Radio’s Worst Enemy

Dennis Heinz

Now that GM has filed for Bankruptcy, it got me thinking about the state of radio.  How much different is GM from Radio as an industry? Not much.  GM became its’ own worst enemy because it did not listen and take notes.  Radio has “in general” lost revenue year after year, ever since bankers got congress and the FCC to allow consolidation. “Let’s automate, cut staff and make radio formats the same throughout the U.S.” If McDonalds can do it then surely radio can follow that business model and make big money, was the thinking.

In 1997, in the medium market I was in at the time, rates were $20 (on average) for 30’s. Stations competed with each other by have compelling morning, midday, afternoon and evening shows, every car in town had a station sticker on the window or bumper. Everyone in town could recite in part what went on with their favorite morning, afternoon or evening show. Jocks and sales staffs were on the streets with sticker stops, coffee and do-nuts, enthusiastic promotions, kissing babies, pressing the flesh and building relationships with listeners and advertisers. Rate integrity was king because radio was an active player in the community and had Top of Mind Awareness.

As recently as last week I saw a “one sheet” from a station in the North West that was selling “unsold inventory”.  The rate was $2.06 for a 30 second commercial 6a to 7p!!! (As long as you made a six-month commitment) There were a couple of interesting points in this proposal.  At the top of the page it stated that from time to time and month-to-month they had commercial slots that went unsold and “much of that unsold time fell during peak listening hours”. Now keep in mind this is the number one rated station (according to Arbitrarytron) for its’ format in this particular medium market. Recession, depression, and bad times aside, this kind of quick buck (or should I say pennies) is ridiculous and extremely counter productive. At $2.06 what kind of value have they set for their station? At $2.06 how on earth does the AE go back (to any advertiser in the market) and ask for a higher rate. To top it off this number one station leaves the advertiser thinking (Gee this station must have a problem if they have to beg for spare change and can’t even get a decent amount of advertisers during day time hours let alone in the evenings) The really sad thing is that this is not an isolated case many stations are doing this and have been doing it for a long time. Radio has trained the advertising community that “it’s the deal of the day”, all the advertiser has to do is wait a day or two and another “deal” will come along.

“WHAT IS RADIO MANAGEMENT THINKING? Radio is constantly telling the advertiser, “ You need to have Top of Mind Awareness” you should have repetition and consistency in your marketing.  Selling spots for $2.06 does not build Top of Mind Awareness for a radio station, instead it (barely) helps the stations bottom line and the advertiser just moves on to the next “deal” with another station.

I could be way out in left field here but wouldn’t it be better for a station to build a better product, (i.e. more than just the same 400 songs and a “that was, this is delivery”) and by the way enough of the “traffic and weather together” slogan” it’s old and tired.  Have a creative department that can deliver compelling and convincing commercials and promotions. Treat you’re on air and sales staffs with some respect (i.e. “so what’dya sell today”?) give them some “pride in ownership”. I got a Christmas card from a GM one year and the message inside was “work harder in ‘02” nothing else. Very inspirational eh?

Here is a crazy thought, invest in people. Hire some live bodies that have passion for the business. There are hundreds of them out there. Here’s a format thought.  If you played the Top 100 songs from the top 40 charts 1960 to 2000 that’s 4,000 titles. How many times does the public have to tell you that they want some variety, before Radio will listen? I have had listeners tell me that they can set their watch by the song that is currently playing. Country, Classic Rock, AC, Oldies it does not matter the format just quit playing the same stuff over and over. You are not fooling anyone with “deep cuts” or lost classics either.

As far as promotions go, be original. Create promotions that build station awareness but also build and provide genuine Top of Mind Awareness and positive results for a community project or advertiser. NTR became so important to Radio because Radio left its’ roots and therefore found it more difficult to sell commercial time. Websites, text message scams, sub channels and the next BBD (Bigger Better Deal) in “what else Radio can sell” means absolutely nothing if the on air content is crap and the staff is not inspired or lack of staff is not in place.  Just like General Motors, Radio has not listened to the public and is in fact its’ own worst enemy. Radio cannot blame Internet, Ipods, too much competition or anything else. It has only itself to blame just like General Motors. It really is time for Radio to take a look in the mirror.

Finally, if you think I’m out of touch, in left field or just plain crazy that’s fine. If you think I may be on to something and would like more of my thoughts on putting the passion back into your staff and improving the overall performance of your station(s) give me a call.

-- Dennis Heinz can be reached at resultsradio@hotmail.com .  New sales AE’s are encouraged to make contact and there is no charge.  In station presentations are available at a minimal charge.

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