Have A Fine Broadcast Day!

The Earl McDaniel Rule

I had the extreme pleasure of working for Earl McDaniel when he headed Bedford Broadcasting.  Earl was a famous KEWB disc jockey and more famous GM of KSSK, Honolulu.  He reminded me once that a 5.0 share on KFRC-FM in San Francisco made you a winner in a radio.  But, in the real world it meant 95 out of 100 people didn’t particularly care for you.

You may not like satellite radio.  I subscribe to both services.  I love Howard Stern & Pat St John’s Blues on Sirius and baseball and Fred & Ethel on XM.   They’re competition, yes.  But, they’re competition that’s getting listeners back we lost in the first place.  Think about it.  The millions of people who pay $12 a month for radio either couldn’t find what they really wanted on terrestrial radio OR thought we sucked so much it was worth paying $12 a month NOT TO HAVE TO LISTEN TO US!

We are focused on the wrong thing.  You hear reports of Jerry Del Colliano’s INSIDE MUSIC MEDIA being blocked.  Why would you waste your time and energy blocking it or any other trade related material?  When you ban something you just create more desire.  Ask any cub Program Director or high school psych or marketing student.  Besides, people know Jerry is worth reading and always has been because, agree or disagree, you know he really cares about our business.

The NAB had to oppose the Sirius XM merger.  I understand that.  It’s part of the job.  It’s just that its arguments were so lame.  What made them lame to me is I believe they actually believed their own bullshit.  Why haven’t they been pushing radio to lead the multi-platform revolution instead of using double cassette player boom boxes to promote a position about as believable as the “New Coke?”

I believe any service that can keep millions of people that had given up on us, the opportunity to use the same device in the car that we come in on is not a bad thing.  At least they’re still in our sandbox.  Are we good enough to take them back?  (The argument is cancellations say so but not everyone cancels)

It was stupid (not dumb or misguided but stupid, moronic, idiotic, short-sided, need I go on?) for radio to run commercials promoting XM and Sirius.  It was wrong and I opposed it at a network and station level.  It was “Unacceptable Product” from my standpoint.  Not that it seemed to have much effect.

That’s My Toy!

While the NAB opposed satellite radio all along it backed doubling the number of terrestrial radio stations and competition with HD Radio.  HD Radio, a technology that won’t/wouldn’t/whatever make the deals to get it in ALL cars.  XM and Sirius did.  I rest my case.  It’s probably too late anyway.  The Internet is in the car this fall baby.  What’s the incentive for HD?  Programming created by people with the same mindset that created the stuff millions of folks apparently don’t like on the radio anyway?  Stations should use HD Radio to further integrate programming with the station’s web site but the website should be the lead dog.

My God, our programming has driven our listening down not competition.  It’s not iPods. IPods have always been here.  Before iPods there were portable CD players, cassettes, eight tracks, and yes portable reel to reels and record players.  It’s all relevant.  The iPod is simply a better version of a portable record player.  It has ALWAYS been about content.

Haven’t we finally gotten past the myth that FM buried AM because it was stereo?  Didn’t some AM stations experience an interesting surge among stations that used Z Rock’s rock music format?  Yes, they did.  IThe programming wasn’t available on FM, the Internet, or anywhere else.  That was unique content.  Rush Limbaugh breathed life back into the AM band.  Rush is unique content.

When I managed SportsFan Radio Network we had a deal with AOL to provide content for their sports section.  This was 1996.  Jon Goldman, one of the owners, was a true visionary about the Internet but what he really got was the importance of unique content.  His deal with AOL called for unique content exclusively for AOL.  It could be the same stories or interviews but they had to be re-worked for AOL.  Jon supported that concept across the entire network.  This allowed us to go extra steps in content creation to insure our content on-air and online supported each other while remaining unique.

Today you can drive across the country and hear the same old tired, worn out lines, mail it in announcers, or don’t give a crap voice tracks.  It sounds like an NAB argument against Sirius XM.

Yes, most Internet radio stations suck but some are extremely well done.  Extremely.  So when the Internet is in all the cars, and that will be long before HD has any reasonable penetration, why wouldn’t radio want to be there?

