Mark Ramsey on the transitional nature of technology and what it means for broadcastsers: “In a shockingly short span of time – perhaps five to ten years – the Internet and/or other wireless-based audio entertainment and information channels will be widely distributed substitutes for radio as we know it today. And your content will either be there or it will not be. … If you think all you need is a website and some podcasts and a frequent listener club, you’re wrong.”
Category Archives: Radio
Broadcasting on the web
Interesting analysis of TV station websites by Graeme Newell. The piece is buried in a long, no-way-to-deeplink post on ShopTalk, so I’m posting the full article after the jump.
“The problem is our mindset. We’re trying to recreate broadcasting on the web. We do the web just like we do TV – broad. There is just a little bit of everything and not enough of anything. Because of its very nature, TV news has evolved to become a headline service. Our web sites mirror our on-air broadcast. You usually leave our web sites still hungry, wishing for a little more meat on the bone.”
“In the future, successful stations will have a hundred different broadband channels, all of them geared towards a specific demo. Give up your need to be a broadcaster. We are now nichecasters and the web gives us a whole new way to bring new audiences to our door.”
It’s worth a read because I think it applies to a lot of radio station websites as well as TV. Maybe even some radio network websites?
Google going forward with radio plans
Google CEO Eric Schmidt says Google’s plans to begin placing radio ads by the end of this year remain on schedule, contradicting recent talk within the industry that the company had postponed the project.
“The tests are going extremely well,” said Schmidt, who added Google eventually plans to employ about 1,000 workers in its radio division. [E-Commerce Times via Hear 2.0]
Internet advertising closing in on radio
The Internet will receive a greater share of global advertising spending this year than do outdoor outlets such as billboards, and it is set to overtake radio soon. That’s one of the findings in a report by ZenithOptimedia, a media planning and buying firm. The growth is being driven by smaller brands, which are turning to the Internet because it is relatively cheap and can target their markets effectively. (see The Long Tail) The company said it expected the spending share gap between the Internet and radio to narrow from 3.9 percentage points in 2005 to 0.7 in 2008. (Yahoo! News/Reuters)
If you understand how to market and sell online, this is not necessarily a bad thing. If you don’t… then pray that these are new dollars that won’t impact your sales.
Media Study: Radio Makes People Happy
That’s one of the findings in a new study by the Radio Advertising Effectiveness Lab. Harris International surveyed more than 2,500 people between the ages of 18 and 54 in June and July. (MediaWeek)
“Fifty-five percent of respondents said radio was the medium most likely to improve their mood compared to the other three media studied. The findings were generally true across all ages, genders, and ethnic groups, but especially strong for African-Americans and Hispanics.”
“Advertising on radio was also found to be less annoying than on other media. Comparing Internet ads to radio ads, 45 percent of respondents said radio ads are “repeated too often,” compared to 53 percent who said the same about Internet ads; 24 percent said radio ads “appear at inconvenient moments,” while 60 percent said the same of Internet advertising.”
The simple truth is most radio stations just have too many commercials. And too many of those commercials have no relevance for me. Yes, I understand that they ALL have relevance for someone… but in an iPod world, that truth is no longer relevant. I have to stop now, I’m out of italics. [Thanks, Chuck]
How to ruin a podcast
Mark Ramsey points to a classic example of MSM cluelessness (CBS in this instance). His post makes me uncomfortable because our networks produce a lot of programs (newscasts and sports reports) that are comprised of 3 minutes of programming and one minute of commercial.
What if we were only podcasting that program. Would listeners swallow that? I’m thinking not.
Back in the dark old days, when one of our networks was oversold, we’d just jam in more spots and ask stations to air programs that had more commercial content than programming. Shudder.
Mark sums it up nicely:
“In our zeal to monetize our online content, remember that podcasts are downloaded and played voluntarily. It’s because we like you and want more of you. Yes, we’ll tolerate advertising in podcasts – but not 30 out of 90 seconds!”
