Tag Archives: RAB

No Longer A License To Print Money

Back in the 60s, it wasn’t unusual for a radio station to have an operating profit margin greater than 50%. (Operating profit margin can be defined as the percentage of revenue that a company retains as income after the deduction of expenses.)

When I took over a major radio property in Atlantic City, New Jersey in the 80s, our operating profit margin targets were greater than 30%.

Being in the radio business at that time was often called “having a license to print money.”

That was then, what’s it like now?

Radio Profit Margins 2022

As we ended last year, the trades were carrying reports of operating profit margins like 8.73% (Radio One), 0.8% (Beasley Broadcast Group) and it made me wonder about the future of the radio industry.

Townsquare

This week the CEO of Townsquare was saying that they were “no longer a broadcast radio company,” because Townsquare was now deriving more than 50% of its total revenue and profits from digital.

In fact, digital delivered a profit margin of 30%.

Borrell

In a February webinar with the Radio Advertising Bureau (RAB), Gordon Borrell told radio stations they should consider hiring digital-only sales representatives. Gordon presented research showing where advertisers were increasing their spending, and it was heavily in the digital realm.

Edison Research

This month, Larry Rosin of Edison Research, showed their research from “The Infinite Dial 2023” report showing that 75 million of America’s 214 million age 12+ population were now listening to their audio content online each month.  

The big winners in this digital online streaming music marketplace are Spotify, YouTube Music, Pandora, Apple Music, Amazon Music and iHeart Radio.

While AM/FM radio still wins in the car, its audience is shrinking due to people listening to their own digital music libraries, or listening to podcasts, or listening to digital online audio; much of it made possible by connecting their smartphone to their car’s dashboard entertainment center.

Comscore

In their annual “Year in Review” webinar, Comscore says that in America there are now 239 million digital users over the age of 18. That’s 91% of the total population, up from 88% three years ago.

While we’ve come to think of “digital” as the future for technology and innovation, the reality is it’s already matured, and as such, is now in a period of “consolidation, rent-seeking and regulatory capture,” says digital researcher Greg Satell.

The Monetization Challenge

Twenty-five years ago, Edison Research recognized how the AM/FM radio dial would be changed by internet streaming, when it began its research report called “The Infinite Dial.” But to think of the world only in terms of radio or audio misses the big picture; for while the future of media and entertainment is digital streaming, the challenge of making money in this infinite content media world has become increasingly difficult.

Ankler Media CEO Janice Min put it this way for Axios:

  • “Hollywood’s calling card has always been that it makes the highest quality content in the world … And when you start to populate a fire hose, you lose some of that.”
  • “Humans are not capable of putting in the same effort when you’re making 100 movies a year.”

Certainly, the quality of radio content has gone down with all the Reductions In Force (RIFs), as fewer people now have to produce more content for multiple radio stations; plus, podcasts, blogs and social media.

Bob Iger is back as Disney’s CEO and focused how to make the mouse’s streaming business profitable; he’s not alone, as every media company is in the same situation.

No one has a crystal ball, but one thing is clear,

the future will not look like the past.

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What’s Your BHAG?

The past couple of weeks have featured some pretty intense webinars on where the media industry is headed and my mind is still spinning from all that was shared.

Let’s start with the meaning of BHAG (pronounced Bee-Hag); which means to have a Big Hairy Audacious Goal, a term coined from the book Built to Last: Successful Habits of Visionary Companies by Jim Collins and Jerry Poras. President Kennedy presented America with a BHAG when he said the United States would put a man on the moon.

“We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win.”


-John F. Kennedy, President

The Elements of a BHAG

All companies have goals; probably too many actually, causing employees to have a lack of collective focus on what’s really important. So, what are the elements of a BHAG?

  • A BHAG is a compelling, long-term goal that brings employees together and inspires them to take action.
  • BHAGs should pull employees out of a slump and give them a reason to tackle a big-picture-type plan.
  • BHAGs should cause an organization to focus on a common enemy, and on a defined target, while bringing about an internal transformation.

From what I’m hearing in these webinars,

the radio industry needs a BHAG for digital.

Gordon Borrell

In a Radio Advertising Bureau (RAB) webinar “Digital Sales Approach $2 Billion” Gordon stressed the importance of have a long-term revenue BHAG for digital sales. He said radio stations should consider hiring digital-only sales reps.

Larry Rosin

Edison Research President Larry Rosin co-hosted the 25th Anniversary of Edison’s “The Infinite Dial Study.” It was truly eye-opening to realize how much audio media access has changed over the last quarter century.

  • Internet access 1998 (31%) versus 2023 (95%)
  • Households with computers 1998 (~50%) versus 2023 (91%) where computers have become smartphones we carry with us
  • Streaming digital audio listening 1998 (6%) versus 2023 (70%)

Why I Stream ALL My Radio Listening

On January 9, 2022, I began my 8th year of blogging with an article on why I stream all of my radio listening and how it’s so easy for anyone to do what I do. In our home, we effortlessly connect to the internet and streaming digital audio using Amazon’s Echo. I can’t remember the last time I played a record, cassette tape, reel-to-reel tape, CD or thumb drive; anything I want to hear can be heard on demand by voice command.

As a family, we don’t’ have the latest cars, Sue has a 2006 Subaru Forester and I have a 2009 Honda Accord, but both vehicles seamlessly connect to our iPhones when we enter the car and allow us to stream any digital audio content through our car’s audio systems.