Streaming your audio and cramming five pounds of crap into your three pound web site won’t cut it either.  What makes you different? 

I listen to my online radio station in the car through my cell phone and a Belkin $30 FM transmitter from Fry’s.  I’m a geek yes.  But millions of people have listened to my programming on the radio, what’s to say 100s or even 1000s wouldn’t listen online?  I’m not saying they will but what if? 

It’s time for radio to step-up.  We have to focus on the right things again.  Listeners take care of advertisers who take care of revenue who take care of shareholders.    You can’t count the HD listeners or Sirius XM listeners, outside of radio people, you know on your fingers.  How many people do you know that are aware and PAY FOR the Internet?

This weekend the most historical Presidential primary election ever finally concluded with Hillary throwing her full support behind Obama.  This primary has been one of the most educational ever in terms of what we can learn about the audience and the way we reach them.

The expectations are changing.  Our internal research has been showing this coming for years.  People are tired of being screamed at and told they’re idiots by people who don’t have a clue.  Look how  “off” traditional thinking pundits were from the get go about the Obama Clinton race.  They were wrong up to the end and my guess will continue to be.  It did offer some great moments in radio when the guy Rush, Sean, and the others wanted to be the GOP nominee couldn’t get elected—anywhere.   

This is why you need to take a hard look at how you program your station.  Barack Obama is the presumed winner for two reasons – thinking out of the box and understanding how important the gray matter is.

In an article in the New York Times over the weekend, the details of how the Clinton campaign was run explained in glaring terms why she lost AND why she was starting to win at the end.

There were plenty of reasons why she lost but they can be boiled down to two areas, the same two that put Obama over the top – Out of the box thinking and team work.  No, I mean real teamwork not the kind you get from reading a book.  Its the kind that involves trust and a common vision.  The Clinton campaign never had this.  Never.  That trust and common vision is what makes radio stations with hell-hole facilities and no budget beat the crap out of the so-called big dogs.

In a play straight out of the AM radio playbook of the late 70s and early 80s, Hillary’s people felt they were entitled.  No one could put a ding in that big old 50,000 watt AM station better known as Hillary Clinton.  Certainly, no upstart FM station named Obama was going to have impact.  After all, Hillary had been serving the people in her audience the same way since the 1970s.  She had been there for them.  In fact, she knew them so well, she didn’t even have to ask them what they wanted anymore.

Enter the brand new Obama-FM.  The music is Alternative, not heard before.  There are fewer screaming commercials.  There are no edited songs.  The Internet was the new of music.  Obama-FM talked to the audience in their language.  New people started listening to radio that had never listened before.  Sound familiar?

It wasn’t until the end that Hillary-AM realized that by being different, listening to the audience, and talking to them in their language you could win.  By then, like AM radio in 1981, it was too late.  The delay to embrace tomorrow came too late because of the lack of gray matter in the Clinton campaign.

Both campaigns were well run and run by smart people.  Both campaigns had strong fundamentals.  Fundamentals get you in the game but it’s that “feel” inside the station that translates on air and into the top spot. 

There was in-fighting in the Clinton campaign from the start.  Her campaign manager and campaign strategist didn’t like each other.  They were constantly undermining each others efforts.  Add President Clinton into the mix and you have three chefs in the kitchen.  That’s right three.  And all three had a little different way of looking at things.  Hillary didn’t appear to be involved on the backside until the end.  She had a former President and probably the best political mind of the 20^th century, his chief strategist and his chief of staff.  No new ideas.

In the meantime, Obama was rallying 70,000 people in one space, raising more money and doing it on the Internet, talking about something “new and improved.”   Those words still sell.  Oh, AND he’s the man.  He’s in charge.   He’s had to step-in from time to time to make sure his people stay on message.  Overall, he did a pretty good job of that.   You can’t program by committee and win.  Committee’s have a tendency to create camels when they need a horse.  Obama knew it and Hillary didn’t. 

Hillary’s campaign failed to use its resources properly until it was too late.  Finally, Bill figured it out and started working the rural “Bubba” areas.  Hillary started to win.  Hillary finally started calling super delegates herself.  She hadn’t done that until the past few weeks.  It was too late.  You have to ask for the order before you can close.

