Tuesday, October 14, 2008

The Radio Week That Was 10/14

PPM: While the economy continues to be a wild ride we also still have the PPM controversy with NY and NJ looking to stop PPM with law suits.

This past week we got the first look at some of the new PPM markets - NY and surrounding areas, LA and the vicinity, Chicago and San Francisco/San Jose. So let's take a look at a few markets to see what the big difference is when we compare the 12 plus shares from July, August and September in the PPM world to the 2007 12 plus averages over the 4 books:

  • New York: The Hispanic stations are off around 2.3 shares and the Urban/Rhy station are really up around 1.5 shares 12 plus over their 2007 share averages. While the Spanish formats did fall over 20% the Urban's are actually UP. The other winners were N/T (up 3.8 shares), ACs (up 2), Rock (up 2) Classic Hits/Oldies (up 1.6) and CHR (up 1 share).
  • Los Angeles: Hispanic shares were off just 1 share under 4% and urban shares were off 1 share which is around 10%. The gains were similar for the rest of the formats.
  • Chicago: Urban was off 4 shares, Hispanic down 1.5 shares while Rock picked up 4.2 shares, AC was up 3 shares, and N/T was up 2.4 shares.

Yes there are some big moves here with so many of the NON-Hispanic and Urban formats gaining a lot of market share. But, outside of the Urban fall off in Chicago there isn't that much downward movement. In the high Hispanic world of LA they are only off 4%. In NY look at the gains for the Urban/Rhy formats! Consider that this summer was dominated by a huge political season the big N/T gains could roll off after the election, those N/T shares could stabilize a little more as we get into 09.

Perhaps I'm biased, but it seems like a lot of action to go to lawsuits and state motivated legal action over these comparisons. We've all had books that moved up and down 10% - perhaps we should have called the state AG instead of the Arbitron rep.

Economy: While these swings and the recession (yes we are in one even through the govt. won't admit it) can be tough times for the sales team as well as the budgets. But, keep in mind that radio has CLEAR advantages for advertisers:

  1. Those who take advantage of the moment and market their product with a well targeted message can make huge gains in this economy. Just like those who bought when the market hit bottom last week made huge gains this week, the same happens in the market place.
  2. Radio is a bargain: The rates and production are reasonable to low and you can reach HUGE audiences without blowing the bank account.
  3. Radio is proven: This isn't some Internet gamble that may not draw business. The radio model has worked for years.

It might be time to revamp the pitch and re-tool the packages with these 3 facts as keys.

It's also time to take advantage of the opportunity to build your product. We all know the road to making great/entertaining radio will come from having compelling products that interface with the community and entertain beyond the music. Reach out and really enteratin the audience - they need it. It's also your opportunity to invest now and really make gains as the markets recover.

Monday, October 6, 2008

The Radio Week That Was 10/6



1. PPM and Cuomo: This saga continues as minority broadcasting groups try to kill PPM so their ratings won't suffer. But, to try and make it illegal in some way is completely stupid. The only valid issue here is sample, and yes Arbitron will need to work more on sample and cell phone only households to deliver more reliable results, but it's not an easy task. PPM is far more accurate in collecting the data and the only finding you are going to see in a court ruling will have to revolve around the in-accurate diary system which they are trying to keep? Anyone can see the motive here - politicians trying to build a career from a case/publicity, like Elliot Spitzer did!!! Mr. Cuomo 'don't waste you time and our industry.' Grab a power switch somewhere else.

2. Arbitron looks at 50 diary markets to implement more cell phone household coverage in samples. Great news, but we need to do this in all markets PPM and Diary. The land line telephone is over as a communication device. It would be great if they would at least let us know which 50 markets they want to start with.


3. ABC looks at a Youth Movement: The network releases last week that they are focusing on 18-49s as they look for new products. Our whole industry is so far behind on this issue and we all need to reach out to younger audiences. Now is the time - as we come out of this economy you can bet that the working youth will be the catalyst not the depleted resources of the boomers.

