised on radio stations I’ve run for help for positions we had open. What never ceased to make an impression on me was how many people I’d interview who came in for the advertised position and had never heard the ads. How did they know about the opening? A friend of theirs who heard the ad told them about it. That’s what I mean by advertising being sloppy. That’s what I mean about hitting the target even when you are not aimed at it.

Great Ad Copy

The one thing that is critical is your advertising copy. Great copy will produce results on virtually any radio station. It’s not about being on the most listened to station in the market that will produce results for the advertising client, it’s the radio message itself that will make the difference. Next, it’s the ability to deliver that message consistently day-in and day-out, fifty-two weeks a year.

Breaking News

Radio has always been the advertising medium that gets results when used correctly.

To be successful, you need to build your brand in the mind of the consumer. Radio let’s you whisper in the ear of the consumer every day.

Radio will not only help you build your brand but keep it top of mind too.

The “breaking news” is target marketing is OUT.

Mass media sloppy advertising is IN.

 

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Real Possibilities

AARPBefore I get into the meat of this week’s post, I first need to walk you through a bit of a preamble. Also, this week’s post is a continuance of last week’s post about Millennials vs. Baby Boomers, so if you missed it, you might want to read that first here before you read this week’s. Now please bear with me while I set-up the story for this week’s post.

I’ve been a card carrying member of AARP since I turned 50. When you hit this milestone birthday, don’t worry the folks at AARP will find you and solicit you to become a member.

When I became a member, AARP stood for the American Association of Retired Persons. But at age 50, I was a long way from actually retiring.

AARP was founded in 1958, so this organization could be classified a “Baby Boomer” just like me. And just like me, AARP has changed over the years. It officially changed its name from the American Association of Retired Persons to just AARP. AARP no longer requires members be retired but they must be at least 50 years of age.

In 2013, AARP launched its “Life Reimagined” program that sub-labeled the “RP” part of AARP to mean “Real Possibilities.” You see, AARP realizes that today people aren’t thinking about retiring when they hit 50 as much as they are thinking about tackling a second, or maybe a third career or endeavor.

At my university we started a wellness program in 2013. I was a charter member. Our university self-insures employees for healthcare and one of the ways to control costs is to incentivize employees to be as healthy as possible.

My university office is on the third floor of the Mass Media & Technology Hall building. We have three elevators in our building. I never use them. I prefer the stairs for two reasons: 1) they are much quicker than the elevator and 2) I use the stairs as a part of my wellness fitness program.

When a student says they’d like to meet with me for a moment in my office after class, I often find them a third of the way up the stairs when I reach the top floor (I take stairs two-steps at a time). They are also huffing and puffing. I just wait for them to catch up.

Now here’s the point of this week’s post…

Millennials Don’t Know What Age “Old” Is

Millennials are today’s media buyers. Millennials are today’s creative’s. Millennials are today’s planners. Heck, Millennials are probably the people running the place too. So if they have a warped concept of age, it is going to affect their advertising placement decisions.

Millennials now populate today’s media properties. They are the programmers, air talent, sales management, sales people and possibly the senior management.

I just met the director of Cox Digital Media in Las Vegas this past April and he is 28 years old.

Millennials Describe What Old Age Means to Them

Well AARP did some research into this question of what Millennials think “old” is. Then they asked them to show them what they thought “old” looks like. Then they introduced these same Millennials to some real “old” folks. Best of all, AARP recorded everything on video.

Watch the four-minute long video and then continue reading.

https://www.youtube.com/watch?v=lYdNjrUs4NM

See the problem now?

If you are wondering why more radio stations aren’t programming to Baby Boomers, or if you are wondering why more media buyers aren’t buying the BIG MONEY demos, now you have a better understanding of the problem. They think you and I have one foot in grave, instead of one foot away from the summit of Mount Everest.

Corvette Buyers

I live a short distance away from the only place Chevrolet makes the Corvette in the world. The average age of a Corvette buyer is 59. Boomers and people even older are the people who are buying Corvettes. They are NOT the Geritol-set.

