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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
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