Radio must adapt. That means more than figuring out how cheaply
you can keep a cluster on the air. It’s time for radio to take
some concrete, bold steps and as President; I’d implement a ten
point plan.
- Eliminate Sales Non-Competes - The best
sellers are attracted to potential for income growth,
advancement and the chance to rise to the top, while Radio
sales has devolved into a career with little opportunity for
any of that. Why would a talented, ambitious, aggressive
sales professional seek a career where they make less money
each year and can’t get another job?
Non Competes have lowered the overall skill level of most radio station sales departments, leaving them no way to upgrade. Some of radio’s revenue slide can be attributed to them and I’d tear ‘em all up on my first day as President of radio.
- Develop a real-world, projections based plan for
the inevitable migration of audience to the Internet - Technology has allowed people to enjoy an
unprecedented number of music formats and personalized music
channels – and siphoning TSL from terrestrial radio in the
process. Attempts to stop this train have and will fail, so
it makes more sense to ride it.
If radio applies that programming skill to the new world of personalization and narrowcasting on the Internet, taking ownership of the space, it can thrive. The Internet also provides sales targeting options that terrestrial radio doesn’t, which can offer real value and accountability to advertisers and revenue to radio. This plan will need to include negotiating a reasonable performance royalty rate for the internet with the music industry.
- Limit Voice tracking to 25% of total including
small markets –Radio is losing some of its musical
appeal to other media but is NOT losing talent appeal to
them. Most of radio’s most popular and profitable talent
started in small markets or at night. Voice tracking has
eliminated most of the small market/night time positions, so
where will the next generation of talent be developed?
Voice-tracking discipline could help save one of radio’s key
competitive advantages. As President of radio, I’d limit it
to 25% of the broadcast day in all markets.
- Enact a Budget Freeze - not on
increases but on cuts. As Radio’s President, I’d make
current expense levels the floor. Radio’s been chopping
muscle, not fat for a long time and it’s time to stop the
bleeding.
- Re-examine radio’s marketing commitment –
How can radio credibly ask its advertisers to
invest in marketing when we don’t do it ourselves? I’d test
all of radio’s former marketing staples (TV Ads, music
testing, local production, etc.)., in beta markets, then
analyze the financial impact of each. Some, maybe even all
of these probably bring a return on investment. As President
of Radio, I’d find out and re-implement the ones that do.
- Drop HD radio - HD radio is one of the
most embarrassing initiatives in radio’s history. There is
no way that HD radio can possibly attract enough listeners
to impact radio’s financials. The ads are driving away
listeners (a unit is a unit) and the complete failure of
this project is making radio appear ineffective as an
advertising vehicle. It’s fourth and 96 for HD radio…I would
call for the punting unit.
- Evolve station websites into networking
communities - Most station websites are nothing
more than simple station brochures with pictures of old
remotes. Websites must be improved - incorporating social
networking and its corresponding features (original content,
blogs, podcasts, rss feeds), and include more opportunities
for listeners, talent and artists to communicate. The
result? More traffic and revenue. I’d apply industry-wide
website standards with implementation time frames.
- Stop doing Wall Street conference calls –
“The Street” isn’t buying anything radio is saying
anyway…just look to the stock prices of most radio groups
for proof. Wall Street won’t react positively unless and
until they believe that radio is a growth medium. Quarterly
talk of cost cutting to keep pace with top line degradation
is underscoring how out of touch most radio decision makers
are with radio analyst expectations. When there’s a solid
growth plan for radio with projections based on realistic
initiatives/assumptions it will make sense to revisit
analyst calls.
- Drop Current PR Initiative - Radio
isn’t suffering from a PR problem, its suffering from an
audience erosion/changing ad environment/personalized media
choices/runaway technological advances problem…and an
industry-wide state of denial that doesn’t begin to address
any of it. CEO happy-talk and silly promo campaigns won’t
get any kid to listen to the radio instead of playing a Wii
game, or convince an ad agency to add radio when their
client insists on greater accountability than it offers.
- Accept that it will get worse before it gets
better – Radio is brimming with assets that with
time, money and patience could provide increased value for
its audience and clients - and profits for its stakeholders.
The 20th century was a great time for radio – it embraced
cutting edge marketing techniques and thrived. The 21st
century offers new opportunities that can get the radio
business growing again. As its new President, I’d cement
Radio’s future by committing to them with a realistic time
frame and the patience to ensure their implementation.
- I’d try to put the fun back in radio. I guess that’s an 11 point plan, not 10!
Bob Bellin



Submit Your Own Ideas
Silence. That is how my first day as President will begin. I
will begin my Presidency with a 24 hour rolling blackout of
radio stations across the United States. Radio loves a stunt and
there is none bigger than this. For 24 hours, millions of
Americans will be left with no music in the gym, no talk in
their offices and no traffic report on the way home. We need a
deafening wake up call that the only the silence of our
transmitters can deliver. Distance makes the heart grow fonder
and a day without radio would not only generate tremendous
publicity for the industry, but give listeners and clients a
reminder of just how omnipresent radio is in their lives and
business strategies.
The
key to radio is developing personalities that people trust on
their radios. Every community has their "radio star.” However,
who’s next? It’s an answer in Buffalo (and I’m sure everywhere
else) that I worry about every day. We have a talented staff but
not necessarily a break-out guy waiting in the wings or being
trained. I am also happy that we still have interns who want to
get into radio. But... the number of interested and qualified
people are diminishing every semester.
“I
am running for President Of Radio to lead this industry in a new
direction... Instead of being distracted from the most pressing
threats that we face, I want to overcome them. Instead of
pushing the entire burden of stagnant music and tired talk on to
nervous program directors and general managers, I want to use
all elements of creative power to keep us unsafe, yet
prosperous, and assuredly free. Instead of alienating ourselves
from our listeners, I want radio to be – once again – relevant,
and to lead...
I’m
assuming the President of Radio has dictatorial powers.
So
everyone’s told you how bad things are. Let me tell you how good
things could be.