Tag Archives: National Association of Broadcasters

What Business is RADIO In?

This question was last asked at the NAB (National Association of Broadcasters) Show in 2019, before a two year shutdown of the world due to a global pandemic. I don’t remember what answer they came up with back then, but no one foresaw the changes that COVID-19 would bring into our lives.

The question was visited again in one of the opening sessions at this year’s NAB Show in Las Vegas and the answer can be boiled down to two words, “very different.”

New Media Behaviors

COVID changed the nature of how people do their jobs, and this got me thinking how my own life changed with my retirement.

From my high school days in the 60s until 2010, I worked six to seven days a week in the radio industry. If I wasn’t listening to my own radio stations, I was listening to the competition.

In 2010, I transitioned into my second career as a college broadcast professor, teaching the process and effects of mediated communications, the history of broadcasting, broadcast sales, on-air radio production and the program’s Capstone management course.

My radio listening was mainly in my car, as my college building wasn’t conducive to receiving over-the-air radio signals, so when I was working in my office I streamed smooth jazz from my iPad to the aux input on my radio.

When I retired from my second career, got married and moved to Virginia, my radio habits would change again, as well as my television habits. Now all of my media would be accessed via streaming on the internet.

The Future of Work Impacts the Future of Radio

Without evening thinking about it, as the nature of my work changed, my media habits were greatly impacted by those changes.

Looking at the future of radio, new studies done by CivicScience really opened my eyes. Their studies have found that 44% of people who listen to radio have changed their habits over the past 12 months.

People are now listening to more audio content via internet streaming, they’re listening at different times of the day, their consumption of podcasts have increased, and while 20% say they are listening more often, a whopping 34% say they are listening less often.

Listening More or Listening Less

When CivicScience looked deeper into the reason people are listening less to radio, they found that the location of where people worked played a big role. Of the 51% that said they listened to radio less, they also were part of the group that was working remotely (i.e. from home) or were unemployed.

Since so much of today’s radio consumption occurs in the vehicle, people who work from home are spending less time in their cars and therefore less time listening to radio.

Post-Pandemic Work Choices

When CivicScience asked people what their future work preferences were after COVID, only 24% said they wanted to return to their office full-time. 37% wanted to work from home full-time and 40% said a mix of in office and at home would be their preference going forward.

These findings present radio operators with a real dilemma. The radio industry depends on a working age population all moving to and from work at the same time, hence the reason that both morning and after drive radio time sales have always commanded more dollars than middays, nights, overnights and weekends.

Moreover, people who stream their audio content are the people who prefer to either work entirely from home or have some kind of hybrid office/work-from-home situation. They represent 75% of the workforce in this study.

Global Supply Chain Disruptions

The global pandemic and the war in Ukraine have caused major disruptions to the global supply chain. For example, GM announced they would be having a two week shutdown at its plant in Fort Wayne, Indiana (it produces the popular Chevrolet Silverado and GMC Sierra pickup trucks) due to a shortage of computer chips. While Russia and Ukraine don’t produce any of the computer chips that are in such short supply, Ukraine is the world’s leading supplier of neon, a gas used in the production of computer chips.

Company business models work on the premise that resources of materials and goods move freely across geography. Both COVID and a war have totally disrupted the way the world was operating. Long term, we will adapt, but the immediate future won’t be pretty.

Now, take this one example and apply it to virtually every area of our lives and you can see how complex things have become.

An Ecosystem-Driven World

Radio used to be such an easy business, just beat the other radio station in town and steal as many advertising dollars from the local newspaper as possible.

Every radio station was like its own little fiefdom, but now in 2022 every radio station is part of a very large media ecosystem and the competitive advantage is no longer how efficient you can run your operation but how connected you are to your listeners on all devices and via all platforms; connections that go far beyond your FCC license to operate an AM or FM radio service to your local community.

For me, Apple is not my iPhone, iPad, MacBook Air, Mac or Apple TV, it’s the ecosystem that all of my devices operate on. For me, that’s what is most important.

What makes our ecosystem-drive world so hard to navigate is that everything is in a continuous state of flux. This makes our deciding what we should pursue unclear, and whether other media properties are opponents or an ally.

“Competitive Advantage” is no longer the sum of all efficiencies, but the sum of all connections.

  Strategy, therefore, must be focused on deepening and widening

networks of information, talent, partners and consumers.

-Greg Satell

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Best Suggestions for Radio’s Purpose in 2022 & Beyond

This week, I will review the best suggestions sent in by readers of this blog about what Over-The-Air (OTA) radio needs to do in order to survive and thrive in a 21st Century world.

But first, let’s set the stage for these ideas with something Dale Parsons wrote in the comments on my blog site:

“Every time someone asks what radio needs to do to become relevant again, I hear the old chestnut, ‘be live and local.’ Everything you listed Dick, is a live and local function that is now being done better by another platform. Just being live and local isn’t going to make it. We need to discover the compelling reason for people to use their radio. In the 1950s, when the electronic eye of TV put the whammy on radio, that compelling reason became music and news. Now the online platforms can do that better and faster.

Here’s the scary part concerning radio’s future. You and I have been in the business for about the same number of years. I realized yesterday that we have only one working radio in our house. It’s a palm sized Sony and the battery is dead. Where I live there is little radio coverage, however, when I visit town on the other side of the island on which we live, I find that I tune in streaming choices, rather than radio stations. I find no compelling reason to listen to the radio.

We have always considered radio to be a useful household appliance, much like a toaster. My compelling reason to pull out the toaster is because I need toast. My compelling reason for pulling out my radio was to be entertained and informed.

There’s nothing on the horizon that will be replacing my need for toast, but if a better way of delivering that toast comes along, I’ll probably switch to the new appliance.

People have a compelling need for entertainment and information. In the future, those needs might just be satisfied by a new appliance.

Hopefully, radio won’t be discarded like my toaster will be.

Ramblings from out here in Hana Maui jungle.”

[Dale Parsons was the program director that would transition WNBC-660AM in New York City from a music-intensive to a full service radio station when he took over in 1984. WNBC featured Imus in the Morning, Soupy Sales in middays and Howard Stern in afternoon drive. There was no other radio station, on AM or FM radio, that sounded anything like it. It was one-of-a-kind.]

Curtis LeGeyt, President & CEO of the National Association of Broadcasters (NAB)

The new leader of the NAB Curtis LeGeyt, appearing before a recent Congressional hearing, was asked to explain the viability of radio in today’s multi-media world. Here’s what he said:

I think where radio can stand out and where it will remain very, very viable in today’s media landscape is with a hyper-focus on local and a service to a demographic that simply can’t afford those subscription fees through other services. I believe there’s a really unique value and niche that we fill that none of our other competitors are hitting.

Hyper-Local Maynard Meyer

Maynard Meyer, or “Mr. Radio” as he is known to his listeners in Madison, Minnesota started in radio the same year I did, 1967. In 1983, he and his long-time friend, Terry Overlander, put KLQP-FM on the air.

