In 1987 I acquired a floundering radio publication called the Pulse of Broadcasting. In
retrospect, I'm not exactly sure why I purchased it. I knew nothing
about the publishing business, and my losses in the first few years
proved it.
However, my goal was clear: to publish the magazine for
radio. So, I began implementing changes to develop the industry
magazine I wished for during my days as a station owner and manager.
During my first two years in publishing I worked unbelievably hard,
yet I could barely get any advertiser or reader attention. In a move of
desperation -- and to overcome some serious image issues created by the
previous management team -- I changed the name of the magazine to Radio Ink.
We were in the black within two years.
PATIENCE
The Japanese have a term that translates to patient capital.
Sometimes start-ups catch on quickly, and sometimes they take time. Had
my board of directors insisted on profitability within the first year
or two, Radio Ink would not be the heritage brand it is today.
Heritage station KFOG is celebrating 20 years on the air in San
Francisco, yet they too struggled at the beginning. The station barely
survived its first two years due to weak audience numbers and lack of
advertising support. Station personnel were recently heard on air
discussing the reality that KFOG would not succeed as a start-up today.
Fortunately, the original owners correctly believed time would work to
their benefit.
Streamline Publishing, the company I own, launched the fine art magazine Fine Art Connoisseur about
four years ago. Many companies would have killed it for non-performance
in the first two years, but in that market advertisers and readers need
time to develop trust. Time and consistency have been key factors, and
we are now enjoying our highest-billing issues ever.
TIME
The lack of time allotted to develop listener and advertiser trust
is a major detriment to the radio industry. Similarly, in a recent
editorial I noted that some of the best radio salespeople I've known
would never have made the 90-day cut if they were starting in radio
today. The same holds true for managers and program directors as well.
And few radio stations or formats that have enjoyed long-term success
were built in a year. Yes, there are instant successes such as the
Adult Hits (Jack, Bob, Ben) format, but its long-term viability remains
to be seen.
Though I can appreciate the need for public companies to satisfy
Wall Street, if the Street had been breathing down my neck during
either Radio Ink or Fine Art Connoisseur's earliest days, I would not have been afforded the time to nurture an up-and-coming heritage brand.
I have turned down every offer to head a public company because I
don't want to be punished after every quarter when I cannot answer the
question "What have you done for me lately?" to the satisfaction of the
market.
Maybe radio isn't cut out to be public. The tide certainly seems to
be shifting away from it. Regardless, radio simply must do a better job
of communicating to its critics that some things done well take time.
Patience and time are the best ways to build customer loyalty and
trust; and once you have them, they're difficult to lose.
Comments