INK TANK

When Credit is Due, Give It

I'm reproducing this blog from Ken Dardis of Audio Graphics. You can read it on his site here or below.  Though I was flattered I think Ken made some very valuable points-ER

Ken Dardus,
President
AudioGraphics

I began writing about how the internet affects the radio industry in 1997, never shying away from calling leaders to the carpet for their failure to lead (read: being complacent). Another item my fingers have always been quick to type about is the failure of radio industry trade publications to educate, when they missed opportunities (there have been many) to guide readers in ways to embrace the future. Let's step back from that approach. The sands have shifted and there is credit due to Radio Ink Publisher, Eric Rhoads. To understand why, schedule an hour to view the video of Eric's "Radio Reinvention," a presention made at a Cumulus Media corporate meeting. (Credit also goes to Lew Dickey for allowing these wise words to be accessed by all in the radio industry.) What I witnessed in this presentation is what I will call the "reawakening of radio." I feel that radio does not need reinvention, but an evolution. If Eric Rhoads wants to call it the former, please accept that. We will end up with the same results. At long last we have a person in a position of credibility who is actually mouthing concepts that have been pointed out here since 1997. He will hopefully have a profound effect on the radio industry because leaders will now listen. For that we need to extend to Eric Rhoads the credit due. (Let's take a moment and also give credit to Jim Carnegie, Radio Business Report Publisher, who has also voiced these concerns.) What makes the comment from Eric so compelling is that his words are spoken not with a "sky-is-falling" undertone to a group of Cumulus Radio executives but with "the past is dead, move on" conviction. Start with Eric's opening line: "I'm on a mission. My mission is to change the mindset of the radio broadcasting industry." Bravo! A long-needed step it is, something I've failed to accomplish after repeated efforts. Before you grow a perception that this is a whitewashed commentary on his presentation, though, see the statements from Eric with which I disagree: "We've all been told that the ipod is going to kill us." (15:30 into video) Not so, at least from people who understand both mediums. iPod picks up where the radio industry dropped the ball on being relevant to youth. It can be overcome. "Radio is dying because the internet is cool and radio is not...." (17:00) No. Radio is losing revenue and listener respect because it's not offering local programming to any degree of responsibility, which inspires cool. Nobody who understands both mediums has ever said radio is going to die. "We have to make them [media buyers] believe in radio...." No. Radio needs to deliver the same accountability being found in new forms of advertising. One comment from my perch: Eric fails to mention analytics and metrics - which I consider to be the new currency of advertising. He does briefly talk about search engines, and clients doing research by typing in "advertising, radio, Austin." I'll disagree. Clients do not type in that last, geographically-connected part of the keyword (Austin). Most search queries are done with a two-word combination. If a geographic specification is tied to a search in radio, it is to find stations from which to choose and not for locating the mechanics of how to do an advertising campaign - which I believe is what many small business owners are first seeking when considering spending money on radio advertising. This ties directly with Eric's comment about advertisers now doing "research." Eric Rhoads exhibits candor in this talk which is extremely refreshing, needed, and deserving of being heard by anyone in the radio industry who is concerned about adjusting their attitude for today's competition. Here are a few moments of brilliance (quoting Eric Rhoads - video timestamp in parenthesis): "What are we doing to really repackage ourselves and make ourselves look good?" (27:45) When he instructs attendees to study companies outside of radio: "Who has problems similar to radio? Who has inventory they can't sell? Airlines, hotels...?" (40:00) "Everybody's commercials were playing at the same time. How stupid is that?" (42:30) At 51:36 into the video, Eric sums it up nicely with a phrase I consider courageous to say to a roomful of radio industry executives: "Our copy writers don't know how to write copy. Part of the problem in the radio industry is 'we don't know how it works.'" Another part of this video points to how far radio has yet to go. It's when an audience member asks, "Where are our competitors going?" This gentleman mentions TV and newspapers, but not local internet advertising - which should be the first competition to consider today. Early on in this clip, Eric Rhoads talks of his neighbor, a business owner, whom he quotes: "I was spending 15, 20, $25,000 a month on radio and newspapers. Then I discovered search. I spent $3,000 on search and got more business than I got off of radio and TV." Search, especially Local Search, is radio's new competition. To ignore its potential for eroding more radio ad dollars is to continue keeping your eyes on the wrong ball. Balls play a minor roll in this "Radio Reinvention" video (though, we'll keep that as the mystery). Let it just be said that the black ball represents radio's failure to uncover new media's advertising offerings, not negativity. The video is 53 minutes long and at the start I mentioned scheduling an hour for it. This is in part because of the need to rewind a couple of points in the presentation; some you need to hear twice. Another minute is needed for an action on your part. Take 60 seconds to congratulate Eric Rhoads on making this video public, and for the keen insight it exhibits. Use this link; his address and the subject line are filled in for you. It's not often we hear a radio industry Captain call the cards that are actually on the table. When it occurs, as it does here, the leader needs to be told that the message was received - and he should be given thanks for having the guts to say it out loud and in public. Eric Rhoads' video is one of those opportunities. View the presentation at RadioInk.com