The lessons are pretty clear to me and they do apply to radio.

You must have a single vision.

You must develop a true team effort.  This means giving them “controlled empowerment.”

You must embrace the Internet as a major part of your strategy and brand.

You must offer a clear benefit to the listener/user.

You must realize, you and your radio station are not entitled to one damned thing, period.

To me, the last is the most important.  You’ll never maximize your potential until you realize you have to compel people to turn you on.  Nobody gets killed for NOT voting for Hillary…or your station.

I’m a nut for grabbing information from other industries and seeing what I can apply to what I do.  Honestly, there’s a lot more learning going on about our audience OUTSIDE radio.

If you know me or have read anything I’ve written over the years, I am a fanatic about being local.  That may sound strange coming from a guy who was VP/Programming at ABC Radio Networks.  I’m proud to say that we had affiliates using our 24-hour formats that won top community service station of the year in their states.  We encouraged that by counseling affiliates to put their money into local news and community involvement programming while we handled the music and personality portion of their format. 

As the Internet exploded my mantra was “the only way to be global is be local.”  I still believe that and evidently so does Macy’s.

The headline in Wednesday’s Wall Street Journal read:

Here’s the quick back story.  Macy’s, then Federated, gobbled up a bunch of local and regional brands.  These were brands like Marshall Fields in Chicago, Burdines in Florida, and Foley’s in Texas. Macy’s inflicted its national brand across the country changing local traditions and working strategies to meet its national vision.  Hey, we’re global, baby!

Before I finish this story, let’s put this in a radio perspective.  It’s not hard.  Its the same story line we’ve lived but have yet to grasp the moral of the story.

Federated had been buying strong local and regional brands across the country.  A couple of years ago the decision was made to build a national brand.  They owned the most famous department store in the country, Macy’s.  Macy’s, of course, is the most famous because of the parade and movies more than actual nationwide knowledge of the offering.

Most of the local and regional chains were famous and highly thought of.  We’re talking Marshall Fields in Chicago, Burdines in Florida, and Foley’s in Texas.  Macy’s brand ego convinced the powers that be that Macy’s was a stronger brand in Chicago than Marshall Fields.  They must be smoking the good stuff. 

Let me put it another way.  Imagine the New York Times or Wall Street Journal (pick the one you hate the most) bought your local paper.  They do the same thing to your local paper.  Now, it’s the New York Times Chicago instead of the Chicago Tribune or the Wall Street Journal’s Washington Post. The New York Times publishing the Dallas Morning News from New York?  How Texan.

I read the analog versions of the Dallas Morning News and Wall Street Journal daily.  On Sunday, WSJ is replaced by the New York Times.  The “local” editions mean local advertising.  I have never read anything in the Times or the Journal about in Dallas than I hadn’t read first the local paper.  My favorite paper is the Los Angeles Times.  I get it on the Internet.

Okay, here’s one closer to home.  ABC tried this in the early 80s with SuperRadio.  The concept was to use the WABC line-up across the country because WABC was a huge Top 40 station in New York.  It was probably one of the network’s biggest failures.  WABC was a great station for New York!  In fact, it was so finely programmed to New York that it didn’t relate to anywhere else in the country.  A compliment to WABC programming and a raspberry to the folks that thought anyone outside of the New York area knew or cared who the talent was.  And, it’s happening now as media in general because more shallow (hard to believe, huh?).

Hopefully, radio will figure out what Macy’s finally has.  You have to appeal to local tastes to stand out in a world of people grasping for the universe.  And guess what, Macy’s is moving money into radio, newspaper, and the Internet in an effort to be more local.  I wonder if they’ve been listening to just how local we are these days?  Guess not.

Macy’s has found good success with its celebrity brands like Donald Trump and Mariah Carey (Rush Limbaugh and Tom Joyner).  And while those brands see increased sales (more cume) when used during TV spots they haven’t overcome the customers dislike of the more national feel and attitude of the stores.  Sales dropped last year 15% despite the increased sales in the national brands (TSL).

