The Sky Is Not Falling ... Everywhere

A message from Radio Ink Publisher Eric Rhoads

 

OK, I'm guilty. From time to time I've made blanket statements that could make a reader think the sky is falling in radio. Though, frankly, I've also highlighted many a success story in my editorials, and not everyone in radio is faltering.

For instance, I received this e-mail moments ago. I have removed the name and market at the request of the sender:

Good morning, Eric.

I continually read, almost on a daily basis, the shortfalls that most radio companies are experiencing. Cumulus, Entercom, Beasley, etc. Not all radio stations experienced down third quarters or are having down years. In 2008, my four local sales representatives did more business than 2007. The only shortfall was national, and that was due to massive budget cuts.

Our single, standalone FM in [city removed] delivered a third-quarter increase of 5 percent. 2009's August was the best August in the 40-year history of the station. September was up 12 percent, and October was up 12 percent. November will be up also. Our 2009 fiscal year will be up over last year. We have five cluster operators to sell against. I do not know if [city removed] is an exception to the rule, but I do know that seven car dealers went under this year and numerous retailers and major chains closed stores, including a major employer that closed and put 400 people out of work.

Anyway, I'd better get to my point. Buyers also read this news. As you know, most buyers are very opportunistic and expect rate reductions, assuming all radio stations are suffering. I am constantly battling buyers, local and national, explaining that not all markets and stations are experiencing 15 percent to 20 percent shortfalls.

Many times this has been greeted positively. I want them to realize that the investment they are making in the radio station is in the best interest of the client and is very important to the station. I think they also enjoy talking to someone who doesn't sound like they are getting ready to jump off a bridge. I am sure buyers have heard sellers beg them to buy their stations.

Thank you for listening.
 
I'm sharing this letter for a number of reasons:

1) I hear from radio stations every day that are making it through this recession and growing their business. Most, but not all, are in smaller markets where they have never been completely reliant on national business. Most adhere to the principle of strong community involvement, which seems to act as an insurance policy when times get tough.

2) I know that several hundred advertising executives using radio and several hundred clients are part of our 600,000 monthly readership. Though I think it's critical to always tell the truth and never sugar-coat anything for their benefit or for the benefit of the industry, I think it's also important to make sure we're not only spewing the negatives for the sake of drawing attention. There are many successes worth talking about.

3) Sure, radio is changing and evolving, and radio operators need to adapt to the new digital environment or suffer the consequences. Many are, but many others resist. But radio isn't going to die just because some think the only future option is streaming or podcasting. We must not forget that most Americans listen to the radio every week, including young people. It's easy to be seduced by what's new, what we love. I'm Mr. Gadget. I buy every new gadget the day it comes out. But radio is so ubiquitous and has such a deep listener bond that it is not easily replaced. (But let's never get arrogant or overconfident.)

4) I don't want cheerleaders with empty promises, and neither do you. Still, you don't want me or anyone else telling you how ugly radio is every day. Enough already. This is a great industry, one that I'm proud of. Sure, there are problems. Yes, we need to address them. Yes, we can find isolated instances with almost any company and make things out to be bad all over, but it's simply not true. Negativity sells, but, just like we don't need overly optimistic voices, we don't need overly negative ones. People love bad news, but it's not good for our industry to always focus on the negatives. Let's not spread the negativity and keep your mind away from negativity.

Radio can't create more jobs in every town, and it can't solve the world's problems. But one thing it can do is play an important role in our individual communities. We can help businesses sell products, and that helps our communities. We can look for positives to share. Not empty cheerleading, but honest, upbeat news in our communities should be celebrated by radio stations that have the ears of those communities.

This letter helped me see my responsibility. I hope this helps you see yours.

Best,
Eric Rhoads
Radio Ink

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Comments

[CT]

Thank you- I have similar feelings -and am tired of 'Sky is falling' attitude. I'm working hard through this and I believe that all 'the good ones' will make it through as well.

[Vernon Harper]

Hi Eric,

Outdtanding, and sooo positive.

You are so right! "The Sky is Not Falling".

If I can ever help you in my own humble way, just say the word.

Respectfully,

Vernon Harper VP Sales & Marketing WMEL Radio, Melbourne, Fl. 321-631-1300

[John Mitton]

Recession caused us to re-invent ourselves from a recruitment advertising agency to a recruit PLUS regular advertising agency. As our "new" advertising clients are discovering, Radio can be effective addition to marketing mix. Key is to not to listen to "naysayers" but to keep doing what you know is in the best interest of clients and customers.

[Sanjay Hemady, COO, HIT 95 FM, New Delhi]

Hi Eric....Thanks for sharing an honest response...."Slowdown has slowed down" already, and its time to work faster, harder with all the efforts, undoubtedly Radio has a huge potential, if we make it work in the right direction, clients and brands benefit....people should find the next level in radio, and scale up...
cheers
Sanjay Hemady