Maynard is a member of the local Chamber of Commerce, the Kiwanis Club, a member of the city council, as well as serving on numerous boards and participating in several community activities. His dedication to radio and serving the community are credited with shaping the city of Madison, as well as much of western Minnesota, into what it is today. Maynard was inducted into the Minnesota Broadcasting Hall of Fame in 2011.

Responding to my question of “What is Radio’s Purpose in 2022,” Maynard wrote:

In rural America we are doing radio pretty much the same as we did when I started 50 years ago (as far as content goes), and the formula still works. Perhaps it would still work in larger markets, but, unfortunately, a couple of generations of programmers have led people to believe that radio is a music medium…there are a lot better ways to get music and people have found them.

The physical involvement of you and your staff in your community is as important, or possibly more important, than the content of your broadcasts. Everyone needs to know who you are and you need to become an indispensable part of the fabric of your community. You can’t just sound ‘local” you have to BE local. That formula continues to work for us in small town America where radio is often alive and well.”

Maynard Meyer certainly sounds like the type of broadcaster Curtis LeGeyt is referring to.

Randy Black, Radio Host

Another blog reader put it this way:

“You are going to have to personalize it for it to work. Included listeners. Cater to them. Put them on the air. Involve them. I am talking music stations here. Be informative. Be fun. Involve. Make it as 4d as possible.”

Steve Rixx, The Wake Up Morning Show on KSAM

“Radio in 2022 still serves its purpose by serving its local communities…IF it’s done correctly. My stations lean into the local, and are deeply involved with our people. Our listeners LISTEN because we are the source for everything happening in our area, and we support our youth and charitable organizations…and we just happen to play great music. BE the change you want. STOP complaining that ‘it’s not like it used to be.’ Most things aren’t. You can stay on the sidelines or get your hands dirty…you choose which.”

Darryl Parks on WLW’s Jim Scott

Can radio do this in a major market like Cincinnati? Yes, as Darryl Parks told us on his blog about the impact that Jim Scott made on the listener loyalty to The Big One – 700AM – WLW.

Darry wrote:

“Cities like Cincinnati are extremely provincial. Neighborhoods are strong. Some say our communities are closed to outsiders. Some of that maybe true. But, if you stick it out, once you belong, you will find the closest of friendships. Our little area of the Midwest is a very special place.

Now imagine that close friendship with over 2 million people. That’s how many people Jim Scott considers his friends – the entire market. I’m guessing that’s how many people might consider Jim a friend too.

As the radio story goes, when Jim first arrived in Cincinnati from WKBW in Buffalo, he made it a point to introduce himself to everyone.  And I mean everyone.  He’d finish his morning show on WSAI and then head to Cincinnati’s Fountain Square where he’d hand flowers to women and ask them to listen to him.  Other days, Jim would literally knock on doors, going house to house, neighborhood to neighborhood, introducing himself and asking those that answered if they would listen.  That was decades ago and he never stopped.

Years ago, at a wedding reception at Cincinnati’s beautiful art deco Union Terminal, I was standing with a small group of people, including Rich Walburg, my programming partner in crime at 700WLW. Another in the group noticed Jim going table to table introducing himself.  The fellow said, “Is that Jim Scott?  I want to meet him.”  Rich in his driest delivery replied, “Stay here.  He’ll make his way over.”  He eventually did and Jim introduced himself.

Jim has a way to make everyone feel special and he really is interested in how you’re doing.  He has a deep compassion for people.

He’s a radio personality who understands his on-air role, the importance of being an active member of the community and the value of his personal brand in the market.  He treasures his relationship with listeners and advertisers.  He knows ratings must come with revenue.

Jim is actively involved with many of our community’s service organizations and charities, because he knows how important it is to give back. Being involved in community service is normally the job of a radio station’s Market Manager.  That wasn’t the case at 700WLW.  I joked over the years, we had no idea what he did.  We just knew at night he was representing the station at a fundraiser and the next morning he was on the air at 5am.

Year after year, decade after decade, Jim gave himself to his radio audience, everyone of them considered dear friends. He was there during good times and bad. Sunny skies or snow. Jim Scott is a radio personality to study from. There will never be another like him.”

[Jim Scott retired from radio in 2015 after more than 50 years in broadcasting.]

It was 18 Years Ago…

So, nothing about what radio needs to do in a 21st Century world is all that different from the way it all began. Oh sure, the technology has changed dramatically, the ways of sending our content out to our listeners has multiplied and also made it possible for anyone with a computer and an internet connection to become a entertainment/information provider.

It was at a Federal Communications Commission (FCC) hearing 18 years ago, that Maynard Meyer sounded the warning about radio’s future.

On May 24, 2004, the FCC held a “Broadcast Localism Hearing” in Rapid City, South Dakota.  The president, general manager and co-owner of KLQP-FM licensed to Madison, Minnesota (population 1,767) addressed the commission.  (I’ve edited his comments. The full text can be found here.)

“Localism in radio is not dead, but it is in dire need of resuscitation in many areas.  I have been involved in the radio business in announcing, sales, engineering and management for about 36 years, all of my experience is in communities of 5,000 people or less.  We personally live in the communities we serve so we know the ‘issues,’ we work to address them in our programming and have been doing so for the past 21 years.

A few years ago, many stations operated this way, but much of that has changed for a variety of reasons.  I think the beginning of the end of local broadcast service started in the 1980s when the Federal Communications Commission approved Docket 80-90.”

Mr. Meyer went on to explain to the FCC how many communities which “on paper” had a local radio station, but actually had a transmitter that was being fed from another location tens of miles away.  Mr. Meyer went on to say:

“I don’t think this is the best way to promote local radio service.  From what I have seen through my personal experience, as soon as a hometown studio is closed and relocated, the local service is relocated as well.”

“Wednesday Was Not A Great Day for Radio”

That was the headline Radio Ink ran with its article recapping the previous day’s Congressional hearing on Respecting Artists with the American Music Fairness Act. What made it a bad day for the radio industry? Maybe because all of those things that were presented as reasons radio needed to be protected from the recording industry, are things that only a handful of radio broadcasters actually still do.

Gloria Estefan speaking on behalf of recording artists explained that music has value and the very people who create those popular songs – artists, singers and studio musicians – see no compensation for their efforts that are fueling a billion dollar radio business. Their songs are being used without their permission or compensation.

Estefan did credit her career’s success to radio, but also went on to point out how much the business model had changed since she had a hit record with her Miami Sound Machine song Conga (1985).

The Advertising Pie

Before the COVID19 pandemic gripped our world, Gordon Borrell hosted a webinar in early 2019 and told of how the media pie is today sliced too thin.

To put things in perspective, Gordon shared how an over-populated media landscape is impacting local advertisers.

  • 1,300 daily newspapers, 6,500 weeklies
  • 4,700 printed directory books
  • 4,665 AM radio stations, 6,757 commercial FM radio stations
  • 1,760 Class A TV stations
  • More than 1,000 cable systems with local sales staffs
  • 660,000 podcasts were actively produced in 2018
  • 495 NEW TV shows were introduced last year in addition to what’s already on
  • PLUS, local ad sales are taking place on Facebook, Google and Amazon

For radio broadcasters, Gordon Borrell said the solution to the future of media expenditures would be a process of “thinning the herd.”

