Lessons Learned From Small Market Radio

I had the great honor of being invited to speak at the American Advertising Federation Black Hills Chapter monthly luncheon this week in Rapid City South Dakota. I was asked to give my impression on the future of radio and what broadcasters needed to do to be successful. If you know anything about radio people, you know that we love to talk about radio and give our opinions. So I jumped at the opportunity to speak with the group. Although, I didn’t quite think it through when Josh Barsch invited me a few months ago, I did not take into account that it would be snowy and -2 degrees when the plane landed.

Nonetheless, the group in Rapid City was terrific, a great bunch of advertising pros. While I hope that I imparted some relevant and practical information, I realized that we can learn a lot from the pros in the smaller markets.

I had the opportunity to meet Michael and Lisa from a local radio group. They have been at the stations for more than ten years each. They have created great relationships and equity in the market with their clients, non-profits and community leaders. These people get it. They are in the trenches everyday and doing things right. They are big on service and providing value and results to their customers.

Just as in most markets across the country, revenue is down due to the economy but not down nearly as much as it is in the larger markets. I realized that these people are successful, because they are dotting the I’s and crossing the t’s. They are doing the basics and doing it quite well. They don’t rely on a lot of agency / transactional business; they are knocking on doors, the doors of the service categories and local retailers. They are selling ROI not CPP or CPM. Wow, how refreshing. Oh, and by the way, they all seemed passionate about what they were doing too!

Josh and Nicole from the AAF were very gracious and thanked me for speaking. I should be the one thanking them. While I guess I was supposed to be the professor, I was also the student while visiting the Black Hills and for that I am grateful.

Thanks AAF Black Hills Chapter!

And a side note. I was interviewed by the local FOX TV affiliate KEVN. Click here to see they story that ran last night at 10PM in Rapid City.

What You Can Learn From Your Kids Part 2

On August 13th I wrote a post about some interesting things I learned about cell phones, texting and social networking from my kids. Read that post here:

Yesterday I had another one of those seminal moments with my oldest daughter who is 14 (going on 22). It was just the two of us and we were running errands and then out to lunch at one of our favorite dives. Over hummus and Gyro sandwiches we started talking about politics, the candidates and current affairs. I was actually having and intelligent adult conversation with her, hearing about her political views and those of her friends. She had some interesting thoughts and ideas and asked some very bright questions. I was very proud of her. I have waited 14 years for this moment!

As a parent first, then a broadcaster and marketer I was very curious to know how and why she formed some of her opinions. To my surprise, she told me that she discusses this with her friends. I was impressed! We might have an activist or a politician in the making.

Then I realized, that with the advancement of digital media it has become increasingly easier for youth to find out what is going on in the world. I'm not suggesting that a 14 year old reads the drudgeReport, CNN.com or Foxnews.com. Although, when they log onto their myspace and FaceBook accounts there are links to RocktheVote.com and ads for all of the candidates both nationally and locally. On the home page of MTV.com there are news stories about the debates, the economy and they are also registering people to vote too. YouTube has section on the race as well called YouChoose where there is a wealth of information on all the candidates and videos of speaches, debates and more.

I can tell you that at 14 I was not as politically aware as kids are today. The information simply was not as easily available or even more importantly, targeted to me, either directly or indirectly as it is today.

Then, there are even more strategic websites like thegreatschlep.com. This is a website developed by the Jewish Council on Education and Research. The Great Schlep features a video by comedian Sarah Silverman that is targeted to Jewish youth and college students who have grandparents that reside in Florida. It encourages these kids to convince their grandparents to vote for Obama.

Watch the video here:



What ever your political leanings are, you have to agree that this is targeted marketing at its best.

Finally, another source of information to youth is television and on-line video clips. Last night, Saturday Night Live did a hysterical parody of the Vice Presidential Debate, featuring Tina Fey and Queen Latifah.

Watch it here:



Talk to your kids. If you don't have kids talk to your friends kids. It's fascinating and you just might learn something. My friend Darice Putterman said it best.

"The world thru eyes of your own child, your teenager, your young adult daughter or son....ALWAYS enlightening to me, refreshingly so..."

Why Radio is a GREAT!

Did you know that every week 93% of all consumers listen to the Radio? That's why radio builds brands and drives sales!

