Radio CEO Hears Bright Future Ahead
Peter Smyth is Chairman & CEO of Greater Media, a radio group with dominant stations in Boston, Philadelphia, Detroit, Charlotte and New Jersey. His views on radio’s future mirror the initial spike upwards in radio revenue so far in 2010.
“Radio is and always has been the most intimate, personal and multi-tasking of the media,” says Smyth. “We have a medium of attention, impression and reach that, if invented today, would be the fulfillment of many technological dreams. Think of it: a medium that’s local, informal, personal and fun.”
So what’s been holding radio back?
“Our industry has always had an inferiority complex; many times it has been deserved. Our willingness to give away the store has, at times, undercut our value in the marketplace. Our preoccupation with the radio business as opposed to the business of radio has turned too many of us into operators, not broadcasters. We need investors, owners and managers who actively choose this business as a long term occupation and are not looking for an exit strategy.”
How has Arbitron’s new measurement system affected the way Greater Media programs its stations?
“Programmers face a difficult new challenge. As we learn about the listener’s behavior within the PPM system, we’re seeing a more demanding audience. Our collective experience level with PPM is focused to date on eliminating negatives from our programming. We need to move beyond subtraction and begin to focus on what positives we can add that will have a beneficial programming impact. We need to remember that this is still show business, and we need good performers who can deliver good value daily to their local communities.”
How will things change with in-dash wireless access?
“The promise of wireless Internet has become a reality in numerous new car models. How it evolves will determine how it will change customer behavior. Right now, the ability to use voice-command to retrieve e-mail is a first step. However, we still don’t exactly know the reliability of wireless Internet connections on a persistent basis for other applications such as streaming audio. We know it works under controlled conditions, but we need to gain some more real-world experience. If it does work robustly and reliably, then the dashboard will become the home to all of the Internet audio services now patched together with apps and iPhones and connector cords. Our challenge will be to make sure that local radio earns its place as a preset in this new universe, just as we earned the first or second pushbutton on the analog radio.”
With integrated solutions and creativity, Smyth notes, radio can sell marketing solutions that can change an advertiser’s business. The challenge is to avoid the trap of turning commercial inventory into a commodity.
“If we perceive ourselves as just making inventory available, then we will continue to scramble for a share of a decreasing pie. We must become proactive in order to stabilize and expand our revenues. In short, we have to sell new ideas to new business partners.”
Vince Raimondo, Vice President of Marketing