Tuesday, May 10, 2011

Stop the Lies!

A few weeks ago in the newsletter I was raked over the coals for mentioning that Mike Huckabee said, wrongly, that Barack Obama grew up in Kenya, and for a swipe at Sarah Palin, arguably undeserved. The following email came in around that time, but was buried in my spam filter. I have no desire to reopen the debate in the newsletter, but I think the email, and my response, deserve an outlet. And this is it.

The Letter

I read your explanation of the Huckabee dust-up in this week’s newsletter and I think that many of the readers of your publication feel that you do have a political position that you have eluded [sic] to many times in your past newsletters.

The comments about Palin were not the first time that many of us “dumb hick conservatives” have sensed a certain leaning towards the Left by you. Maybe you aren’t aware of it, but many of your past editorial comments have made sly references to the fact that you think guys like Rush or Hannity are bad for radio. I personally don’t care what part of the political spectrum you reside in, but for hundreds of small stations like mine who serve very rural and VERY conservative parts of the country, we are rather tired of being branded as unsophisticated or backwards for believing in some of the principals of conservative politics like a smaller government and not spending more money than you make.

We discussed this point once before when you wrote negatively of the state of today’s talk radio and I stated that if it weren’t for guys like Rush, we would have been off the air years ago. And with our demise would have disappeared local weather every hour, local news every hour, live coverage of the local sports teams and the only information outlet that is focused on just our small community.

I graduated magna cum laude with a degree in Journalism from the Henry W. Grady School of Journalism and Mass Communication at the University of Georgia - one of the most prestigious journalism programs in the country. I’m not some country bumpkin with a transmitter and a tower in the collard patch out back. If that is the kind of broadcaster you think of when you picture the guys who air Rush, Hannity, Boortz, Levin, Beck, etc. on their stations, then you are sorely mistaken.

There is a real fight for ideology in the U.S. right now not unlike the Civil War. The two Americas are very polarized. And because of this, we have to have public discourse that is sometimes not very pretty. But I would rather us shout at each other instead of shoot at each other.

Jeff Lovett
President /General Manager
WGRA Radio

My Reply

Jeff,

Your email got buried ... I just found it tonight ... and wanted to let you know I didn't deliberately not publish it.

You make some good points about perceptions vs. "reality" (whatever that is). I have never, would never, and don't think it's right to, think of anyone as a "dumb hick conservative." I've heard that reference before, and I think it's a label that some people think is being applied to them, more than people actually apply it. (At least I'd like to think so.)

Unfortunately, as you point out, we live in an era of extreme intolerance ... and it greatly annoys me when the Ed Schultzes and Bill Mahers and Keith Olbermans talk about conservatives like it's a dirty word, in tones dripping with disdain ... just as it annoys me when the Limbaughs, Hannitys and O'Reillys refer to liberals the same way.

By the way, who came up with those terms, "conservative" and "liberal"? They are inherently prejudicial to begin with.

Hey, I owned radio stations in small markets, so I know first-hand how people in those communities think and feel - how I think and feel. But there's a big difference between the world we live in and the world occupied by the aforementioned radio/TV people, plus the Boehners, Pelosis, etc.: We could never get away with telling lies to our neighbors. When we see each other every day - at Rotary or Kiwanis, the Chamber meeting, the Friday-night games - we would be called out, if not outright ostracized, for the kind of shameless, obvious whoppers that our national talkers and political leaders feed us every single day.

I have www.factcheck.org, www.politifact.com and www.snopes.com bookmarked on my computer and whenever a politician says something I wonder about, I check it out. (FactCheck, for one, is from the Annenberg Foundation, and nobody would ever accuse them of being liberal!)

Okay, so I don't take anything at face value. Does that make me a liberal? I hope not! Especially since everybody lies.

By the way, my stations did not carry Rush, not because of his politics but because (a) he cost a lot of money and (b) businesses shied away from advertising on his show because he was too controversial - including those who agreed with him. We did, however, carry nearly every other conservative host ... and I can't think of one liberal.