We Are Part of the Problem

We call them Millennials, Generation X’ers and Baby Boomers etc, but another way to look at these generations is as tribes. Seth Godin has written extensively about this concept.

Seth says that sooner or later tribes begin to exclude newcomers. So each of these groups operates in their own little silo because it is easier than to keep breaking in newbies and because it could threaten the existing power structure.

Consolidation

The consolidation of media hasn’t helped either. RIFs (Reduction In Force) mainly dismissed the highest priced employees (Boomers) and left an organization of low cost employees (Millennials) all in the pursuit of increasing Shareholder Value.

Recent studies have shown that private companies out-perform public companies. The reason, they operate on the Peter Drucker principle that the only valid purpose of an enterprise is to create a customer. Privately owned radio companies also out-perform their publicly traded radio company counterparts. Same reason.

Turns out delighting customers is simple, clear and measurable, moreover it is the genuine path to successfully operating any business.

Leadership

The first question of a leader always is: “Who do we intend to be?”

NOT “What are we going to do?

BUT “Who do we intend to be?”

In other words, says Max De Pree of Herman Miller “What are we here for?”

Napoleon put it this way “Leaders are dealers in hope.”

Tom Peters says “The leader is the person who inspires us, sends us on quests to places we had never imagined.”

Think Thomas Edison, Nikola Tesla, Steve Jobs, Elon Musk and so many more just like them.

To paraphrase the title of Lee Iacocca’s 2008 book:

“Where have all of the radio leaders gone?”

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Millennials vs. Baby Boomers

31The radio world was all a buzz this week when it was announced that Millennials now out-number Baby Boomers.

Well la-te-da.

Let me tell you why that doesn’t really matter.

William Francis Sutton’s Advice to Radio Operators & Advertisers

Sutton was famous for making money, lots of money. Actually, he didn’t really make money as much as he stole money. Sutton stole an estimated $2 Million over his forty year career. And while he denies he originated it, Sutton’s Law states that when diagnosing, one should first consider the obvious. So when Willie Sutton was asked by a reporter why he robbed banks all his life, he replied “because that’s where the money is.”

Boomers Are Where the Money Is

When the Boomers were growing up, rates of productivity and hourly compensation rose in lock-step. Productivity rose 96.7% and hourly compensation rose 91.3%. That changed in 1973. While productivity continued its upward slope, compensation flat-lined; productivity was rising around 75% in the period of 1973 to 2013, wages went up a mere 9%.

Worse, today a college education not only doesn’t guarantee increased earnings, it is more like an economic boat anchor that saddles a Millennial with student loan debt of tens of thousands of dollars as they begin to enter the workforce. Paul Campos wrote in the New York Times that “if over the past three decades car prices had gone up as fast as tuition; the average car would cost more than $80,000.”

Unlike us Baby Boomers, Millennials have come of age at the very moment when economic opportunities are few and far between.

Trading Places in Income

Trading places: The income of younger working-aged families was falling long before the Great Recession and has now been surpassed by the rising incomes of families well into retirement age. (Median Income for Younger and Older Families in Inflation- Adjusted Dollars)

 

Stagnant Income

The average middle-class family today makes the same household income as it did thirty-six years ago. The problem is that today’s heads of household weren’t even born yet. We’re talking about different people. So the advantage of a middle-class family today over one three decades ago has evaporated. That’s if they can even be considered “middle-class” as 61% of Americans considered “middle-class” in 1971 comprise less than 50% of those families today.

Vastly Different Economic Trajectories

In the more recent economic history of America, each new generation would far surpass that of their parents’ in material standard of living. Millennials, and Generation X’ers who came before them, “are falling farther and farther behind their parents’ generation in most measures of economic well-being.” This represents a change being experienced by today’s living generations that is unprecedented in America’s history.

Millennials Number 75.4 Million vs. Baby Boomers at 74.9 Million

Here’s why radio and advertisers shouldn’t be freaking out over the headline that Millennials now out-number Baby Boomers. There may be more of them, but when it comes to discretionary income – the money that buys stuff – Boomers are still your “bank.” Don’t take your eye off the ball.

