Tag Archives: smartphones

Only Change is Here to Stay

Every night, the music of Enya lulls us off to dreamland. One of our favorite songs is “The Humming.” A line from that song is “only change is here to stay.”

I’ve often written in this blog about the only constant in life is change, and that if you’re not changing your life for the better, you’re changing it for the worse, for nothing stays the same. Nothing.

Changes in Communication

Watching the Ken Burns documentary on “Country Music” it was very clear the important role that radio played in spreading the popularity of this musical genre. But that was then, today the smartphone is at the center of everyone’s life.

Smartphones

The latest from Edison Research now says that 88% of Americans over the age of 12 own and use a smartphone; 250 million, to be exact.

The wireless phone companies will tell you that today we use our smartphones primarily for data. Edison Research tells us that 82% of Americans are now active on social media platforms, the top three being Facebook, Instagram and Twitter.

Smart Speakers

While 32% of homes in the U.S. don’t have a single AM/FM radio in them, 47% now have a smart speaker.

Today, 193 million Americans – or 68%  of adults 12 years of age and older – digitally consume audio using one of these smart devices.

Car Radio

AM/FM radio’s last place of dominance is the vehicle dashboard. WFH (Work From Home) eliminated the need to commute for a lot of people, thereby causing them to spend less time with traditional radio in their cars.

McKinsey Global Institute says at least 20% of people currently in the WFH mode won’t ever be returning to an office after the pandemic ends. Just as alarming for radio station owners is the recent report by Edison Research that shows the percentage of people who listen to audio on their smartphone in their cars is now at 50%.

“We’re recovering to a different economy.”

-Jerome H. Powell, Federal Reserve Chairman

ZOOM

Before COVID-19, we already were doing video conferencing and phone calls on platforms like Go To Meeting, Face Time, WebX, or Skype. But then the world was shut down by a novel coronavirus and it was ZOOM that suddenly became the dominant platform for teaching school, conducting government, running our courts, attending church, working from home, celebrating our weddings and birthdays, and just about everything else we used to do in person.  

ZOOM is the best example of how fast our world changed when COVID-19 struck.

How did ZOOM do it? By investing the time to know what their video conferencing customer wanted, knowing it better than anyone else and then delivering it best when the critical moment – a global pandemic – arrived.

“Spend a lot of time talking to customers face-to-face. You’d be amazed how many companies don’t listen to their customers.”

– H. Ross Perot

Your listeners are changing, your advertisers are changing, your world is changing. So, you’d better be listening carefully to understand how you must change to be relevant to their wants, needs and desires.

Because as Enya sings “only change is here to stay.”

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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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Car Radios & The Future

AM Car RadioThe first mass-market car radio premiered in June of 1930, but due to a second World War it wouldn’t be until the 1950s that car radios became common.

Another factor that slowed their growth was cost. Those early six vacuum tube car radios cost around $130.

To put that into perspective, you could buy one of Henry Ford’s model A’s for $450.

Motorola

The Galvin Manufacturing Corporation, founded by brothers Paul and Joseph Galvin, were early pioneers in car radios. Paul Galvin realized their radios needed a brand name and came up with the name of “Motorola,” a portmanteau (a word blending the sounds and combining the meanings of two others, for example motel (from ‘motor’ and ‘hotel’) or brunch (from ‘breakfast’ and ‘lunch’) of the words motor car and ola. “Ola” back then was a slang word for anything audio.motorola car radio installation

Motorola introduced the first dash-mounted AM car radios in the 1930s. It wasn’t until 1952 that a German company, Blaupunkt, would introduce the first FM car radio. AM/FM car radios followed the next year.

1952

I was born in 1952, and like other Baby Boomers my age, radios and cars have always been one.

While transistor car radios were introduced in 1955, it wouldn’t be until the 1960s that they became affordable. It should also be noted that dashboard radios were still an option in 1963, however, they were a very popular option and more than 60% of all cars on the road in America had one.

Rear Speaker & 8-Track Tape Player

I can still remember the time my parents were buying a new car and one of the decisions that they had to make was whether or not to add the new car radio option that had just come out, adding a rear speaker to the dashboard radio.Car 8-track player radio

The first aftermarket option I remember my parents adding was that of an 8-track tape player. I loved this device because it allowed me to listen to air checks of my weekly radio show on my daily commute to college. I wanted to improve my style and presentation.

Cassettes & CDs

The 8-track tape players in cars would soon be replaced by cassettes, allowing people to make up their own “mix tapes” of songs they loved to hear most.