Sorry to take up so much of your time, probably beating a dead horse. Whether "conservative" or "liberal," if everybody would listen for the lies and half-truths instead of maintaining that "all conservatives are always right and all liberals are always wrong," or vice-versa, we could have meaningful, respectful discussions that could really move our country forward.

Best wishes,

Jay

Thursday, August 5, 2010

The Gift that Keeps on Giving

A few days ago I received a nice gift from my friends Stuart Sharpe and Shayna Sharpe at Regional Reps: a coffee mug.

Now before you conclude that devoting a blog post to somebody giving me a promotional mug is a waste of precious Internet resources, let me explain. (By the way, it is predicted that the Internet will be swallowed by the sun in a mere 2 million years. Consider yourself warned.)

i-heart-tony
TOXIC SLUDGE CONTAINER

First, the mug was sent via U.S. mail in a box with no packing material whatsoever, and yet it arrived unscathed. I have sent indestructible lead weights via U.S. mail, with bubble-wrap, peanuts and boxes within boxes, and they still managed to break in transit.

Second, the mug could not have been more timely: my old “I Heart Tony Hayward” mug inexplicably developed a leak about three and a half months ago.

Thursday, June 10, 2010

Ignorance of History

Surrounding the death of the founder of our newsletter, we have spent a couple of weeks drenched in nostalgia and apparent longing for the good old days, I would imagine that our younger readers are a bit confused. What good old days?

Even someone who entered our industry in the year of our founding, say at the age of 23, would be 50 today—hardly a younger reader.

Working the other way, a 30-year-old radio person with ten years under his or her belt signed up in the year 2000. By then, the seismic shifts caused by the Telecommunications Act of 1996 were pretty much behind us. That radio person’s world has always consisted of mega-groups, market managers and regional DOSs. The concept of “seven and seven” is as foreign to him or her as, well, Foreigner.

But really, why is it important that anyone remember “Inner Sanctum”? Or “Make Believe Ballroom”? Or any of the great radio personalities down through the ages—whether Arthur Godfrey, Jean Shepherd, George Michael, Dan Ingram or—and he’d hate me for including him in this list—Rick Dees? (A certain consultant wrote a great piece listing all the accessories any old jock can relate to, like Ampex 350s, carts and 77DXs. . .but he’s notoriously protective of his work, so it will never appear in these pages.)

What about Newton Minnow? Reid Hundt? Miles David? Eddie Fritts? (Or David Rehr, for that matter?) Gary Fries?—and he will hate me for including him.

One of my favorite quotes—and I’m a huge quotes guy—is from early-Twentieth Century Spanish philosopher George Santanyana: “Those who cannot remember the past are condemned to repeat it.”

So, whippersnappers of the radio world, why should we take seriously Santanyana and something he wrote 107 years ago? Why is any of this important?

In truth, most of it isn’t. Most radio ramblings can be chalked up to the fact that each of us has a time of life that is most comfortable to recall. (Ask any Oldies programmer.) Each of these eras is the best for those who cherish them, but one isn’t inherently, historically better than another.

I think there are two aspects of history—radio’s, America’s, the world’s—that we disregard at our peril.

First are the lessons that, if well learned, will keep us from making the same mistakes again. As one who has weathered more than one downturn in his career, I feel for the first-timers who assumed the boom would last forever. Learning a little history might have helped them to cope better.

Second are the people who have displayed inventiveness, integrity, intelligence and leadership in their lives and careers. If more of us studied those people and followed their lead, our business would be a better place.

Fourth Estate Fire Sale

Back around the time our newsletter began, I consulted a station whose owner would gleefully frame and hang on his office walls the last editions of failed newspapers. He had maybe four or five of them.

We all thought it was great fun to find weakness in a strong industry, in a formidable competitor.

If that owner were around today, his walls would be, well, wall to wall with framed failures. And it is no longer great fun.

