Archive for November, 2007

The $500 Focus Group

Thursday, November 29th, 2007

What’s the #1 reason your customers make a buying decision? If you can’t say so with certainty, find out.

There are probably dozens of valid reasons why a consumer would plunk down their hard-earned cash to do business with you. But the cramped confines of a 60-second radio commercial don’t allow you to recite a laundry list of benefits. Moreover, there’s too much at stake for you or your advertising agency to “guess wrong” at what’s making the consumer say, “Yes.”

Conventional focus group sessions cost thousands of dollars and may not generate the feedback you need. So we’ve crafted a lower-cost variation on the theme that we call “The $500 Focus Group.”

Start by identifying 100 of your best customers; the ones who voted for your brand by making a sizeable purchase. Next, craft a short survey letter to these star customers, enlisting their help so you can provide better products and services.

Ask them to cite the single, most compelling reason they made their buying decision. You might offer a multiple-choice checklist, but be sure and provide space for consumers to cite their own #1 reasons in their own words. Or just provide space for them to tell you, in their own words, without prompting them via multiple-choice. Keep your request brief to a single page.

Mail the letters First Class, with the recipient’s name neatly handwritten on the envelope. (Someone with great penmanship can knock out 20 a day and you’ll be ready to drop ship in a week.)

Finally, enclose a crisp, new $5 bill as a proactive “Thank You!” for their feedback, along with a stamped, self-addressed envelope for their reply. You’ll be surprised how a crisp, new $5 bill – and a simple request – will spike feedback well above the usual direct mail response rate.

You should see enough feedback – and enough trends in consumer comments – to learn the #1 reason your customers became customers and how to best convey those benefits in language that will resonate with your target audience. (Feel free to follow up by phone for more input. Most consumers will give you a few minutes to kick their tires if you politely remind them of the letter with the five-dollar bill.)

There are countless variations on “The $500 Focus Group,” but properly executed, all can provide priceless feedback on identifying and presenting your consumer’s core buying triggers - at a fraction of the cost of doing it the old-fashioned way.

Mark Lipsky, President & CEO
Radio Direct Response

Too Many Questions

Monday, November 26th, 2007

Putting together a DR buy is fun…but not easy.

You need to understand your client’s business, goals, and objectives. You also need to know what the product is about, what its price is, who the customer is and what their buying habits are. Are you going to run a national campaign? Or do you want to be in specific markets? Can you sell this product on radio?

There are many variables in this game. Are you placing the buy on the right station? Is the format right? Are you reaching your target audience by purchasing that station? Are you buying the right dayparts? Are you happy with the creative? Is the message clear? Are you getting the best rates ever? Too many questions, right?

Well not yet…what are you going to test first? The market? The creative? Or the format? You can’t test them all at the same time.

You start playing the game after you come up with a game plan. The fun starts after placing the buy, you can’t just place it and be done with it. You have to follow up with the results.

It is always an ongoing buy.

It doesn’t matter if the buy is driven to a call center or to web as long as you get the results. You are lucky if you are getting the daily results. You can give a call to a station in your buy in the middle of the week and let them know that they have received two calls since Monday, and if they want to be on this buy for more than two weeks, for example, they need to do something in order to deliver better results. 99% of the time, you get the help and end up with much better results.

It is not end of the world if you are not getting the daily results for the campaign. You can always take a look at the overall results after the campaign is over and negotiate lower rates for the next round if the results are not good or you can ask for bonus weight.

The key is that you want to work with stations/reps who “get” DR, who understand that we are not just placing a three week buy and want to buy certain GRPs. You want to work with reps who understand that your buys could be 52-week buys if they work with you on getting results.

And remember radio is a frequency medium…you have to be patient until you see some good results.

Askin Emir, Media Director
Radio Direct Response

“It’s Christmas in July” - Not Just an Expression Anymore

Monday, November 19th, 2007

When I was little kid, the Christmas season began the day after Thanksgiving, no ifs, ands or buts. Now it seems that if you listen real hard to the school bell ring the day after Labor Day, the sound of jingle bells is close behind. I mean c’mon-Hallmark puts out its Keepsake ornament collection in July. July?

You could knock me over with a candy cane, but the Christmas push this year is the earliest even I can remember and I worked for 10 years as the Director of Marketing for three super-regional shopper centers. My holiday calendar has been way off for years—ordering my Christmas décor in April and my Easter mums in December will do that to you. Yet, I can’t remember Santa competing head-to-head with Charlie Brown’s Great Pumpkin like he did this year.

Here are just a few examples through November 12:

  • I haven’t seen one holiday dinner scene in a TV commercial with a Thanksgiving theme, but the Christmas tree has made several appearances
  • Kay Jewelers, Target, Kohl’s and Best Buy’s, TV commercials all had a Christmas focus since November 1
  • Hallmark Gold Crown stores held their Holiday Open House, November 3-4
  • TBS aired its first showing of “How the Grinch Stole Christmas” on Saturday, November 10
  • Macy’s had Christmas trees up before Halloween
  • The Toys ‘R Us and Target holiday toy books were in the Sunday paper, November 4

As a former retailer, I can tell you that an early Thanksgiving like we have this year is a dream come true. That extra week pulled many same store holiday sales out of the Christmas tree wood chipper.

