Tag Archives: Monday Morning Memo

Analog vs Digital

113Roy H. Williams writes a weekly article called the Monday Morning Memo. I’ve been reading it since the days when Roy used to fax it. Today it arrives every Monday morning via email.

Does it arrive via analog or digital?  Probably digital.

The fax days were when it arrived analog I’d guess.

The Other Kind of Advertising

Recently, Roy’s MMM was about “The Other Kind of Advertising.” What got my attention was that Roy made the comparison of analog world versus a digital world as the difference between Newtonian physics and Quantum Mechanics.

I was a physics major as an undergraduate in college.

In teaching at the university, I have often used elements from my physics education to give a better foundation to my students about universal principles that form the foundation for effective communication.

The Power of the Human Voice

When I speak to you, am I talking in analog or digital? You don’t care, do you? You never really even gave it a thought until I brought it up. What does get your interest is what I’m speaking to you about.

Radio gives the human voice amplification.

Word of Mouth is the Best Form of Advertising

Anyone who’s been in advertising sales has certainly been told over and over and over, that the best form of advertising is “word of mouth.”

My response to that has always been, “I agree with you!”

That’s why you should be on the radio because we are word of mouth, only we have the biggest mouth in town.

There are No Wrong People

Roy has preached for years, there are no wrong people to be reached by advertising, only wrong messages. Great advertising not only engages the mind, builds curiosity but causes people to share with other people what they’ve heard. That’s the magic of persuasive storytelling aka radio advertising.

But the Data Says

Google Analytics got everyone thinking that targeting was the most important thing in advertising. The new digital world of advertising was all about “reaching the right people.” But is that really effective?

The data for my radio stations back in northern New Jersey said that we reached the most people who were employed. So why would anyone run “Help Wanted” ads on my radio stations? Wouldn’t they, by definition, be the “wrong people?”

Turns out, that would be wrong.

People who are employed are the very ones that know people who aren’t. And then there are people looking for a better job or a job that’s closer to where they live.

Often people who ARE employed are not happy in their current job and radio help wanted ads may entice them to make a change.

Belief Systems

If you have a deterministic belief system then you are like a Newtonian physicist. If you have a probabilistic belief system then you are like a physicist who works in the world of Quantum Mechanics.

In advertising, the first group would be marketers who use predictive data and the second group would be marketers who base their decisions on outcomes.

And just like with Newtonian physics and Quantum Mechanics, both are true.

Newtonian physics was used to put Americans on the moon and return them safely to earth. But it won’t explain how your computer or smartphone work. For that you need to use Quantum Mechanics.

String Theory

One of the goals of physics is to find a single theory that unites all of the four forces of nature. These are; electromagnetism, gravity, and the strong and weak nuclear forces. In other words what ties both Newtonian physics and Quantum Mechanics together. String theory maybe that unified path.

I believe that when it comes to effective advertising, we have already found our unified theory that ties analog and digital communication together.

The message is that string, that single element that makes both analog and digital equally effective.

The person who creates that message is critical.

Who is that person(s) in your organization? Do you even have someone dedicated to this creative, innovative, demanding, hypercritical position?

Sadly, many – dare I say most – radio stations don’t today.

Lightning In A Bottle

If creating persuasive radio commercials is part of your job description, let me give you a little help. Let me turn you onto some “Lightning In A Bottle.”

Blaine Parker is a Mercury Award Winning radio creative genius. He’s just published his latest book that reveals the 3 easy rules for writing more profitable radio commercials.

WARNING: This book is short & expensive!

Full disclosure, Blaine asked me to write the forward to his book, so I can truthfully reveal to you I’ve read it and believe in everything Blaine has written to be seductively effective.

I have no financial interest in the sale of this book. My financial interest is in you, your radio station and your advertisers to effectively tell their story and get results.

You can buy “Lightning In A Bottle” on Amazon by clicking HERE.

Analog or Digital, Who Cares?

I wrote today’s post on a digital computer. You received it via email or are a subscriber to my weekly blog articles (subscriptions are FREE) via the internet.

But whether I shared all of this in a face-to-face conversation or via AM/FM radio or via HDRadio or via an internet stream, the message conveyed would be the unifying element that either caused you to read all the way to the end or bail out early.

And powerfully, persuasive messages do not cause you to remember every word, but they will forever change how you feel about a product, service, business or person.

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The Future of Ad Supported Media

I’ve just finished reading Thomas Piketty’s book “Capital in the Twenty-First Century,” which I highly recommend everyone read, and Piketty stops me cold on page 357 with this graph (see below). I’ve highlighted in yellow two things for you to take note of. In a moment I’ll explain why this hit me so hard.

This same week, I was reading Seth Godin’s blog post “Mass production and mass media” where he explains that mass media exists because it permits mass marketers to do their job and how mass media is going away. If you’re in radio or TV, that kind of proclamation will get your attention; BIGTIME.

Godin is predicting that the “mass” part is what’s going away and that it is being replaced by “micro.” In essence that it’s better to be important to a few than be irrelevant to the many.