I for one feel that our society would suffer a great loss were printed media to become extinct. I get a lot of information online, but that medium doesn’t offer the quality or depth of a New York Times or a Wall Street Journal. Yet.

Actually, I’m more of a weekly kind of guy. I keep up to date by listening to the radio and checking my Google Reader, but for perspective, I turn to Time. But in the wake of the Newsweek situation—they are for sale, but who’s going to buy?—I fear for the future of the genre. Those Times are getting pretty thin, after all, reflective of a precipitous drop in circulation.

As much as I lament the inevitable, I have no printable words for the recent FTC idea-floating exercise designed to rob the strong and subsidize the weak—or should I say, rob the just getting by and further subsidize, since periodicals have long enjoyed a more-than-generous postal rate. (All I can say is, this idea is comparable to something else that floats.)

It’s one thing for our federal friends to exercise their power over electronic media to achieve their selfish and/or ill-intentioned ends—the cigarette ad ban and campaign finance reform come to mind—but now they want to add insult to injury by taking our money and giving it to a competing medium?

Why not? Since the beginning of time—well, 1926—we’ve been the low-hanging piƱata for our governmental masters. I can only hope that this floater is so manifestly wacko that for once it’ll be flushed without further ado.

Thursday, June 3, 2010

Closure

BOB DOLL It’s not often that we have a feeling of closure when a close friend dies, but I must confess to that feeling among the many that rushed in when I learned of Bob Doll’s passing. It turns out that just last week I had the opportunity to thank Bob for the many ways he enriched my life, all of which sprang from his giving me the opportunity to publish this newsletter.

Read what I said

Our inbox is brimming with notes about Bob, offering sympathy and remembrances. Many people tell basically the same story of their first encounter with Bob: when asked where they’re from, and mentioning the name of some tiny town that barely rates a dot on the map, Bob responds with a complete rundown of the stations in and near that town, replete with ownership history—and, more often than not, at least one colorful personal anecdote.

Bob and I were close, but we only spoke maybe a couple of times a month. As I reflect on our loss, the lyrics of a James Taylor song come to mind:

I’ve seen fire and I’ve seen rain
I’ve seen sunny days that I thought would never end
I’ve seen lonely times when I could not find a friend
But I always thought that I’d see you again

I’m not qualified to comment on Bob’s current whereabouts or whether he’s aware of the outpouring that his passing has prompted. But I can conjecture that if he were in fact a witness to the proceedings, he would wonder aloud, probably with a mild profanity, just what the fuss is all about.

Thursday, May 27, 2010

Polar Extremes

As a parallel entrepreneur—which term I may as well claim to have invented (patent pending)—I’ve always pursued things that interested me. As a second-generation broadcaster, radio, of course, is—well, I was going to say my #1 interest, but in the unlikely event my first and only wife stumbles across this essay, I’d better say #2. After that love, manifested in our newsletter, my two biggest passions represent where we’ve been, and where we’re going.

In the Where We’ve Been Department, there is my card-and-gift business (www.getcardsfree.com), which uses the quaint delivery system known as the U.S. Postal Service. How innovative is that?

As antediluvian as it seems, sending a heartfelt thank-you or greeting card is today unique and memorable, simply because so few people do it. (Just ask the red-ink-drenched U.S. Postal Service how few.) Virtually every sales consultant talks about sending cards and notes to commemorate sales calls and contract anniversaries, not to mention more prosaic events like birthdays and holidays, to set yourself apart. I salute those who take the time to put ink to paper and keep a storehouse of stamps. For the rest of us, there’s an online-based system that automates the process from composition to fulfillment, for about a quarter of the cost.

My other love—the Where We’re Going part—is my web-development business (www.radioinsites.com), in which we spend whatever time we’re not actually building sites to stay current with emerging technologies, so we’ll be ready to roll them out when our small and medium markets actually adopt them. It requires a combination of art and science to know just when to introduce a feature. (I wish there were an app for that.)