Borrell said, the way advertising buyers are responding to a world of media abundance is by:

  • Decreasing the number of companies from which they buy advertising from 5 to 3.5, and
  • 90% of their media buys are being made with companies who can bundle traditional and digital advertising.

Quality Over Quantity

I believe that we’ve reached a point where quality will beat quantity. Whether we’re talking about Netflix vs. Disney+ vs. Apple+ etc. or ABC vs. NBC vs. CBS etc. or magazines, newspapers, TV stations or radio stations. The day of reckoning is arriving and only the best will survive.

For radio stations that have always operated like Maynard Meyer’s, there’s no reason to fear the future. Stations that aren’t just saying they’re local, but proving it every day by their total involvement in their communities. Great radio means being dedicated and invested in operating in the public interest and fulfilling, as Dale Parsons said, “a (listener’s) compelling need for entertainment and information.”

 “In the struggle for survival,

the fittest win out at the expense of their rivals

because they succeed in adapting themselves to their environment.”

-author unknown (often attributed to Charles Darwin) updated 2/13/2022 thanks to Tom Asacker

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What Purpose Does Radio Serve in 2022?

I often think about how much radio has changed since I began my career as a professional broadcaster in February 1968, 54 years ago. Local radio at that time told us who was born, who died, whether school was open or closed, what happened at the city council or school board meetings, what was going on in the world, our nation and our community. We depended on our hometown radio station for weather, sports and entertainment.

In 1968 local radio was the way we often learned about events first; it was “magical.”

Radio’s Prime Purpose

The Columbia Electronic Encyclopedia 6th ed. in 2012 defined radio’s purpose this way:

The prime purpose of radio is to convey information

from one place to another through the intervening media

(i.e., air, space, nonconducting materials)

without wires.

Isn’t that the same thing my iPhone does? It conveys information to me through the same intervening media without wires.

In fact, when the Federal Communications Commission (FCC) issued my broadcast license back in ’68, it was called it a “Radio Telephone Third Class Operator Permit (Restricted Radiotelephone Certificate).” This always made me wonder why it was called that, as I studied to earn this permit for the sole purpose of being able to operate a broadcast radio station, not work for a telephone company.

Radiotelephone

A radiotelephone, it turns out, is a phone that uses radio transmission. Wikipedia defines it this way:

A radiotelephone (or radiophone), abbreviated RT,[1] is a radio communication system for transmission of speech over radio. Radiotelephony means transmission of sound (audio) by radio, in contrast to radiotelegraphy, which is transmission of telegraph signals, or television, transmission of moving pictures and sound. The term may include radio broadcasting systems, which transmit audio one way to listeners, but usually refers to two-way radio systems for bidirectional person-to-person voice communication between separated users, such as CB radio or marine radio. In spite of the name, radiotelephony systems are not necessarily connected to or have anything to do with the telephone network, and in some radio services, including GMRS,[2] interconnection is prohibited.

Today’s smartphones are both radios and televisions – and a whole lot more.

First Source for Breaking News

In 2011, a rare earthquake shook our nation’s capital and then Hurricane Irene added to the area’s misery as she swept up the coast causing fatalities and billions of dollars of destruction. Both of these events disrupted lines of communication for millions of residents in the Washington, DC area.

Larry Thomas, a former Shift Commander for Montgomery County Fire and Rescue Services who lives in Annapolis, wrote in the Association of Public-Safety Communications newsletter, about the important role radio played in both of these natural disasters. Thomas wrote:

“Public safety authorities know that radio is the single most reliable outlet for information, which is why a battery-operated radio is so important and always part of any preparedness kit recommended by every organization from local agencies to FEMA and the Red Cross.”

Yet, stranded motorists on I-95 during a recent winter storm found their car radios providing none of the needed information they sought.

Those within range of a news station like WTOP, were kept informed, but sadly, those types of radio stations prove to be the exception rather than the rule.

Has Radio’s Purpose Been Appropriated?

When I think of all the things that made radio important in people’s lives, I can’t help but notice that these very attributes are now fulfilled by other sources, and often done better than broadcast radio. Here’s a partial list of what I’m talking about:

  • Weather: The Weather Channel, Accuweather etc.
  • News: NY Times, Washington Post, TV News Apps, other News Apps etc.
  • School Closings: Schools notify students, faculty & staff via text messages, websites etc.
  • Births/Deaths: social media etc.
  • City Council/School Board meetings: watch them online live
  • Road closures or other important information: text messages, websites, emails
  • Sports: the schools broadcast games online
  • Or to put it more simply, everything radio was famous for, today is easily accessible via the internet on a smartphone

I’m not saying these things to be hurtful to the radio industry, but to ask the fundamental question about its future.

What is Radio’s WHY?

Simon Sinek’s book “Start With Why” is a deep dive into why “some people and organizations are more innovative, more influential and more profitable than others.”

Sinek says what all the successful individuals and companies have in common is their starting point. They first clearly must define their WHY.

What I’m not reading in any of the radio trades, in any of the materials from the Radio Advertising Bureau or the National Association of Broadcasters is what is radio’s WHY in the 21st Century. Instead I’m reading about how radio is developing podcasts, streaming, centralizing their news operations around regional hubs, consolidating their radio dayparts around national hosts…and on…and on…and on.

As Sinek says:

“Any organization can explain what it does; some can explain how they do it; but very few can clearly articulate why. WHY is not money or profit – those are always results. WHY does your organization exist? WHY does it do the things it does? “

What does your radio station do, that provides your advertisers and listeners, with a unique experience that has them coming back day after day?

“How do you get there if you don’t know where you are going?”

-Lewis Carroll

The WHY for commercial radio to survive and thrive in a 21st Century world is not the same as when it was born over a hundred years ago, because both radio and the world were different then.

Without a clearly defined and articulated WHY, I fear that radio will continue to be tossed like a rowboat in the stormy sea of mediated communications.

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Oh, The Insanity

The National Association of Broadcasters (NAB) submission to the Federal Communications Commission for the FCC’s 2018 Quadrennial Regulatory Review is eye-opening.  You can read it for yourself HERE. It left me shaking my head.

The NAB told the commission that “’local radio stations’ Over-The-Air (OTA) ad revenues fell 44.9% in nominal terms ($17.6 billion to $9.7 billion) from 2005-2020.” Local 2020 digital advertising revenues by stations only increased the radio industry’s total ad revenues by $0.9 billion bringing them to $10.6 billion.

The NAB’s solution to the problem is for the radio industry to become more consolidated.

The definition of insanity is doing the same thing over and over

and expecting different results.

-Albert Einstein

Say What?

Back in the mid 90s, the radio industry was telling anyone who would listen that the problem with the state of radio broadcasting in America was that the industry was made up of little “ma and pa” radio stations/groups which could not scale and if the ownership caps weren’t lifted the radio industry would perish.

Excuse me, but I’ve already seen this movie and how it ends. So, why would doing more of what didn’t work, result in a different outcome.