The Radio Advertising Bureau (RAB) just released a commanding video highlighting the power of radio. This is a must see for everyone that works in the industry and for every advertiser and potential advertiser.

Watch the video here..



The RAB also does an outstanding job providing radio sellers and advertisers with the latest research on the industry. Click here to view their reports and studies.

Recognizing the Beginning of Radio Advertising

A little bit of history from today's RAB Radio Sales Today....

Today marks the anniversary of a very important, yet rarely celebrated event in Radio's history. At 5:15 p.m. on August 28, 1922, in New York City, a man identified only as "Mr. Blackwell" delivered what is widely believed to be the first paid Radio commercial. The ad was broadcast by station WEAF, cost $100, and was sponsored by the Queensboro Corporation of New York.

The rambling 10-minute spot was an effort to educate the listening audience about the novelist Nathaniel Hawthorne, as a tie-in to the Queensboro Corporation's recently opened cooperative apartment complex in Queens, Hawthorne Court. The text of the commercial began as follows:

"I wish to thank those within the sound of my voice for the broadcasting opportunity afforded to me to urge this vast Radio audience to seek the recreation and the daily comfort of a home far removed from the congested part of the city, right at the boundaries of God's great outdoors, and within a few minutes by subway from the business section of Manhattan. This sort of residential environment strongly influenced Hawthorne, America's greatest writer of fiction. He analyzed with charming keenness the social spirit of those who had thus happily selected their homes, and he painted the people inhabiting those homes with good-natured relish."

Upon hearing about the new commercial trend, Radio pioneer Lee de Forest reportedly exclaimed: "What have you done with my child? You have sent him out on the street... to collect money from all and sundry... [and] made of him... a stench in the nostrils of the gods of the ionosphere."

Despite de Forest's haughty protests, other companies slowly began to utilize the medium for advertising purposes, including the American Express Company, the Tidewater Oil Company, and the two large competing department stores in New York -- Macy's and Gimbels.

I find it very interesting that the rate was $100 for a ten-minute commercial. By today's standard that ad would cost $1,283.33 or $128.30 a minute. Pretty good rates for 1922!

To figure out what a dollar is worth from back in the day click here:

I Downgraded! ... Save Money on Gas

Over the weekend I Downgraded! I downgraded from a six-cylinder Infiniti to a four-cylinder Honda. I could not be happier. It is a great car that is very fuel efficient. Hopefully, I will get around thirty miles per gallon on average as opposed to the twenty (which is not bad) that I get on my Infiniti.

Evidently, I'm not the only one making the switch. J.D. Power reports that the auto market is shifting and that "smaller rides", four-cylinder vehicles had one of their strongest months on record during June.

Conversely, "In contrast, sales of eight-cylinder vehicles dropped industry-wide to just 13 percent in June, driven in part by a shift to six cylinder powertrains in the large sedan market," the report noted.

Read about it here:

Cars with poor gas mileage are having a huge impact on media sellers. With gas prices well over four dollars per gallon, the cost of doing business is increasing exponentially. More fuel efficient cars are the way to go.

Although, not everyone is in a position to buy a car right now. Here's a tip to save on gas.

Tip: Sellers need to be smarter about the way that they plan their day and week.

Sellers should divide the market into four quadrants (North, South, East and West). Each day they should focus on one quadrant and see clients and prospects in that area. For example, on Monday they should focus on the West side of town and Tuesday they should be on the North Side etc. This will eliminate huge drive-times between appointments and eliminate the need to drive back and forth across town wasting time and money on gas.

I'm reminded of the Five P's of selling that my friend Bruce Olson the National Sales Manager at Sandusky Radio in Phoenix always used to talk about.

"Poor Planing Promotes Poor Performance"

In today's economy, poor planning costs you MONEY in more ways than one!

UPDATE 7/21/08: I just filled up for the first time (regular not premium) and I'm getting 28 miles per gallon. Very Excited!!!

No More Funny Pages

In today's RAIN (Radio and Internet Newsletter) Kurt Hanson writes in his Blog why he is canceling his subscription to the Chicago Tribune. He says that the newspaper seems intent on driving print subscribers away.

"So what does the Tribune do a couple of weeks ago? I assume this was a pre-Randy Michaels decision, but what they did, naturally, is that they got rid of the comics section!

