Taking A "Whole" Approach To Radio – “W.T.D.A.?”

What’s The Digital Application?

60 Digital Ideas In 60 Minutes Download a PDF of the "60 In 60" presentation we delivered at the NAB

With the release of Technology Poll IV, it has become very apparent to us here at Jacobs Media that radio needs to start thinking differently. When we did our first national poll about technology, new media, and gadgets back in 2005, it was something of a curiosity to most of our clients.

On the one hand, it provided some interesting insights about how radio listeners – in this case, members of station databases – use other media and technologies. This is where we made the “cell phone only” discovery, along with other revelations about how radio listeners’ time is being sliced and diced by new media options.

Fast-forward to this year’s poll, and you can track the rapid change. Consider these highlights:

• Nearly three in ten now report they are listening to AM/FM radio less or a lot less at home.

• More than 95% have access to a high-speed Internet connection.

• About 95% have a cell phone, and of these, seven in ten text regularly.

• Nearly six in ten now own an iPod or a similar device.

• Four in ten have a TiVo or DVR.

• Over half regularly visit social networking sites like MySpace, Facebook, and Classmates.com.

• More than four in ten have played Guitar Hero or Rock Band in the past year.

• Nearly one-fourth have participated in a fantasy league in the past year or so.

• More than two-thirds download/stream videos from sites like YouTube frequently/occasionally.

• Nearly half shop online each month.

When consumers hear a new band or song on the radio, they are more likely to go to Google or Yahoo! for information than to the station that played the song’s website.

These are radio listeners. In fact, they’re the most loyal radio listeners – members of your email databases. And you can see how their media/entertainment lives are changing rapidly and in breathtaking ways.

All of these “realities” have an impact on the way that radio functions today, and will have to adapt moving forward. But when you consider how most stations and companies actually plan for the future, it’s hard not to question radio’s ability to understand these changes, and adapt accordingly.

Think, for example, about the traditional department head meetings you probably attend every week. Each manager comes in and represents their departmental "silo," sharing what is happening and what’s coming up in the next days, weeks, or months. While these are often effective and necessary meetings, they represent a structure that was devised decades ago, and no longer reflect a radio station's needs today.

Today, radio operations need to be much more than what comes out of the speakers. They need to be a “whole” entity, encompassing streaming, web site content, podcasting, HD2 channels, texting, databasing, and more. And this is more than just about the programming – these areas are where the revenue growth is going to come from over the next several years.

To that point, a recent Ad Age article reported that General Motors – the third largest advertiser in the U.S. – will split half of its $3 billion ad budget into digital. And the company will be urging its regional dealer ad groups to follow suit. And as Hyundai’s VP-Marketing Joel Ewanick underscores, “Online is getting to the point where it may be more important than the 30-second spot.”

This is more than a shot across the bow. And consider the chart below that recently appeared in one of Detroit’s local newspapers about this dollar shift away from traditional media and into digital platforms:

Yet, radio struggles to gets its operations around the digital opportunity. We continually hear frustration from programmers ("Sales can't sell the web site"), sales managers (“Programming isn't developing digital opportunities for our clients"), and GMs (you can only imagine the complaints we hear from them). Too often, stations are mired in old habits and as a result, not enough progress is being made.

If radio is truly serious about developing successful digital products that are viable, digital needs to be a part of every discussion. We need to re-think our internal structures and even our job titles. There’s a real dichotomy at play here. On the one hand, there is acknowledgement that developing digital strategies is critically important. But on the other, we keep hearing complaints that digital is frequently an afterthought at all levels at the station, and quite often with the clients as well. And if your station isn’t providing digital solutions as part of every sales presentation, then the odds are you will be disappointed with your success and will remain stuck relying on traditional revenue streams while the advertising world shifts.

So the first step is the reminder that we sent to clients. We call it “W.T.D.A.” – “What’s The Digital Application?” It’s in the form of those familiar LiveStrong bracelets, in a bright, difficult-to-ignore green. We believe it’s important for digital to have a prominent place inside your radio station, and we hope these bracelets serve as a constant reminder.

