NAB Radio Show, Charlotte Thoughts

My keynote speech at this week’s NAB Radio show in Charlotte was standing room only.

And to think that just last year, nobody would take my calls or even return an email. Nobody wanted to talk about how Radio was in an excellent position to really kick-a**, in a Web 2.0 world. Not sure how it happened, but at this year’s show, Radio finally got religion. It now knows, that the best bet for the near future, is quickly leveraging Internet technology. While HD, shorter stop-sets, getting a B-cast chip inside the I-pod, and stopping the Satellite merger are continued efforts, the accelerated move to Online is the logical, primary strategy.

Sorry. Some of the above is fabrication and fantasy…..especially the part about my keynote speech.  With the Radio industry at a crossroads, I have mixed feelings about what I learned in Charlotte this week. While I am still very bullish on the future of Radio, and the opportunities that it can tap via the Web, there certainly were a few things that made me scratch my head.

DENIAL is not a river in Egypt…..but could it have been alive and well in Charlotte ?

Michael Harrison, publisher of the talk-radio magazine Talkers, told a group during his session:  competing technologies — like Internet, Wi-Fi, podcasts and cell phones — would all but fill the niche they now occupy. “These are dark times for terrestrial radio,” Harrison said. “And most people in terrestrial radio are in denial of it.” Read more from the Charlotte Observer here.

UPDATE: This “denial” goes against what I read in a recent MEDIA WEEK article that highlights the dramatic surge in web activity for Radio. Industry leaders like CBS, Clear Channel and Emmis are making serious investments in order to stake a claim online. Borrell & Associates is pleasantly surprised at the substantial awakening by Radio, and suggests: ”Radio sales staffs have shown a particularly strong ability to sell online advertising”. No matter which way you slice it, Radio is moving forward, some faster and smarter than others. Read the full Media Week article here.

As always, The Jacobs Media Summit really delivered. In addition to the tasty crab hush-puppies and a nice selection of appetizers…… other menu items being served by Fred’s team were right on the money. I especially enjoyed the Bedroom Project videos; a series of casual interviews with young adults about their views on Radio and technology. After watching these honest, no-BS clips, one has to wonder how the industry will keep this demo from fully abandoning Radio in the coming years.

Is it being alarmist when some suggest that dramatic and critical changes need to be made today…..not sometime in the future?  Tomorrow could be too late. Just ask the Record and Newspaper industries, who squandered their head start in this space.

On a brighter note, it was great to see others at the Jacobs get together: Mark Ramsey from Hear2.0, Paul Blake, John Fullam and crew from Greater Media Philly,  and Tom Kelly from SkinRadio/Martini Lounge Radio.

Too much focus on the negatives?  Heard alot about Satellite, streaming fees, Radio’s poor branding. Maybe not enough discussion about the real upside for Radio……leveraging the ongoing disruption with their POWERFUL broadcast tools. Some I talked with think Web is important, but really an issue for “sometime in the future”

Learning from the competition? I am still curious about why Radio is not learning/stealing more from the lessons that TV, Newspapers and Pure-play internet companies could teach them about Web revenue. These competitors have more experience under their belt. Learn from them, and save ALOT of time and money.

Put 10 really smart Radio execs in a room……and ask them about how Radio needs to deal with the Web….and you will get 10 wildly different answers. Might make sense for Radio to poach seasoned Internet professionals with a full understanding of ALL Online media, and embed them through out their organizations. Just hiring a web seller and having a webmaster is not enough.

For more analysis of the NAB show in Charlotte, read Ken Dardis from AudioGraphics.com here. 

Local Online: Broadcast vs. Newspaper

A few weeks back, we noted that FOX-TVwas smartly building local music sites for some of it’s markets. At the same time, we wondered aloud why TV was moving into this space, since Radio would seemingly be a much better fit for this type of online project.

Then this morning, while reading the latest from Ken Dardis @ www.AudioGraphics.com, Ken brought to my attention an article that reports on how a San Diego newspaper is rolling out an online Radio station that only plays LOCAL music.

Hmmmm.