I love Christmas more than any other time of year. I’d keep my decorations up all year if I could.

My Mom did it best. She made a Christmas butter cookie that to this day would be my choice for food if stranded on a dessert island. Christmas was the only time of year I would see her bake. It wasn’t until I reached my teens that I wondered why she only made those cookies at Christmas. All she had to do was change the cookie cutters. Were her cookies really that good or was it that we all knew they would only be available three weeks out of the year?

That’s all for now. I have trees to light, stockings to hang and a Turkey to stuff. Not necessarily in that order.

Monica Caraffa, Senior Account Manager
Radio Direct Response

The 7% Solution

Thursday, November 15th, 2007

Radio had a rough September. Here are the headlines from the on-line industry trade journal, Radio and Records.

September was “much uglier than expected” So says Wachovia analyst Marci Ryvicker on radio’s 7% revenue decline. Saga CEO Ed Christian says “There are really two different radio industries” where small markets are doing a lot better than big markets”…Greater Media CEO Peter Smyth says radio can still show growth if it stops cutting rates and adding inventory.”

With all due respect to Peter Smyth and Ed Christian, most radio executives are missing the point. Clients want ROI and accountability. Radio wants to sell them packages. Radio operators have to understand that the shift in media dollars to “new media” has more to do with these two factors than rates or adding commercial inventory. The “new media” is easy to measure and manage. Leads, sales and acquisitions can be directly attributable to SEO, SEM, on-line sales and all manner of other forms of direct response advertising. Marketers want to know that the money they invest in advertising will deliver a measurable end result. In today’s business environment, it’s about making the cash register ring. 

Radio ignores this aspect of their capabilities. Radio CAN be accountable for measurable results. Just ask any successful direct response network radio advertiser. Networks set aside a percentage of their inventory for DR opportunities. They are concerned more about revenue than unit rates.

The problem lies with most local radio station General Managers and Sales Managers. Either they feel a need protect their unsold inventory in hopes that an eleventh hour order will come through the door or they don’t have confidence in their properties to guarantee results. If they did, they would have a lot more advertiser dollars and a lot more satisfied customers. 

Here’s a hypothetical situation: a radio account executive is trying to land a car dealer. Sitting across from the client, he’s told that, “I need to sell five more cars this month.” The AE has an opportunity. His response should be, “If I can sell those cars and prove that my radio station can grow your business, can I have a 52 week commitment from you?” If I was the car dealer, I’d jump on that offer. If I was that AE, I’d do everything in my power to run as many hard-hitting commercials as I could prior to the sale, with the intention of getting the long term commitment from a hot prospect. Sales managers don’t like to “give away” inventory. They feel it “de-values” their radio station and turns commercials into a “commodity.” 

Radio revenue is down 7% for September. That’s a lot of unsold inventory. What can be done with that unsold inventory? How about developing a direct response test for a highly coveted prospect? 

Vince Raimondo, Vice President of Marketing
Radio Direct Response

Dear Diary

Monday, November 12th, 2007

For the past several years, the Arbitron Ratings Company has led the charge to shift away from its handwritten diary method of measuring radio listenership to an electronic system using a device called the Portable People Meter (PPM).

A cross-section of population in each market wears these pager-sized devices that “listen” for radio signals and give credit to those radio stations for listenership, provided a minimum period of exposure is met to qualify as “listening.”

Thus far, full market surveys have been conducted in Philadelphia and Houston. This past Wednesday, the first New York City survey hit the streets and caused more Midtown mayhem than a Mets’ World Series celebration.

For example, WBLS afternoon host Wendy Williams saw her #1 rated show plummet to 12th place under the new PPM measurement. WBLS Program Director Vinny Brown summed up the station’s concerns, noting, “We’re the same station. What happened?”

Either the new PPM system is flawed or the existing diary system is flawed. Which is it? Neither system is perfect, so the answer is probably both. Still, the wild shifts in station and format preference presented in New York’s first PPM raises plenty of doubts.

Radio stations depend on accurate ratings to determine advertising rates. Supply and demand, plus ROI from advertiser campaigns, sway those rates in either direction. But to believe the veracity of these new numbers, some stations would need to cut their rates in half, while others would double them, to reflect the newly-redistributed radio audience.

Arbitron believes that PPM is the audience measurement technology of the future and has been pressuring radio stations and agencies to subscribe to this new service. Radio Direct Response, a national “radio only” agency based in the suburbs of Arbitron’s pilot market of Philadelphia, is one of a few agencies that has stubbornly said, “No.”

Until PPM works out the bugs – and becomes the industry standard across America – using two systems creates an apples-oranges scenario that strains the credibility of an agency’s ability to represent the numbers to clients as reliable audience measurements.

At a time when Hispanic and African-American populations in U.S. markets are rising, the new PPM system has shown drastic declines in Urban and Spanish-language formats. Given Arbitron’s monopoly on the radio ratings, we may soon witness a revolution from Urban and Hispanic station and group owners who fear this new technology could put them out of business. Stay tuned. We’ll keep you updated.

