This is nothing new. It’s been going since the days of Eddie Fritts at the NAB Convention and at The Radio Show – the movers and shakers in radio get more accomplished in private meetings or in the lobby bar/restaurant at the “unofficial” hotel of corporate honchos. In Las Vegas recently, it was the Encore. In years before, it was the Wynn, and before that, the Bellagio.
Now I’m not going to go all Jerry del Colliano on you in this post. I personally spent a fair amount of time myself at the Encore where it wasn’t hard to run into people you know and those who you’d like to get to know. Many broadcasters would concur that some great meetings occurred in the lounge, restaurants, bars, and hallways of that hotel (and the Wynn).
Now during normal times, there’s nothing wrong with this. But there’s nothing “normal” about these times. Anyone who thinks they have this all figured out is kidding themselves. The fundamental ways in which consumers are entertaining and informing themselves is undergoing major change – and it’s happening faster than we can even imagine, understand, or appreciate.
Whether it’s second screens, the digital dash, Internet radio, music discovery, on-demand content, or integrated advertising, it is all moving and changing so quickly that even those in charge of the world’s biggest technology companies will tell you they have no idea what’s coming next.
On NPR’s On The Media, there was a story about search engines, and they quoted Google’s Eric Schmidt testifying to Congress in 2009 about predicting the future:
“The only constant is change. Ten years ago, no one would have guessed that the vocabulary of economics looks like it does today. And no one knows what it will look like in one year or five years.”
And this from the guy at the top of one of the world’s most dynamic tech companies. Even Google Glass cannot give you the vision to see what’s next.
Yet, many broadcasters are sounding like they have turned the corner, now realizing that traditional revenue growth is limited, and that dollars have moved to digital. That’s the new given, and everyone you ran into in Vegas reiterated that point.
But if anyone believes that attending a Borrell or BIA/Kelsey conference constitutes the whole nine yards of where radio is at in 2013, it’s time to get real. The issues facing radio – many of those on display at RAIN and in many NAB sessions – are vast, complicated, and range far beyond where the dollars have moved. They have everything to do with the consumers and their changing cars, the growth and convenience of Internet streaming, the true value of HD radio, and a recommitment to content creation. Those were the key topics being discussed outside the Encore, and they’re real, they’re gnarly, and they require thought and attention from everyone at radio, especially those at the top.
The session that I participated in at the NAB was well-attended, and was part of Skip Pizzi’s fine “Digital Strategies Exchange for Radio” tract – also known as DSX4r.
During the Q&A phase, Beasley’s VP of Interactive, Kathleen Bricketto (pictured), talked about the importance of digital buy-in from sales managers when it comes to the marketing of new platforms. She noted that when sellers see their GSM excited about digital and believing in its future, it rubs off on everyone in the organization.
I think that it starts even higher up than that.
The companies where the CEO is clearly sending the message that digital matters, that the stream has value, that a mobile program that goes beyond buying perfunctory apps is essential, and that gaining a true understanding of changing consumer and client relationships are critical elements in radio’s future. It is paramount that radio’s corporate leaders look beyond making their covenants or their Q2 goals.
During my session, I added my prescription of what every CEO in radio ought to be thinking and doing because of the tectonic shifts in media and the consumer mindset, and I offer my wish list here:
- Turn in your BlackBerry – It was a great device in 2004 and ahead of its time. Today, if you want to truly understand the app experience that your listeners and your clients are participating in, go out and buy a true smartphone in the Apple or Android families, download entertainment apps, and have at it. It is essential to experience TuneIn, iHeartRadio, and a bevy of individually branded radio apps as well to appreciate the current state of the art and the potential. As I demonstrated on our panel, secondary apps for radio brands – for that food show, ski reports, local concerts and entertainment, festivals and events – are assets that can be monetized and that grow your brands.
- Sign up for Facebook and Twitter – and learn how to use them – It is not possible to “get” social from afar. Participating in this experience, connecting with others, and understanding what it means to truly be social with others is at the heart of the radio revolution. So many broadcasters haven’t even bothered to set up accounts. And many others signed up, but haven’t done a thing in months – or years. This isn’t about radio – it is about the fundamental changes in the way that society now interacts with one another. It requires more than just hiring a digital dude or social media chick and calling it good.