Compact Discs (CDs) eventually replaced cassette players in the car dashboard, and for those of us that didn’t want to change CDs, one at a time, it was a thrill having a six-CD changer located in the trunk that allowed for even more variety with the touch of a button.

iPods & Smartphones

Steve Jobs once said he wanted to be able to have a 1,000-songs in his pocket, and from that vision, came the Apple iPod. iPods could eventually be plugged into the car’s audio system and now offered a virtually unlimited supply of music and audio books at the touch of a button.

The iPhone would offer all that any iPod ever could, plus so much more. It became the computer in our pockets replacing a multitude of single use devices, including the car radio.

Entertainment CenterDigital Car Radio

Today’s automobile dashboard offers occupants a complete entertainment center that immediately connects to a person’s smartphone via either Apple’s CarPlay, Google’s Android Auto, or a manufacturer’s proprietary system. Today the vehicle’s onboard entertainment system plays a big role in people’s car buying decision and it can also add from a thousand to two thousand dollars more to the price of a vehicle.

Self-Driving Cars

TV Car RadioWith the evolution of self-driving cars, you can expect that more and more vehicles will come with video capabilities as well as audio, and also that the competition for who can provide the best in-car entertainment will be fierce and passionate.

Traditional radio programming staples, like Two-fer Tuesdays, ten-songs-in-a-row and no-repeat workdays aren’t going to cut it.

The global pandemic has caused two markets to significantly heat up:

1) suburban house sales and

2) new car sales.

Today’s reality is that people who now find themselves working from home, don’t want to be stuck in a little urban apartment and are moving to homes that offer more space to enjoy. Likewise. those individuals whose work demands they still commute, no longer feel safe on mass public transportation and are upgrading their ride.

Understanding how these changes will impact the future of your media enterprise is critical.

 

 

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Radio’s GEN-Z Challenge

GEN ZI recently sat in on the Edison Research webinar about people born between 1996 and 2012, known as GEN-Z.

If you read about this webinar in the radio trades, you would have learned that 55% of these young people listen to AM/FM over-the-air radio. What’s not to like about that?

The reality was, this daily radio listening was only to Over-The-Air FM radio, none of these GEN-Z people ever mentioned listening to AM radio. That’s still a positive, right?

It is, if your only focus is on the immediate future, not future trends.

Generation Z

Today, people aged 8 to 24 make up over 65-million Americans. They are the first truly digital natives, not having known a world without full digital access to content. GEN-Z people are also often called “ZOOMers.” They would rather create their own content than curate other people’s content.

Edison Research points out that Generation Z has only known a world where everything is ON DEMAND, and it’s the growing up in an ON DEMAND world that makes ZOOMers a challenge for OTA radio.

ZOOMer Trends

  • Their smartphones are the center of their media world.
  • 53% of ZOOMers listen to audio streaming daily.
  • They spend 98% more time than the rest of the population watching videos and listening to music on YouTube.
  • Spotify is their go-to music streaming service.
  • Their radio listening is mostly in the car, some at work, but none of it occurs in the home.
  • If they listen to OTA radio, it is on a device that only receives OTA radio signals, not with a digital streaming device.

When Edison Research ran clips of people in this age group talking about their media habits, it was clear FM radio wasn’t their first choice, but the fact that it was available in the car they were riding in or it was playing on a radio that everyone listened to while they were working.

Things Radio Can Do to Attract ZOOMers

Edison suggested that these programming ideas might be a way to attract the GEN-Z audience:

  • News & Information is important to GEN-Z, it’s their social currency.
  • Remind ZOOMers that radio is available on their digital streaming device.
  • GEN-Z wants to change the world, their local communities for the better and OTA radio could be a catalyst for helping them do this.
  • Surprise and delight ZOOMers with your content.

This last point is really about engaging the listener, and showing them you really care. In reality, 74% of your listeners probably don’t care* if your FM radio station disappears, because they don’t think you really care about them. Radio needs to create shared experiences for this age group. Radio needs to show they care.

Shared Values and Shared Purpose

Christian broadcasters and NPR both understand the shared values and purpose of their listeners and base their programming decisions on them. These broadcasters understand that their mission is not to attract everyone to their programming, but to build a loyal audience with those who share their vision of the world.

Using the Edison Research on GEN-Z, how can your radio station inspire and empower the ZOOMers in your community?

How do you learn what the shared values and purposes of the GEN-Z listeners are?

Ask them.

Form a GEN-Z advisory board to learn what’s on their minds and what their vision for the future is. Be willing to focus every aspect of your radio station on what’s important to THEM.

Change doesn’t begin with a slogan, it begins with shared values and purpose, which then inspires people to come together and create a world that is better than they found it.

 

*based on book “Know What You’re For” by Jeff Henderson

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Where Have All the Baby Boomers Gone?