TV and Newspaper are getting into the local, online music space in a substantial way. Why? Maybe there’s a hole in most markets for a local online music community complete with streaming, mp3 downloads, event calenders, message boards, social networking, and podcasts. Now imagine that effort being supported by the power a traditional media company; driving offline to online.

Radio should really own this space, especially if it’s a 18-34 targetted rock format. Here is some fresh, new proof.

What formats drive traffic to Radio station websites ? A recent study from the Media Audit answers this question:

• Modern Rock stations had the highest percentage of listeners heading to stations’ Web sites, with males making up 61.6 percent of that format’s listeners. Also, 22.6 percent of Modern Rock listeners have an income over $100,000.
  
• The next highest percentage of listeners who visit stations’ Web sites came from Triple A, followed by Sports, Rock and Jazz.

Those who know me, know that when it comes to Radio Web sites, I always point out that Modern/Active Rock stations, as well as Sports stations, have the greatest opportunity for Online success…….primarily due to those formats’ ultra-passionate audience, topical content, and audience income level.

Maybe some discussions at the NAB Radio Show in Charlotte  this week will encourage more operators to dramatically ramp up their web efforts.

Being a native Philadelphian, I continue to monitor the online activity of 2 of my favorite local Radio stations (Modern Rocker) www.Radio1045.com and (Sports talker) www.610WIP.com. Both of these sites have an amazing amount of revenue potential. I am hopeful that Clear Channel and CBS have strong online plans for both of these excellent stations.

>>>>>> Special thanks to Kurt, Paul and the team at Radio and Internet Newsletter (RAIN) for highlighting one of my recent posts; “Radio plays catch up with the Internet”

Avenue A / Razorfish, Interactive Powerhouse

Here are some pics I took, from a recent event held at the Philadelphia offices of the Avenue-A Razorfish agency .

(Just in case you didn’t know, they are the largest interactive agency in the US.)

In addition to fine beverages and tasty appetizers, there was a  “lively and illuminating discussion panel” on letting your brand mingle with the people. The panel featured Patrick Moorhead from Avenue A | Razorfish’s Advanced Marketing Solutions group as moderator, and an exchange of views from YouTube’s Brian Cusack and Thomas Bosco of MySpace.

It’s always really nice to spend time with agency folks in a more casual atmosphere like this. You get to really know the people you email, call and present to all the time. And when it comes to Ave A, I find that I always leave their meetings with a MUCH better grasp of how marketers are spending their money, and what I MUST do to grow my share of their online campaign buys. I am a smarter man when I leave that building.

Here are some key take-aways from a recent WorldNow sales call I had in their offices (near the Northern Liberties section of the city). 

>> Traditional media like TV, Radio and Newspaper, should leverage the value of ALL of their assets; the offline as well as the online. They should develop and offer solutions that takes advantage of all of their unique strengths.

>> It is increasingly important for all TV, Radio & Newspaper sellers to have a better grasp of Internet marketing. Meaning: if you are primarily a TV seller, don’t just rely on bringing the “WEB GUY” to the meeting.

>> Traditional media will greatly benefit from ‘enabling’ commerce. It’s well positioned to do so. In a digital world, where virtually everything is trackable (measured media), all campaigns will smartly have a performance-based ROI metric tied to it. While branding/awareness is still quite valuable, the actual performance of the campaign will ultimately determine whether or not, it was successful. (sales, sign-ups, transactions, etc.)

Ave A-Razorfish, thru a recent aquisition, is now a part of Microsoft. See details here.

Radio plays catch up with Internet, NAB

Compared to past years, there is a dramatic increase in the number of Internet oriented panels at the upcoming NAB Radio show, next week in Charlotte. Good thing too. Locally focused advertisers are spending more money online, and Radio (as well as TV & Newspapers) are in a good position to leverage this. But will they do what it takes to win ?

When posing this question to really smart, seasoned broadcast managers, they inevitably respond “ I don’t want to cannibilize my broadcast money, and I don’t want my sellers chasing Web dollars. We’re in the RADIO business !”

