Perhaps you were watching that amazing Michigan-Notre Dame game under the lights this past Saturday night. Aside from how great “The Big House” looked and the amazing finish, the other thing you may have noticed is the way the student section looked.
You don’t have to wonder where they’re sitting because it’s common knowledge that when you’re a student and you see Michigan play, you wear your maize shirt.
Of course, most of the rest of the 75,000 or so attendees wore variations on the theme – maize, blue, and similar block M shirts, hats, jackets, umbrellas, seat cushions, mugs, etc.
And Michigan and Notre Dame wore special throwback jerseys to commemorate the first game being played under the lights in the history of “The Big House.” That translates to even more merch sales and “gotta have” items for Michigan’s millions of students, alums, and as they call them here “Walmart Wolverines” – folks from around the area who never attended the school but are loyal nonetheless.
Ask any heritage rock station that invested a little time and a little money in making their own “throwback jersey,” celebrating the original station logo. In every case, fans go crazy and buy them up. Why? It’s a reflection of who they are and what they believe in.
Not to mention the money part. Because you can forget about bowl games – Michigan is ranked #7 nationally in logo/merch sales. Texas is #1, and from ’09-’10, they racked up more than $10 million in gross royalties.
Now I’m not saying that any radio station has the ability to out-merch a big-time pro or college sports franchise. But I am suggesting that well-branded radio stations – with history – have the potential to cash in on fan desires to show off brands they care about.
Great logoware programs for powerful brands take advantage of the following:
The power of nostalgia.
The power of memories.
The power of good times.
The power of a great brand that matters in people’s lives.
That’s how pro and college sports leverage their team colors, mascots, and all that goes with them.
This is something that radio did so well many years ago, but has abandoned the position due to budget cuts, new owners that didn’t get it, and a litany of other excuses and dropped balls. Radio has sadly given away its brand equity in the form of logoware to other entities, institutions, teams, and media outlets.
It makes no sense for three reasons:
1. Logoware is great viral marketing. It’s akin to a “like”/thumbs-up on Facebook. It’s one thing to buy digital billboards. It’s another when your fans give you an endorsement by wearing your T-shirt or hat.
2. Logoware is profitable. OK, you won’t do as well as Texas, Michigan, or Notre Dame. But if you have a solid brand that you’ve built, nurtured, researched, and marketed for years or decades, there is no reason why your station cannot earn thousands of dollars in this form of NTR. And it’s less risky than throwing a concert or festival.
3. Broadcasters often fail to market their best brands. As counter-intuitive as it seems, it is often the weak sisters in clusters that get the most marketing love. Sadly, most operators conclude that their best stations are less needy and can simply sustain their greatness without outside assistance.
Earlier in this summer, I was talking with a programmer whose station was connected with an event where special T-shirts were made up for staff and sponsors. This is a big station that owns a very strong brand in its community.
At the event itself, fans, friends, and followers of the station continually asked staffers where they could buy one of these shirts. But of course, they weren’t available.
When it comes to logo merchandising, radio is living in 1980 when shirts, hats, and bumper stickers were bought by the hundreds (and thousands) on a hope and a prayer. Everyone who worked in radio during those years remembers boxes of unsold merch sitting in “prize closets,” angering general managers who rued the decision to make all this stuff. It was often a gamble to merchandise because you never knew exactly what would sell and much inventory you’d get stuck with.
It doesn’t work that way today with online stores. Good stations have the ability to make thousands of dollars from their logoware. Great stations can rake in tens of thousands. And in the process, support their brands with in-market advertising of the best kind – real, viral, and enthusiastic.
I feel a bit like Charlie Brown every year when I look ahead to the holidays, thinking that radio will finally get it together, steal a page from their local sports teams, and go back to its roots to truly reap the benefits of its brand strength.
As rock marketer, Michael Brandvold, reminded us at Jacobs Media’s “Summer School” at Conclave this past summer, it’s all about branding – something that the KISS marketing machine understands all too well. You won’t catch Gene Simmons not taking advantage of every opportunity to work the brand, sell logo products, and extract money from the band’s “army” of fans.
That’s why you can buy virtually anything with a KISS logo on it, from your standard shirts and hats to baby bottles and onesies.
The power of your brand is greater than you think. And there’s never been a better time to leverage it with logoware and other station merch.
Every broadcaster of size in this country should have a merchandizing manager who can set up, administrate, and run stores that will pay for themselves in the first year of operation.
Radio needs to quickly get past its :30s and :60s mentality, and start getting serious about generating revenue from other sources. Like shirts, hats, iPhone cases, and the myriad of other items that make great stocking stuffers.
In this case, it’s a combination of revenue and visibility at a time when both are increasingly hard to come by.
There is still time to launch a Q4 initiative. Radio can do this.
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JJ Duling says
Great piece, especially with the KISS story (the band whose marketing savvy is the gift that keeps on giving). And, as much as I’m n-o-t a Michigan fan (MSU-Go Green!), one of the reasons I watched was to check out those throwback unis, from both teams. Combine that with the magic of the night setting and amazing finish, it was a very cool night.
Curiously UM AD Dave Brandon says that because of all those things, they may never do it again. Perhaps we should send him your piece.
Fred Jacobs says
Thanks, JJ. It was a merchandising orgy to be sure. And somewhere in there, a pretty amazing football game happened, too. Thanks for those comments and for reading our blog.
Danny Czekalinski says
Merchandizing! Another vastly untapped revenue resource our industry has overlooked.
When I worked in Oklahoma City I remember talking to the manager of Eskimo Joes in Stillwater. He told me that 45% of their revenue was due to t-shirt sales. Look at the Hard Rock and Hogs Breath Saloon. There’s money in there thar trinkets I say!
Greg Bergen says
As a JM guy who has switched to the sporting life–I can’t tell you how many times I’ve had this conversation with my radio cronies over the last few years. I would have created much more special, limited-edition merchandise while in radio–heritage stations should commit to doing a focus group at least twice a year that deals with the images, designs, moments, and timeframes that resonate with their audience and marketplace–then launch prodcut lines and memorbilia that re-tell the story and relevance of these special times and events.
Fred Jacobs says
Yes, and now that you’re living life on the sports side of the street, your perspective carries even more weight. Greg, thanks for chiming in. As a guy who led a legendary radio station – KY in Kansas City – and now works in sports, you’ve seen it from both perspectives. In sports, merch is a primary part of their thought process. In radio, it’s somewhere below tertiary and “we’ll get around to it in 2012.” Thanks for the reminders. There’s no reason why radio couldn’t be even basic research (remember the database!) to determine the best way to go and the cooolest stuff to make.
Praverb says
Thank you for this blog post and most importantly the information that is presented. I believe that memories are the driving force in regards to merchandise. The Washington Redskins for example, have been a below average team for the past few years yet their merchandise will always sell due to the success of “The Hogs,” Riggins and other special players. The same can be said about Tiger Woods. He looks like a shell of his former self yet people gravitate to watch the television when he is golfing. The previous examples reflect the power of memories and the power of branding. Memories enhance a company’s brand recognition. Look at Coca Cola, Pepsi, Apple, Google, Facebook etc. Everyone probably has a story that reflects one of the aforementioned companies. The power of memories is also integral to the sales of automobiles. Good memories means that a person will continue to purchase from that brand while bad memories usually reflects shifting to a different brand.
Thanks in advance,
Patrick
Fred Jacobs says
Thank you, Patrick. Great comments and strong reminders that great brands sell merch. Even teams owned by Dan Snyder.