Start by answering the phones …

January 22 – Most likely you read the widely published Stanford Groups ugly comments about radio … among the stocks panned is anything related to radio, with “sell” recommendations on Entercom Communications, Emmis Communications, Cox Radio and Cumulus Media. While 90% of Americans listen to radio, they are listening to less, and advertisers are retreating, says the report. “The combination of pressured cash flow and heavy debt burdens could render the equity value of many radio stocks worthless.” Here’s one link.

Structurally, a lot of radio groups are in trouble.  Wall Street seduced debt and declining audiences-revenues are a difficult mix.  Seems some radio leaders only know one quick fix … lighten the load … throw out the crew. 

One path forward will be thru the burning ashes.  The debt is so high and the revenue falling so fast it looks like a crash landing ahead.  However, new leaders will emerge.  They will find meaningful ways to serve local communities, engage listeners, and work better with retail merchants.   

Couple of quick steps you could start now:  1) answer the phones … listeners want to be acknowledged … even if it is just a voice mail, the no-answer ring outs really dismiss the audience; 2) engage listeners with IM/Chat/Twitter they are already there waiting for you; and 3) provide two-way website tools for commenting, linking, sharing, messaging, and picture/video posting.  Your broadcast signal, a local sales force, and a two-way website can be a community force.   No people?  Just ask, your crew is smart, already digital, and waiting for you to catch up.

Or, play Phoenix and maybe rise from the ashes.

What Team is Radio Playing?

A recent Wired Blog post 5 Ways the Cellphone will Change How You Listen to Music could also have been What Team is Radio Playing?

Here’s the gist but read the entire Wired post.   1)  Interactive Radio is going mobile.  2) It’s free with ads but ad-free with the pay service. 3) Interactive Radio works with cellphones and other devices.  4) Cashed interactive radio works everywhere.  5) Music blogs program Interactive Radio to individual tastes.

Look at the Interactive Radio team:

1.        Smartphone Manufacturers – Nokia, RIM, Sharp, Fujitsu, and Apple selling 120-million smartphones worldwide growing 22%.  Estimated annual revenues $48 Billion.

2.       Cell Phone Carriers – Verizon, AT&T, Sprint, and T-Mobile … wireless data $20-Billion growing 50% per year not including voice services.

3.       The Music Industry – Universal, Sony, Warner are all courting the digital music paths.   This $12 Billion industry is working digital as a new revenue source.   

4.       Software Developers – Symbian, RIM, Microsoft, Linux, Apple, Palm, and Google.  Let’s stop at Microsoft and Google $80 Billion annual revenues and they are giving away mobile software.

5.       Audience – spending $ 30 Billion annually on new smartphones and data plans. 

That’s $190 billion team. 

Now let’s think about AM/FM radio, $19 Billion in annual revenues declining 10%.  AM/FM radio trends to national playlists, voice tracked entertainment, and commercially supported music-no option.   AM/FM radio does offer local information … maybe.  Radio has local sales forces making local calls.

Broadcast AM/FM can make it a good game.  Broadcast Radio can still be a go-to source for music, community information, and personally relevant material.   Broadcast AM/FM Radio can build on open digital resources.  Build your digital platform.  Engage your digital audience.  Add your program director and sales team to the digital platform goals and content management.

AM/FM radio can win with digital but not against digital going mobile.

Radio Sales – Closing the Deal

Seven Steps to Success

My experience teaches me it takes 7-connections to close a sale.  One-call sales closings are rare events.  Most business owners want to see commitment, want understanding, and need time to digest information … 7-connections.

 

How ugly that most radio account executives will make tough cold calls and never really understand why things are not working.

Canvas a community, make a lucky connection with one or two business owners, and leave a media kit.  One or two follow up phone calls and the prospect is dropped as a dead lead.  

Radio needs help.  Local merchants are desperately seeking customers.  Radio is a powerful way to broadcast a selling message.  Radio websites are also powerful in their connections to higher income, internet consuming, online office workers streaming daily entertainment.

You can use a radio B2B website, email campaigns, and personal calls to make more deals.  You can use the radio listener website to connect local merchants with local consumers.   The path is pretty clear and it will take 7-steps to make any progress.