This is where I cautiously launch into my patented reply: “I understand exactly what you’re saying. Many broadcasters feel the same way. Yet, I know of a growing list of broadcasters that are starting to realize: We’re really in the business of connecting marketers to consumers.  We enable commerce, and luckily, we have the ubiquitous power of the Radio transmitter to help enable that advertiser/consumer relationship. Let’s use ALL of our assets: spot, promos, Web, database, live remotes, and events to accomplish that.”

Traditional ‘spot’ revenues for Broadcasters are mainly flat or slipping. This puts local traditional media companies in a tough spot. Do we put our nose down, and work even harder at selling our traditional advertising inventory, or do we re-direct some of our sales efforts towards growing our interactive share? A somewhat sobering take on this issue is well communicated by Ken Dardis from AudioGraphics here.

Radio is in a much better position than they think. It’s easy to see from the graph above. Traditional media needs a strong gameplan to go after these growing online dollars. As more dollars are being allocated to ‘measured media’ like the Internet, some smart broadcasters realize that they own some pretty powerful tools to grab a piece of fast growing Web expenditures.

Radio’s not so secret weapons:

Relationships with media buyers/planners, especially on the local front. Broadcast reps will always have a shot to pitch interactive or cross platform programs. They already have a built-in trust with the buyer. All the while, the exploding volumes of pure-play dot coms are finding it hard to get in front of these key decision makers. There is only so many hours in the day for media planners to take meetings with the growing list of online-only media sites.

The Broadcast transmitter and tower. Think of how valuable it is, to be able to promote a client’s online destination, or a sales based promotion that is housed within the broadcaster’s website. Radio has it’s very own megaphone on steroids; the transmitter. The dot com pure-plays don’t have this luxury. They have to pay for offline promotion.

Broadcasters are well positioned to re-invigorate their business by leveraging the assets they already have in place. Now all they have to do is put more skin into the game. How? Devote appropriate resources, and make the Web a strategic part of every sales, programming and marketing innitiative……. not just as an ‘add-on’.

FOX Local Music sites, Philly Rock Wars, WYSP

According to Lost Remote:

FOX Interactive Media and a few FOX O&O’s have launched a few local music websites in connection with MySpace. The sites are an experiment to see if there is an audience for content that focuses on local bands, concerts and fans. The first round of sites include mymusictwincities, mymusicboston and mymusichouston, with MySpace pages for each (example). The sites include streaming audio, video of performances, concert calendars and links to the bands’ MySpace pages.

Hey, wait a minute. A TV company building LOCAL music sites ? Promoting ‘Battle of the Bands’ ? I thought local Radio stations should own this space ? Especially local Rock stations that target 18-34 and 18-49 demos.

This should be a major wake-up call to local Radio.What FOX is doing is just another example of the fast moving, digital land grab at the local level. Team Rupert sees that Radio is not taking full advantage of their local powers of driving new online businesses. Especially with music.

When it comes to younger skewing, Rock based formats, the Internet should be a top priority for Radio. What FOX is doing is proof that the ‘barriers to entry’ (you need a Radio station to build a local music community), is no longer true. The local Music space is open to all comers. Whoever is the most committed, with substantial resources, a passionate staff, aware of Web 2.0 rules, and a real respect for the local music fan, will win this race.

Philly Rock Wars and the PERFECT STORM. Rock is making a MAJOR return to the airwaves here in Cheesesteak City. When you connect this to the heightened importance of local music websites, I think we are in for one hell of a competitive battle here in Philadelphia. Some point to Rock’s awakening because of the new rating system here in Philly; the Personal People Meter (PPM) .

Here’s where things stand now: CBS’s 94 WYSP ( formerly talker FREE FM ) is scheduled to switch back to Rock later today at 5pm. A few months ago, Clear Channel rolled out a really well programmed Alternative Rocker; Radio 104.5. And of course, Greater Media’s 93.3 WMMR continues its Rock stronghold, especially in AM drive, with Preston and Steve.

While all of these stations have Websites, there is certainly alot of upside to what they can do with them. Not only to build listener loyalty, but to drive new revenue streams and other business opportunities. Philly will be a market to watch, and learn from.

Can Local Media learn from Theme Parks ?

