“In its biggest offline media play to date, online search giant Google this morning announced plans to begin extending the reach of its online search advertisers to the nation’s largest satellite radio service, XM Satellite Radio. The deal is the latest development in Google’s push to expand beyond the Internet into the traditional media marketplace, and follows a series of tests with print media and radio outlets.”
— Media Daily News [Thanks, XM Ben]
My buddy Morris left the radio news game this spring. After 30+ years. Tried his hand at the newspaper business but that didn’t work out. He says he wants to try something online. Blogging, podcasting, etc. I think he knows it will be a tough row to hoe (as momma used to say) but he sounds very positive. In his latest email he observed there just weren’t that many “serious news operations” (he was referring to radio, I believe) in Missouri.
Morris’ situation raises a good question. If you’re a radio news reporter, and you had to go out and find another job tomorrow, where would you look? Another radio station? Group ownership has reduced the competition (and need?) for your services. The local newspaper? They’ve got their own problems. A traditional fall-back has been PR for some company/association/department. But I always wondered if that wasn’t based on the notion that you could get all of your radio news buddies to run your press releases. On the other hand, I was in a room full of PR folks back in January so the jobs seem to be there.
Radio reporters have what seem to be some very marketable skills. They can do interviews. They can write stories. They can read well aloud. So, where do they go when it’s time to go?
From today’s C|NET story on Google and radio advertising:
“So why the excitement? dMarc automates the process of buying ads, placing them in time slots and tracking them, which is usually done by ad agencies over the phone, experts said. Automation could lead to efficiency, and that means lower prices for advertisers while bringing in more sales for the radio stations. … The Google-dMarc system would be a big change from the current ad-buying system, where ad salespeople establish personal relationships with radio stations. Advertisers could better quantify how well an ad campaign is doing and modify the ads quickly depending on the response rate from listeners.”
Which reminded me of this from Chris Anderson’s The Long Tail:
“Meanwhile on the other side, those ad-driven media have their own ad sales forces. They pitch the advertisers and their media buyers on the virtues of their advertising vehicles. If all goes well, millions of dollars change hands. All of it is labor-intensive and made even more costly by the expensive schmoozing that’s required in businesses where a lack of trusted performance metrics makes salesmanship and personal relationships key to winning businesses.”
Only time will tell if Google can make this elephant dance, but revenue in Google’s most recent quarter was $2.5 billion, nearly double what it was a year ago. And Google has the money and time to figure this out:
“What’s neat about this is the radio stations get to preview the creative copy and we pre-approve all rates before they get aired. Radio stations and Google will explore on a case-by-case basis which opportunities make sense.”
The scariest quote in the story for me was:
“The fact that (what Google is trying) is more electronically based gives advertisers more comfort that they are getting what they are buying.” Ad agencies and stations “are still faxing invoices to each other and typing up affidavits.”
All of this brings back memories of Google’s earliest days. Everybody that used it said, “Damn, this is cool! THIS is how search is supposed to work. But, uh, how are they gonna make any money with this service if it’s free?” $2.5 billion last quarter. Maybe they’ll figure it out.
Radio Iowa News Queen O. Kay Henderson emailed this affiliate update:
“As you know, KICD news director Brent Palm left to take a job at Minnesota News Network. His replacement is Tim Torkildson. Mr. T worked in radio 12 to 15 years ago. He left radio to become a clown and ringmaster for a traveling circus. He’s now left that career, settled in Spencer and is starting his third week on the job.”
Welcome back, Tim. I’d surely love to interview you for smays.com.
Sirius might be a great satellite radio service but I think their website sucks. My plan was to record Trent Tomlinson’s appearance this morning by streaming the audio from the Sirius website. Couldn’t get their three-day-free-trial to work. Even borrowed a password from a subscriber and couldn’t get that to work. So, unless one of you recorded this, we won’t get to listen. It shouldn’t be this difficult to steal part of the guy’s radio show.
Quick Google search found an amazing website called MarksFriggin.com. It appears this guy posts a detailed description of each day’s show. I’ll add the archive link as soon as he puts it up (tomorrow?) but if you find the show for 7/24/06 and scroll down to 7:30 a.m., you’ll find his account of Trent’s segment. Here’s a portion:
Miss Howard Stern Performs With Trent Tomlinson. 07/24/06. 8:30am
After the break Howard said he was listening to country singer Trent Tomlinson warming up during the break and he was wondering why they were letting Andrea come in to ruin it. He said the song is a little more than country and he’s not sure how he missed the song. He’s not into country music so that’s how he missed it. Trent told Howard about how he came up with the lyrics for his song ”Drunker Than Me.” Howard told the guys to perform the song before Andrea came in since she was probably going to ruin it.Trent and his band performed the song ”Drunker Than Me” (from the album Country Is My Rock) which is the song that Andrea sang while drunk the last time she was up there at the Stern Show. Howard said he was amazed that Andrea could remember the lyrics to the song because they’re not easy to remember. Trent said he even has trouble with them sometimes.