 

1.       Make your calls

2.       Push for a B2B radio website … check out www.salesimaging.com

3.       Create a email campaign to your call list 

4.       Follow up with your personal ideas 

5.       Repeat step 3

6.       Repeat step 4

7.       Close the sale.  You’re on your way to AE of the Month!

 

How do you start?  Contact Gregg Murray.  He can get the B2B support site going without any burden on your web manager.  Second, start a regular twice a month emailing to your clients.  Need material?  Contact Gregg or the guys at CELLit.  We’ll be happy to get you started. 

Otherwise, keep making those cold calls and burning up that gas.

Only 1 in 5

 

January 2009 Radio Website Survey Results

 

 

January 16, 2009 – New research from The Media Audit confirms what we already know.  Radio websites dramatically underused.  1 in 4 adults (75%) use the internet only 1 in 5 (18%) of online users visits a radio website.  It’s a real missed opportunity because the Media Audit research shows the radio website visitors are very attractive advertising targets.  They are well educated, upper income, white-collar workers visiting the radio websites.  The comprehensive study included 88-markets and more than 118,000 telephone interviews. 

Radio website visitors also demonstrated heavy radio listening habits, heavy internet use, and most likely to log on at work. 

Naturally, the information ends with a conclusion … radio stations gain by including the websites with traditional radio campaigns.  Catch the full release here.

What are you doing new in 2009?

Flight 1549 into the Hudson River

Congratulations to the pilot for his terrific work insuring the safety of all passengers.

Estimated Flight 1549 path to the Hudson River

Google in your market … bigger than you realize

Later this month when Google reports 2008 financial results, we will find out if Google is bigger than the entire radio industry.  In ten years, Google has shown how websites can be an effective part of their marketing program.  Since Google revenues might exceed all the radio station revenue in your market, it’s time to learn how to sell against, around and with this gigantic local competitor.

The brand new information comes from a recent SEC filing where Google confirms they have 1-million advertisers.   The table below attempts to understand what 1-million advertisers means.  Take away Google’s international revenue and that portion of international advertisers.  Assume US revenue is evenly spread out across US advertisers and geography.  This is a big assumption.  Later, you can adjust your thinking for how much isn’t local.

If your radio station serves a population of 500,000 then it is possible Google had 970 clients in your market spending $1,550/month on search and Google network banner ads.  That’s about $18-million a year from merchants in your broadcast area.    Google didn’t get to $22+ billion in revenue without some part of your market. 

Did your 2008 sales revenues miss something? Do you have 970 clients? Merchants in your market spend part of their advertising budgets on something you either don’t believe in or don’t care about. 

Local merchants now have more respectable websites with product and service details, pictures & videos, location information, pricing, coupons, and ecommerce tools.  Does your broadcast signal work with or ignore websites? Are you engaging your listeners with web links? Does your website have dynamic content? Video? Texting? Commenting? Sharing tools?  

 Are you missing a connection and sales revenue? It’s time to make your radio website part of your marketing program.  Your advertisers are already there.  Join them.

 

Google Local Radio Market Revenue Estimates

 

 

 

Online video sites and copyright infringement issues are concerning.  It’s a legitimate discussion.  We want to protect copyright owners and help promote their content.  Done well, online video does both.

Judge Howard Matz, Los Angeles, ruled online video site quality for “safe harbor” protection under the Digital Millennium Copyright Act.  The DMCA safe harbor provides immunity to sites accepting user-uploaded content provided infringing material is removed upon request.

The case brought by Veoh, a Michael Eisner backed web video site, as well as other cases with lo Group and YouTube speaks well for online video sites as long as they act promptly to protect copyright owners.  More here

New Multi-player

CELLit Media brings dynamic content and new web programs to your website.  The new multi-player can be embedded into your homepage with up to 4-admin selected videos or pictures.  The new player allows the site administrator to select the configuration, display orientation, player size, colors, and media.  There are 11 preset sizes and the option to configure a custom size to fit your media website.  You can bring dynamic video and pictures to your home page.  Your audience can watch videos without leaving the page.  Your private administration pages allow you to select the videos, title, colors, and size.  

ADMIN CONTROLS

•          Media selection
•          Select from presets or custom sizes
•          Select colors
•          Select player title
•          Select configuration

Make your web pages dynamic, inviting, and grow your web traffic.

CELLit Media provides media tools for radio websites with no startup or operating expenses.  CELLit shares advertising banner space with the media website.