Mark Lipsky, President & CEO
Radio Direct Response

The Most Wonderful Time of the Year

Thursday, November 8th, 2007

Major League Baseball just crowned its Series winner. (Curse? What curse?)

The NFL season has hit the halfway mark. (And with all due respect to the rest of the NFL, the season is over for any team NOT named “Patriots.”)

The NHL has dropped the puck and already there have been plenty of kick saves that have been beauties.

And over in the NBA, Commissioner David Stern is hoping this season is about the men on the court in shorts and not the ones wearing zebra stripes.

Ahhhhh, if you’re a sports fan, this truly is the most wonderful time of the year. (Especially in Boston with how good their teams are.)

One thing bugs me though. (Other than the aforementioned Boston sports teams.) Up and down the radio dial, the recognizable voices of the game are disappearing.  Sure the Harry Kalases (Philadelphia Phillies), the Vin Scullys (LA Dodgers), the Brad Shams (Dallas Cowboys), the Mike Langes (Pittsburgh Penguins) of the world still exist. But they’re few and far between.

There are too many “generic, nameless, faceless” voices (you’re supposed to be faceless on radio right? Otherwise it’d be radio with pictures and I think that’s called TV – sorry getting back to the point) doing play by play.

As tough as it is to put a face to your team at times (with the constant movement of players due to free agency), the legendary, hall of fame announcers give the team a face and identity. They become the team. And, in some cases, are MORE identifiable than the players.

I hope some of the “generic sounding voices” breakout and find their voice…their niche with the team. After all, a great voice is part of what makes listening to a game on the radio a LOT of fun.

That’s what the great ones do. They put you in box seats along the first base line. Or, in the front row right behind the glass. Or, right on the 50-yard line where you hear the signals being called crystal clear. Or, in the first row courtside so you hear the coach tell the ref how bad that call was.

Remember how great it was when you were a kid, trying to stay awake to catch the end of the game? Remember having the radio on, volume low (so mom and dad wouldn’t catch you) and how vividly the announcer of YOUR team painted the pictures in your head, letting the crowd reaction tell the story and how much you felt like you were in the stadium?

The great ones come along once a generation. It’s time to let this generation find the next great ones.

Ian Cohen, Production Director
Radio Direct Response

Growing Talent

Monday, November 5th, 2007

Every business goes through cycles. Times when they are busy and times when they are not. As a senior manager, I asked myself, what will our company do to get the most from our employees during leaner times?

Most employees want to feel like they’re part of the team. Being able to tap into their needs and desires to grow in their positions and be part of the company’s goals is a powerful motivation. Giving them a chance to use their brain and be challenged to participate in projects gets them excited and is key to their own success and the long-term success of the company.

Here’s one example: An administrative assistant who has a desire to learn about sales will be very passionate about the chance to work directly with the owner of the company on a future project. As a “junior” account executive, he will have the opportunity to perform in a role that equates to something that he ultimately desires and wants.

Here’s another example. If an employee has a desire to learn about web design, send them to class for formal training, so a) they can see that the company supports their areas of interest and b) the company is investing time and effort for their future as well as the future success of the company.

As a manager, the responsibility is ours to guide and direct these employees. Providing opportunity and motivation is paramount to our success. Understanding your employees’ goals and focusing on the paths they need to take towards achieving them will be the strongest motivation towards getting the most from them during all cycles of business.

Danny Ocean, Vice President/Director of Operations
Radio Direct Response

Radio Cuts Through the Smoke

Thursday, November 1st, 2007

Last week radio witnessed the horrible wildfires in Southern California and participated in the rescue efforts. More than 2000 homes were destroyed. Seven people lost their lives. One million people were displaced, leaving their homes and most of their earthly possessions.

Which medium was a primary source of information and news during this catastrophe? Radio. Most fled by car. Many southern California radio stations suspended their normal programming and switched to 100% coverage of the wildfires. They told southern Californians, what to do, when to go and where to go for safety and guidance. If a radio station didn’t have its own newscasters, they carried live feeds from local TV stations.

Californians in automobiles were not watching TV for updates. They weren’t surfing the web on their computers looking for shelters. They weren’t driving and trying to find news updates on their cell phones and blackberries. They were listening to the radio.

Radio has taken a lot of hits over the last five years or so. Some consider it “Old Media.” What that really means is that the advertising pie is now being sliced up and doled out to media upstarts like the internet, Google, My Space, Facebook, SEM, SEO, mobile, as well as TV, print, and outdoor advertising. And Radio is getting a smaller and smaller piece of the pie. Most twenty-something media buyers and planners at the agency level, are enamored with the “new media.”

But here are the facts. Radio is alive and well. Radio reaches 94% of Americans ages 12+ every week. It is still a personally selective medium of choice. 58% of consumers say radio improves their mood! Radio performs miracles in times of dire need and emergency. OK…I’m exaggerating about the miracles. Bottom line…Radio is still a powerful mass medium that connects with people on an intensely personal level. If you’re like most people, you’ve had that personal experience today - and you’ll have one again tomorrow.

Vince Raimondo, Vice President of Marketing
Radio Direct Response