Comscore Year-in-Review

As of December 2022, 91% of America’s population over the age of 18 are digital users. The Comscore webinar was especially eye-opening, when they told the audience that the “digital population grew relatively 2x more than the total population in the last 3 years with increasing emphasis on mobile usage.”

An average adult internet user will spend almost 4.5 hours a day

accessing the internet via desktop or mobile.

-Comscore Media Metrix Multi-Platform United States 18+ Total Digital Population

Willie Sutton when asked why he robbed banks, responded “because that’s where the money is.” Now you know why all media entities are racing to win with their digital media offering.

The interconnectedness of audiences

is where the wins will be found in measurement.

-Jason Clough, Senior Director, Partnerships & Insights, Comscore

I think Jason Clough perfectly summed up what radio’s BHAG should be in the above slide from his presentation: if media wants to stay relevant to its audience and win with any audience measurement metric, it must interconnect with them.

But, instead of “interconnectedness”…

Think “EXPERIENCES.”

Is your radio station delivering the best listener experience, wherever and however they access your programming?

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What Comes First? Radio Job or College Degree?

The reason I write my blog is to stimulate discussion about what radio needs to be doing to not just survive, but thrive in the 21st Century. If things weren’t hot enough after I published last week’s blog article, “No College Degree Required,” they got even hotter after Fred Jacobs expanded on my thoughts in his Monday blog article titled: “Want To Succeed In Radio? Get That Degree.” Let’s hope all the discussion that occurred on both of our blogs and on social media leads our industry’s leaders to make some meaningful changes.

How I Got Into Professional Radio

Just about everyone my age (69) who got into the radio business, did so while still in high school. For me, the entrance door was via Junior Achievement. JA was just beginning to experiment with the idea of having service companies. The Junior Achievement program was created to help high school students understand the principles of running a business by selling stock ($1), forming a company, deciding on what product to make, making that product, selling that product and then liquidating the company and returning (hopefully) a monetary value greater than the $1 invested by the stockholders; all during a single school year.

One of the local radio stations in my town, came to my 10th grade high school assembly and made a presentation about forming a JA Radio Company. I set my sights on being in it, and made the cut. One of my best friends also made the cut and has retired from a very successful radio and voice-over career of 50 years.

My College Years

I was the GM of my college’s carrier current AM radio station and worked to secure an educational FM license before graduating. WJJW remains on the air to this day at the Massachusetts College of Liberal Arts.

I was a commuter student with no student loans, but back in 1970, such a thing was more the norm than the exception. According to the National Center for Education Statistics, during the 1970-71 academic year, the average in-state tuition and fees for one year at a public non-profit university was $394. By the 2020-21 academic year, that amount jumped to $10,560, an increase of 2,580%.

How Other Industries Treat College & Their Best Employees

In other industries, it’s not uncommon for companies to actually pay for their best employees to earn their college degrees in order to further their advancement. I know a person that learned his computer skills in the military and works for a military contractor in DC. He’s been working with the highest level of military leaders at the Pentagon as well as with members of Congress. After 17 years of constant achievement, his company is paying for him to complete his college degree. He currently maintains a 4.0 GPA.

His degree, ironically, won’t even be in the area that he works in, but in an area that gives him passion outside of his job.

Just-In-Time-Learning

The point of my article wasn’t to dis getting a college education, but for our radio industry to begin recruitment and training at the high school level. Radio needs to be a way for talented individuals to be exposed to what a wonderful business radio is, and have a way to enter without being screened out by a computer algorithm looking for a college degree. (You can’t see talent on a spreadsheet.)

Clear Channel used to run a wonderful training program called Clear Channel University. It succumbed to one of the many rounds of budget cuts.

The RAB’s Radio Talent Institute is an excellent program and my point was it should be run in the high schools across America.

Companies interested in retaining and growing their best employees should be making higher education opportunities a company benefit, what I like to call “just-in-time-learning.”

When the NAB offered a Sales Management Program through the Wharton School, I paid my own way and went. I already had an undergraduate degree from a four year college and a master’s degree from a university, but I never had the specific training that this program offered for the job I had been promoted into.

The owner of the radio stations I worked for at the time, provided a lot of training for its people. We attended the annual Managing Sales Conference hosted by the RAB. I earned my CRMC, Diamond CRMC and CDMC from the Radio Advertising Bureau.

I always told my college students that their degree wasn’t the end of their learning, but the launchpad to a life of learning. Every year of your life, learn something new, experience something new, grow your knowledge in life.

Think about what you can add to your resume that will make you a more valuable person to your company, your family and yourself.

Not Every Job Is For Every Person, Regardless of Their College Degrees

A comment made by Tom Langmyer said it best; that at the core, it all comes down to the person. Having a PhD doesn’t equal a great air personality or salesperson.

The hardest part is expecting the same result when sending 10 people to university for Broadcasting/Media. So much is about the person.

Success on the content and sales side relies so much more upon the candidate’s personality, makeup, drive, ambition, chemistry, life experiences, ability to engage and activate people, etc.

Those are attributes which additional education can enhance, but if one does’t have those natural abilities, anything including a PhD in broadcast media, is worthless.

-Tom Langmyer

My success as a GM in hiring was to first hire for attitude and then train the person for the job that needs to be done.

When the raw talent at affordable prices is sitting in high school classrooms today, why is the radio industry waiting till college to begin recruiting?

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No College Degree Required

The other day when I went to my mailbox, I noticed a rather large piece of “junk mail” from a local HVAC company.

