Does size (of your audience) matter or not?

“What we are going to witness in 2009 is the diminished importance of how large your (radio) audience is and the increasing importance of how effectively you connect that audience, whatever its size, with the advertisers and marketers who have the goods and services that audience craves.” — Mark Ramsey Hear 2.0

For some reason this made me think of Apple. I don’t think I’ve ever heard an Apple or Mac or iPod spot on the radio. Lots on TV, of course. And Apple sales are through the roof. I’m trying to think of how I am “connected” with Apple products and how that came to be.

I’m just trying to think of ways radio stations can make –or are making– the connections Mr. Ramsey describes. And what does this trend mean for radio networks?

“You can’t create larger audiences by trying to create larger audiences”

The following excerpts are from an interview Mark Ramsey (Hear 2.0) did with Tom Asacker, a marketing and branding adviser and author (A Little Less Conversation: Connecting with Customers in a Noisy World).

One of the larger challenges facing radio?

“It seems that we’ve got a catch-22 on our hands, right?  We need to get out on the street and keep selling in order to keep revenue coming in, so nobody wants to slow down in order to change the way they’re doing things, to really rethink it, because that might take away from sales time.  I mean we’re putting out fires, and nobody wants to step back and say, “Wait a minute.  Is there a better way of doing this?”

“It’s a difficult thing with an industry that’s been around this long, with people that are well entrenched in relationships up and down the chain.  It’s tough to get people to change — to just say, “Put on the brakes, and let’s rethink radio.”  But I think that that’s what needs to be done:  Let’s rethink radio.  Just like Steve Jobs said, “Let me rethink the MP3 player.”  He didn’t say, “Well, we can do the MP3 player and slap this thing on it”; he said, “Stop, and let’s rethink the MP3 player.”

That’s a tough thing to do.  It takes guts.”

Yes, it does. And he offers this rather brilliant (IMO) insight on creating audiences:

“You can’t create larger audiences by trying to create larger audiences. You can only create larger audiences by trying to get deeper with smaller audiences.

Think about how to get deeper and make more relevant, valuable connections with individuals in a culture or a subculture.

Don’t think about audience size.  Think about the depth of the relationship and how important it is and how valuable it is.  The more you do that, the bigger the audience gets.”

That’s probably true of friends as well. Best way to have a lot is to be a good one. You can listen to the entire interview at Hear 2.0.

Seth Godin on radio’s future

Mark Ramsey has posted audio (and partial transcript) of an interview with marketing maven Seth Godin, on the future of radio. This is an update to an earlier interview. These three nuggets sloshed out of my pan:

“So if you’re an advertiser and you have a choice between reaching a ton of people who couldn’t care less, and so you have to talk really fast, yell, and make obscene promises on the radio to get them to show up at your dealership, or reach a smaller group of people about something that they’re very interested in a very connected way, in the long run advertisers are going to come back to the smaller, more tightly knit group.”

“Everything radio has done has been about leveraging a rare piece of spectrum, and the thing we have to acknowledge is that spectrum isn’t rare anymore. So the one asset you built your whole organization on is going away really fast and instead of putting your head in the sand and complaining about that, take advantage of the momentum so that when it does finally disappear, you have something else.”

“Consider the FCC’s ruling recently about the white space spectrum. What white space spectrum is going to mean is that in five years every car sold is going to have an infinite number of radio stations on it. Not 100 or 1,000 but more radio stations than you could listen to in your lifetime, and if that’s true, tell me again why you’re going to win?”

As I ponder these points, I’m listening to the very eclectic music mix on the Coffee Zone iPod. On the way to work, I’ll be live streaming Pandora from the iPhone.

Sprint in the NFL radio business

“Sprint Nextel subscribers will be able to listen to live radio broadcasts of National Football League games this season as part of new partnership between the wireless provider and sports league.

IphonefootballThe live, cell-phone-accessible radio broadcasts—the centerpiece of the new NFL Mobile Live platform–will be available to all Sprint wireless subscribers who purchase a basic data plan as part of their services. In addition, as part of the agreement a select group of premium subscribers will be able to view live broadcasts of the NFL Network’s eight Thursday Night Football games on their phones starting on Nov. 6.” — MEDIA WEEK

Hmmm. Here’s one of several “take away’s” from this story by Mark Ramsey:

“For some reason, many broadcasters confuse the term “content” with “the stuff that’s on our air.” When I use the term “content” I mean the material that’s of serious interest to listeners. Stuff they will seek out. Not filler. Not commodities. McDonalds and NOBU may both offer “food,” but that’s where the similarity ends, and don’t think for a moment the patrons don’t know the difference.

