You know the story about The Goose That Laid The Golden Egg? It’s about, uh…a goose. And I guess it laid golden eggs, and people did stuff that caused the golden eggs not to be laid any more. The end.
Fine, go look it up if you want more details. But the moral has something to do with greed and ignorance and shortsightedness.
Gosh, why does that remind me of the way large companies are running U.S. radio stations?
Today a well-known, veteran radio salesperson who wishes not to be identified drew my attention to a Stupid Radio Trick I really hadn’t considered (because my focus usually is on the radio advertising message, not the radio sales system).
The Way Commercial Radio Used To Be. (You know, back when you had to try really hard to lose money operating a radio station? Back when we had news departments, live humans answering the phones, and actual, honest-to-goodness programming variety — vs. a vapid slogan that falsely claims variety?)
“Mr. Merchant, your commercial will air 40 times per week on our station, so people will hear it repeatedly. We call that ‘frequency,’ and it’s one of radio’s great strengths.
“Also, the commercial we air will be designed specifically for our listeners. That’s to make sure the message matches the audience. No sense in playing a rock ‘n’ roll commercial for listeners who prefer classical music, is there? Ha ha, of course not!”
The Way Corporate Commercial Radio Is Today. (But completely unrelated to the fact that stations are struggling to keep their heads above water.)
“Ms. Merchant, we’re going to spread your 40 weekly commercials across all six of our local stations. That way LOTS of people will hear your commercial…once. Or maybe even twice, if you’re lucky. We call that ‘selling a package to clients who don’t know better.’
“Plus, to minimize cost and maximize efficiency, your one commercial will run ‘as is’ on all six stations. Heck, if a commercial message works well with our Soft AC listeners, I can’t think of any reason it wouldn’t also communicate effectively to our Hip Hop audience.”
So let’s review our game plan: A (usually) lame commercial, heard not often enough by the wrong audience.
How could that not be working?
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The whole (supposed) reason the FCC ordained to gift the American public with “Deregulation”, was so that these communications conglomerates could drive advertising costs DOWN by trimming the work force…thus passing on the savings to the lucky masses, via lowered advertising costs.
But when euphemistic “Deregulation” came to pass, I think there must have been a Head Bean Counter somewhere…a man who said; “If we buy “X” number of radio stations, at “Y” cost, (which will be about four times these station’s actual market value), we will still be able to pay off said bank loans for said over-priced stations, by driving out much of the station’s work force, and automating as much as possible”. Thus, the spirit of the new law which was, after-all, supposed to be for the consumer’s benefit, was actually hijacked for something FAR more plausible; The lining of a select few’s corporate pockets at the public’s expense.
The money that we (the consumer) were all supposed to save in the form of less costly radio, was actually folded back in to the cost of the new “Super Radio Corporations” and the high-priced loans they took out.
So here we sit today, radio advertising not appreciably any cheaper, with quality in both broadcast and in support of local business (via appropriate and highly directed advertising), suffering…all in the name of “progress”.
I’m not anti-business or anti-corporation. There were a lot of reason that the old laws were more far-sighted and worked to serve the public and their airwaves better. I’m more anti-government, which not only can’t fix things when they break, but they also like to break things when they aren’t broken.
*correction;
That last line should say; “They like to break things that AREN’T broken”…but I’m sure you get the picture anyway. 😉
My dad was probably just as an astute businessman as anyone – he owned a steel fabrication shop that continued to do well despite the recession of the 1970s.
Although the steel fabrication industry and the radio industry have little to do with each other there was one thing my dad said about business that cuts across all channels.
He said: “Never let the bean counters run your company because they don’t know how to make money. All they know how to do is cut expenses and they cut so many expenses that they eventually completely cut the company’s ability to make money.”
He also said: “Never let a lawyer run your company either because they all they know how to do is over charge for their own services.”
He died 30 years ago but it’s amazing how prophetic his words were. I’ve often wondered how disgusted with Wall Street he would be if he were alive today.