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

Citizen Insight Academy

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

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

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

Traditional Radio Stations Have Lost Faith of Listeners

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

BBC Chief

BBC Radio Chief, James Purnell

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

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

NuVoodoo on Media Addictions

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

NuVoodoo Addiction to Media 2020

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

Boomers Know Great Radio When They Hear It

Real Don Stelle

The Real Don Steele

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

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

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

The Big Three

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

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

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

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

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The Competition for Attention

County_Cricket_BoardsA recent news item caught my attention. The English Cricket Board says “There are 200 million players of Fortnite…that is who we are competing against.” Welcome to the 21st Century and the attention economy, where everyone – yes, EVERYONE – is competing against everyone else. This blog competes for attention against not just other blogs, but everything else in our over mediated, world. It is our technology that has caused us to be over-saturated.

Blame Gutenberg

Johannes Gensfleisch zur Laden zum Gutenberg was a German blacksmith, goldsmith and inventor. It was Gutenberg’s introduction of movable type and oil based ink printing that ushered in the communications revolution via his printing press. This was the beginning of mass communication.

Wireless Communication

The next big development would come in the form of wireless communication. First Marconi, turning wired Morse code into wireless transmission. Then the advent of voice communication followed by voice and picture communication via radio and television.

The series Downton Abbey perfectly captured how was received in the home during season five.

Smartphones

The introduction of the smartphone bumped the radio off its perch as the #1 invention of the 20th Century. The smartphone, along with the internet, changed the way we communicate with one another. They would destroy the original communications concept that professionals would communicate to amateurs. Those days are gone. Social Media Theorist, Clay Shirky, says “in a world where media is global, social, ubiquitous and cheap” and where audience is now a full participant in the communication process, it’s no longer about “creating a single message to be consumed by an individual but about creating an environment for convening and supporting groups.”

Gaming

The advent of online video gaming, such as Fortnite, is not just creating that environment for convening and supporting groups of like-minded video game players, but is competing for our time and attention. “There’s 200 million players of Fortnite,” says Sanjay Patel, managing director of The Hundred, part of the England and Wales Cricket Board. “That is who we are competing against. So, if you don’t interrupt young people in a different way, if you don’t engage them in a different way and you don’t talk to them in a different way, they’re not just going to automatically come into your sport.”

And it’s not just Cricket or something happening overseas, America’s national pastime, Major League Baseball, has seen an attendance drop of 233,000 at their ballparks from the same time period in 2018. And the 2019 NFL preseason opener, the Hall of Fame Game from Canton, Ohio broadcast on August 1st, looks to be at an all-time low in TV ratings, for the second year in a row. Down about 15% from last year’s game. Crikey, what does this mean?

Too Many Choices

We live in a world with too many choices and as broadcasters, we need to face that reality. Again, to quote Clay Shirky, “the decision we have to make is not whether this is the media environment we want to operate in, it’s the one we’ve got. The question we all face now is how can we make best use of this media?”

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Where Have All the Salespeople Gone?

emptydeskFact: the number of people working in the advertising industry is in decline. What makes this noteworthy is that America has been in an economic expansion.

For the past thirty years, advertising jobs have grown in line with the economy, why not now?

I See/Hear Lots of Ads

In my youth during the 60s/70s, it was estimated that the average American was exposed to around 500 ads per day. Those were the days where advertising was delivered by what we now quaintly refer to as “traditional media;” newspapers, magazines, billboards, radio, television and direct mail.

In today’s world of smartphones and internet, digital marketing experts estimate that the average American is exposed to somewhere between 4,000 and 10,000 advertisements per day.

With this explosion in advertising, why are salespeople disappearing?

Google It

Or Facebook it. Or Amazon it.

In reality, the world’s largest advertising companies are these three technology giants and they have realized virtually all of the growth in digitally based advertising.

Programmatic Buying

The advertising business has always been one based on building relationships, be it directly with the business owner or with an advertising agency. Programmatic buying eliminates these relationships by the use of algorithms. This allows for the placement of more advertising, on a variety of platforms, with the need for fewer people.

The downside of programmatic buying is that a company’s ads may be placed in low-quality or even offense editorial material. That’s been very troublesome for advertisers.

The High Tech/High Touch Pendulum

Throughout my broadcast career, I’ve watched the pendulum of change oscillate between a communications industry that is “high touch,” aka people talking to people, to one that is “high tech,” aka machines/automation talking to people. This pendulum oscillates on a fairly regular cycle between the two extremes.

Maybe we’re close to the apex of the pendulum swinging in the direction of high tech, and it will be moving back toward a world that demands people interacting with people again. We’ve been here before.

Digital Truths

In the current generation of digital media, we know that two things are true:

  1. No one is looking for more ads
  2. High Quality Content Rules

So, what’s the answer?

Every form of media needs to look in the mirror at itself and be honest about its advertising content and the quantity of ads it’s running. (Note: Running more low quality ads was never a solution to making your budget number.)