In this case, the content is owned in its entirety by a third party – not a radio company. When it comes to professional sports play-by-play, radio is a distribution channel, not a content owner. Thus we will lose out to the owners of content in deals like this.”

Our company does broadcasts for a whole bunch of big (and small) colleges. We’ve been streaming (via Yahoo!) for years and on satellite radio for the last few years. It seems inevitable that these broadcasts will go directly to phones, sooner or later. Stay tuned? Dialed in?

Coffee Zone Radio

Coffee Zone proprietor Tasir Yanis has an amazing mix of songs on his iPod. That’s what we listen to here at the Zone. Maybe it’s just the ambience of a coffee shop but the former radio program director in me often thinks Taisir’s mix would make a great radio format. Except for all the commercials you’d have to jam in between the songs.

CoffeezoneradioOr we could just download this little app for our iPhones. If I understand this correctly, it enables you to tap into your entire music collection on your home PC via your iPhone – and the music collections of your friends, too – and stream all of the above to your phone, wherever you go. [YouTube demo]

I found this on Mark Ramsey’s Hear 2.0 who describes it as being able to “create our own radio stations from our own content and share them with friends who are mobile.”

So I could listen to Coffee Zone Radio wherever I am? Or Planet Nelson Radio? Or Scott Brandon’s Friday Funk?

Okay, the iPhone is starting to look more and more like something I’m going to have to have. But I really want the thing to stream video, too. I’m getting close.

We’re gonna need a bigger dial

Mark Ramsey points us to this LA Times story about Chrysler’s plans to offer wireless Internet in its 2009 models. Something we all knew was coming. As always, Mr. Ramsey asks the good questions. Here’s one of them:

“What does it mean to be “radio” in a world where audio is fully integrated into an experience that includes video, text, interactivity, and personalization? The attraction to these services will not only be that they’re supplemental to radio, but that they expand the definition of radio. And that expansion will benefit only those broadcasters and their partners smart enough to recognize that the advantage of a broadcast tower is non-existent in this context.”

Or a satellite channel?

The results business

Mark Ramsey points to a survey of marketing professionals that shows growing pressure on accountability:

“86% of marketers say pressure has increased on them to account for results; no one said that the pressure has decreased. Moreover, 68% of organizations are measuring the quantifiable contribution of marketing to the bottom line.

Message to radio: You’re no longer in the advertising business. You’re in the results business.
So which are you selling, advertising or results?”

I feel like I should have something to say about this… but I don’t know what it would be.

Where is the innovation in radio?

“Where are the new formats? Where is the new talent? Why is Talk Radio pretty much the only form of radio that isn’t music-intensive? Why are most Talkers late-middle-aged conservative white dudes? Our non-music format options are ridiculously thin – why?” — Mark Ramsey

I’ve wondered the same thing. It’s not uncommon for an owner to have five or six stations in a market, running some safe format on everyone of them. As Mr. Ramsey points out in his post, to try something innovative would require imagination, talent and guts. Short supply these days.

Public radio and podcasting

Mark Ramsey points us to an interesting piece by “The Long Tail’s” Chris Anderson on how his listening behavior to public radio has been transformed by podcasting.

“I realized that I don’t really support my local affiliate. I love some of the shows it broadcasts and hate others. My attachments are to individual shows, not to a broadcast station. My engagement with public radio is at a more granular level than the affiliate.

Now that I get my radio via podcast, I don’t have to take the bad shows with the good. I’ve got an a la carte menu, and I assemble my own schedule with what I want and when I want it.

But look at the arc of history here. The podcast model is getting cheaper and more ubiquitously available (who doesn’t have a cellphone?), and it serves individual needs and taste better. Meanwhile the broadcast model, which is all about one-size-fits-all taste, is based on human labor costs and costly transmission equipment and is only getting more expensive. You can see how this story ends.”

I’ve had the same guilty thoughts about my own listening habits. I like a lot of NPR programs but listen to them as podcasts. And I would be willing to pay for the best shows (This American Life, for example).

IpodspeakerAnd my morning listening routine has improved with the purchase of a small speaker/doc for my iPod nano. Each evening iTunes downloads any new podcasts to which I’m subscribed, and syncs to the nano. In the morning I pop the nano into the speaker dock and listen to a perfectly customized line-up of progams.