Howard said that Trent has opened up for bands like Bon Jovi and John Mellencamp so it’s not strictly country fans that he’s performing for. Trent told Howard that one of his guys used to be in The Black Crows but he had a falling out with them. The guys said that he’s talking to the band now but he had to get out back then because they were playing too long for him. They turned into a jam band and would just keep going on and on while playing.
Howard spent some time talking to Trent about his career and how his father actually wanted him to be a basketball player. Trent said his father used to play himself so he tried to groom him for the same career. He said now his father is happy with what he does and calls radio stations trying to get them to play his songs.
A reminder for Kennett readers that hometown boy Trent Tomlinson will be on Howard Stern’s show on Monday monring. I think I’m all set to record the segment and will post it here until the Sirius lawyers make me take it down.
I wanted to play the Drunker Than Me video for some neighbors last night and did a google search (drunker than me video). It still amazes me that smays.com is number five in the search results. Power to the bloggers!
I’ve been intrigued (anxious?) by Google’s plans for taking AdSense to radio but can’t seem to find out much about it. A Technorati search this morning took me to the Google Operating System blog (pretty sure it’s not connected to Google), and a post featuring excerpts from Google’s Q2 2006 earnings conference call, during which Google CEO Eric Schmidt said this about AdSense for radio:
“We are in the process of introducing AdSense for radio, which is essentially the integration of the dMarc Console and management tools into our advertising network. The dMarc team itself is fully integrated. We’re expanding it both in engineering and sales. We’re also doing it worldwide, not just in the U.S. There’s a number of very, very interesting deals being negotiated. They’re on an integration schedule of about three months from now, so every week there are more milestones, and they’re working very hard.”
From that post I jumped to an earlier one:
“Schmidt thinks that “when he is listening to the radio in his car, radio ads should personally address him about his needs. For example, while driving past a clothing store, a radio ad should remind Eric that he needs a pair of pants and instruct him to turn left at the upcoming clothing store.”
The GPS system should help radios deliver targeted ads based on information about the person. Google Maps could provide details about local businesses, the ads would be audio AdSense ads, while the information about user’s needs could be obtained from the searches or from his ToDo lists (a gadget for Google Desktop and Personalized Homepage).
dMarc Broadasting, recently acquired by Google, “connects advertisers and agencies directly to radio stations with a robust advertising platform that automates everything from sales to scheduling, delivery and report”. So this company is the first brick in the development of a new breed of radio advertising.”
Here’s what the dMarc website promises advertisers:
“dMarc Media Networks brings unprecedented immediacy to radio buys. Imagine the difference. In minutes instead of days or weeks, you can now build your own custom networks, selecting from 100’s of stations in virtually any market, through a single, source.
* Real time reports generated without human intervention
* Buy individual or multiple stations in one market or many
* Buy only those stations you really want
* Monitor feedback in real time
* Be notified instantly when ads play
* Upload spots anytime, in seconds, 24/7I have no idea if dMarc can do all of that. Or, if radio station would want them to be able to do all of that. But I’m damned sure these are the things advertisers want and –increasingly– are insisting on.
The big question would seem to be, what’s the incentive for radio stations to participate in such a “network?” Station owners must be convinced they can make more money (or more profit) with Google AdSense than they can make on their own. IF …and it’s a big if… Google could find a way to sell EVERY ONE OF MY AVAILS…EVERY DAY… at a rate that didn’t jam me up with my local sales effort… then I might try it.
I confess it’s difficult for me to imagine that. But if Google (and others) can condition advertisers to expect measurable results and accountability — and that seems to be happening — who knows. Newspapers probably could not imagine a time when some oneline service could take away their classified ad revenue.
And during the 17 years I called on radio station managers, the #1 problem (at least in the small and medium markets) was finding good sales people. Owners have automated everything else at the radio station, why not sales?
Can any of you radio guys out there educate me on the dMarc thing?
Update: I received this explanation from a small market PD here in Missouri. Name and some particulars withheld by request.
“We operate Scott Studio’s for on-air. All hard drive audio music, liners, jingles, and commercials…with touch-screen operator computers. dMarc bought Scott Studios, and the primary commercial scheduling software Scott recommended for their system. Then Google bought dMarc.
We build our logs with our local commercials, then they can fill unused avails with their commercials. They fill the avails and upload spots all from their end, we never touch them….other than play them. I believe we have some controll over what hours they can fill, I know they don’t fill in 7a, 8a, 9a, 4p or 5p. They are :60’s and for refinancing, insurance, music collections (surfin USA the best of the beach, and stuff). Right now the clients aren’t any major chains or local businesses.