To be precise, they shrank the comics down to a virtually-unreadable size and stuck them in a new tabloid-shaped section that combines the unreadable comics with TV listings and Internet recommendations.

The Internet recommendations adjacent to the unreadable comics are a nice “screw you” to any remaining fans of the print version of the newspaper. It’s like they’re reiterating, “We really don’t want you any more. Here are some websites you can go to. Now get lost!“"

Interesting perspective from a fellow who has long been a champion of the internet and new technology.

He has a point!

Read Kurt's Blog Here:

We’re #1

I bet you thought I was telling you about the radio station. I wish I was, and I’m confident I will make that post someday. No, I’m talking about ASU Women’s softball. Did you know that the ASU women’s softball team was ranked number one in the nation? Neither did I. They are, this season with 44 wins and only two losses.

Both my girls play softball. They get that from Fran who came out to Arizona to play softball in 1978. Last night the girl’s softball league participated in a special promotion and we attended the ASU women’s softball game at Farrington Stadium in Tempe. I’m happy to report that ASU beat Washington 7 – 2. This is a great parallel to our oldest daughter’s 18-8 victory during the day yesterday. By the way, she had two great hits and played well in the field.

ASU softball could be the best sports entertainment value in the Valley! At $5.00 for a general admission ticket that would be equivalent to any lower bowl seat at any other stadium in town, we were up close watching an exciting game. There was electricity in the air. The near capacity crowd of 2,000 plus fans had spirit like you could only feel at a college game. This was due in part to the expertly picked music that was playing during the team warm-ups and through out the game. The crowd went crazy when ASU player Caylyn Carlson hit a grand slam homer in the first inning and their excitement never waned throughout the game.

What was even more interesting to me from a marketing standpoint was that the marketing team at the venue kept the entire experience moving and entertaining. It was like they were formatting/programming a local radio station. The women on the field were the records/songs, the stadium announcer was the DJ (keeping the momentum moving forward), there were commercials and contests involving local business and winners between the innings and they even recycled the audience with a bounce-back for the next home game (if you brought your current ticket to the next game you would receive a $2.00 discount). As any good programmer will tell you, you must have forward momentum on the radio station and keep the listeners engaged. That is precisely what happened last night at the game. We had so much fun that I can hardly wait to go to the next game.

ASU delivered! Not just because they won, but because they won new fans last night and provided a great experience. They marketed their product well to young, aspiring, female softball players, their coaches and parents. It was a great family event; affordable, entertaining, easy-free parking, and great competition between two talented teams. We left wanting more.

Brilliant!

The Kind of Advertising You Don't Want....Don't Piss an Old Man Off

In an Earlier post I talked about getting free advertising by having people become evangelists for your product or service. This can work against you too, if your service is bad. I experienced this first hand during a conversation I had with my father yesterday.

Here’s the story and the background on the conversation. My parents live in Chicago, we live in Arizona. We were on vacation last weekend and I took a lot of pictures of the kids. I loaded them up to my Flickr account and wanted to share them with my parents. All they had to do was log on to the internet and view them. The problem is that they only have a dial-up account and it takes forever to load the pictures.

I suggested to my father that he get a high speed internet connection and he told me that he was waiting for AT&T to have service in their neighborhood. I suggested that he call Comcast, his cable provider and bundle all his services together. I told him he probably would pay the same or less as he does now and get the high speed internet allowing him to see the pictures, look at his stocks and read the news effortlessly on his computer. Not the slow way that he does now.

His exact words to me were..... “I don’t want to give Comcast another dime. As a matter of fact, if it wasn’t for your mother, I’d cancel their service.” I guess my mother likes watching the movies.

Being married to someone who is in the cable business and prides herself on the customer service that she and her company provides, this disturbed me. I asked him why he felt that the way. He went on to tell me that there have been many service outages, the picture does not come in clear (I can attest to this, I’ve seen it when I visit) and whenever he calls them and asks for assistance and a credit, they always give him a hard time.