Took a break from posting for a few days due to some business travel in the Sunshine State. And as you could imagine, there are some nice benefits of having clients in Florida: getting a tan, taking a swim, and visiting the Orlando theme parks. Nothing like putting the Blackberry away, turning off the cell phone and getting lost in fantasy land for a bit.

But being the communications/marketing nerd that I am, I found myself noticing all of the interesting and creative ways that Disney and Universal studios were utilizing product placement within their attractions and rides.

One of the most compelling examples of this, was how Volkswagon was integrated into one of Universal Studios most popular rides: Revenge of the Mummy. See slide show above.

While this marketing investment from the German car maker was most certainly from a national budget, it lead me to believe that this was yet another example of the creative fragmention of marketing dollars. I bet that some of these dollars used to primarily go to Broadcast and Print.

If you have a local online Media property, are you doing more that just offering banners and pre-rolls to your clients? Are you coming up with innovative ways to embed your clients brand or message within your content? Maybe you are building special sections, or landing pages? How about unique podcasts, contests, or video programs ?

Yes, amusement parks are now one of your many, growing list of competitors.

WYSP, KYW, CBS-3 Building Coming Down.

The end of an era.

Had some great times in that building at 5th and Market in Philly. WYSP radio, KYW 1060 Newsradio, and CBS-TV 3. But as of this week, the wrecking crew is on site, tearing it down to make way for a new structure, and another tenant.

Loved doing Mid-days there at WYSP in the late 90’s. I also did some TV work for CBS-3; music reports and technology features.

I also remember how cool it was to bump into the well known on-air reporters from KYW newsradio, also housed within those hallowed halls. Sometimes I cringed when I saw them order some nasty stuff from that hotdog cart out front.

As you may know, the TV station moved over into new digs, up near the Art Museum area. And the 2 Radio stations moved just down the street on Market.

Training your staff for Web 2.0

 

Is your staff comfortable in a Web 2.0 world? Do they have skills in things like blogging, RSS, video, podcasting, online sales, CPM or sponsorship selling, digital editing, convergence packages, etc ?

This question applies to TV, Radio, Newspapers and all other media properties.

The four ladies above are Web producers on a mission. They are an example of what MUST be done at local media properties. “Tell a great story with our dinky little camera and to put your video stories online via our vlog.” They work for Knox News. Take a look at their work here.

Jeff Jarvis from www.BuzzMachine.com, approaches this topic from the Print side. Rosenblum Associates  goes at it from the TV side. Radio is ramping up as we speak.

In terms of Web training for traditional media, this space is wide open for someone to step into, in a big way.

Jeff Jarvis says: But what’s appalling is that newspapers are not retraining their staffs in the new skills of new media.

There are lots of cynical excuses for that: The papers want to lay off expensive people and hire cheap kids. Or the old dogs won’t — or some would say can’t — learn new skills.

Well, why not try? I have been arguing — to little result … so far — that news organizations of all sorts should train every person in the newsroom in the skills of new media: how to make video, audio, and blogs. That wouldn’t take long, just a day or two. It’s that easy. That’s why everybody out here is doing it.

Read more here.

Philadelphia Realtor: Web Marketing Success.

 

The pic above is from the website of an actual real estate agent in Tennessee. Probably a nice guy. He might even be a GREAT realtor. But if I’m gonna move to the Smoky Mountains any time soon, I might avoid this guy based on his Flintstones tie and Moe Howard haircut.

With Real Estate shifting a large portion of it’s marketing efforts towards the Web (and out of print), standing out from the online competition is a skill that some realtors get, and others still need some help with. And why realtors think that their faces (and haircuts) are a selling point for their services, is beyond me.

Click below to see the creativity of RICH THE REALTOR. Would you want this guy to be your real estate agent in Philadelphia? Maybe. At the very least, he certainly exhibits a much better grasp of Web marketing than the gentleman above. If your under 40, I bet you feel more comfortable with Rich.

Rich the Realtor, and others like him, have a much better chance of winning in the online housing space. If you’re a local web publisher, would you know how to get Rich to spend money on your site?

Click here to see how old school Realtors work with the web…VERY FUNNY !

I found his ad on Philebrity.com.