Hard Times: When Your Character is Defined

I heard about some character flaws at this week's NAB conference. Though the atmosphere was as upbeat as I have seen in radio in a few years and every broadcaster and exhibitor was optimistic and felt as though their business was improving, I heard stories that made my stomach turn.

Being on our best behavior is easy when things are going well. Yet our test as decent human beings with a strong moral compass is revealed during the struggle.

Some of the stories I heard at NAB went like this:

"Companies I've done business with for years have not only screwed us over financially, but lied to us about it. If they couldn't pay their bills, I can understand that, but don't lie to me."

"One of my business partners felt that we were financially weaker as a result of the recession and broke a contract, believing we would not have the ability to fight it."

"My company outright lied to the employees. We would have understood the truth, which eventually came out, but now we know we can't trust them."

Don't get me wrong. Survival requires tough decisions, which often includes negotiating balances down, slowing payables, making unfavorable decisions, finding lower-cost alternatives, renegotiating deals, cutting people or salaries, and many other things you might not otherwise do. But these things can be done with high-quality character and honesty and are not unethical.

Some will read this and say, "Eric, you're naive. Business is ruthless. It's dog-eat-dog out there." I'm not naive. I know business requires tough skin, unpopular decisions, radical thinking, swift action, and taking advantage of every opportunity. But it can be done with integrity.

You are defined by your behavior and by your character, in good times and in bad times. Short-term thinking may net you some immediate benefit but in the long term will cost you valuable relationships and clients. You don't have to be weak. You should be paid what you're owed and pursue it to the best of your ability -- up to a point. That point is where your character is defined.

During the '90-'91 recession I barely survived and was kept alive because of the relationships with my vendors. I never promised money if I couldn't pay it, I always told them exactly where I stand, and I worked with them at every possible opportunity. Frequent communication and complete honesty kept me out of collections and from being forced into bankruptcy. People get in trouble when they dodge vendors, when they make promises they can't keep, and when they lie.

Though I don't like recessions any more than you, I find them to be cleansing. It's a time to kick my butt to get unnecessary spending off the books, time to reevaluate the value of every employee and expenditure. Plus, it's an opportunity to be forced into reinvention and development of new products and markets.

And best of all, it's a time to test my own integrity. We all have that evil little voice whispering in our ear, "It'll be OK, just this one time." Once we cross that line, one little thing more will come along, and then another.

Going to a convention like NAB is like going to camp and seeing old friends I see only every six months or once a year. There is a feeling of warmth and comfort in seeing people I can rely on and do business with, and I know their handshake is their bond. Oh, I see the others too. But I avoid doing business with them because in previous tough times they showed their true identity. No matter what they say about their past, their true character has been revealed.

What does your recent behavior say about you?