4. Economy: The 'bailout' passes but we are still in a big economic mess. The public gets this one even though they don't understand the 'naked short selling' or the 'derivatives' they do understand that a bunch of highly paid Wall Street types made off with huge bonus' and paychecks on their backs. A lesson for us - 'the audience is smarter than we sometimes think.'

5. Economy and Formats: We've all seen down turns in the economy trigger gains for Country, but Rock radio can also grow as times get tougher. While the country themes of overcoming adversity, living in tough times, and a generally positive outlook are often cited as reasons Rock also has some themes in the music that sync up with the times. The rebellion side, tough times angle and reality of the music often cuts through. Look at the early 90s downturn and the rise of grunge. Look at all the new bands like Linkin Park, Stained, Disturbed and others that grew in the post 911 downturn. The late 70s was also a tough time that brought a rise in rock's popularity. With Metallica heading up both sales and download charts, ACDC on the way, Guns/Roses out shortly, Nickleback out soon and lots of left over music from earlier releases in 08 it will be a banner year.

6. Your Stars: How well prepared are your personalities for their show? What are THEY really bringing to the listening experience? I bet if you took an air check and just cut out the positioning, call letters, simple music IDs, and things like weather/traffic you'd have very little 'personality' to show. Air staff members become personalities by what they bring to the party not just by hanging out at the station. We are a third of the way into the Fall ratings period - how entertaining are we?

Monday, September 29, 2008

The Radio Week That Was 9/29/08

Here is the weekly review of Radio and related news on September 29th.

1. Was Letterman Mad or what. After McCain blew him off and ended up on Katie Curic's news Letterman really took him to task. Who had the bigger audience? Probably Letterman by a mile and he also got more from the web and other media coverage of his reaction. While we can see that McCain didn't feel it was time for jokes he could have turned the bit serious - Letterman's done it many times with other guests.

2. Rumors of the new 'Cumulus' lead smaller market ratings system keep popping up in the trades, but who is it? What is the plan here? For sure it's a big job, but let's hope they don't drag this out to the point where it really doesn't matter when the news hits. More and more this is looking like a re-run of the Clear Channel lead effort that ended up dry before this one.

3. Paul Newman passes while that's sad news we all have to cover it in our morning shows. Next time you might look up Death Pool Dave (not related to me) at www.dpdave.com. A great site with actual death pool watch updates. There are also on-line death pools with points (sort of like fantasy football) - usually you get their age minus 100 in points. It's weird but also entertaining and Death Pool Dave is a great interview.

4. The Web: Notes from various stories:
  • Your Stream: Bill Conway (PD at KOIT) noted at the NAB that he was disturbed with the sound of his stream with all the filler junk inserted int he spot breaks to cover over the 'voice over talent issues.' He noted that only 10% of the spot content in most streams needs to be replaced. As a listener to lots of streams I join Bill in asking- why do we rarely even hear any spots at all when only 10% of them really need to be covered. The stupid PSA, goofy instrumentals (some sound like the came from old porn movies) and long winded promos are annoying to say the least. It's time we demand more from our streaming providers in substitution software. Surely we can find a way in our digital studios to mark the spots that need to be replaced and let the rest run. If we are going to go head to head with all the web based stations we need to make this work!!!
  • Pod Casts: An idea of the week - how about a 2-4 minute summary of your morning show for the week? Great download of the best moments all quickly edited together.
  • Are all our Web Efforts ignored at the buyer level: John Hogan was addressing a gathering of buyers in NY last week and noted that Radio has done a lot with the web and the buyers continue to act as if radio is sitting on it's hands. He's right - look at all the CC, CBS and other group efforts with lots of content and many experiments with lots of new ideas.

Monday, September 22, 2008

The Radio Week That Was 9/22/08

Thought I'd add a weekly feature to the blog and review some quick highlights from the past week in our radio world. Last week was pretty dramatic:

1. Economy Hits A Wall: From the coverage on CNBC it looked like last week was as near to a Wall Street meltdown as 1929. It looks like some of the storm has passed, but like IKE we have a huge expense cleaning up the mess. For Radio we didn't need this news as no doubt capital for business will be in short supply and the American economy will likely be in a funk for quite a while to say the least. We all know this will make the going even a little tougher as Radio looks to evolve into a lot stronger platform in the midst of so much new media competition. We're all going to have to get bold and creative and quick.