Here’s a useful takeaway for you: Right now everybody is talking about texting, Twittering and Facebooking, but nobody is talking about mobile web sites. As important as social-networking may be—and don’t believe the huge numbers in some recently-published research, by the way—it presumes an underlying ability to drive people to your website on the same platform they’re using for the other stuff. You’ve just reached them on their cell phones, and now you expect them to stop what they’re doing and find a computer for the payoff? I don’t think so. We need to stop playing radio’s favorite game, Buy the Hype, and instead play a game we can win—Listen to My Market.

All this Internet stuff is enough to make my head explode. I think I’ll take a break and send a card or two. Even though I’ll do it online, the basic process hasn’t changed in 200 years. . .and I don’t need any research to tell me how many people in my market have mailing addresses.

RAB Resurgent

With the RAB’s announcement about its expanded, enhanced online presence, there is evidence that, to paraphrase Mark Twain, rumors of the demise of their services department have been greatly exaggerated.

There is so much emphasis on all things digital today that we sometimes lose sight of the fact that 90-95% of our revenues still come from good old radio sales. And radio salespeople still need the basic tools to present our medium and our stations in the best light.

While the days of 800-232-2121 may be numbered (my estimation, not the RAB’s position), the days of RAB.com lie ahead.

No, Thank YOU

At the end of this week’s E.O.M. column in the Small Market Radio Newsletter, Bob Doll thanks me for allowing him access to these pages. We all know that the reality is just the opposite: we owe Bob a great debt for the wisdom he shares with us periodically in this periodical.

I use Bob as a litmus test to determine whether a person is a real radio person, or a phony poser. Not that this business has any of those. (Again, I’m kidding.) Real radio people look past Bob’s facade of a slightly befuddled, long-winded older gentleman and see the real guy—a steel-trap-minded walking Wikipedia of radio facts and lore.

I was first introduced to Bob at some convention somewhere—I’m sure Bob remembers exactly—by another of radio’s true originals, Mr. Drop Turkeys from a Plane himself, the one, the only Steve Bellinger. I may not remember where or when, but I remember vividly Mr. B’s words of introduction: “If you’re smart, you’ll listen to every word this man says.” Perhaps because any relationship would look easy compared to the one I had with Steve, I heeded his words about Bob, and I’ve never regretted it.

Thursday, May 20, 2010

Are We There Yet?

Last week in our newsletter we ran an article from Time magazine extolling the virtues of Internet radio and, along the way, sounding the death knell for local radio. 

It is an article of true faith with me that radio is infinitely resilient. While I do not know what our responses will be to future assaults, our history is rife with examples of clever responses to past threats. Whether movies, television, 8-track tapes, CB radio, 3D movies, Walkmans, iPods, home entertainment systems, cable radio, and now the Internet, radio has proved time and time again its ability to reinvent itself.

There are those who bemoan our rather paltry share of total advertising revenue—always hovering in the 6-7% range, more or less. I agree that given the power of our medium to produce results, that number should be much higher. On the other hand, in the face of the ongoing, accelerating fragmentation of media, maintaining a relatively stable market share is no mean feat.

Besides, what does a percentage of total advertising revenues really do for us, anyway? The wonderful thing about small market radio is that the macro metrics are meaningless. We get up every day and go out and sell radio advertising and serve our customers. It’s really a very simple process.

“But wait,” you may argue, “I have a publicly-traded company and the health of our industry matters very much to our lenders, thank you very much.”

I’m not so sure. From what I’m hearing, the people who are still—or once again—loaning us money have a much better, albeit hard-won, understanding of how our business works.

As I said up front, the solutions to our current challenges are as yet out of sight; but without doubt the challenges will be met—probably with another radical rethinking of our business model, it must be said, during which not all will survive—and radio will continue to hold its own.

Oh, and one more thing: for the first time in the history of our medium, we have the opportunity to become what threatens us. Yes, the Internet is more pervasive and fundamental … but it is also a level playing field that veritably invites our participation. Individually and collectively, we ignore that invitation at our peril.