If Willie Sutton were operating a media company or an advertising agency, he’d be focused on putting his marketing investment where the best R.O.I. (Return On Investment) is, radio and its #1 reach that delivers 93% of Americans every week. It’s the traditional mass media that Boomers grew up with and still use in great numbers. Radio still delivers.

The “Music of YOUR Life” is Now The Rolling Stones

Back in the 1980s, I managed one of the first Al Ham “Music of YOUR Life” radio stations. Next to Rush Limbaugh, this big band based music format was one of two formats that were attracting people back to AM radio. I remember joking that one day, when we Boomers were their age, the music of our life would replace the sounds of Tommy Dorsey and Glenn Miller.

That day is here!

And there’s money to be made.

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Radio – America’s #1 Mass Reach Medium

radio-reaches-245-million-americans-2015-2This was certainly true in the first golden age of radio, that period of time from its birth in 1920 through the mass takeover of television in the 1950s. Once TV came along, radio had to reinvent itself.

 

That reinvention came in the form of Rock ‘N’ Roll, the transistor radio and the car radio. Radio was portable, TV was not. TV took over the living room, but radio took over every other place.

 

In my life, I’ve lived through every new form of technology that was going to be the death of radio. The 8-track tape, the cassette tape, the CB radio, the CD player, the CD changer, the cell phone, the MP3 player, and most recently, the World Wide Web, Internet streaming and wireless broadband.

 

So you might be surprised to learn that at the 2015 annual meeting of the Association of National Advertisers Masters of Marketing Conference in Orlando, Florida attendees learned that when it comes to adults 18+, RADIO reaches 93% of them every week. That’s more than TV, more than smart phones, more than PCs and more than tablets.

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I remember when I got my first GM position. It was a daytime radio station that featured Al Ham’s “Music of YOUR Life” format, big band music for those not familiar with the programming. Yes, my audience was old. But only according to the calendar, but not the way they thought about themselves. Nampa and his corvette

It was always a tough putt with new advertisers, getting across this concept that you are as young as you think. So I wasn’t surprised to learn that one of the sessions talked about “APT.” APT was all about the “Age People Think” not demographics.

 

I’m not sure that lumping people by demographics was ever a sound marketing idea, but like a lot of bad ideas (buying radio on a Cost Per Point basis) in advertising, people do what’s always been done and ignore if it’s a sound way to place advertising.

 

A lot of my radio stations over my career have focused on an older demo. When Ken Dychtwald’s book “Age Wave” came out in 1990, I read it with enthusiasm. Dychtwald told of the massive population and cultural shifts that would be taking place because of the Baby Boom Generation. He put forward how the boomers would shift the epicenter of consumer activity from a focus on youth to the needs, challenges, and aspirations of maturing consumers. Those predictions are playing out today.

 

So again, I wasn’t surprised to read that at the ANA gathering attendees were told that old people were a growth market. In light of the trillion dollars in student loan debt, the millennials are cash challenged in a way that the Boomers are not.

 

I grew up in a Chevy family. Remember those days of yore? Chevy families and Ford families competing for bragging rights as to which drove the better cars?

 

Many marketers would have you believe that we are now stuck in a rut with our product choices and only the young are pliable enough to be swayed to try or change brands. So let’s see how that plays out in my family. I have two older brothers; one drives a Honda and the other a Toyota. How about our kids? Well we have a BMW, Mercedes Benz, Hyundai and Honda. In my case, I drove a Hyundai for the past eight years before switching to a Honda Accord; so much for that concept that once you are stuck in a brand, you stay there for life. Even my toothpaste is not the brand I grew up using.

 

Everything has changed about the world with the exception the way marketing is created and advertising is bought.

 

One of the big changes is that RADIO is back! It’s the massive reach medium that advertisers seek to expose their products and services on, except that they don’t know it.

 

Radio needs to use some frequency and repetition to get the word out.

 

Willie Sutton said he robbed banks because that’s where the money was.

 

If you’re an advertiser, you need to advertise where the people are and that’s today’s RADIO.

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