Then this article appears in AllAccess “Radio’s Dying…But The Cause Isn’t What You Think.” Seth Resler writes that radio isn’t going to die because it has been abandoned by listeners, but it’s going to die because it’s been abandoned by advertisers. Resler goes on to make the case that advertising is moving away from the Mad Men era art form that it was, towards a keyword and search scientific algorithm metric of today.

“…there has been little doubt for more than a decade that the advertising model that traditionally supported an industrial-age news and information system is evaporating,” writes Anderson, Bell and Shirky on pages 11-15 in “Post-Industrial Journalism: Adapting to the Present (2012)”

Mark Perry, blogging at the American Enterprise Institute writes: “The dramatic decline in newspaper ad revenues since 2000 has to be one of the most significant and profound Schumpeterian gales of creative destruction in the last decade, maybe in a generation.”

Well, I’m here to have you consider a 3rd possibility, one that stopped me in my tracks as I was reading Piketty’s book. Now, I may be putting words in Professor Piketty’s mouth when I tell you what I’m about to say. Piketty did not write about radio or TV, or mass media in general in his book. He writes about wealth inequality in our world from antiquity to the present day and then makes some predictions about where things are headed based on current trend lines.

But this graph on page 357 haunts me.

Picketty Chart on page 357

That graph, from the period of 1913 to 2012 includes the period in which radio and television were born. It’s the era when advertising supported media took off. I worked the last forty years of that graph in the radio business and experienced the change in business that this graph shows.

Commercial radio was born in 1920. Commercial TV took-off in the 1950s. And I quite agree with Seth Godin when he writes “Mass production, the ability to make things cheaply, in volume, demanded that we invent mass marketing – it was the only way to sell what was being made in the quantity it was produced. Mass media exists because it permits mass marketers to do their job.” To which I would add to Seth’s thoughts that mass media and mass marketing both existed because there was a strong American middle class of consumers.

If Piketty is correct, the concept of a middle class consumer economy that existed between 1913 and 2012, was an anomaly. It didn’t really exist anywhere in the world before 1913 and it’s very likely not going to exist anywhere in the world as we journey away from the year 2012. The middle class consumer economy will evaporate and along with it, advertiser support for mass media.

1913-2012 was a unique period in world economic history. It gave birth to consumers who had money to spend, mass production that could produce lots of goods and mass media that could advertise those goods. All three were simultaneously occurring at the very same moment.

The new buzz words are “shared economy” and “collaborative economy.” What roles will large corporations, universities and mass media play when people are getting what they need from one another?

In 2014, Nielsen Music reported a staggering drop in music sales where as much as a fifth of music buyers didn’t buy anything.   2014 also saw box office ticket sales plunge to their lowest level in three years. The home ownership rate reached its lowest point in 25 years at the end of 2014. More people were now living in shared living arrangements or going back home to live with mom and dad. And NYC Mayor Bill de Blasio appearing on “The Nightly Show with Larry Wilmore” told viewers that:

“The wealth gap in New York City today is worse than during the Great Depression or The Roaring 20s – and the gap is growing bigger. Today over half the people in NYC pay over a third of their income for housing. The reality is, (according to the mayor) if we don’t change course middle class families won’t exist in New York City.”

Are these reports canaries in the consumer coal shaft?

Medialife Magazine, a magazine devoted to media buyers and planners, reported that 2014 wasn’t good for advertising. Total spending was up 3.0 percent, but if you take out political spending and the Winter Olympics, the number shrinks to 1.6 percent. “That’s the worst yearly growth pace since the recession began in 2008,” said writer Bill Cromwell. Traditional media is struggling and according to Magna Global, “this appears to be a lasting trend.”

Only recently have broadcast operators said things like “flat is the new up” when comparing year-over-year revenues. I realize there are exceptions to what I’m saying. Your broadcast property might be one of them. But what are the trends that are taking place and how will they impact you in the years to come?

It took two world wars to re-set the wealth inequality gap and put into place FDR’s New Deal. Changes that have in more recent times been stripped away returning things to the way they were in the 19th Century; a period of time when the concept of a middle class of consumers didn’t exist.

Roy H. Williams, aka The Wizard of Ads wrote recently (Monday Morning Memo, March 2, 2015) about “the shrinking of mass media” and “the growing reality of gender equality.” America went from being 16% single to 46% single in just one generation, Williams writes. “A once-proud nation of families is evolving into a proud nation of individuals.” And Williams sees “The trend toward singleness is sociological (while) the erosion of mass media is technological (as) each trend accelerates the other.”

Williams comes to this conclusion:

“We’re approaching the end of a golden time when courageous advertisers can invest money in mass media and see their businesses grow as a result. My suspicion is that we’ve got perhaps 5 to 7 more years before retail businesses and service businesses will be forced to begin playing by a whole new set of rules. Buy mass media while the masses can still be reached.”

The future of ad supported media is tied to consumerism. Consumerism is tied to having a strong middle class.

Does the Piketty graph on page 357 of his book “Capital” send a chill down your spine like it does to mine?

P.S. Thomas Piketty published an amplification on his r>g theory. You can read that here.

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