July 7, 2015
As we enjoy the mid-summer break for the 4th of July holiday, it is only natural to take stock of how our industry has fared thus far in 2015. The first six months have been filled with the unexpected; from epic snowfall here in Boston to floods in Texas and drought in California, the weather has played an outsized role in economic performance this year. While no one weather incident was to blame, together they created uncertainty for marketers as they planned and revised their strategies for their clients.
This uncertainty created a series of disappointing economic numbers in the first quarter and created further delay and caution in marketing plans during the second quarter. It looked like many advertisers waited until the last minute to act, creating a choppy ad environment for radio.
This certainly made the sales department’s job significantly more difficult as they struggled to provide forward guidance and forecasting. Many of the months in the first half of 2015 were not decided until the final week of the month.
But in recent weeks, we have started to see more clearly how the American economy is performing and there has been significant progress on a number of fronts, including job growth which has pushed the unemployment rate down to 5.3 percent. Housing prices are finally starting to increase, and consumer spending is picking up. It appears that we can carry this momentum into third quarter as economists expect both government and business spending to increase as a positive reaction to the improving economy.
Although Greece and the European financial ministers continue to play high stakes games with that country’s future, the betting is that after all the posturing and rhetoric has played out, there will be a resolution to this long-running soap opera. Whether it will be a band-aid or a longer term solution, no one can know.
However, with a favorable domestic economic climate, we expect that advertisers can more confidently lay their plans for the back half of the year. That means that our sellers can do a better job of advising, planning and executing for our clients and focus on outcomes and performance. With all the digital solutions that have burst onto the market, we have to be prepared to discuss much more than our stations’ ratings performance with clients. Our sales staffs must take the extra time to explain in detail how the broadcast and digital assets we can provide will work together strategically to create an effective and affordable marketing solution for their business, one that works for the client and is good for the listener.
Selling “time,” as it used to be called, has always been a matter of trust and creativity as much as it has been metrics and ratings. Now, with even more tools in the arsenal, salespeople have to be on their toes as never before. They have to ask questions that probe beyond the surface, find out who their real competitor is – it probably isn’t the station down the block—and find out how the client will measure the success of his campaign. Too many times, salespeople do not take the time to collaborate with the advertiser to review and adjust creative for maximum impact on the station’s audience. It’s another one of those small items that can kill an otherwise well-crafted marketing campaign. The next six months can allow us to look back in December at a successful and profitable 2015, but it will take cooperation and creativity, along with excellent execution for each of our clients, to get us there.
Let’s make every opportunity count.
May 6, 2015
This month, I am heading up to Toronto to join many of our Canadian friends at the Canadian Music Week Radio Interactive Summit. This annual convocation has been going on for more than 30 years and is an international gathering of people from across Canada and the US along with representatives from many other parts of the globe. I’ve been asked to participate in a panel called “The View from the Executive Suite”. I’m looking forward to sharing and learning from executives who may approach our common problems from a different perspective. The opportunities and challenges for our business are numerous, and many are shared across national borders.
As a broadcaster, my ongoing challenge is how to transform Greater Media from a radio com
pany into a media company and employ all of the new technologies to further our brands and our relationship with listeners. Radio stations are in the midst of becoming multiple media outlets, using digital, video, audio on demand, social and other tools to deepen and broaden our interaction with the audience. This means that radio stations must bring more value to their audience than simply music delivery with “less talk” or “the greatest hits.” The touch points between the air personality and his or her listeners have multiplied with amazing speed. The listener is now in charge and, like video viewership, wants what he wants when he wants it. Our ability to respond to this change in behavior has placed stress on station staffs to reorganize, reconfigure and rethink their jobs and priorities. It’s an ongoing challenge to everyone’s creativity and will require risk-taking and an open mind to find the winning solution.
I am particularly concerned about the evolution of the connected car. This is an especially difficult and complicated area since the automakers are huge companies in search of solutions and platforms with global reach and a long development time. The radio industry is locally-oriented and a collection of smaller companies and individual owners. It is not easy to create a dialogue on how to best maintain the simple-to-use radio broadcast service and simultaneously introduce new digital services that consumers are looking for. Adding further friction and complexity is the emergence of platforms from both Apple and Google that look to inject their standards and services onto the digital dash. I worry that the jockeying among individual car makers and technology providers will ultimately make it more difficult for the end user who is simply looking for his or her familiar local radio station. We cannot allow that type of interface complexity to interfere with in-car listening. Even with the mismatch of scale between the radio and automotive industries, we all need to be active and vocal in making our case to auto manufacturers through their local dealers and associations.
Tightly aligned with the digital dashboard is radio’s mobile presence. I am proud that our stations have been offering listeners station-branded mobile streaming audio apps since 2008. It is now time to insure that all information and interactions with our audience are available on their mobile devices. The adoption of mobile devices has exploded in the past several years. Some surveys indicate that fully 80% of our listeners own smartphones and almost 25% prefer their mobile device to a traditional computer. The need to make sure that all of our content, video, audio and text, is available conveniently to mobile users is now mandatory. Whether through mobile apps, responsive design or the mobile web, we must move with the listener or risk being left behind.
Faced with all this rapid change, it is more important than ever to resist the tendency to hunker down and focus only on the tried and true. More than ever we need to be a learning organization, open to new ideas and technology and finding creative uses for them in our business. We need to be flexible in our thinking but disciplined in our actions. We need to evaluate everything in the context of a comprehensive strategic business plan. The plan can and will change as conditions change, but without one, we fall into the shiny new object syndrome and bounce from one initiative to another without creating meaningful success in any of them. There is more innovation occurring around us than ever before and the goal is to keep pace with the needs and desires of our audience. We don’t want to swamp them with technology for its own sake, but choose those innovations that add to the reputation, entertainment and innovation of the radio station brand.
In short, it’s more important than ever to set a clear direction for station brands and their teams, and clearly communicate when it is time to adjust. It makes no difference what side of the border you are on. I hope to see you in Toronto.