Whether we’re talking about the songs we program, the banter of our personalities, the content of our talk shows or the quality/content of our ads, it’s ALL important in a world where high quality content rules.

Media sales today is more about building partnerships than transactions. It is one where consistency and trust are the foundation upon which today’s sales professional becomes a sustaining resource to the businesses they serve.

Human Relationships

Advertising is influencing and influencing is fueled by relationships.

Whether it’s the relationship between an air personality and the audience, or the sales professional and the client, there’s real value in building human relationships and partnerships.

The airline industry today could save as much as 35 Billion Dollars employing the use of pilotless planes. But according to Fortune “54% of passengers refuse to board a remote-controlled plane.”

Representative

I know I’m not alone when I call a company for help and find myself frustrated having to deal with an automated voice system. Very quickly I find myself yelling over and over and over “REPRESENTATIVE.”

Are we approaching the age of algorithm burnout?

We will always opt for a real live human to work with, over a digital one.

That’s why there will always be a job for media sales professionals who are both knowledgeable and emotionally intelligent.

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Seniors & Technology Adoption

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

Connected Seniors

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

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

You Can’t Turn Back the Hands of Time

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

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

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

Social Media Addiction

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

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

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

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

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

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

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

Reader Question

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

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

Reaching Our Time Limit

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

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

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

What are your thoughts?

 

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What Will Be Radio’s Icon

vintage_objects_collection_television_telephone_clock_radio_icons_6833099Growing up in the 20th Century, things looked like what they were. Telephones were easily identified as telephones. Television sets were easily identified as televisions. And radios were easily identified as radios.

I’m a member of many social media radio groups, I even host a couple of my own, and we all use classic radios to brand Crosley AM FM Radioour social media pages. In my case, it’s a cathedral style radio made popular back in the 1930s. A style of radio I never owned until I received a retro transistorized version at a company manager’s meeting back in the late 1980s.

Smartphone

When the smartphone became ubiquitous and people began to listen to radio broadcasts first iPhone introducedon their phones, I wondered if the new icon for radio might be just that, a smartphone device. But then, this same device could also represent a TV, a camera, a movie camera, a book, a newspaper, a magazine…well you get the idea, a lot of media was instantly replaced by this singular device.

Smartspeaker

Then, a year ago, Santa brought me an Amazon Echo and Alexa became the servant I echonever had. She’s always there, waiting for me to call her name and fetch for me whatever I need, be it the latest news, weather, wind chill, traffic conditions, music, and more.

I then thought that maybe the 21st Century radio icon would look like this device.

An App

Radio APPThese days, radio still dominates in the car, and the vehicles being produced today feature entertainment systems. These dashboard entertainment centers are loaded with unprecedented engagement capabilities and each one is accessed by an identifying App. Companies like Pandora and Spotify are providing a content rich environment to take full advantage these entertainment systems.

It’s hard to imagine how anyone will be able to keep their eyes on the road as song titles, logos, biographical information about the artists, concert dates and so much more accompanies the music that is playing.

By comparison, a broadcast radio station’s programming to these devices seems rather anemic.

And things aren’t likely to change anytime soon, as broadcasters see the costs of these opportunities to be prohibitive on many levels. For one thing there are all the new licensing fees that could be attached to broadcasting this media rich environment. For another, the few people working in today’s radio clusters barely have enough time to get things done now without the addition of coordinating all of these other items. And if you add more people to handle the work, then the costs will really rise. So, Return On Investment (ROI) issues rear their ugly head and everything comes to a standstill.

Not Right Now

Over the years, I’ve been involved in these types of discussions and the phrase most often heard by those who hold power over the purse is “not right now.”

Discussions usually degenerate into the drawbacks of moving forward, or how these new innovations will be paid for, and end with no progress being made.

Think AM Stereo. Think FM Quad. Think HD Radio (before broadcasters learned they could use HD’s subchannels to feed multiple FM analog translators).

Yes, Right Now

The reality is that these changes are taking place as we speak. Is the radio industry focused on the needs, wants and desires of future listeners or a 20th Century radio spectrum grab strategy?

“Sometimes I feel like a creature in the wilds,

whose natural habitat is gradually being destroyed.”

-Lord Grantham, Downton Abby

Radio’s last beachhead is in the automobile.

If it doesn’t wish to see its dominance vanish, it will need to focus on all that the vehicle entertainment systems are capable of delivering, and provide the unique content that is a “must have” for the media consumer.

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What’s Radio’s Why?

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

College Kids on Radio

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

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

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

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

What does?

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

Write The Wrongs About Radio

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

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

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

The 25-54 Demo

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

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

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

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

Norway Turns OFF Analog Radio

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

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

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

The Takeaways

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

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

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