It said:

We’re Hiring!

Start a Rewarding Career with [business name]

Attention: High School Grads

HVAC is a Great Career Option! No Student Debt!

Great pay, hours and benefits!

Which got me to thinking about all the radio help wanted ads saying you need to have a college degree to apply. Why does the radio industry list having a college degree as a requirement, when the truth is, great radio broadcasters haven’t had one, nor did they need one.

Cost of a College Degree in 2022

According to Educational Data, when you consider student loan interest and loss of income, the cost of a four-year college degree can exceed $400,000.

It’s not unusual for a college grad to learn the starting pay in radio is often as low as $19,500/year ($9.36/hour) for on-air positions and sales positions are 100% commission based.

Start a job with Walmart with no college degree and you’ll make $12/hour. Get that same job at Target and you’ll start at $15/hour. At McDonalds the starting pay range at company owned stores is between $11 and $17/hour.

Virtually every job in today’s world will pay you more than most radio positions, and yet radio ads always require you to have a college degree while those other companies don’t.

Radio Talent Institute

I worked with Dan Vallie and his Radio Talent Institute at Western Kentucky University. It’s an excellent program, now operated by the Radio Advertising Bureau (RAB). Sadly, it’s offered as a summer program to students in colleges across America. I contend that the RAB should be offering this program in the high schools.

For all of the same reasons, one of my local HVAC companies is appealing to high school grads, this also makes sense for the radio industry.

Famous Broadcasters

Oprah Winfrey didn’t need to have a college degree to become one of the most successful women in broadcasting. She dropped out of college after only one semester to pursue a career in broadcasting.

In 2015, Forbes published the salaries of the top five radio broadcasters in America.

Glenn Beck earned $16.5 Million in 2015. Not bad for a Sehome High School graduate with no college experience.

Sean Hannity earned $29 Million and never obtained a college degree, even though he attended four different colleges.

Ryan Seacrest earned $65 Million. Like me, Ryan started his radio career at 16 while still in high school. Unlike me, who went to college and graduate school earning two degrees, Ryan dropped out of college to devote all of his energies to broadcasting. Needless to say, he’s really famous and I write this blog.

Rush Limbaugh earned $77 Million and dropped out of college after only two semesters. His mother said at the time that Rush “flunked everything…he just didn’t seem interested in anything except radio.”

The top earning radio personality was Howard Stern. Howard IS a college graduate, with a 3.8 Grade Point Average (GPA) from Boston University, earning $95 Million in 2015.

Now, if I was trying to sell you on the value of a college degree in broadcasting and compared Howard Stern to the other four on Forbes 2015 list, I would say that having a college degree can earn you 23% to 76% more money than not having that piece of paper.

College Degrees

Please don’t think I’m dissing the college experience, I’m not. What I am taking issue with is the hiring practices of the radio industry that make having a college degree a requirement. Radio is better positioned as a trade, one best learned by doing.

The radio industry should be presenting a broadcast career as an opportunity for students graduating from high school.

I treasure my four decade radio broadcasting career, but having my Bachelor of Arts and Master of Science college degrees never played a role.

It wasn’t until I pursued my second career in life, that of a college broadcast professor, that I would need those two pieces of paper to be hired at The School of Broadcasting and Journalism at Western Kentucky University.

Colleges sell pieces of paper representing knowledge learned. You can’t be part of the faculty unless you have also earned these benchmarks in higher education.

Finally, just as adamant as I am about the radio industry starting its outreach at the high school level, I am just as determined to see colleges hiring broadcast professionals based on their broadcast careers, knowledge that has been earned through years of on-the-job experience that no college curriculum can duplicate. Sadly, most colleges screen out any applicant that doesn’t have the required terminal degrees.

“Difficulties come into our lives to develop us.

Every storm is a school.

Every trial is a teacher.

Every experience is an education.”

— Nicky Gumbel.

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Your Cell Phone is a Radio

By definition, radio is, a: the wireless transmission and reception of electric impulses or signals by means of electromagnetic waves. b: the use of these waves for the wireless transmission of electric impulses into which sound is converted, according to Merriam-Webster’s dictionary.

Your cell phone sends signals to (and receives them from) nearby cell towers (base stations) using Radio Frequency (RF) waves. This is a form of energy in the electromagnetic spectrum that falls between FM radio waves and microwaves.

My First FCC License

When I studied for and passed the Federal Communications Commission (FCC) test to obtain my 3rd Class Radio-Telephone License, I initially wondered why it said “telephone” on it.

Telephones in 1968 were all wired devices, like in my parent’s house in which our family phone was connected by a copper wire and bolted to the kitchen wall.

When I began to study the history of radio, I learned that an early experimenter in radio broadcasting, Kentucky melon farmer Nathan Stubblefield, wanted to be able to talk to his wife while he was driving his automobile while away from their farmhouse. In those early days, no one had a clue what this new technology would become.

Radio’s Metamorphosis

The podcast “Local Marketing Trends” hosted by Corey Elliot and Gordon Borrell, recently featured an interview with the Radio Advertising Bureau’s (RAB) President/CEO Erica Farber in which she said the radio industry’s sales arm was going through a metamorphosis; today the RAB thinks more broadly, to include all things audio.

Gordon asked Erica if she meant podcasting and streaming audio like Spotify and Pandora, to which she said “Yes.” When might this happen, Gordon asked, to which she responded, “maybe today.”