The Media World Has Changed

I don’t think anyone would contest that the media world we live in has changed dramatically since 2005. Facebook, the world’s largest social media company with over 1.84 billion daily active users, opened its doors on February of 2004. YouTube began in 2005 and Twitter in 2006.

Google, the dominate search engine on the internet, began in 1998 and internet retailing behemoth, Amazon, began in 1994.

The new internet kids on the block that dominate our day are WhatsApp (2009), Pinterest (2009), Instagram (2010), Messenger (2011), SnapChat (2011) and TikTok (2016).

The Top 10 internet companies at the end of 2020 raked in 78.1% of the digital ad revenue ($109.2 billion).

All Ad Dollars Are Green

While we like to break money spent on advertising into distinct categories like digital media, traditional media etc. the reality is the total number of advertising dollars is a finite number and in the end you can’t tell a dollar from digital from a dollar from analog advertising.

“You can’t handle the truth!”

Colonel Jessup

(played by Jack Nicholson in the 1992 film “A Few Good Men”)

Since 2005, many young entrepreneurs have created a better mousetrap to capture those advertising dollars. No one ever made a regulation or a law that prevented the radio industry from doing what any of those internet companies did. The passenger railroad industry never thought of themselves as being in the transportation business but only the railroad business. That’s why it found itself challenged by other means of people transportation, namely the airlines.

The radio advertising industry was born by entrepreneurs that learned how to create a product that attracted a large listening audience, which in turn enabled them to sell audio advertising to companies wishing to expose their product or service to these consumers.

Unfortunately, we found ourselves challenged by new media competition. Initially, it was television, but transistor portable radios, along with car radios, allowed our business to reinvent its programming and flourish once again.

With the advent of the internet, radio was caught flat-footed.

If that were its only problem.

Radio Stations (2005-2020)

In 2005, America had 18,420 radio signals on the air.

  • 13,660 AM/FM/FM Educational radio stations on the air
  • 3,995 FM translators & boosters
  • 675 Low Power FM stations.

By 2020, those numbers increased to 26,001 radio signals.

  • 15,445 AM/FM/FM Educational radio stations
  • 8,420 FM translators & boosters
  • 2,136 Lower Power FM stations

18,330 vs. 26,001

That’s a 41.8% increase in the number of radio stations.

While radio folks were busy trying to steal radio advertising from the station across the street or consolidating with their former competition, the internet folks were focused on selling more advertising. From 2005 to 2020, the sale of digital advertising grew from $12.5 billion to $139.8 billion. That’s an increase of 118.4%.

But during that same time, radio grew its digital advertising footprint by $0.9 billion.

Quantity vs. Quality

When radio regulation began in America under the Federal Radio Commission (FRC) the decision was made by that regulatory body to focus on the quality of radio programming versus the quantity of radio stations they allowed to broadcast. Only people or companies with the economic capital to operate a radio station in the “public interest, convenience and/or necessity” would be allowed to obtain a radio broadcast license.

I believe you could say that the radio industry’s downfall began when we ceased worrying about quality and went with the more signals we license, the better for radio listeners mantra.

Sydney, Australia

Sydney is a major city in the country of Australia with a population of 5.312 million people. There are 74 radio stations on the air in Sydney.

By comparison, Los Angeles (America’s second largest city) has a population of 3.984 million people and 158 radio stations serving its metro.

In July 2021, radio revenues in Sydney were up 11.3% year-on-year according to Milton Data.

The Benefits of Pruning

Gardeners know that pruning is the act of trimming leaves, branches and other dead matter from plants. It’s by pruning a plant that you improve its overall health.

A beautiful garden is one where the plants have been trained to grow properly, to improve in their health/quality, and even in some cases to restrict their growth. Pruning is a great preventative gardening and lawn care process that protects the environment and increases curb-appeal.

The irony of gardening is, the more fruit and flowers a plant produces, the smaller the yield becomes. Pruning encourages the production of larger fruits and blooms.

Why do I share this with you?

I believe that everything in the world is interconnected. You can’t for a moment think that what makes for a bountiful garden would not also make for a robust radio industry.

Today’s radio industry is so overgrown with signals and other air pollution, that it has impacted its health.

Doing more of the same, and expecting a different result is insane.

It’s time to get out the pruning shears.

Less Is More

I believe that the way to improve the radio industry in America, to have more advertising revenues to support quality local services including news, sports and emergency journalism, along with entertainment by talented live performers, is by reducing the number of radio signals.

AM radio is the logical first place to start.

Elsewhere in the world we are seeing that not only the AM band being sunset but the analog FM band as well. The world has gone digital.

American radio has one final chance to get it right by correcting for past decisions, hurtful to radio broadcasting, in creating a new and robust digital broadcasting service.

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Dislocation is the New RIF

UNADJUSTEDNONRAW_thumb_641For many of you, this past week has been a very stressful one. The world’s largest radio owner/operator, iHeartMedia, announced a countrywide Reduction In Force or RIFs. However, reading an internal memo obtained by All Access, I see that the new term for this is “employee dislocation.”

No matter how your phrase it, a lot of good radio people lost their job this week.

Is Your Iceberg Melting?

Let’s face it, the radio industry so many of us fell in love with, is melting away.

Back in 2009, the book everyone was reading was by Ken Blanchard called “Who Moved My Cheese?” Ken actually published this little 95-page book back in 1999 and it’s still an extremely great read.

But today, maybe the book everyone in broadcasting ought to be reading is “Our Iceberg is Melting and Succeeding Under Any Circumstances by John Kotter, who is an award winning author from the Harvard Business School.

In Melting, Kotter writes a simply fable about doing well in an ever-changing world.

The fable is about penguins in Antarctica that discover a potentially devastating problem to their home – an iceberg – it’s melting away.

It’s a story that will resonate with anyone in broadcasting, as a new round of “employee dislocations” occur and there are fewer radio stations to relocate to, as this is the same thing that is happening by the other big box broadcasters nationwide.

Kotter’s book walks you through the eight steps that produce positive change with any group. You will not only enjoy the read, but will be guided with valuable insights to deal with our 21st Century world that is moving faster and faster every day.

The Big Take Away

Regarding change, when all employees, corporate and middle management are on the same page, it is amazing what can happen. What I’m hearing from the broadcasters I know, both those that have been RIF’d and those who have not, it is a feeling that there’s a lack of honesty in communication from the top through the entire organization.

“Fool me once, shame on you.

Fool me twice, shame on me.

Fool me three times, shame on both of us.”

-Stephen King

The problem for the leaders of the broadcasting industry is that radio people have been fooled too many times and the level of trust is at an all time low. Daryl Ledyard, who was “dislocated” from a position he’s held at WBBS in Syracuse for over ten years told Rolling Stone “[iHeartMedia is] very much convinced that the local aspect of radio is no longer important.” However, iHeartMedia says in their statement “we will continue to serve every local community in which we operate just as we always have.”

It begs the question of how that will be possible when the number of on-air people have been reduced to one or two or none.

Live & Local?

Over the years, at every radio meeting I attended, the one refrain heard over and over and over was that “the power of radio is live & local.”

In October 2017, the FCC voted along party lines 3 to 2 to eliminate the Main Studio Rule.