At the end of the month they send us a check for what they have run. How much I’m not sure per spots but I’ve been told the monthly check is around $X,000.
They run a lot of them in the evenings when we don’t usually have a lot of commercials scheduled. We carry Royals baseball. The 4 hour broadcast has 20 minutes available, they will fill several minutes of that and we get paid. When logs are lighter there are more in midday and afternoon.
The commercial content is not terribly exciting, it’s more spots, but it’s income that comes from unsold inventory mostly in evenings. Not a lot different than the ad’s that used to run where you are paid if someone calls and 800 number and buys Hooked on Phonics or something. I know I should probably understand this better as PD but this comes from a small station where the owner is here and does mornings/logs, etc.”
No, I think you understand (and explain) it just fine. Easy for the station. Easy for the advertiser. And I suspect the Google influence has yet to kick in. Classic Long Tail example. And I’m betting there are thousands of advertisers that will buy this time (if it’s easy enough and the price is right) without ever treading on local sales. If there’s a loser in this equation, I fear it might be programming vendors that operate on a barter basis.
Steve Rubel points to a ZDNet report on Google’s plan for a product “…that dynamically generates and changes a terrestrial radio commercial based on demographics and news/conditions in the local market. According to those who have seen the demo, if it’s really hot in one area, McDonalds can switch from their regular burger ad to one that touts their cool drinks and frozen treats. In addition, while most advertising campaigns require a $20,000 spend, the new Google solution would require a mere $200 minimum.”
I sure would like to see that demo.
And I’d love to know what Chris Anderson thinks of Google’s plans to sell radio advertising. In his book, The Long Tail, Anderson demonstrates a clear understanding of how advertising works:
“The traditional advertising market is a classic, hit-centric industry where high cost enforce a focus on the biggest sellers and buyers. The way it works is that an advertiser, say General Motors, has a marketing budget. GM commissions an advertising firm to create some ads and then a media buyer to place those ads in television, radio, and print and online.
Meanwhile on the other side, those ad-driven media have their own ad sales forces. they pitch the advertisers and their media buyers on the virtues of their advertising vehicles. If all goes well, millions of dollars change hands. All of it is labor-intensive and made even more costly by the expensive schmoozing that’s required in businesses where a lack of trusted performances metrics makes salesmanship and personal relationships key to winning business.
These days salespeople don’t just twist arms, they also serve as advertising consultants, informing advertisers about the most effective ways to use a given medium or brainstorming creative new approaches to getting the advertisers’ message out. That works well enough, but because it’s expensive, it imposes a subtle cost: a focus on just the largest and most lucrative of potential advertisers.”
Today, there are thousands of small Google advertisers who had never advertised anywhere before. Because of the self-service model, the measurable performance, the low cost of entry, and the ability to constantly tweak and improve the ads, advertisers are flocking to this new marketplace.”
It’s going to be interesting (Read: scary as hell) to see if Google can/will fundamentally change the way radio advertising is bought and sold.
After 38 years (!), Morris James has hung up his headphones and started blogging (“Purging Radio from My System”). He started in radio when he was 14 and his most recent gig was KRZK in Branson, MO. I met Morris when he was news director at WOW in Omaha (a Great Empire station at the time) and I was doing affiliate relations for Radio Iowa. Morris was instrumental in getting us on that great station.
He lurks regularly here at smays.com and calls his new blog Ozarks First Word (“News, Views and Tidbits”). Sounds like he’s working for the local newspaper and is exploring ways to make blogging pay.
Not sure how much time he’ll have for blogging and podcasting but here’s a guy with a boat-load of experience and a love for reporting. Give him six months or a year and he might just become “Ozarks First Word.”
I’ve come across Zing a couple of times this weekend. I gather this little gizmo is still in prototype but it sounds interesting. For lack of a better word, they’re little radios that have Bluetooth and Wi-Fi radios built in. The radios are used to download music and to upload data about what you are listening to. If you have one of these players, you can do cool things, like see what your friends are listening to, then play samples of those tracks, or buy songs and albums directly from the player. The first Zing-powered players should ship this year, carrying the Sirius brand.
As I read about this I mentally pictured all the people I see listening to iPods. Which begs a question: Why don’t I see anyone walking around with a transistor (do they call them that?) radio? I mean, there are some really great radio programs…are we only listening to them in the car or at the office? Why? If I’m willing to stand in line at Subway with nano earbuds hanging down my face…why not listen to my local radio station?
After all, what could be easier? No iTunes to futz with and sync. Just drop your little transitor radio in your pocket and go. I’m missing something here, aren’t I?