Farber explained how she feels radio is ahead of the curve in not just delivering content, but in delivering services too. Radio is no longer just about selling thirty and sixty second spots but it’s a very different business now, with radio’s core product today being “delivering results.”

Audio Advertising Bureau

Might the Radio Advertising Bureau change its name to become the Audio Advertising Bureau?

I hope not. Here’s why I say that.

Radio suffers from traditional broadcaster thinking that it needs an FCC license, radio tower, antenna and transmitter which sends a signal out over the AM or FM radio bands. But if you ask a young person, what is radio, they will tell you about their favorite stream or podcast which  they listen to through their smartphone.

Radio is not a dated identifier, it’s very much in vogue in the 21st Century, but what imagine comes to mind when one says the word “RADIO” will differ depending upon a person’s age.

1940s Floor Cabinet Radio (what my parents listened to)
1970s Transistor Radio (the radio of my youth)
21st Century Smartphone used as a radio & a whole lot more (the “radio” I use today)

Apple Music Radio

You might have missed Apple’s August 2020 Press Release about how they were changing the name of their radio service from Beats 1 to Apple Music Radio. In spite of trying to invent a new name for their streaming music offerings, their users called it “RADIO.” And now, so does Apple.

Beats 1, has been Apple’s flagship global radio station since its launch in 2015. Five years later, it’s been renamed Apple Music 1. Oliver Schusser, vice president of Apple Music, Beats and International Content, explained

“Apple Music Radio provides an unparalleled global platform for artists across all genres to talk about, create, and share music with their fans, and this is just the beginning. We will continue to invest in live radio and create opportunities for listeners around the world to connect with the music they love.”Beats

Now is NOT the time for AM/FM Radio broadcasters to abandon the sonic brand known as “RADIO.”

Adapt or Die

When people started streaming over the Internet and calling it “radio,” traditional broadcasters looked down their noses in much the same way that print journalists looked down their noses at the new media platforms like Buzzfeed and Vice Media invading their world.

Traditional media survivors will learn to accept and embrace the new platforms that disrupt the world as we knew it and are creating the world that will be.

An inability to adapt to new platforms is what causes both people and industries to fail.

AM, FM, internet streaming, smartphones, connected cars are all platforms. Radio, newspapers, magazines and the like, are all media products. Understanding this dichotomy is critical.

And so, the challenge for radio is not changing its name, but adapting its product to today’s platforms.

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Thank You Jason Jennings

jennings

Photo by Barbara Ries

In 1979, two major life-changing events occurred around the same time. One, I got married and two, I left the programming, operations, and on-air side of the radio business to enter radio sales. Both would change my life forever.

Before I ever set one foot on the street to sell a radio ad, my new company’s owner would send me to sales training. The trainer was Jason Jennings, and when I finished the day with him, I could not wait to get out on the street to begin selling radio advertising.

Jason William Jennings

Jason was born on May 31, 1952 in Ishpeming, Michigan. He earned a Bachelor of Arts degree from the University of Detroit. His politics back then were listed as Republican and his religion Lutheran.

I didn’t realize that when I first met Jason to undergo radio sales training, we were the same age, 27. He was so self-assured, confident and in total command of the room. He told everyone to take off their wrist watches and be prepared to take notes. I remember filling up my note book with what he was telling us.

What most amazed me was he taught for an entire day and everything he shared was stored in his mind. Not a single note did he ever refer too.

Only recently have I learned that while Jason and I started off as Republicans, we both were now progressives in our political views, we are both of the Lutheran faith and both aged 67.

Music was also a part of our lives, Jason played the viola and I the trombone.

AVI Communications, Inc

I met Pat “Spark” Shaughnessy at a radio conference back in the 90s. We were sitting next to one another and he introduced himself. That led to hanging out during the meetings and forming a friendship by the time the conference ended. Pat invited me to review a new radio sales training video program he had just finished with Jason Jennings. He sent me the entire program and I would watch every second of it and read the workbook materials. I then sent Pat a multi-page document with my thoughts.

Years later, when I was working on an advanced radio sales course for my university’s School of Broadcasting and Journalism, I contacted Pat to see if I could purchase two copies of the Quantum Sales Training Broadcast System for my students.

The program by now had been bought for thousands of dollars by over 600 TV stations, 2,000 radio stations and several hundred cable systems. Today, one copy of the series sits in the WKU main library and the other copy in the school of broadcasting.

The basics of the program, written and hosted by Jason, are timeless. I’ve used the DVD on Negotiation in sales training at all of the radio stations I’ve managed and in my introductory sales classes at the university.

LinkedIN & Facebook

I believe it was through LinkedIN that Jason first reached out to me to reconnect. More recently, Jason asked to be friends on Facebook. I’m embarrassed I didn’t ask him first. I believe it was because I so looked up to him as a mentor and felt asking would be a bother. Jason obviously didn’t feel that way.

Over time, I learned we were in concert on so many things, like what’s important in sales, management, politics and life.

A Better Tomorrow

Jason really cared about people. Somehow this man who was named among the twenty-five best speakers in America by the Nationwide Speakers Bureau, a bestselling author and media consultant always found the time to drop me a note and wish me well. I’m sure I was not the only one Jason did this to.

During his keynote addresses, it was normal for Jason to ask the audience “How many of you want your tomorrows to be better than today for you and your family?” He knew how to tap into our universal human desires in a real and genuine way.

“Ensure your heart is in the right place with a genuine desire to help highly principled people reach their full potential,” was how Jason’s podcasting co-host, Dale Dixon, defined Jason Jennings’s purpose in life.