When the FCC voted to end that provision in America’s broadcast law, what did that mean to regulations that have been in place since 1934? FCC attorney Gregg Skall explained it this way in his 1991 “Main Studio Rule and Staffing” memo:

The main studio rule as clarified in 1988 requires a station to maintain a main studio within its principal community contour “which has the capability adequately to meet its function…of serving the needs and interests of the residents of the station’s community of license.” That rule has now been further revised to allow a main studio to be located either within 25 miles from its community of license reference coordinates, or within the principal community contours of any station, of any service, licensed to its community of license. (See memo, Revised Main Studio and Public File Rules). Jones Eastern requires the station to maintain a “meaningful management and staff presence” at the main studio on a full-time basis during regular business hours.

You can read the full memo HERE 

Since the introduction of automation systems, syndication, satellite delivery and computer voice tracking, the LIVE aspect of radio has been on the wane. Even in the #1 radio market in America, New York City, stations may or may not have a live operator behind the microphone when you’re tuned in.

In 1967, when I was starting out in radio, we used to have to announce whether a program was live or pre-recorded so the listeners wouldn’t be deceived about the broadcast. In the early days of radio, virtually all radio was live, it was the exception for something to have been recorded.

Today, what you are listening to is more than likely not live but syndicated, voice-tracked or pre-recorded.

With the Main Studio Rule, the goal was, that there would be a live person at the station and the studio would be in the community the licensee was licensed to serve.

Lance Venta writing on RadioInsight on October 24, 2017 wrote “But what will it (elimination of the Main Studio Rule) mean in the short term? Probably not a lot. In the long term, be prepared for a much leaner broadcast facility.” You can read Lance’s entire article “The Radio Station of the Future…Today!” HERE

The National Association of Broadcasters lobbied for the elimination of the Main Studio Rule, and its then executive VP of communications Dennis Wharton said “We’re confident that cost savings realized from ending the main studio rule will be reinvested by broadcasters in better programming and modernized equipment to better serve our local communities.”

Public Safety

When a broadcaster doesn’t have a studio in the local community it serves, it delivers its programming through the internet, satellites, microwaves or wired lines. Broadcasters have been quick to point out how these forms of communication are first to go down in natural disasters.

What seems to be missing in this conversation, is what happens when a local community is hit with a Black Swan Event. I wrote a whole blog article about how such an event could impact communities FCC licensed radio stations are empowered to serve. You can read that article HERE

Those who believe in the unconditional benefits of past experience should consider this pearl of wisdom allegedly voiced by a famous ship’s captain:

‘But in all my experience, I have never been in any accident… of any sort worth speaking about. I have seen but one vessel in distress in all my years at sea. I never saw a wreck and never have been wrecked nor was I ever in any predicament that threatened to end in disaster of any sort.’

-E. J. Smith, 1907, Captain, RMS Titanic

[Captain Smith’s ship sank in 1912 and became the most talked-about shipwreck in history.]

The Future Predicted in 2004

On May 24, 2004, the Federal Communications Commission (FCC) held a “Broadcast Localism Hearing” in Rapid City, South Dakota.  The president, general manager and co-owner of KLQP-FM licensed to Madison, Minnesota (population 1,767) Maynard Meyer addressed the commission.  Telling them:

“I have been involved in the radio business in announcing, sales, engineering and management for about 36 years, all of my experience is in communities of 5,000 people or less.  We personally live in the communities we serve so we know the ‘issues,’ we work to address them in our programming and have been doing so for the past 21 years.“

“A few years ago, many stations operated this way, but much of that has changed for a variety of reasons.  I think the beginning of the end of local broadcast service started in the 1980s when the Federal Communications Commission approved Docket 80-90.”

Mr. Meyer went on to explain to the FCC, how that many communities “on paper” had a local radio station that actually was nothing more than a transmitter being fed from another location tens of miles away.  Mr. Meyer went on to say:

“I don’t think this is the best way to promote local radio service.  From what I have seen through my personal experience, as soon as a hometown studio is closed and relocated, the local service is relocated as well.”

(I’ve edited his comments. The full text can be found HERE)

What do you think?

 

 

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What Is Localism?

117I read with interest what the new Radio Board Chair of the National Association of Broadcasters, Randy Gravley, had to say in a Radio World interview about what he saw as the issues of concern for the United States radio broadcast industry.

The Most Pressing Radio Business Challenges

On the top of Randy’s list is the rise in streaming services. He feels for radio to be competitive it needs to be on as many platforms as possible but also needs to be delivering content not available elsewhere. It goes back to a real dedication to localism.

What IS Localism, Anyway?

I thought I would go to the flagship radio station owned by Tri-State Communications Inc. based in Jasper, GA to find out. Randy is the president and CEO of Tri-State Communications Inc.

The “Home” page says WJLA 101.1 FM is your source for up-to-date news, sports and community announcements. There was no mention about the radio station being available on any platform other than over-the-air. Likewise, the “About” page tells us that they can be heard in 18-counties in the tri-state area of Georgia, Tennessee and North Carolina. It also says: “Our signal, which remains constant (unlike AM radio stations that lower the power at sunset and sunrise), reaches our target audience of those thirty years old and older.”

I’m sure all AM broadcasters will appreciate that kind of talk. NOT.

The closest thing I could find to “localism” was that WLJA has a “dedicated, award winning staff with over 150 years of combined broadcast experience” and that they “cover all of the local news from our listening area.”

Local News

So, I went next to the “NEWS” page, which features a drop-down menu of “Local, Sports, Music.”

I started with the Local News and saw that the city of Woodstock was having an eclipse viewing gathering. NOTE: I’m reading this local news on August 31st about an event that already happened on August 21st between 1 and 4pm. I also learned that I could tour the new Northside Hospital Cherokee on Saturday, April 22nd from 10am to 2pm.

Is this an example of localism done right?

Local Sports

The “Sports” page did give me the high school football schedule, but other than a list of sponsors, nothing else.

Local Music

The “Music” page was a list of the “Top 30 Gospel Request Time Songs for 2016, 2015, 2014 and 2013.” But it appears these songs are the favorites from a national database not one compiled locally by the radio station.

There was no mention of any local gospel or country groups or any information about where this type of music might be enjoyed locally in live venues.

Local Sales

It was time now to see how the radio station sold itself to local advertisers.

In big red type is said “Home to over 38,000 listeners at any given moment!*” That sounded impressive, but there was that “*” at the end of the statement. The asterisk qualified that claim with the following information: “*As rated by ARBITRON 2007 county by county coverage in Georgia, Tennessee and North Carolina.”

OK, there are some immediate problems with that qualifier. First, it’s 2017 not ten years ago. Second, Arbitron has been gone since September 2013 when it was purchased by Nielsen and re-branded as Nielsen Audio. Other data is sourced as of 2008.

All of these things were found on the radio station’s “Sales” page.

Everything was station focused and not advertiser focused. (Or listener focused)

The sales information didn’t scream “localism” to me. It also offered no information about advertising opportunities via streaming.