2.AFDI: Clear Channel wraps up their radio group meetings with an appeal to the troops to Actually F*** Doing It. While some criticize the CC team for using the language and a phrase that Lee Abrams used in his blog a few years ago the spirit is right. Gotta quit talking and start doing.

3. NAB: The convention is over, but is anything going to evolve or was it just another hang out convention?

4. CD's May Be Replaced by Micro SD-Cards? Wal-Mart and Best Buy are teaming up with Sony, Universal, EMI and Warner Bros to use the Scan Disk Micro SD cards and put CDs/Albums on them. Art and liner notes will return (yeah) and there will be plenty of room for you to store your songs on the memory cards also. They can plug into phones, MP3 players, your computer and are not copy protected. Sounds interesting, but will the current downloaders buy in?

5. PPM: The recent legal attempts by 'we like the inaccurate and outdated diaries because we looked OK in it' groups continue to hold PPM back. It's time for these folks to accept the reality and get out of the way of more accurate and reliable ratings data.

6. Looks Like Rock Radio Ratings are improving: Maybe it's the wealth of good new music, better sample return in both diaries and PPM panels, or maybe it's the Guitar Hero/Rock Band video games. Whatever the reason Rock Radio is mostly up in ratings across the country. Unfortunately Arbitron has discontinued their national format trends report due to the problems related to combining PPM and Diary data. So we really don't have any nationwide data to trend on here, but going through the top 30 markets I see 5-6 that are close to flat, 5 or 6 that could be ruled down and the rest are UP. For the stations I work with in both the U.S. and Canada nearly all were UP this past Spring. It's a good time to ROCK.

Wednesday, September 17, 2008

Authenticity Part 4 - The Wrap

We wrap up being Authentic with the audience with 3 tips:

1. Be Viral: When things happen in unique and unexpected places they can look more authentic. Showing up with a integrated presence in the streets and on the web woven into the event/site can get your message across around the hype filter.

2. Use your audience: They believe themselves. Having the audience spread the word in their own style and words is a lot more authentic than the big voice guy. Just make sure the audience says what they want - not 'which station rocks your town.'

3. Be Unique: Stand out in your words and presentation and surprise them. Think way outside the box and you'll hit 'authentic' a lot quicker than using the same old tricks.

Lastly remember that Image IS the Key and you build that image one sweeper, promo, billboard, and impression at a time. Lose the focus on the image just a few times with the audience and all your hard work can be lost. Once you grow that authentic image work with it carefully to make sure it sticks. Once you lose it you see that the audience doesn't forget.

Friday, September 5, 2008

Living Up - Authenticity Part 3

As we move through a series of thoughts on Authenticity In Radio the key for part 3 is LIVING UP. I don't mean living beyond your means but actually the opposite. Living Up to what you claim.


Once you pull out the hype and quit making statements and claims that you can't live up to you have to find selling points and claims that you CAN live up to. Also keep in mind that longer claims usually set off the Un Authentic Meter.

While there are many stations that stand out with high Authentic scores one great example to listen to is The Drive in Chicago. The main claim for the station is basic and simple - The Sound Track of Our Lives. Notice that they use 'our' not 'your' - which would assume that somehow they knew Your life.

The presentation is also low key. There isn't a big voice booming announcer making sweeping big balls statements. The avoid the laser shot gimmicks in the production and often rely on classic song hooks to showcase the 'soundtrack.'

And when you look at the results the Drive has pushed past the legendary Loop complete with Brandmier. They have also run past WXRT which likely had the 'authentic' Q-score before the Drive signed on.

Another tactic that works - a sense of humor. You can make big claims, but make it obvious that it's a joke. Just remember that humor has a limited shelf life.