Waiting for the Future

I can’t wait for my vacation this year. The missus and I will use our jet-packs to hop over to the airport, where our personal helicopter will whisk us to the space center, where we’ll board the Southwest shuttle (weightless peanuts!) to the Moon. (The Dark Side Hilton has an incredible fly/stay deal right now on travelpriceobitz.com.)

Oh, wait. No can do … even though these are all things that were to have been commonplace by now, according to predictions made 15 or 20 years ago.

Well, never mind. I’ll spend my vacation listening to my voice-activated Internet radio in my car, and my Internet TV all over the house.

Oh, wait. Those prognostications, made five or ten years ago, have yet to occur as well.

It seems that we’re always five years away, but it takes us 15-20 years to get there—assuming the idea was a good and practical one in the first place. (Jet packs? Personal choppers? Not so much.)

So, in the tradition of deferred predictive gratification, allow me to look ahead …

  • Radio and television stations will abandon their over-the-air signals by 2050. All television will be received via cable or the Internet; radio, mostly the Internet.
  • Satellite radio, seeing itself as a content provider rather than a delivery medium, will morph into another set of Internet-delivered, advertiser-supported channels, with no more chance of succeeding than you or I have.
  • HD Radio, which has no content in and of itself, will become irrelevant.

If you’ve gone to the trouble and expense to install HD, don’t despair. When the vinyl (well, glass, originally) record was invented, nobody foresaw the CD. In fact, our modern age is probably the first in which we know beyond doubt that every advance will very soon become outmoded. (Have you bought a computer lately?) Most of the time, we even have a pretty good idea of what will outmode it.

So, HD operators—and indeed all of us, who are surrounded by technology with soon-to-expire freshness dates—be of good cheer: the future always takes longer to get here than we think it will.

Thursday, April 22, 2010

A Letter to the Speaker

Dear Ms. Pelosi,

I note with no little chagrin that the perpetual pander-fest that is Congress has once again spoken through you when you—you choir-preacher you—told the RIAA that “the rights of performers are not forgotten.”

Your confusion is understandable. Many people brighter and more knowledgeable than you, even, believe “the rights of performers” and “the concerns of the record industry” are one and the same.

Nancy Pelosi
I DID WHAT?

True, there are many performers—overwhelmingly the successful ones, the fortunate albeit forgetful few who have been able to redeem their souls from the company store—who side with their foreign-owned masters in advocating the Performance Rights Act. But any performer, however successful, who is truly concerned for the music industry as opposed to the record industry, will tell you what a colossally bad idea it is to penalize the one medium above all others that sells records and builds careers.

Madam Speaker, may I refer you to a list of quotes—published in the 3/25/10 issue of The Small Market Radio Newsletter—from dozens of performers who have consistently, publically stood by radio and who are eternally grateful to our medium. A recurring theme in those quotes is, “I owe my career to radio.” (Have your people contact my people and we’ll give them access to our back issues online.)

That said, Nancy—may I call you Nancy? I respect your office and your service, but I don’t call any of my other employees by their last names—you have every right to your opinion, however politically calculated. Of course, if you and your brethren truly represented your constituents, you might think twice about backing an outfit that sued hapless mothers and children for hundreds of thousands of dollars—each!—for what they packed on their iPods.

But please recognize that you are in the minority—even within your own party. Healthy majorities in both the House and Senate have cosponsored the Radio Freedom Act, which prohibits the imposition of a tax for performance on local radio. Yes, it’s a non-binding resolution, but how can a legislator cosponsor our measure and then vote Yes on its polar opposite?

Oh, wait, this is Congress we’re taking about here—members of which have selective memories, to put it benignly. (I vaguely recall that one of your colleagues, the senior senator from Arizona, ran for high office as a “maverick.” But either he suffered a senior senator moment or my memory is playing tricks, because John—he works for me, too—recently denied that he’d ever said he was a maverick. Rewriting history would be a lot easier, wouldn’t it?, if we had an Orwellian Ministry of Truth. Come to think of it, maybe we do.)

