The Radio industry is struggling. The financials are in free-fall. The internet and new technology are stealing share of mind and time spent listening. I could pile on and rant about all of the bad decisions that broadcasters have made since 1996. Instead, I have some ideas that might be able to help radio.
“You got the fever, I got the cure.”Good Lovin’ by the Young Rascals
Radio is not dead. But it’s in a Wall Street headlock. Investors have controlled radio since 1996. When President Bill Clinton de-regulated ownership rules in 1996, radio became a corporate darling, more concerned with the P + L instead of P-E-O-P-L-E. Driven by Wall Street’s commands, broadcasters focused on revenue instead of ratings. Investment in talent at all levels, from marketing, management, sales to programming, engineering and promotions was slashed. The Radio Industry and radio listeners have paid a dear price for The Communications Act of 1996.
The first immutable law of radio: Ratings drive revenue.
Radio is STILL ubiquitous. Just about every car in America has a radio in it. Just about every home has more than one. The infrastructure for long-term success is in place and has been for almost a century. Most other communications technologies would kill for that kind of market penetration. Broadcasters must hyper-focus on giving consumers compelling reasons to listen to radio more often and for longer periods of time.
The second immutable law of radio: Content drives ratings.
Is “format radio” dead?” Do people want to hear the same artists, songs and jabberwocky over and over again? I haven’t done the formal research, but my gut tells me “no.” Satellite Radio and Internet Radio have proven that there is a vast market for diversified programming. Radio programming in itself, is an evolutionary process. What worked yesterday and today, likely won’t work tomorrow. Radio at all levels is extremely nimble and should to be able to anticipate, create, borrow, steal and implement great new ideas faster than any other medium. It won’t be long before a visionary company (maybe CBS) wraps its arms around the capabilities of the internet and translates it to radio. Look for the CBS-AOL Radio partnership, Play.It in June, ‘08 or Pandora.com and Slacker.com, for a glimpse of music radio’s future.
Television attracts billions of viewers with appointment viewing. Commercial radio never really focused on appointment listening. The closest commercial radio has come is “the wacky morning show” or a sports broadcast. Today, the “wacky morning shows” are passé. They are not attracting the audiences they once had. Consumers have other options.
I believe that appointment listening can work for commercial radio in all day parts and time slots. NPR does not have a set format. It has programs. XM and SIRIUS have multiple formats from rock to classical, AND programs. Internet radio has everything imaginable AND programs.
NPR has successfully grown its listening audience with daily and weekly block programming features that are intelligent, informative, humorous and….well…compelling. Shows like “Fresh Air,” “Car Talk,” and “American Roots” are wildly popular, radio programs, tailor-made for podcasting, as well as for on-line listening.
The third immutable law of radio:Know your market.
Radio has been chasing its tail trying to find a way to attract younger listeners. Only 24% of the population is between the ages of 18-34, yet in many markets way more than 24% of the radio stations target that demographic…and they’re not really listening! They “know” and “like” radio. However, they are the first generation to grow up with new media. Much of their time is spent on-line, or listening to their iPods and text messaging on mobile phones. Broadcasters must find a way to duplicate the attraction of iPods, mobile technology and the Internet on the radio. Broadcasters must make their youth-oriented radio stations and websites extremely interactive. Have listeners recommend everything from new music, new places to hang, and new websites to visit. Create social networking opportunities like Facebook and MySpace. Follow them to their favorite places of interest and they will follow you. 38.6% of the population is 45 and older, and less than 38.6% of the radio stations in most markets target this audience. This segment of the population has all the money and incredible buying power. All this AND….the over 45 crowd is a huge consumer of radio! Oh sure, we have news/talk radio, oldies and classic rock formats…but that’s about it. And most of those radio stations are trying to find ways to skew younger and attract 25-44 year-old listeners.
Radio stations must hyper-focus on super-serving a specific segment of the population. The most in-demand demographic by the advertising community is Adults 25-54. 25-54 is not really a demo, it’s a family reunion.
Target demos are too broad. I’m 54 years old and I work with quite a few twenty-five year-olds…our tastes in music, politics and entertainment certainly intersect at various points, but they are NOT the same. I’m not quite sure why we are lumped together in a demographic profile.
Consumers really don’t care about HD radio, satellite radio or internet radio. We really just want GOOD radio, and we’ll find it wherever it is.
Vince Raimondo, Vice President of Marketing