Deregulation was pushed by the conglomerator wannabees through their mouthpiece (NAB) using the pretext that it was essential to the public interest the new 80-90s were losing money and going dark in the recession. I mentioned to an FCC Commissioner at the 2003 Radio Convention in front of a small gathering of broadcasters and NAB lobbyists that this occurred just as PC-based automation was becoming practical and widespread, making it possible to operate around the clock without live jocks if push came to shove, as it does in many of the smallest markets where 80-90s got dropped in. This was a pertinent fact the NAB lobbyists somehow failed to disclose. She said, “Really? Gee, I never realized that.” I noted that sans conglomeration, today we would have thousands of quirky, independent, locally programmed stations instead of nationwide clones of formats of 250 boring records and other insulting programming. I asked whether the quality of radio was a public interest issue, and she acknowledged that it was. The broadcasters were cheering me on as I laid out this diatribe. The NAB lobbyists were strongarming me saying, “That will be quite enough, Mr. Jackson!”
While Mr. Jackson may have a valid point, it is made under the assumption that technology and deregulation were causes of conglomeration in the industry. Were electronic media alone in this transformation of the business model, his argument might hold even more weight. However it occurred in many different industries, and it’s important to separate commonalities from causalities.
Remember that Dan’s post was about marketing techniques employed by corporate commercial radio, not programming.
However, let’s go the route of addressing the programming. Would a radio station that presented unique, engaging programming that resonated with the local community be usurped by a corporate cookie-cutter model? Even a bean counter needs to consider ROI, and if that bean counter should slash investment with the result of reduced return, the bean counter will soon be looking for work.
I recall when our local operation was acquired by a larger group. Programming was, of course, closely examined. But many seemingly antique, out-of-place elements were preserved because “around here, people want that”…and it was true.
We may also ask of the Clear Channels out there: “How’d that work for you?”
I submit that a strong, local program that clearly sets itself apart from the national model and which resonates with the local community stands a better chance of success…both with listener numbers and sales’ bottom-line.
But to return to Dan’s point: We know that many radio operators are cutting staff. In the creative arena, writing effective advertising that pays attention to your format – be it national or local – will generate better results than a one-size-fits-all production…and the person who can generate results usually stays employed.
Those who produce commercials that rely substantially on music to drive their message obviously need to think about compatibility with music-radio formats. I recall, for instance, back when commercial campaign packages from, say, Coke or McDonald’s were delivered on reels of tape, and sometimes instead of providing only the spots assigned to air on a given station, they’d provide a whole collection and give stations the opportunity to choose which spots offered the best fit for their programming. There might be one group of spots authorized for Rock and Top 40, another for Country, etc., but they still allowed some latitude for local discretion.)
I’ve been hearing and reading about small and medium market stations that are actually thriving these days. Wonder if it might have something to do with account reps who realize that their success in the long run is tied directly to their clients’ success; and who act on this premise by investing sufficient time and thought to create commercials and campaigns that connect with their listeners.
Ya think?
I see this TOO OFTEN as well. We are hired to write and record an ad for a client. When I ask what kind of station and what time of day… they often ask… WHY IS THAT IMPORTANT?
That is the MOST important thing to me. Let's say it's a heating & cooling company (since I work with over 100 of those)
If I know I'm talking to someone about saving money with an AC tune-up. I want to know WHERE I'm talking to them. If it's on their way home after a LOOONG day at work… I'm going to sell them on the cool comfort that COULD be waiting for them. If I'm talking to them late at night I'm going to sell them on the comfortable night of quiet sleep that COULD have with the windows closed and the AC on. If I'm talking to them on their way to work… I'll remind them how much they are spending to keep their home cool while they are away… maybe a programable thermostat could help them.
The WHO and WHERE are the most important things to me. If I know that I can help SELL their message. If I DON'T know that… they should just save their money and let the radio station do it.