It occurred to me that everyone loses in this deal. My parents lose because they can’t enjoy the benefits of a fast internet connection; Comcast loses because they are losing out on the long term value of a customer, a very vocal customer at that, who is an evangelist for how bad their service is. Not that the collateral damage from my father is going to make a big difference, but if this is happening to a lot of customers it could have a huge adverse impact on their business and make them vulnerable to new competition. Finally, I am losing out because I wanted to put a webcam and microphone on their computer in Chicago so the kids and I can teleconference with them. This is very difficult and not practical with a dial-up service.

The moral of the story is, bad customer service is bad for business. You just don’t know how and who it is going to hurt!

Radio, Music and My Blackberry!

Radio, Music and my Blackberry are three of my favorite things.

Today, I discovered a new software application that combines all three called Radio Companion. It works on the Blackberry Smartphone platform and allows you to monitor airplay from more than 2,700 terrestrial radio stations across the U.S. Users can see what is playing right now on any of their favorite radio stations with just a few quick clicks on their phone. They can then select the music track to have its details sent instantly to their email account, with a direct link to click-through and purchase the song online.

Not only is this free service great for consumers, but it is also very practical for radio pros too. You can set up a panel of up to ten stations by format, city, cluster etc. and instantly see what is being plyed (music and ads).

Radio Companion is easy to download and setup. I did it in less than five minutes. Every audiophile, Music Director, Program Director, Sales Manager and even DJ's and sellers should download this program to their Blackberry. It will give you a competitive edge because you instantly know what your competitors are doing wherever you are.

This is just another application that will keep me addicted to my Blackberry.

The application is a joint venture between Mediaguide and Nobex Technologies.

To learn more about Radio Companion and download the software, click here.

Reality is Reality and it Works

I’m a simple guy and I admit that I love reality television shows. I first got hooked on them years ago when the Biography Channel was launched. In recent years I have been a big fan of the celebrity reality shows like The Osborne’s, Breaking Bonaduce, Run’s House, Rob and Big, Little People Big World, Growing up Gotti, MTV Cribs, Hogan Knows Best, Snoop Dog’s Fatherhood, Dog the Bounty Hunter, The Anna Nicole Show, Scott Baio is 45 and Single, Celebrity Rehab and my favorite, Gene Simmons Family Jewels.

Of the professional reality shows, I like Dr. 90210, Miami Ink, American Chopper, The Deadliest Catch, Ice Road Truckers and Dirty Jobs.

Reality is huge. Just look at YouTube!

The one thing that all of these shows have in common for me is that in some way, shape or form, I can relate to almost each and every one of these people. We all have issues! They have the same issues, problems, joys and challenges that we have.

On a recent episode of Gene Simmons Family Jewels, the Simmon's dog Skippy runs away and the family is in a panic. Who can't relate to this? When you cut through it all, are these people really that different than us?

They might be rich and/or famous but other than that, they are just like us. Viewers can relate to that and I contend that is why these shows are popular. People, by nature are nosy too and they have a voyeuristic side to them. We like to peer into other peoples lives. Also, the shows are produced just like a soap opera. You get hooked and can’t wait until the next episode to see what happens. All of this is why I enjoy watching them.

In our business of radio, we are seeing an increase in testimonial commercials, or in today’s vernacular, “Reality” ads. A Reality ad is when you craft a commercial around interviews with customers and they speak about the GREAT experience that they had at a particular business. These ads work for the same reason that people enjoy watching reality shows. The listener can relate to the person giving the testimonial because it is a regular person just like them.

My friend Michael Crawford the General Manager/Partner of Peoria KIA is a master at this. He gets testimonials all the time from his customers. He puts the customers in his radio ads, TV ads and even includes them in his infomercials. Why? Because it works, and Michael can sell more cars because of it!

This is how it works.....

Suzy from Glendale hears the Peoria KIA ad on the radio with Tina in Tempe talking about how even with her bad credit Michael Crawford and Peoria KIA figured out how to get her into a new car and how nice the whole buying experience was. Suzy could relate to what she was hearing Tina say in the commercial, because she too has bad credit and furthermore, she was not treated so nice at another dealership because of that. So what does Suzy from Glendale do? She heads down to Peoria KIA to see if they can help her out of her credit jam and get her into a new car.

Reality/testimonial ads can work for any type of business, not just the automotive category. The one key to a reality ad is that it must be real and not contrived. The listener or viewer is to smart for that and can sniff out BS a mile a way.

So get real, It works!