What new Arbitron rules mean for radio stations
“When listening is defined as broader than “radio” alone, then you are no longer in the “radio business.” You’re in the business of audio entertainment and information, regardless of distribution channel. That little home-grown Internet radio station from Zimbabwe is now your competitor. When “Listening” is defined according to things that do not require a radio, you are no longer in the “radio business.” Get it?” — Mark Ramsey
My kind of contract
Roger brought back a copy of the affiliation contract for The Davey Ramsey Show (financial advice?) from the recent meeting of the National Association of Broadcasters. They shove all kinds of promotional stuff under the door to your hotel room every night and this was in Roger’s pile one morning. I’m not familiar with the program but I love the contract. One page (front only). I spent my youth (okay, my middle years) trying to get people to sign affiliation contracts with our networks.
I did my best to keep them simple and understandable. But our attorneys never let me go this far. Here’s the full contract (PDF) and here are a few paragraphs:
Thank you for deciding to include The Dave Ramsey Show as part of your station lineup. Are you looking for a big, detailed contract? They are a pain and quite frankly, we don’t feel like dealing with them. Below you will find afew points that will guide our relationship. Please initial each one and return the contract via fax to 615-372-0573 (confidentiality assured).
1. You like us and we like you and therefore are agreeing to work together. You are going to start airing the program on station (station info)
3. Now that you have decided to carry The Dave Ramsey Show we will not be available for another station in your market. Don’t know why we have to state that we are not interested in cutting our legs out from under ourselves, but I guess this market exclusivity thing is a big deal.
5. Let’s try this. The Dave Ramsey Show should be carried LIVE. We think it is a mistake if it is not aired live. However, we understand that some stations are not able to make this happen. For now that is acceptable. All we want you to do is let us know that after we start winning for your station, that you will consider us for a live slot. You are not guaranteeing us this slot, you are not promising this slot, you are simply letting us know that you will consider it. Come on, is that too much to ask? We should be live anyway.
I don’t know how good this is from a legal standpoint, but it’s good marketing or PR or something. And in my experience, most contracts with radio stations weren’t worth much. My hat is off to whomever wrote this agreement.
Radio listeners don’t mind ads
Mark Ramsey points to this Arbitron study that concludes radio listeners don’t tune out when commercials come on. And wonders about the implications:
“If listeners don’t mind spots then why should they mind mediocre songs? And what ARE they listening through the spots for?”
The whizzing sound you hear is thousands of radio sales reps emailing the Arbitron study back and forth.
989 people out of 1,000 listen to radio
Reply
Regular readers know I’m a fan of Mark Ramsey’s blog, Hear 2.0. Mark is the president of San Diego-based Mercury Radio Research, which recently conducted a 1,000-person national study of radio listening habits of people ages 12 through 54. Just 11 people said they didn’t listen to radio.
Mark spoke at one of the sessions at the NAB Radio Show, underway this week in Dallas and the Dallas Morning News covered:
“One of the key things that makes radio different from all these others (iPods, satellite radio, Internet radio, etc) and makes it stand out, and valuable, is the fact that there’s stuff between the songs that people value. In fact, the loyalty to the stations, preference for those stations, is driven very much by what’s between those songs. It’s about connecting with other people.”
Here’s Mark’s take on commercials:
“…there’s one group that hates commercials and another that can tolerate them. The issue with commercials seems to be, ‘Look, if you’re a zealot about commercials, well, of course you’re going to listen to an iPod.’ People inherently understand that commercials are a tax that you pay. The issue for radio is whether we demonstrate to them what that tax is buying them. … ‘Are we giving people something that’s worth the price they’re paying in commercials?’
That wasn’t such a scary question when there were no alternatives to the radio.
Note to self: Record a couple of hours of morning drive on one of the local radio stations and edit out everyhing except the “stuff between the songs that people value.”
Comment from Jim M:
“It seems to me the ratio between commercial time and music / content is way out of whack compared to what it used to be. I wonder if there are some statistics on how this ratio has evolved over time? I was thinking about this today, again, when a drive to the store and back treated me to 100% advertising. I like commercial radio for the fact that I can pick up on new music and the variety, but finding music these days seems to be truly hit and miss.”