But I digress. The real purpose of this epistle is to remind you—you universal health care champion you—that there is nothing healthy about the Performance Rights Act. In fact, it could be downright toxic to the very performers whose rights you’ve vowed to uphold.

No, that’s not a threat. Unlike other industries you’ve tried to reign in recently, radio is too busy serving our communities to cook up vengeful, retaliatory strategies to prove the law of unintended consequences. But there is a reality of which you—you limousine-riding, perk-enjoying you—are unaware: in the world of non-deficit spending, if a new cost is imposed, another cost must be cut. And fiscally-conservative operators—yes, Nancy, they do exist, albeit far from the Beltway—will act on the realization that we can neutralize a tax on playing music simply by not playing music.

Are you ready for Rush 2.0?

If nothing else will, that should scare you straight.

Saturday, April 3, 2010

The Missing Discourse

As I was pondering my reaction to a sales piece by Jim (Taz) Taszarek in this week’s newsletter—wherein he posits that rate integrity is a Bad Thing and rate flexibility is a Good Thing—I recalled the many conversations I’ve had over the years with our industry leaders about things like rate integrity, finding new salespeople, selling against cable—you know, all the stuff that preoccupies us and probably always will.

Then I got to thinking, what would such a conversation with Gordon Smith be like? With Jeff Haley?

Putting aside for a moment the unlikely scenario that any of us would be kicking back with Mr. Smith or Mr. Haley and BS-ing about radio, if such a conversation were to occur, I suspect there would be a lot of blank stares coming back our way.

And suddenly I felt very lonely.

Up or Down

It seems like we’ve been at this performance tax legislation business for about 100 years. I am probably the most politically naive person on the planet, but I can’t help but wondering whether we shouldn’t just vote on the darn thing already.

As I write this, late at night, past deadline, much too late to call my friend Dennis Wharton at the NAB for a reality check, I’m guessing that bringing the matter to a vote right now might not be in our best interests—even though our own Radio Freedom Act has such strong support.

And that’s what I don’t understand: How can a legislator who has signed on to our (admittedly non-binding) resolution turn around and vote for the very measure that our resolution opposes?

Talk about naive. . .

Bust a Rate

I suspect that Taz’s point of view on the subject of rate integrity—he’s not a fan, urging flexibility—will touch a nerve in many small market and local-direct broadcasters, as it has in me.

We all live in small communities; regardless of the population of our trading area, there is a handful of people with whom we deal—and they all talk to each other. If in my local market I were to adopt the freewheeling approach advocated by Taz in his column, I don’t know if I would go out of business, but my standing in the community would certainly go down the drain.

Sure, there were times when I would accept a lowball rate from an ad agency or large regional advertiser, and I’m not proud of the fact that I did so knowing it was unlikely that word would get back to my local florist or banker.

I’ve always operated on the philosophy that if one day all our rates and all our deals with individual advertisers appeared in the local paper, I could justify each and every one of them based on frequency, class of service, and so on.

So, I have to wonder whether observing rate integrity in our local markets is a product of hubris or practicality?

Remind me to ask Gordon or Jeff the next time we’re kicking back.

Thursday, March 11, 2010

A Good Idea Gone Bad?

While rooting around the Internet the other day, I flashed on the Small Market Radio Operators Caucus and wondered whether they had never put up their new website, the prospect of which was announced with a great flourish a couple of years ago.

Well, no joy. The new web address, www.smallmarketradio.org, displays a “coming soon” page, it has for the past two years. The old website, www.smallmarket.org, hasn’t been updated for that same amount of time. I haven’t checked in with Ron Davis, the last chairman I knew of, but judging from the lack of activity, I infer that the organization is all but dead.

Should we lament this loss? That depends on whether you think that small market radio is adequately represented in the halls of power. Small market operators do prowl those halls, but as one who has done some prowling himself—well, lurking, anyway—I can tell you that it is easy to lose touch with those who sent you there in the first place.