- Show up at conferences outside of the same old radio shows – We learn by being exposed to new people, new ideas, and those who are outside our comfort zones. We may not always want to hear views about radio from media experts outside the business, but this is the reality of the moment. It is important for beliefs to be challenged, but that rarely if ever happens by talking to the same people in the same lobby bars. I find it ironic that a guy who all the pundits should have been forced out of business by consolidation by now – Jerry Lee – has attended more than 40 consecutive CES Conventions. Doesn’t that tell us something about the value of going outside the NAB, Convergence, and other radio conferences for learning and discovery?
- Drive a connected car – Once again, the Connected Vehicle Trade Association’s Valerie Shuman started her talk at DSX4r with this question: “How many broadcasters in attendance today own, lease, or have driven a car with a digital dashboard?” And no more than 10% of the hands in the room were raised. As Paul told attendees at RAIN in his connected car session, there are two critical reasons why radio needs to stay engaged with the auto industry: 1) the car represents the #1 listening location with consumers, and 2) the automotive sector and dealers represent the top revenue source for radio. For these reasons alone, broadcasters need to reconnect with automakers, and not just to pitch them but to partner with them. In order to effectively accomplish this, it is essential to understand how the in-car experience is changing, and to map out strategies for radio as a result.
- Make your stream a priority – It is the major conduit to growing your audience outside traditional terrestrial boundaries, while reaching younger, up and coming customers. Yet, as we’ve pointed out in past posts, the need for managers and programmers to quality control their streams has never been more critical as Internet radio becomes more popular. Eat your own dog food by demanding higher quality, consistent streams that are on a par with your new digital competitors.
Radio has many bright, engaged, committed and passionate CEOs and corporate officers in its home offices throughout the country. Most are honestly trying to turn this corner, to solve problems, and to ensure the relevance of radio in the years to come.
But in order to get there, an investment in time, people, and brands is at the heart of the challenge facing radio. It is a time for learning, discovery, and research for radio professionals system-wide. And that tone is set from the top.
Tuning into consumers is more than just about testing music or conducting perceptuals. The automakers, for example, clearly realize they have a growing problem in attracting young people to showrooms, much less to buy their cars. It requires a commitment to unlocking their consumption potentials to keep our industry fresh and vital, from both a listenership and staffing perspective.
The car companies are strategically taking on this challenge, and to a great degree, technology in cars is part of their strategic toolbox. Radio broadcasters have precisely this same dilemma whether it is on anyone’s radar screen or not. Partnering with the auto companies on initiatives that are designed to bring younger consumers into the fold would be a wise use of time, resources, money, and people.
But talking EBITDA, multiples, and saving AM radio at the Encore isn’t going to move that needle.
That’s just radio as usual.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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Might I also offer one piece of advice from outside the US?
Look outside the US. Come to Europe (RadioDays Europe is a good, English-speaking, conference; or my own nextrad.io conference, of course) and get ideas from other countries. The hermetically-sealed US radio market is not, always, the best place to grab ideas.
A great point, as always, James. We tend to get very insular here. We wrote a post earlier this year about World Radio Day and some amazing stories from radio around the world. Thanks for the insights, James, and for reading our blog.
Great post! Please allow one addition; get to know EXACTLY how new media companies are providing ROI to advertisers, and see how it may be applied in a broadcast environment.
Dollars are flowing into digital not because its new and cool. There is value in knowing if a campaign generated sales, and how many sales are attributed to it. (Both are possible within a properly constructed broadcast schedule.) Radio needs to be much more proactive in handing clients post-campaign analysis if it is to gain ground in years ahead.
Ken, thanks for the insights and taking the time to comment. Clearly, sales and advertising ROI is an issue that isn’t going to go away. Appreciate you reading our blog.
Hi Fred – A GREAT article. I’m a second generation broadcaster, in the biz for more than 30 years – I’ve spent the past few years pursuing a Masters Degree in Psychology and working as a therapist. I concur that how CEOs feel about their business projects onto the stations, and the attitudes within the stations, projects onto the audience. Radio needs and intervention! And, I’m on board.
By the way – I literally laughed out loud at the ‘I’m not going to go all Jerry Del Calliano on you” comment. So true! I follow Jerry – but what we need right now is positive input in order to turn this ship around!
Kelly
Kelly, thanks for the encouragement and the kind words. I received lots of positive feedback about this post. And Jerry is a good friend, and I believe that he enjoyed my reference. He comes at it from a different angle, proving once again that there’s room for different voices and approaches. Thanks for the taking the time.