In yesterday’s post, we took a closer look at Clear Channel CEO John Hogan’s statement about where his company is headed in 2012 – and beyond. As noted, iHeartRadio appears to be a main emphasis. And his comments did not mention individual radio stations or his company’s local market presence.
As has been reported in the trades ad nauseum, Premium Choice is the Clear Channel tactic designed to efficiently use major market talent in multiple markets around the country. As the economy for radio advertising becomes more challenging, Premium Choice becomes a tactical solution for a company with a major footprint to utilize some of its top talent.
In a release about Premium Choice, Hogan noted:
“At the same time, we face a particularly difficult economy that makes it extremely challenging for some local stations to invest in developing the highest-quality programming and talent. Despite the difficult economy, we see enormous long-term opportunity in investing in things that immediately improve the competitive situation of our stations.”
You can see their logic. It’s expensive for a company of this size to grow, nurture, market, and promote talent in many of their local markets. Nonetheless, like iHeartRadio, this is their philosophy and they’ve laid their cards on the table for the entire industry to see.
So what about all the other commercial stations that aren’t owned by Clear Channel?
“The other 99%?”
Another view comes from Cumulus’ SVP/Programming and former consultant, Mike McVay, who recently talked to AllAccess about his company’s philosophy:
“What makes radio successful is changing, but the key is to grasp ‘the absolute’ on what makes radio successful — and that ‘absolute’ is great content. It’s not about being ‘live and local or any of those myths we once believed. The bottom line was, is and always will be about great content. When Howard Stern first launched on WNCX/Cleveland, I was consulting cross-town WMJI. I remember everyone saying that our being local will beat his “out of town” show. That certainly wasn’t true. He became a serious contender in most markets and he did become #1 in several. Look at the best talk shows today — Rush Limbaugh, Mark Levin, Sean Hannity, John Batchelor and others. The great ones post huge ratings … and they are syndicated.”
OK, so the Big 2 have spoken. But what about “the other 99%” of stations that aren’t owned by these mega-companies?
Well, we may be beginning to see some serious counter-programming. And that goes right to the heart of a philosophical battle that will heat up this year and beyond. If Clear Channel, Cumulus, and others hitch their wagons to programs like Premium Choice and heavy syndication, is there an alternative in small, medium, and larger markets for other broadcasters?
Dan Mason and CBS Radio think so. And so do companies like Entercom, Greater Media, Hubbard, and many others. And that sets up some interesting battles in markets big and small. Late last year, CBS Radio announced a commitment to focus on its local programming, challenging its PDs to re-imagine what hometown programming is all about. Greg Strassell (pictured), its President of Programming, told Inside Radio:
“The drum we’re beating is to step up efforts to be a great local radio station. That may require some reinvention and rethinking and trying new ideas…Some stations that are being programmed nationally are giving you more room. There’s an opportunity for a lot of broadcast companies, radio stations and programmers.”
Part of CBS Radio’s initiative will be to conduct “local audits” to ascertain whether catering to hometown tastes and local audiences is being noticed and resonating. Clearly, there’s a “higher degree of difficulty” by taking the Premium Local approach, but radio programming history shows, there is no one way to achieve higher ratings.
But winning this way isn’t easy. For local personalities and the programmers who manage them, “four and out the door” and other barriers that limit interaction with listeners and advertisers – whether it’s face-to-face or via social media – are as antiquated as cart machines.
For us at Jacobs Media, Premium Choice-type tactics by the competition present valid alternatives and incentives to the rest of commercial (and public) radio to provide programming, service, and even a sales focus that embraces the local approach. But it’s going to require effort, commitment, and rethinking those old “isms” that have been a part of radio since the ‘60s.
Our company is focused on the CX/UX – Customer Experience/User Experience. The biggest companies in America and the world have realized the value and importance of an effective “high touch” approach to interacting with customers – solving their problems and meeting their needs.
Yes, the Apple iPod, Mac, iPhone, and iPad are all amazing, elegant products. But Apple would not be Apple without their stores, their “Genius Bar,” their phone support, and their service. Great radio stations of the future will have to commit to a philosophical sea change in the way they connect with consumers if they hope to be successful in a future media world with different standards and sensibilities.
It’s not just about content – whether it’s coming from Ryan Seacrest or the local market star. It’s about connecting with listeners, advertisers, and communities – something that has been back-burnered in this conversation about how big companies will approach radio in the future. You can create efficiencies via voicetracking, syndication, collective contesting, and other tools and gimmicks, but without a plan to work hard to entertain, inform, and impact, it won’t amount to much.
In other words, showing up in your market. Premium Choice’s Maria Milito is a good jock, and she may even sound better than your local midday personality. But it’s not likely she’ll respond to a listener in Dubuque on Facebook. Nor is she going to speak to the local high school graduating class, or show up at that car dealer on Main Street. All those things require time, energy, passion, and a commitment to being local.
So, is Premium Choice a problem for “the other 99%,” or is it an opportunity? If your station and company are committed to a local personality presence, a strong commitment to your community, the development of local sales solutions, and a responsive and interactive digital and social media program, you might be on the right side of this battle.
Maybe it’s time to conduct your own “local audit” to see just how hometown-focused your station and your jocks really are. Maybe it’s time to stop acting like it’s business as usual and instead, refocus your efforts on the opportunities and challenges that are being created right before your very eyes – and very possibly in your home market.
If you’re a part of “the other 99%,” the big boys have spoken. Now it’s your move.
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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The whole radio marketplace is changing significantly and the grwoth of online radio is showing us new business models that could be used by the major groups. I have been an ‘on-air talent’ with over 30+ years experience here in the UK, but since 2004 have been one of the early ‘pioneers’ of online broadcasting.
There is an enormous amount of talent out there looking for a break and as such, these guys will often buy their own airtime and thus sell their own advertising to make it work for them financially. On a small online station, this can limit their income because of listener numbers, however give this talent a place on a major network, if they have a real flair, they will fly.
As for the station, the income from the presenters will take the pressure off having to sell mainstream advertising and allow the return of the local focus. Everybody wins.
As for the top-paid jocks still in their jobs, nothing changes, networks will still pay for their ‘big names’ and ratings busters such as breakfast and drive time, whilst producing new self-sustaining talent through the other slots such as evenings and night-time, possibly even late morning and lunchtime shifts.
Food for thoughts.
Ross ‘The Hammer’ Hemsworth
And good thoughts at that. Personality is still the “secret sauce,” whether broadcast or digital. Americans subscribe to Sirius, not for their “80s Channel,” but for Howard Stern. Braodcasters in the States would be smart to look at onlline radio “stars” for their next hires. There is certainly no “farm team” in the US as overnights, weekends, and now nights are all voicetracked, thus limiting the chances for a star to be born. Thanks for the comments, Ross, and for reading our blog. Best of luck.
So fred are you saying it costs the stations LESS then $10 hr to be automated?
I tuned off the tv years ago barely listen to radio, yet I have lots of people willing to pay per hour to do their own radio show on the internet.
But its amazing you cant find an internet radio station in Manhattan thats available to the public ( except those ghetto rap ones)….most hosts have no technical skills so they just need to walk in and do the show.
For $10 an hour, a station can be live. And can also grow a farm team of talent. Most of today’s most successful jocks and personalities started doing weekends and overnights.
Wow we are such scum that illegals make more then DJ’s. Why did we dumb down america so badly? I guess to keep a job we had no choice.