I know that our small market leaders have our best interests at heart, but it is all too easy to get caught up in the art of compromise … all too easy to mistake the game for the objective. That’s where a grassroots organization like the SMOC comes in. Our leaders have to be reminded of what’s important to us. It’s not that they don’t know; but it’s up to us to keep our hot topics top of mind. An organization like the SMOC—if it’s viable—can represent us in number to our leaders.

The irony here is, the organization that represents us to our leaders needs leadership. But more importantly, the organization needs the active participation of large number of small market broadcasters. And this, sadly, the SMOC has never had. Personally, I think that there is a huge number of issues for which we need strong representation. It is so easy for us at our stations, focusing on making our business work from day to day, to disregard the larger forces that impact our livelihoods. It’s a little late for new year’s resolutions, but I urge you nonetheless to resolve to invest a sliver of your time to think about some of these larger issues—and to do something about it.

Maybe the death or dormancy of SMOC is not a bad thing ... if it forces us communicate our feelings about radio’s flashpoint issues directly to the small market broadcasters who can make a difference; herewith, good folks with whom to start:

RAB Board

Bud Walters, The Cromwell Group
John Dille, Federated Media
Rolland Johnson, Three Eagles Communications
Gunther Meisse, WVNO/WROM
Steve Newberry, Commonwealth Broadcasting.

NAB Board

Howard Anderson, KHWY
Ron Davis, Butte Broadcasting
Randy Gravely, Tri State Communications
Jerry Hanszen, Hanszen Broadcasting
David Hoxeng, WYCT
Julie Koehn, Lenawee Broadcasting
Steve Newberry;
Susan Patrick, Legend Communications
Mary Quass, NRG Media
Dana Withers, Dana Communications

If you don’t know anyone on this list, or if you know a number of people on this list, start by contacting Steve Newberry at (270) 659-2002 or snewberry@commonwealthbroadcasting.com. Not only is he on both boards, but he’s the chair of the NAB Joint Board; when it comes to clout, you can’t get much cloutier.

Much has been made of the “one voice for radio” initiative, where the industry speaks as one. I submit that it’s equally important that there be one voice for small market radio. Let ours be heard!

Thursday, March 4, 2010

Talking Points

It’s gratifying to hear a member of Congress uttering talking points that aren’t utter nonsense for a change. We especially appreciate the words of Rep. John Dingell in defense of local broadcasting against the Evil Axis, a.k.a. the RIAA, in the copyright fight. Indeed, we could not have said it better ourselves. That’s probably because we have said it ourselves—word for word.

A well-organized political party—you know who you are—has proved the value of staying 100% on message, using the same words and phrases over and over to drive a point home. Thanks to the leadership of the NAB, broadcasters are benefitting from that same unanimity of expression. The most pertinent example is our constant, consistent use of the term “performance tax.” It’s accurate, and it efficiently re-frames the issue. Ditto the reference to “the foreign-owned record companies.” (The only thing that would be more heinous would be if they were all based in France.)

Radio people, especially, are hard-wired to understand these concepts: everyone who’s been in our business for longer than a week knows that on-air repetition of the same concepts, words and phrases—like the station calls and slogan, for example—is extremely powerful.

Attempts to harness the wonderful diversity in our industry generally meet with less than stellar success—you know who you are, too—but in some cases it’s critical that we speak with one voice. We may not win every battle, but we’ll win more than our share.

The Web Dilemma

From my discussions with small market broadcasters, I’m getting that opinion is divided about 50-50 on the importance of your website to your overall operation. Some see the Internet as a big part of their—and radio’s—future, while others see it as a wasteful distraction.

Since folks on both sides of the issue are reporting that their web revenues account for maybe 5-7% of total revenues, this is a case of seeing the glass half empty or half full—or should I say, 95% empty or 5% full?