We hope our “W.T.D.A.” bracelets will serve as a visual cue and a daily reminder to regularly discuss the opportunities and challenges provided by digital. We all need to move away from the paradigm of the last several decades, and rethink how we’re shaping our product and doing business.

But beyond that, further change should be considered. The old roles aren't sufficient any more because job duties have been re-defined. We believe that stations can benefit by making some substantive changes in the job descriptions of program directors, sales managers, and sales people. Consider:

1. Program Directors can’t just be program directors anymore. The old definition restricts the thinking to just what comes from the “programs,” which is what comes out of the speakers. At a “whole” radio station, the new job title might be “Content Director” – the individual who is responsible for imagining, creating, and directing the organization’s content across multiple digital platforms.

2. Sales managers and their staffs need to learn an entirely new way of selling. This includes understanding a new language, new delivery systems, new metrics, new creative approaches, and an entirely new group of clients to call on. No longer can a rep’s day be spent exclusively with media buyers. There’s a new generation of creators and decision-makers at agencies and at the client level who understand the potential and the value of digital media.
   
   Stations that depend on CPP-oriented sellers talking to CPP-oriented media buyers won’t be successful. They will either have to hire a new group of salespeople, or re-train the ones they have.

3. Digital needs to be represented in every meeting. This includes sales meetings, promotion meetings, and even music meetings. There shouldn’t be a meeting where someone isn’t asking the key question: “What’s the digital application?”

4. Develop a metrics and research story. Whether you use Google Analytics or some other metrics tool, clients demand accurate traffic counts. Of course, having a sales staff that is well-versed in these metrics is important.
   
   Additionally, stations need to utilize tools like our Tech Poll or other research to provide clients with an accurate view of the digital platforms the audience uses. At this early stage, many local advertisers don’t have a clear understanding of digital, but know there might be an opportunity here. All radio stations have metrics – with research you will be able to tell a much more complete and compelling story.

5. Become the leader in digital knowledge. Because many local advertisers are unaware or fuzzy about all of the digital options and jargon, this is an opportunity for your station or cluster to become the main, credible source of this information. Consider organizing regular presentations where you bring in industry leaders who can help educate advertisers. These leaders could include someone from a web development company, an expert who could explain web metrics, a digital creative director, etc. By being proactive and providing answers, you not only position your station as the leader – you also help create the market through education.

6. Another way to assert leadership is to create a web site that provides key definitions and applications that your station can provide. This site should be separate from the site your listeners visit – it’s for clients only.

Recently, Tony Porturo, Anheuser-Busch’s VP of global media and sports marketing was quoted at an advertising convention:

"Everything we do today is about how to extend our traditional media buys with new technology."

That should tell you a lot about how mass marketers and advertisers are viewing the world. At the end of the day, it’s clear that ideas will be the currency in generating digital revenue. The radio stations that have mined the relationships with the digital decision-makers at the client level and can then provide them with creative ideas and applications will have a major advantage over their competitors within and outside of radio.

One additional new resource that we’d like to bring to your attention is Seth Godin’s new book, Meatball Sundae.

It is often a cautionary book that warns about just loading up on new media features (blogs, podcasts, streaming, etc.) to traditional products without re-thinking the very nature of traditional businesses – like radio. To not go through this process, Seth argues, is to create “meatball sundaes” – cool new elements (the toppings) that aren’t in sync with the existing business (the meatballs).

To quote him, “Smart organizations are investing time and energy into transforming their assets. They know the New Marketing is more than a hot topping. Instead they use New Marketing to dig deep, to redefine what they actually do to add value. The new rules are here and they’re not going away. If your assets are synchronized with what you can do with the New Marketing, you win.”

The book is loaded with some basic rules of this new road, as well as some timely examples that will resonate with you. As you start or continue this exciting but sometimes uncomfortable journey, we think you’ll find Meatball Sundae to be a helpful guidebook.

We believe it’s important that radio seriously re-thinks its internal structure and ways of doing business, and continues to ask itself the key question in every meeting and programming and sales discussion:

“What’s The Digital Application?”

As always, we invite your comments and viewpoints on the topic.

If you'd like W.T.D.A. bracelets for your station, cluster, or company, contact us at 248-353-9030 or send an email to FredJacobs@Jacobsmedia.com.