In fact, I can’t find on any page anything about being able to hear WLJA 101.1 FM over the internet or via any of the platforms that Randy says are now so critical for radio broadcasters.

Apologies to Randy Gravley

When I started to write today’s blog, I never intended for it to come off looking like a “hit job” on the newly elected Radio Board Chairman. So, I want to apologize to Randy for how negative this article became.

But he’s not alone.

And that’s radio’s BIG problem.

We know what the issues are. We talk the talk, but when it comes to walking the talk, well that’s not happening.

Welcome to radio’s “Kodak Moment.”

Smartphones

77% of all adults in America today say they own a smartphone. That number was only 35% six years ago.

But if you’re looking for the smartphone’s impact on the future, 92% of 18 to 29 year olds today own a smartphone.

Suffice it to say, if your business model doesn’t work on a smartphone, ‘fuhgeddaboudit.’

The NEW Localism

I think the new localism is whatever a person wants, when they want it. Localism no longer means a geographical area. Localism means shared interests.

When a radio station or other mass medium markets itself as being “something for everyone,” it really is saying it’s nothing for nobody.

The future of mass media is reaching the smallest possible viable audience to earn a decent R.O.I. (Return On Investment)

Welcome to the Communications Revolution

What we are seeing in mass mediated communications is a revolution. Like the other worldwide revolutions (Agricultural, Industrial) the impact of this information-driven economic revolution will be enormous.

Unlike the world’s revolutions of the past, this one will explode with exponential speed.

You can see it happening with artificial intelligence (think Alexa or Siri), robotics, self-driving vehicles etc.

Traditional Radio Faces Grim Future

And on August 30, 2017 came a study by Larry S. Miller, Director of the Steinhardt Music Business Program at New York University that says radio is faced with a paradigm shift. He outlines why radio must adapt to the rise of digital.

I know that the NAB and Nielsen have already come out with their side of the story regarding this report by Mr. Miller.

But maybe instead of throwing stones, we should stop living in our own glass houses.

Radio CANNOT survive doing things the way they’ve always done them.

If technology doesn’t seem like magic

It’s probably obsolete.

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Is Your Iceberg Melting?

94This past week was another tough one for the wonderful people who work in radio. Most people who get into radio do it because they’ve caught the “radio bug” and the work becomes their life’s passion. I know that’s how it is for me.

When I caught the “Radio Bug”

From my earliest years, I knew what I wanted my life’s work to be. I built a radio station in my parent’s basement and broadcast to the neighborhood (about a 3-block radius) on both the AM and FM bands using transmitters I bought from Radio Shack.

When I started high school, I earned my 3rd Class Radio/Telephone Operator’s License, Broadcast Endorsed from the Federal Communications Commission in Boston. I wasn’t old enough to work, so I had to get a Massachusetts Work Permit. They didn’t have a category for disc jockey, so they branded me as “talent.” (I never told them I had to take meter readings every half hour in front of a transmitter that put out 1,000-watts of electromagnetic power. If I had, they would never have given me my work permit.)

College Radio

In college, it was radio that paid for my bachelors and masters degrees. I took my college’s carrier current radio station, got an FM broadcast license and was the first general manager.

Radio was in my blood.

RIF’s

After the Telcom Act of 1996, radio began its road down the consolidation path funded by Wall Street. It was during this period of time a new acronym would come into radio’s every day lexicon, RIF’s, or Reduction In Force. In other words, people were being terminated in huge numbers.

This past week, I sadly read about another round of RIF’s taking place among our country’s biggest owners/operators of radio stations. It breaks my heart.

RIF’s from the Manager’s Perspective

We all feel sorry for those that have unexpectedly lost their job. What we often don’t read about is the perspective from the other side of the desk, what the management is going through when these decisions are made at corporate.

I lived through it in 2009 as a Clear Channel Market Manager.

It’s NOT FUN.

With each corporate meeting, I would come home with a flash drive that could not be opened until a specific date/time with who I would have to RIF next.

I RIF’d my entire news and promotions departments.

I RIF’d DJ’s and PD’s.

I RIF’d my national sales manager, my director of sales and local sales managers. With each round of RIF’s I got more hats to wear. The work still needed to be done, it didn’t go away with each round of RIF’s.

I hated my job.

Then my regional manager showed up unannounced and RIF’d me.

His manager showed up after he had RIF’d all of his designated market managers and RIF’d him.

The company president RIF’d the senior regional managers.

Then the CEO RIF’d the president.

It was not a happy time, but believe it or not, being RIF’d to me was better than being one of those that found themselves with more and more hats to wear, with more and more responsibility, without a penny more in pay.

There were many folks who told me to find another line of work, but they didn’t know that broadcasting was the only thing I ever wanted to do.

Except for one other thing, teaching and mentoring the next generation.

My education was in teaching. Both my bachelors and masters degrees were in teaching.  My best teachers were those who worked in the field first and then came into the classroom to teach.

Paying It Forward

My long term goal was always to one day teach at a college or university the very things I had done all of my professional life.

My big opportunity presented itself at Western Kentucky University’s School of Journalism & Broadcasting in 2010.

When I was RIF’d by my regional manager, I had met or exceeded every goal I had been given and was paid bonuses for my accomplishments. I was even named one of radio’s Best Managers by RADIO INK magazine. The issue of the magazine with me in it came out almost the day after I was RIF’d. Funny how life is: good things happening at the same moment as bad.

One Door Closed, Another Door Opened

When my last management job came to an abrupt end with Clear Channel, my broadcast professorship door opened at WKU.

Let me tell you, going from being a radio market manager to broadcast professor is a steep learning curve. But with the help of Charles H. Warner at NYU, John Parikhal of Joint Communications and others, I successfully made the transition and became successful at teaching. In fact, my new broadcasting educational work branch opened my eyes to all kinds of new and exciting learning opportunities.

I started this BLOG and a column for RADIO WORLD magazine during this time.

Those have lead to numerous invitations to appear on podcasts, Vlogs, articles, and broadcast interviews with others sharing stories of my work and experiences.

I’ve done research on the radio industry and their employment needs in the 21st Century. I’ve presented panels every year at the national conference in Las Vegas as well as been an invited broadcast expert on many panels at both BEA and NAB.

I’ve presented seminars at state broadcast associations and done training sessions for broadcast companies.

In short, I’ve been more active in broadcasting on so many levels than I ever was as a radio manager.  And I’ve loved every minute of it.

But I’m not going to candy coat what’s happening, not only in radio but in all ad supported media. It’s a revolution.  Not an evolution.

In revolutions the first thing that happens is destruction of the old. We’re still living through that period right now and it’s not fun. I get it.

Our Iceberg Is Melting

Back in 2008, many people picked up a copy of Ken Blanchard’s book “Who Moved My Cheese?”  I know I did. It’s a great read.

But maybe the book everyone in broadcasting should be reading today is “Our Iceberg Is Melting” by John Kotter. Kotter is an award winning author from the Harvard Business School.

Like Blanchard and Johnson’s Cheese book, Kotter writes a simple fable about doing well in an ever-changing world.

The fable is about penguins in Antarctica that discover a potentially devastating problem to their home – an iceberg – and it’s melting away.