Selling is Like Doctoring

In life, there are some phrases you come in contact with that become a part of you. When seeking to know what an advertising client was expecting from his radio campaign, Roy H. Williams taught me to always ask, “How will you measure success?” From Zig Ziglar I learned, “You can get anything in life you want, if you will just help enough other people get what they want.”

From Jason Jennings I learned, “Prescription without diagnosis is malpractice.” In other words, before you can begin to advise any client what he needs to do to improve his business you first need to learn, where it hurts, what’s going wrong, what’s the breakdown that’s causing business to languish.

For me, Jason’s phrase spoke to my unending curiosity. I loved asking clients lots and lots of questions; about their life, their families, their business, then using what I learned to create unique, one-of-a-kind advertising programs to increase their business.

Are Radio Groups Mis-Training Sellers?

Back in October of 2012, my radio friend Barry Cohen wrote an article for Radio Ink taking the radio industry to task for the lack of radio sales training. Barry wrote, “When I started selling radio advertising, the first thing my sales manager did was hand me one of Jason Jennings’ books, which I promptly ‘devoured.’ As I moved to each station, my managers continued to give me the good stuff, exposing me to the likes of Chris Lytle (who just turned 70 this month), Irwin Pollack, Pam Lontos and, of course, RAB sales training materials.”

For many of us, Jason Jennings was one of a handful of training professionals that radio people held in very high esteem.

Don’t Let Radio End Up Like Yahoo!

In August of 2016, I wrote a blog article based on one of Jason’s “Game Changers” podcasts. I applied the lessons Jason learned from his analysis of why Yahoo! disintegrated to the radio industry. “Don’t Let Radio End Up Like Yahoo!” was the fourth most read article on my blog in 2016.

In reviewing that article’s advice, it strikes me that this is how Jason Jennings lived his own life.

  • Know what you’re all about
  • Have a set of guiding principles
  • Don’t use a business like a personal piggy bank
  • Don’t try to be all things to all people
  • Don’t copy the competition

Jason Jennings was an original who pursued perfection and achieved excellence.

I will always be grateful to Jason Jennings for giving me a solid foundation upon which I was able to build a successful radio and teaching career.

A global community of sales and management professionals are saddened by Jason’s sudden and unexpected death this month from a ruptured aorta aneurysm.

We will always be grateful for all he taught us.

 

 

 

 

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CES 2019

Dave - 2001 .jpgI wasn’t at CES 2019. In fact, I’ve never been to CES.

But after reading the reports on this year’s Consumer Electronics Show (CES) in Las Vegas, I feel like I was there 50-years ago via Stanley Kubrick’s 1968 motion picture phenomena “2001: A Space Odyssey.”

Technology Integration

The Radio Advertising Bureau (RAB) did a special video they called “Bonus Report of C-Suite Radio Exec’s attending CES” and some of the comments those radio executives made is what made me feel like I’d seen this “movie” before.

Steve Goldstein

Steve said that what he’s marveled at over the years is how media is continually being integrated. He said only a couple of years ago, there was virtually no mention of smart speakers, and this year it’s not only a device exploding in the home, but now is coming into the car too. Goldstein thinks this voice activated technology is important because these devices are not radios, but audio devices and radio stations, as audio content producers need to re-imagine how they will sound and feel like on these devices. And he added, “it’s happening fast!”

Dennis Gwiazdon

Before recently moving to Las Vegas to manage the Beasley Media Group radio stations in that city, Dennis ran the top radio stations in Nashville, TN. When I was teaching at the university in Kentucky, Dennis was an annual guest in my Broadcast Capstone Class.

Dennis said of his visit to CES 2019 it helps radio broadcasters to think about where things are heading and to plan for the future.

Technology today is making our lives simpler by our ability to talk to our devices and connect ourselves to things we used to have to physically operate. Gwiazdon told the RAB that he lives in a smart home in Las Vegas and it’s fascinating to him how he can walk around his house, talk to it and make it do whatever he wants it to do. “I don’t have to touch a light switch, I don’t have to adjust the thermostat, when I come home I can have a routine set-up that will have everything ready for me when I walk through the door.”  “I’m living in that experience now, “said Dennis.

I’m Sorry Dave, I’m Afraid I Can’t Do Thathal 9000

And it was Dennis’ comments that brought to mind the astronaut named Dave in “2001: A Space Odyssey” that when his space pod was trying to re-enter the mother ship and Dave asked the HAL 9000 computer system to open the pod bay doors. Here’s a link to that memorable moment: https://www.youtube.com/watch?v=ARJ8cAGm6JE

HAL’s response to Dave was “I’m sorry Dave, I’m afraid I can’t do that.” The reason was that the HAL 9000 computer could not only respond to voice commands but, it turned out, could also read lips and knew what Dave and his fellow astronaut were planning on doing. They were planning on taking the HAL 9000 off-line because they suspected the computer was making mistakes.

The HAL (Heuristically programmed ALgorithmic computer) 9000 was basically artificial intelligence that was designed to learn, grow and protect itself from attacks. HAL sensed he was coming under attack and was trying to protect itself from the humans.

iPhone 4S

iphone 4s

Oh, it all seemed so innocent back in 2012 when I switched from my Blackberry to my first iPhone. It was the iPhone 4S. The “S” stood for Siri. Siri was my first voice activated assistant.