Macy’s is allowing local stores to control 15% of their merchandise for the local market.  They’re targeting zip codes through the Internet, continuing newspaper, and putting more into radio.

Maybe Macy’s discovered that you aren’t local if you’re just targeting a demo.  There is no such person as a 25-34 woman.  That’s not personal.  You have to make it personal in some way.  Talk to them about things they care about.  Make them feel special.  You win.

BTW, there was a very disturbing thing about this article.  The sub headline read, “Marketing Shifts To Web, Radio, and Newspapers, Away From Television.”  There were specific questions about newspaper, search marketing, TV spots, and Macys.com.  There’s nothing about radio except a mention in the headline.

I don’t even know where to start on Radio 2020.  On the one hand, its great to see radio finally stepping up to the plate.  Too bad its taken so long.  The optimism is great for the industry and sorely needed.

Unfortunately, if you read the news releases and the rhetoric from the NAB and the RAB you won’t find anything new and nothing about content.  Oh, they address the NAB consolidation issue with the FCC by talking about diversity of formats.

The radioheardhere.com website looks like it was written like a bad radio promo.  There’s no meat but it sounds exciting!  So, one of the big selling points is radio has new technologies (HD Radio and Streaming media, ooh, aaah) but we have someone listening to a double cassette boombox on the front page.  That’s been explained away the same way lame PDs explain questionable on-air content, “the focus group said it was okay.”  Who were those people in the room, what cities were they in and who was behind the mirror? 

Call me nuts but I find it hard to believe that people under 35 thought the double cassette player was edgy and cool.  And why are we talking to anyone over 35 if we’re trying to grow the business?

Its the content.  Its about the content.   No where is that addressed except in the broadest of terms like diversified formats. 

Content is why FM dominated AM.  Content is why Howard Stern got and deserved the great Sirius deal, and its why people remember the colorful Harry Carey, Jack Buck, and Vin Scully while disregarding competent but less colorful game callers like Eric Nadel.  One of radio’s premiere times was(is) a Vin or Harry or Jack called game.   You could see the players, the horizon, and the field.  In color!  The magic of those broadcasts was the understanding they had for the way the fans felt about the team and viewed the game itself.  They understand their audience.

The writing has been on the wall.  Why do you think the FCC is pushing for returns to ascertainments and more local programming?  It may be politics but politics are generally driven by what those who will be voting want.  I was appalled that the guy in Minot, South Dakota said the FCC should get into 2008 not 1972.  Does he have no understanding to his responsibility to the community?  Should we send him the definition of a “public trustee” or “operating in the public interest?”

I saw Bob Iger from Disney on C-Span today.  C-Span is a great resource for broadcasting issues.  He was discussing how Disney would grow in the world marketplace.  He said something very interesting.  Bob Igor believes Disney will grow by being LOCAL.  He discussed a length the need to relate to local communities and cultures because that’s what gets to people emotionally.  Globalization makes no one special.  People have a need to belong and feel special. 

So, we’re back to the local angle.  Frankly, I don’t understand the lack of appreciation for the obvious.  Are we so far off track that we’ve forgotten what brought us to the dance? 

The mind is the most important sex organ.  That’s because fantasy is better than reality.  Theater of the mind is still our most important and most under used asset.  The ability to be “of the moment” and “on the scene” is being taken away by television and webcams.  The Internet’s personalization is commerce driven not emotionally driven.  The Internet wants to know where you’ve been and where you’re going but spends little time on who you are as a person. 

All of the above is what radio does best and its what we should be concentrating on to bring folks back.  If anything we seem to be against everything we’re good at.  Actions speak louder than words.  My favorite line these days is “we’re a content company.”  That is probably one of the more bogus statements floated around.   You’re not a content company if you keep eliminating content and the people who create it.  You’re a spot carrier.   The NAB is against the diversified programming offered on XM and Sirius.  XM and Sirius are radio.  The folks with factory radios are using the same device they use to get FM and AM.  They are bringing people to the mall.  Its up to us to get them in our store.

If we’re in this for the long haul we better get back to the basics of understanding the audience.  Maybe even better understand who the audience isn’t.  The audience isn’t one single person who does not live in your market. 