It’s a story that will resonate with anyone in broadcasting today.

Read about how the penguins handle their challenge a great deal better than many broadcasters are doing today. Kotter’s book walks you through the eight steps needed to produce positive change in any group.  You will not only enjoy the read, but will be guided with valuable insights to deal with our 21st Century world that is moving faster and faster every day.

The Big Take Away

When corporate, middle management and all employees are on the same page with regards to change, it is amazing what can happen, despite adverse conditions.

These are lessons for people who already are in broadcasting, for broadcast students, enlightened colleges are already teaching the concepts, skills and providing the tools that will be needed going forward. My students know that the future is not bleak. They understand the history of broadcasting that brought us to where things are today and they are as pumped as you and I were when we were their age to craft the future of broadcasting in the new century.

I’m excited.

They’re excited.

The best is yet to be.

 

 

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Just In Time Learning

66In a post I wrote about “Where You Should Be Recruiting Radio Talent” I mentioned a concept of “Just In Time Learning” that struck a chord with many readers. Commenter’s said they found the idea interesting and something they had never heard or thought of before. So I thought I’d expand on that thought with a little more detail and why it’s time has come.

Toyota’s Better Idea

Manufacturers used to stock everything they would need to build a product in warehouses. It was expensive and often wasteful. Then the idea of having parts shipped just-in-time to be assembled into a finished product was introduced.

Originally called “just-in-time production,” it builds on the approach created by the founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda, and the engineer Taiichi Ohno. The principles underlying the TPS are embodied in The Toyota Way.

College Degree Credential Creep

Once upon a time, college was an optional final stage of learning in the United States. Today even a Starbucks barista probably has a college degree. So what’s causing this college degree credential creep? In many cases the reason is that employers feel that by requiring candidates to have a bachelor’s degree they will see a higher quality group of candidates. It has nothing to do with what job skills are actually required. It’s used mainly as a screening tool. Unfortunately, two-thirds of the workforce in America gets screened out when a B.A. degree requirement is inserted into the advertisement. Burning Glass researched how the demand for a bachelor’s degree is reshaping the workforce and you can read more about all of this here.

The 20th Century College Education

When the 20th Century began, America had about a thousand colleges and those colleges had less than 200,000 students enrolled in them. By mid-century the number of colleges exploded and colleges that once had about a thousand students expanded to universities with enrollments of tens of thousands of students.

Unfortunately our 20th Century higher education system simply wasn’t designed to deliver what’s needed in a 21st Century world.

Your Teacher, Your Doctor and Your Barber

In our high tech world, things can quickly scale. Productivity grows quickly. But a teacher still teaches at the same pace. Your doctor can only see patients at the same pace.  And your barber can only cut hair at the same pace as each of these professions did in the 20th Century.

When something can’t scale, the price to provide the service goes up.

In the case of higher education, this price problem has been compounded by states reducing funding to their colleges and universities, resulting in public colleges being funded more and more by student tuition and lots of fees. This has resulted in a trillion dollar student loan crisis in America.

Certifications vs. Degrees

For the radio industry, the answer may be professional certifications versus bachelor’s degrees. Students simply can’t afford to go to college for four to six years and come out with tens of thousands of dollars in student loan debt to take an entry level radio job that will pay them fifteen to eighteen thousand dollars a year. Even worse, most likely the job you’re most looking to fill – sales – a college grad won’t have received any course work in learning about. Broadcasting in college is focused on teaching all of the low demand jobs in radio and the classes in the high demand jobs are either non-existent or being eliminated.

The Radio Advertising Bureau offers professional certifications in selling starting with their Radio Marketing Professional (RMP) certification. Burning Glass says that jobs in fields with strong certification and licensure standards have avoided the problem of “upcredentially.” They write: “This suggests that developing certifications that better reflect industry needs, together with industry acceptance of these alternative credentials, could reduce pressure on job seekers to pursue a bachelor’s degree and ensure that middle-skill Americans continue to have opportunities for rewarding careers, while continuing to provide employers with access to the talent they need.”

Radio’s Recruitment Mission

The National Association of Broadcasters (NAB) and the Radio Advertising Bureau (RAB) need to spearhead the radio industry in creating bonafide certification programs for all job classifications that will be accepted by the radio industry as the equivalent (or better) than a bachelor’s degree. These programs need to be offered to high school aged students and recent high school graduates.

Certification programs can be designed to provide the kind of just-in-time learning needed for each radio position. When a person shows they’re ready to advance additional certification training can be taken to prepare them for the next higher position.

Done in this way, the training will be up-to-date, cutting edge instruction to insure the student is learning exactly the skills needed for the position they will be moving into.

Time for Radio to Think Different

The radio industry will need to attract new talent in order to stay viable and continue growing. Embracing a better form of training for the skills needed and making this a requirement versus a college bachelor’s degree is 21st Century thinking.

Many of these programs are already in place, but industry recognition and acceptance of them lags in comparison to requiring a college degree.

It’s time to think differently about how we find, train and grow the radio talent of tomorrow.

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Reflecting on Radio Show 2016

60The radio show was close to home this year, just down the road from my university, in Music City USA, Nashville, Tennessee. Plus, the Tennessee Association of Broadcasters decided to roll their annual convention into an opening event at the Radio Show. So as soon as I finished my morning class, I was on the road to Nashville.

Tennessee Association of Broadcasters Kick-off

Whit Adamson, President/CEO of the TAB, put together an amazing opening reception and event inside the Country Music Hall of Fame. We were welcomed by TN Governor Bill Haslam who declared it “Radio Week” in the State of Tennessee. Then the Mayor of Nashville, Megan Barry, gave us a warm welcome to Nashville where she declared it “Radio Week” in Music City. The “red carpet” was fully rolled out for the radio industry and attendance would set a new record for the Radio Show.

Pillsbury’s Broadcast Finance Forecast Leadership Breakfast

The good news is radio is the “King of Audio.” The bad news is that revenue growth for radio underperformed ad spending post-recession. Radio’s 7% share of all advertising is predicted to decline to 6% by 2019. Why? Digital ad spend will grow significantly (40%) by 2019. And radio will struggle to reach mobile users.

The big takeaways from this session were: Investors want to see new growth catalysts like NextRadio, more event revenue and growth in digital/mobile ad revenues. Investors want no more than 3 to 4 times leverage with more industry consolidation. All of this investors feel will yield more “free cash flow.”

Investors worry about audience fragmentation and Millennial reach, radio’s competition in the car dashboard, the challenges coming from digital/internet, continued uncertainty over royalties and excessive leverage.

Focusing on Your Career Future

The room here was filled with young people. Radio mentors from all areas (except engineering) met with tables full of students and recent graduates to talk about the many opportunities available in today’s radio industry. The mood was once of excitement and enthusiasm.

Brittney Quarles and John Focke both would share their personal radio journeys with students as they shared advice such as: “the industry is small, don’t burn any bridges” and “find a champion for you and your talents” and “be careful who you share your dreams with.” The right mentors are essential to your career.