I found that I used Siri mainly for dictating text messages and emails rather than trying to type things into the phone’s touch screen. Siri did a pretty good job too.

Occasionally I asked Siri to tell me a joke or look something up for me, but not often.

Alexa

So now it’s 2019 and I have Siri on my tablets, my MAC, and iPhone 7. I have three Amazon Echo’s with Alexa, and in my car, my Garmin Smart Drive responds to my voice commands.  It sends me instant traffic information and detours when necessary, along with important weather alerts and breaking news.

I really feel like Dave in 2001, controlling so much of my world with just my voice.

It’s quite addictive and it happens very fast.

I hope they don’t ever turn against me.

Artificial Intelligence

Elon Musk and Stephen Hawking have both warned that AI (artificial intelligence) could potentially be very dangerous. Stanley Kubrick and Arthur C. Clarke certainly showed my generation why, back in 1968. AI is about building machines that think for themselves and grow in their intelligence. It’s what will make a world of self-driving cars, and so much more, possible.

Elon Musk has written:

“The pace of progress in artificial intelligence is incredibly fast. Unless you have direct exposure to groups like Deepmind, you have no idea how fast – it is growing at a pace close to exponential. The risk of something seriously dangerous happening is in the five-year timeframe. 10 years at most.”

On Demand

The world we live in today is one of “On Demand.” The future belongs to those who can create what people want and deliver it when they want it.

The consumer won’t have it any other way.

It’s not an attack on radio broadcasters. It’s the future. Here. Now.

 

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Time for a New Adventure

Dick Taylor WBECI just recently moved to Virginia from Kentucky.

I moved to Kentucky from New Jersey 7-years ago to pursue a bucket list career goal of mine, to teach at a college or university radio broadcasting. That opportunity came for me at Western Kentucky University (WKU) in Bowling Green, Kentucky.

I knew absolutely no one when I interviewed for the broadcast professor opening, but the person I would be hired to replace – retiring broadcast professor Bart White – would become a good friend over my tenure at WKU.

Long Ago & Far Away

When one moves, it means going through all of your stuff to decide what gets packed up and moved again and what gets donated or tossed into the dump.

One of the little pieces of memorabilia that I came across was a newspaper article on my being promoted to the position of Program Manager for WBEC Radio in Pittsfield, Massachusetts. That occurred on August 8, 1975. (Picture of me on-the-air at WBEC above from the 1970s)

I had just graduated from the Masters Degree program with a perfect 4.0 grade point average from the State University of New York at Albany with a degree in Educational Communications and teaching certifications, but I found myself in a field that tight school budgets were eliminating from their programs. Going back to the “three R’s” they would say, Reading, wRiting and aRithmetic, instead of employing modern teaching technologies in the classroom.

One of the radio stations I had worked at while going to college was WBEC and being offered this position was a dream come true. It was the very position I had always wanted.

A Lot of Career Success is Luck

WBEC was a station that was very programming oriented. During my tenure as the Program Manager, and later promoted to Operations Manager over both the AM and FM properties, I went to a lot of programming conferences and competed in both air personality as well as program director competitions. I was lucky to be in the position I was in at the station I was employed by.

But as time went along, I found myself more captivated by what happened off-the-air versus being an air personality, the position that attracted me to radio since I was old enough to remember.

I decided I wanted to be a general manager.

General managers didn’t come out of programming at that time but instead they came out of radio sales. So, I decided my next job would be in radio sales.

When I got a call from a general manager I knew that they wanted to hire me for a programming position, I said I wasn’t interested. I wanted my next move to be in sales. He said, “let me get back to you on that.”

Two weeks later, he said “Let’s get together, because I have a radio sales job for you.”

Moving to his stations and the company that owned them was lucky again, as this was a very sales focused organization and I would be exposed to monthly IBIB (International Broadcasters Idea Bank) reports, lots of sales training by any sales consultant to get within 200 miles of New England and annual trips to the Managing Sales Conference run by the Radio Advertising Bureau (RAB).

AR to MM

I quickly rose through the ranks from account representative to sales manager to director of sales to station manager to general manager.

General managers were renamed market managers as the age of consolidation took over after the passage of the Telcom Act of 1996.  That’s when a single company went from being able to own only 12 AM radio stations, 12 FM radio stations and 12 TV stations in the entire USA. The Telcom Act of ’96 would unleash a buying spree funded by Wall Street that would see the largest operator owning over a thousand radio stations.

Radio Ink Best Managers

In 2009, Radio Ink named me one of the best radio managers in America. I was very proud of that honor, but I had been thinking about a change for some time and I was ready for a fresh adventure.

After all, I had invested early in my life, earning the qualifications to teach and I wanted to pay-it-forward to the next generation of broadcasters by teaching at a college or university.

I was lucky once again to see an ad in Radio Ink by WKU looking for a broadcast professor to teach at the School of Journalism & Broadcasting courses in sales, management, media process & effects, radio performance and the history of broadcasting in America.

7-Years a Professor

In May of 2017, I completed my seventh year of teaching at the university. The students I’ve mentored over that time have become extended members of my family. I went to every graduation ceremony – they’re held twice a year – because I was invested in each and every one of them.

Bowling Green, Kentucky is a lovely place. But it is far from my friends and family back on the East Coast.

New Adventure Time

In the book “The Adventure of Living,” Paul Tournier writes: “Many people are never able to come to terms with the death to which every adventure is inevitably subject…The Law of Adventure is that it dies as it achieves its object.”