You may think me a dinosaur for what I’m about to say.  That’s your right.  When people ask me how to program a radio station, the first thing I tell them everytime is read the 1934 Communications Act.  Then  learn about who you’re talking to, what they want, and give it to them.  I tell them to read the Communications Act because every solid structure is built on a strong foundation.

I’m not suggesting a return to the old act just to the spirit.  SERVE THE PUBLIC!  Maybe if we change “public” to “customer” more people will get it.

Radio Heard Here is at least an attempt to help the cause.  Make it a budget item.  How many hours will you use to drive the initiative?  How much air time will you dedicate?  When you get that figured out, scrap the campaign and dump all those resources into doing something on-air and off-air that’s about your community and your community only.  The payoff will be huge.  And you’ll be so different because you’re talking about your town, it will become a reason for people to remember you.  Then ratings will increase.  Higher billings.  Higher share prices!  Damn, problem solved.

First an apology for the delay since my last thoughts.  The tax man cometh.

I tell people radio is a lot like baseball.  Young people rule although young acting older pros can hang in there longer than expected.  On the other hand, good players are systematically thrown away because of age. You try to move up from the minors to the majors.  Its the minor leagues that drive the system.

Once again the RAB reports dismal billings for the Texas Rangers of media, radio.  The exception was small markets where revenue increased.  So now, everyone wants to know what’s going on in small markets.  I can remember similiar conversations in L-A in the 80s and 90s. 

My answer is the same today as it was then.  Small markets have direct client contact whether the client is represented by an agency or not.  This comes naturally because they’re in a civic club, the kids are on the same ball team or they go to church together.  They see each other in the grocery store.  Simple geography makes that less likely in larger markets.  But, that’s no excuse.

This isn’t just a sales problem.  This is radio’s problem.  This is exactly what’s wrong with the programming on most radio stations.  Its one of the reasons radio listening is down.  There’s no contact with the client, in this case, the listener. 

Radio stations are becoming commodities which decreases their value to the listener.  It’s hard for me to find out even the most basic of local content, the time of day, by listening to the radio in Dallas.  When Ron Chapman programmed KVIL it was the most local music radio station in America.  It would only work in Dallas and Dallas alone.  That’s what made it special.

We’re running franchised radio stations by default.  Radio stations all sound the same.  There’s a Mix, a Kiss, a Q or Z or whatever in every market and they all sound the same.  This was and still is my argument to those who criticized ABC for offering 24-hour music formats.  Its franchise time baby.  We’re all gonna be McDonald’s or Taco Bell and make a trillion dollars!

I believe the simple answer is not only the easiest to understand but also the most accurate.  So, stay with the McDonald’s theme.  No one turns anybody on to McDonald’s.  When friends come to L-A, you don’t rush to the nearest Mickey D’s on the Boulevard.  You’re headed to an In & Out, Fat Burger, or Tommie’s.  McDonald’s is a commodity available everywhere.  That makes it dependable, common and not special.

If you’re a baby boomer, you remember when people would sneak Coors on planes in suitcases because it was only available in 13 states.

I told a group of new media folks in 1998 that the strength for radio on the Internet was local not global.  Local will make us special and set us apart.  I still believe that. 

Unfortunately when I listen to the radio these days, I feel like local programming is taking a global approach and forgetting the hand that feeds it - the PEOPLE in its market.

The small market guys have never forgotten this because they can’t.  Someone will see them on the street and all of a sudden, they’re accountable to the community.   When was the last time you were accountable to a listener or advertiser (not agency) one-on-one?

There’s nothing like the human touch, looking in someone’s eyes or creating a very personal experience through conversation.  These are all things radio is best at but fails miserably on a daily basis to deliver.

We need to get back to basic politics.  Press the flesh.  Kiss the babies.  Be one of them.  Deliver on your promises.  That gets you re-elected and makes it easier to raise funds!

We’ve been through this before but that was before the Internet in the car, HD, Satellite, PPM, and whatever else is around the corner we don’t know about.

Like the Texas Rangers our pitching sucks.