Beyond Basics – The Prosperous, Professional You

John Bates, Elizabeth Burton and Heather Monahan led a session in how to reach beyond your limits and build a better “Brand You.”

John Bates shared “3 ways to inspire and connect”: 1) logic is not the way, 2) human eyes connect you to another person and 3) be authentic. For example, people don’t connect with your successes, but your messes. You message is your mess. But above all else, “Make A Difference.”

Elizabeth Burton drilled down the importance of your online brand and that today your online activities build your reputation.

Heather Monahan told us that people take only 10-seconds to make an opinion about you when they first meet you. 50% of communication is nonverbal and your attitude is everything. And if you want to know what your personal brand is, ask others this question: “What value do I bring to you?”

The Digital Dash – Improving the Consumer Experience

Fred Jacobs, Steve Newberry and Scott Burnell (from Ford) all shared their perspective on radio in the car. The first big thing is car manufacturers don’t call it a radio in the dash anymore (and probably haven’t for some time) but “the center stack.” Into this part of the dashboard, everything a car owner wants can be accessed.

Steve Newberry (former NAB joint board chairman) really brought the whole issue home with his analysis of the technology revolution by saying there are two kinds of events: disruptive and modifying. Disruptive events would be things like television and FM radio. Modifying events would be things like cassette tapes, CDs and MP3s. Disruptive events change the landscape and prevent an entity from doing things the way they’ve always been done. Television stole radio’s programming and added pictures and radio had to reinvent itself with new kinds of programs. Modifying events such as records being replaced by cassettes and 8-track tape, then CDs replacing both of those to be replaced by MP3s merely modified the way people listened to their own music libraries but not how they used radio. The new digital/internet connected world is a disruptive event and radio needs to once again adapt to this revolution in communication. The future is bright if radio is agile and adapts.

Perception vs. Reality – The True Power of Radio

My first Arbitron rep was Pierre Bouvard. He’s a fountain of information. His presentation on “7 Things Brands Have Completely Wrong About Radio” tells the story in great detail and shows the challenges faced by radio sales people today.

Podcasting

Steve Goldstein did an amazing presentation on podcasting by starting out with this Thomas Edison quote from 1922 “The radio craze will die out in time.”

Today mobile is eating the world. 20% of audio listening comes from the smartphone. For radio, podcasting is all about retention, growth and relevance.

Podcasting is no longer niche. It delivers the demos advertisers want. Podcasting is different than broadcasting. There’s money to be made in podcasting and radio has the perfect megaphone to promote podcasts to its audience. That’s radio’s “secret sauce” that podcasters wish they had access to.

Radio – The Local Media Company of the Future

Gordon Borrell and his research company are doing some incredible studies on the future of advertising. He immediately got the audience’s attention when he said in the last ten years $56 Billion has disappeared in advertising expenditures.

Banner ads are dead. But digital is not.

Local advertising growth is forecast to increase 7.6%, but non-digital will see a 6.9% decline in ad spend and digital will see a 22.4% increase in ad spend. In fact, 2017 is the year that digital advertising will eclipse all traditional media.

Borrell said when advertisers cut ad spend in one medium they spend it in another medium. Radio will continue to be bought, but only those stations who have well-trained representatives that understand the realities of today’s advertising and can put together a total marketing plan that goes beyond simply radio spots. Advertisers will partner with any media company who has reps that listen.

The good news is traditional media – like radio – is still necessary to drive digital advertising goals and deliver maximum digital R.O.I. (Return On Investment).  You can see Gordon’s full PowerPoint deck here.

Final Thought

The mood in the halls and in the sessions at this year’s Radio Show was very upbeat. The things being discussed and presented did not shy away from the realities all ad supported media face.

Anyone who attended came away with lots of action steps that need to be implemented immediately.

Radio currently is the #1 Reach & Frequency medium in the United States of America.

There’s no time to waste. It’s time to roll up our sleeves and “Make A Difference.”

Radio’s future depends on it.

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Paying It Forward

47The picture on the left is of the 2016 KBA WKU RADIO TALENT INSTITUTE class. These twenty-three outstanding students all earned their Radio Marketing Professional (RMP) certification in radio sales from the Radio Advertising Bureau during the ten-day institute.

I began working with Steve Newberry, former NAB Joint Board Chairman and President/CEO of Commonwealth Broadcasting to bring the talent institute to my university in 2012. Our first class would graduate in 2013. The 2016 institute marks my fourth and last one as director at WKU. It truly has been the university activity I’m most proud of.

The whole concept of a radio talent institute was conceived by Dan Vallie and Art Kellar. I wrote more extensively about the program in Radio World and you can read that article here.

Working with Dan Vallie over these past five years has been an incredible experience. No one is more dedicated to “paying it forward” to the next generations than Dan. He has boundless energy and has grown the number of talent institutes in America to five.

inst_map_keller_kbawku_confer_gab_hubbard

 

Expect more radio industry leaders like Kerby Confer and Ginny Hubbard’s Hubbard Broadcasting along with state broadcast associations like the Kentucky Broadcasters Association and the Georgia Association of Broadcasters to sponsor even more locations in the years ahead.

Some of the industry professionals that presented at this year’s institute in Kentucky were Kristin Cantrell-owner/CEO of CapCities Communications and Seven Mountains Media, Mike Keith-the voice of the Tennessee Titans, Christine Hillard-President/COO of Forever Communications, Steve Newberry-President/CEO of Commonwealth Broadcasting, John Ivey-Senior Vice President of Programming iHeartMedia and Program Director of KIIS-FM in Los Angeles, Don Anthony-Publisher, Morning Mouth & Jockline, Creator & Host of Morning Show Boot Camp and Founder & President of Talent Masters, Gary Moore-Air Talent at KLOS in Los Angeles, Bryan Sargent, PM Drive Air Talent at Mix 92.9 in Nashville, John Shomby-Director of Programming at NASH-FM & Charlie Cook-VP/Country at Cumulus Media, Lynn Martin-President of LM Communications, Terry Forcht-Founder, Chairman & CEO of the Forcht Group of Kentucky (a company with 2,400 employees) along with the Presidents of both the Tennessee Association of Broadcasters, Whit Adamson and the Kentucky Broadcasters Association, Henry Lackey.

Thirty-six professional radio broadcasters, two of whom have been awarded the National Radio Award – the highest honor bestowed on a radio broadcaster – by the National Association of Broadcasters shared their passion and performance knowledge.

Every student that has gone through the program has told me it has been the best ten-days of their life and as the director these past four years; I know it has been for me as well.

If you know a student that wants to get into broadcasting, point them in the direction of the National Radio Talent System website  for more information, applications forms, scholarships and the dates/location of the institute nearest to them. Students who apply are thoroughly vetted for acceptance in the program.

Broadcasters looking for air talent, sales talent; digital and video talent should also go to the National Radio Talent System website for a complete listing of graduates that have gone through the program. There they will find each student’s bio and a sample of their on-air work.

I know Dan Vallie is already hard at work on the 2017 radio talent institutes. The radio industry is truly fortunate to have someone of Dan’s vision and action in establishing this innovative radio talent farm system for broadcasters.

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Dan Vallie

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