I’ve experienced this “death” multiple times over my life.

Something in your gut just tells you, it’s time for a new adventure.

In June, I moved to northern Virginia.

I became engaged the weekend before Valentine’s Day 2017 to a wonderful woman who is a member of the same Pittsfield, Massachusetts high school class as I. Ironically, we went to opposite public high schools.  At that time our city had two public and a parochial high school, but we now all reunion together every five years – and so we never met until our 45th class reunion.

Another part of my new adventure is this blog that I started writing almost three years ago.

I remember Ron Jacobs (first program director of Boss Radio 93-KHJ, Los Angeles, creator of The History of Rock & Roll, co-founder of America Top 40 with Casey Kasem, etc.) telling me during a phone call that he enjoyed writing more than being an air personality, program director or anything else he had accomplished in his life. I now completely understand where he was coming from as I’ve developed my own love of writing and mentoring others. Ron said he enjoyed reading my blog and that’s why he sent me his phone number one evening and asked me to give him a call at his home in Hawaii and chat.

Got a career adventure I should be considering?

Shoot me an email & let’s talk.

I’m ready for a NEW ADVENTURE.

Dick.Taylor@wku.edu

 

“Twenty years from now

you will be more disappointed by the things you didn’t do

than by the ones you did.

So throw off the bowlines.

Sail away from the safe harbor.

Catch the trade winds in your sails.

Explore. Dream. Discover.”

-Mark Twain

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The Radio on Main Street Podcast Featuring WKU Professor, Dick Taylor

1In this Radio on Main Street podcast, RAB’s President & CEO Erica Farber, speaks with Dick Taylor, Broadcasting Professor at Western Kentucky University School of Journalism & Broadcasting.  Dick is a passionate educator and speaks about the need to make new generations aware of career opportunities in radio advertising sales and management.

Dick says stations, broadcast associations and educators need to be more proactive – even suggesting introductory radio sales training programs  as early as high school.

Listen to the podcast here.

 

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What Can Radio Do That Other Media Can’t?

87I’m writing the follow-up to last week’s blog article while comments are still flowing in but I sense I have enough of a cross-section of comments to draw some conclusions; over fifteen type-written pages of comments to date. Not all commenters actually post their thoughts on my blog, but instead post them on the various social media platforms where they came in contact with my article. I try to monitor as many of those as possible to gauge the feedback on any week’s article.

Theater of the Mind

Quite a few people wrote that radio’s big advantage is that it’s “Theater of the Mind.” Unfortunately, so would streaming radio and podcasts if they so chose to utilize it. Podcasting does this quite effectively with shows like Radio Lab, Serial, Revisionist History and others. In fact NPR takes all of their segments from their highly rated programs like Morning Edition and All Things Considered and makes them available as podcasts. They are very fast at getting these segments posted online too. Lightning fast.

A lot of retired broadcasters seized on the “Theater of the Mind” advantage not realizing the extent that podcasting is doing this and how fast the podcast world is growing in audience and revenues.

Besides, truthfully, how many commercial radio stations these days do you know actually employ any “Theater of the Mind” these days. That whole concept was born from the days when radio did live dramas and that was last heard with the CBS Radio Mystery Theater that I remember running as a young lad back in the 70s.

Radio is everywhere, wireless and free

This might have been an advantage a couple of years ago, but is it still? Streaming audio is wireless, is pretty ubiquitous and now with many carriers free. T-Mobile has no data usage for quite a few streams. Plus audio streaming doesn’t use all that much data.

I’m on Verizon and gave up my unlimited data plan when the bill was climbing north of $100 per month. I switched to a plan that gives me unlimited talk and texting with one gigabyte of data per month for $50 per month. I was told by Verizon that based on my current usage that I wasn’t even using a quarter of a gigabyte per month. As I thought about it, my phone is either on my home WiFi or the university WiFi most of the time and operating very little off of cell towers for data.

However to test out how much data I’d use on a 15 hour drive from New England back to Kentucky I decided to stream radio through my iPhone4S to my car’s sound system. What I would learn was surprising in many ways.

First, I still used very little of my one gigabyte data plan. Second, I heard seamless audio with virtually no buffering and third, the audio fidelity was fabulous. The one thing I did find was how HOT my iPhone got continuously streaming like that.

Now remember, I started out in Massachusetts and drove through New York, New Jersey, Maryland, and West Virginia to get back to Bowling Green, Kentucky. That’s quite a drive and going through Maryland and West Virginia I went over lots of mountainous terrain. I did lose the signal going through tunnels, but that was about it (I also lose radio signals in those same tunnels).

So again, this is no longer radio’s advantage over other options. The people who wrote this was radio’s advantage maybe are not aware of how much things have changed. I know I was.

Radio allows you to multi-task

One respondent actually wrote his response as his own blog article on his site. In it he wrote that

“with today’s tech, radio and television can each DO almost everything the other can do, and they (do) more than the rest of the media types. The division between radio and TV is blurring…both can be just as fast, just as inexpensive. Periscope anyone? You, too, can be a serious broadcaster.

They could be the same except for ONE thing – audio-only format supports productive multiplexing. Doing two things at once. Listening, perhaps LEARNING, maybe just being entertained, WHILE doing some mindless-but-necessary task at the same time.

I cannot watch TV and hammer a nail.

I cannot read the newspaper while mowing the lawn, can’t look at photos or TV while driving a car, can’t appreciate that profit curve while taking a shower.