I certainly believe the Internet represents significant potential to our industry, and my web-development business aims to help broadcasters realize that potential. But I stop short of predicting that our online activities are our salvation.

I also disagree with those who, in their missionary zeal, declare that their websites can succeed on their own, untethered to their radio stations. Sure, the big guys from Amazon to Zappos exist in a worldwide environment where no other medium can meet their reach needs, but that’s not the case in our local markets. Google processes over a billion search requests a day, so even with click-through  rates averaging 0.5% of page views, that means the search behemoth generates five million click-throughs every day.

Local market websites, on the other hand, generate daily page views in the hundreds. The most successful small market sites we’ve seen, in a month with lots of bad weather and a big murder trial, will attain 100,000 views. Applying the interactive-industry-average, total click-throughs, for all advertisers, amount to 500. In a more normal month, cut that number in half.

As with radio ratings, misuse and misunderstanding of web metrics abound. Time after time, we’ve seen panic at renewal time, when it’s evident that the laws of Internet advertising are immutable, and the expected spectacular results never materialized.

While Internet revenues should be tracked separately, in any local market you need to use your radio stations to drive traffic and boost click-throughs by selling the benefits of doing so.

One thing is clear: a website is not a radio station. On your station, you have the capability of managing hundreds of clients and ads. On your website, you have neither the technology nor the real estate to sustain a similar strategy. On most radio stations, growth comes mainly from selling more ads. On your website, visual cacophony can quickly take over—and drive traffic away.

Is the Internet our future? Yes and no. If you use your website to extend the interactive communication you already enjoy with your listeners, and to provide a richer experience for your advertisers and their customers, your online slice of the pie will grow. If you expect your Internet tail to start wagging the radio dog, you’ll probably be disappointed.

Thursday, February 25, 2010

The Leveling Effect

Broadcasters in markets of every size are beginning to see that things are turning around for them. Many broadcasters, looking back a few months, have concluded that this was as bad as it ever has been in their careers.

Amid all this and doom and gloom, I can think of one positive thing that the recession has done for our industry. It has leveled our business, to the extent that large market operators and small market operators are focused on the same thing for the first time in a long time: building local direct business.

Whenever I talk to a small or medium market broadcaster, there is an underlying sense of confidence and control over their environment. Those broadcasters know that the key their success and growth lies in their hands. They can go out every day and sell more ads.

Sure, in bad times it’s more difficult to do, and we’ve all certainly experienced the frustration of falling behind. But it is nothing compared to the frustration experienced by the large market broadcaster who has built a successful career on taking orders from time buyers. When national business went in the tank, those same large market broadcasters literally didn’t know what to do. They turned in desperation to their local advertisers and discovered, as most of our readers have always known, that presenting the benefits of radio to real, live business owners is productive, rewarding and—dare I say it?—fun.

In fairness, I should point out that there are a great many excellent broadcasters in large markets. I should also point out that most them came from small markets.

The Worst Remedy Ever

We are (hopefully) emerging from a long dry spell. Broadcasters have had to make many difficult decisions to maintain equilibrium during these times, but one move stands out as being a really bad idea, the consequences of which will be felt for some time to come.

I’m talking about the tendency of operators to slash their sales training costs during bad times. While this may result in relief in the short run, the long-term consequences are disastrous. Without proper training and support, what salespeople you have left are ill-equipped to take advantage of the turnaround.

We’ve all had to be very creative to preserve any sort of bottom line at all, but let’s learn this lesson well: Doing anything to the detriment of the revenue center of your radio station is a bad idea.

Not a Bad Idea After All

Stacey Woelfel, Chairman, Radio Television Digital News Association—woelfels@missouri.edu—stumbled upon my earlier posting that we small market operators need to work together to ensure we are represented, and have a seat at the table, at all influential industry groups:

I’m all for your idea of getting together a small [market] radio representative to run for the [RTDNA] board. If you’re able to make it work, let me know and I’ll let him/her know how to get involved.

Thanks to Stacey for his encouraging note. The door is open; let’s walk through it.