Repeating it over and over is also a way that we often rely on the 'drum it into their heads' that often backfires. The more we bang the drum the more often their BS meter goes off. When you do hype it up or use humor watch out - don't overstay your welcome. Keep track of how many times you've run a sweeper or promo and consider that with most stations that have a TSL around 30 1/4 hours a week it only takes 40 plays of the sweeper to get over 60% of your cume hearing the message 3 or more times a week.

Wednesday, August 13, 2008

Over Hype - The Core of Un-Authentic


In today's radio world we seem to gravitate to Hype almost naturally. Look at our positioning. There is hardly a station that can't avoid falling into- the BEST - The MOST or The Number 1 trap. The contesting is also filled with it - we can't just have the Winter Escape - it has to be The Ultimate Winter Escape. Then you look at the features, special programs and weekend themes and we've added another layer of hype. The air staff often falls into the 'sound' repeating the hyped up positioning with that 'extra' hype in their sell and fills the breaks even more fomatic hyped up billboards.

What really lies at the core of HYPE is making claims that you can't justify or that are subjective. Who is really 'the best?' Can you prove it with words? Rarely can you make claims like we do and expect the audience to ever really believe them. But, for years radio programming has followed the old marketing model. The reach and frequency game of repeat the same message so many times that it reaches the whole audience and then do it enough till it becomes drilled in. Hypnotize them and they will do anything or believe anything.

This game worked well when we only had a few media to work with and were not saturated with marketing. Now that we are swimming it in all the time and so much of it follows the reach and frequency hype model the audience is not believing it any more.

Getting rid of the HYPE in your station will be a tough task but one that you have to accomplish if you are going to stand up as a hip and credible brand with the under 40 year olds. Cleaning it out of your imaging, contesting, jock presentation and your marketing will take years. These habits run deep in our products and we won't get a lot of recognition for the efforts for a while. The audience expects hype from radio - it's become cliche.

OK so what happens if we commit to cleaning out out the hype - how do you sell the product to the audience? That's what we'll explore in the next segment building Authenticity Back Into Radio in a few days.

Thursday, August 7, 2008

Authenticity - The Key To Reviving Radio - Part 1

We've all recognized radio's issues and concerns as we've watched our 'stock' fall with the audience over the last 10 years. In the end our media just isn't 'hip' anymore and with so many new media entries to choose from the job of taking on so many challenges looks daunting from the product and sales side.

While all of these challenges may seem new, radio has actually faced many of them before. As FM radio was taking shape we faced a lot of the same core issues. AM Top 40 radio ruled the land and it was packed with hype. Phony DJs, overly tight playlists often playing the top song every hour, and imaging that was anything but authentic. A lot of the audience was expressing the same issues we see now that radio had sold out and was no longer hip or a source of music discovery.

In those early days of FM being authentic was a core value. Even if you picked a phony name you had to have one that was more of a natural nickname than a hyped up image. Stations didn't position themselves as the Best or the Most they strove more to be unique. The presentation was more 'laid back' and the messages between the songs were more informational than fixed on selling the product. The playlists were a lot wider and deeper than the top 40 AMs with a freedom that lead you on more for what you might discover than what you already know. While you may feel that the description here was mostly about 'progressive radio' or the origins of the AOR format these values were also present in the Beautiful Music Formats and the AC stations of the era.

Radio began to regain it's ties to the audience and the shift to FM was on. In the early 70s only 10 to 15% of the listening was on FM, but by the end of the decade it was over 50%. Of course it moved to the 80% range through the 80s.

Looking at today's 20 something and younger generation that seems to be at the core of radio's woes the one thing they are looking for is AUTHENTICITY. In the oversold world that they have grown up in they can smell a sales pitch miles away and usually run from it.

Radio is full of gimmicks, hype and illusion -- all detractors of AUTHENTICITY. From our 'THE BEST XXX' claims to the over dramatic contests, gimmick names for the stations, and endless formatics designed not to entertain but to drill images into the audience's head.

If we want to revive our product with the audience under 40 AUTHENTICITY will have to be at the core of our values. Over the next 2 weeks let's take a look at some ideas you can use in your station's culture and foundation that will breed authenticity. Hope you can make it back and I also hope you will add to the party with a few comments.