I CAN “get things done” and, simultaneously, listen to the radio or a podcast. I can, for all practical purposes, MULTIPLY myself. Literally, accomplish more in the same amount of time and with the same “effort.”” (Note: bolding and emphasis were the respondent’s)

That person was on a role until he got to the last paragraph. It was here that he wrote “or podcast.” I would add “or streaming” as well. Heck, I’m listening to my favorite Smooth Jazz streaming station while writing this article. Smooth Jazz helps me to think while I’m writing.

So while radio has always been the multi-tasking medium it no longer holds that as singular medium that can deliver that advantage.

Provides Information during Emergencies

Several writers said that cell phones are useless when the battery dies and that battery powered radios can run for a long time. I would agree. But I see a couple of problems here. How many people still own a battery powered radio and use it often enough to make sure the batteries are fresh?

Plus from the radio operator’s point of view, they can’t stay in business if the public only tunes to them during an emergency. I ran a news and information radio station and we did a study to find out why our ratings weren’t better than they were. We found that people depended on us only in times of emergencies or breaking news. Otherwise, they went to their favorite FM music station and not our AM information station. The format was changed to something else after we read the report in search for something that could sustain itself.

Worse, since many stations are syndicated, voice-tracked or automated in some other way, they often aren’t as quick to the draw in fast arising emergency situations.

My Verizon connected iPhone goes off no matter where I am with emergency information based on where I’m located.

Plus when it comes to things like weather alerts, school delays or closings, those messages quickly come into my iPhone to alert me. My university police department often sends out emergency messages about an active situation on campus.

So this is yet one more area that radio finds it has some strong competition.

What Can Radio Do that My Smartphone Can’t?

One reader thought the better question would be “What can radio do that my smartphone can’t.” Another phrased the question this way “What can radio do that other media won’t?”

Then maybe this person’s observation was most poignant:

“They all properly answered your question by stating what radio CAN do. But it should be noted that radio, as an industry is dismally failing to do the very things it is capable of doing.”

Why is that?

Many pointed out how our country’s largest radio companies are mired in huge debt and that prevents them from doing the very things that could take radio into the future.

While Nielsen says 93% of Americans over the age of 12 listen to radio every week, others were quick to point out that one only needed to listen 5-minutes to any radio station during the course of the week to be counted.

So what’s the answer?

Live & Local

This was mentioned by many. Then quickly followed up with, but my stations aren’t.

While the industry is quick to make this claim, the number of signals broadcasting today that are doing just that are appreciably much less.

Community & Companionship

Dan Mason said at a radio talent institute that the power of radio was community and companionship and that without both, it wasn’t really radio.

When I got into radio, owners were proud of their radio stations and took excellent care of them. They lived in the communities they were licensed to serve and that made all the difference.

My family for many years celebrated special occasions at Howard Johnson’s. People are always amazed when I tell them that. But, as Paul Harvey used to say, the rest of the story is that this Howard Johnson’s in Williamstown, Massachusetts was owned by the Brundage brothers. And they would both be in that restaurant every hour it was open. The parking lot was always full and you waited in line for a table. Everyone knew that the only similarity this place had to any other Howard Johnson’s was its orange roof. The Brundage family was proud of their restaurant.

Friendly Ice Cream used to make its store managers part owners of their restaurants and Friendly’s were always well run no matter where you happened to visit one in New England. That all changed when the company was bought by Hershey and they replaced owner/managers with salaried ones. It’s a scene all too familiar to many radio people I’m sure as the Telcom Act of 1996 changed the ownership landscape of the radio industry.

Now I don’t’ want you to get the idea that all of radio was perfect back then, the industry had its share of rotten apples to be sure, but you’ll find them in any enterprise.

WKDZ, Cadiz, Kentucky

I was in Nashville in September 2016 with some of my students for The Radio Show. The big dinner featured many station and personality awards. One that was justly deserved went to WKDZ in Cadiz, Kentucky. WKDZ won “Small Market Radio Station of the Year 2016.” Beth Mann is the owner/GM of WKDZ. All Beth wanted to do since the time she started working at that radio station as a child was own it. When the owners decided to retire, they sold it to their general manager at that time, Beth Mann. 88

Now winning such a prestigious award from the National Association of Broadcasters is a pretty awesome thing. But WKDZ has won Small Market Radio Station of the Year more than once. They won in 2002, 2013 and 2016. I fully expect them to win it again and again.

If you want to know what radio can do that other media can’t or won’t, then you need to take a car ride to Cadiz, Kentucky and visit this radio station. If you want to know more right away, then visit their station’s website: www.wkdzradio.com

WKDZ has that HERE and NOW energy many readers of this blog say they miss in radio. WKDZ has that audience engagement. WKDZ is LIVE & LOCAL & COMMUNITY & COMPANIONSHIP and so much more.

In fact, in a state like Kentucky where we are blessed with a plethora of local radio operators that are engaged, live, local, community and companions to their service area for Beth Mann and her radio family to rise above the rest makes her story all that more amazing.

After living in the Blue Grass State these past seven years I can also attest to how outstanding the state’s broadcast association is too. The Kentucky Broadcasters Association (KBA) is the gold standard for state broadcast associations.

Relevant

Summing it all up, radio needs to have a heartbeat. It needs to be LIVE & LOCAL & COMMUNITY & a COMPANION to the listener. But most of all, it needs to be RELEVANT.

Define who your audience is and then super-serve them 24/7, 365.

We know what to do.

Now we just need to do it.

 

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