The Battle of My Life

Chances are, you and I have had a relationship for a number of years in this industry. I got into radio at age 14, so now, 45 years later, I've gotten to know lots of people. I spent a decade on the air, spent many years as a programmer and programming consultant, and then years owning a small group of radio stations. I've spent time with you through the many promotional products I've brought to the industry and through countless industry gatherings. As the publisher of Radio Ink, which I've owned since about 1986, I've probably written well over 700 editorials challenging this industry on one issue or another. Chances are you have disagreed with me on some things -- and maybe agreed, from time to time. In all cases, the goal has been to better our industry, to challenge our thinking, and to help you take steps to whatever may be next.

Radio Is Magical

I fell in love with radio as a kid, way before I made a conscious decision to spend my career in this industry. Radio had magic for me as it entertained, made me laugh, and brought me the music I loved. When I was blessed enough to become a member of the radio industry, starting in 1969, I was enthralled with being on the air and entertaining people. Later, as I moved into ownership, I was deeply committed to radio's ability to transform the lives of small businesses -- that grew into large businesses with radio. Some of my favorite moments were driving coast-to-coast listening to stations around the country, including distant signals on AM at night, listening in between the noise. Truly, I'm a radio geek.

Deep Commitment to Radio

I have always loved this industry and been deeply committed to it, which is why have continued to publish Radio Ink, why we doubled down and started half a dozen different radio conferences, why we bought Radio + TV Business Report and RadioDiscussions.com, why we do the 40 Most Powerful People in Radio, the Radio Wayne Awards, the Radio Executive of the Year, Radio's Most Influential Women (MIWs), and so much more. It's driven by a passion for radio.

The Shot Heard 'Round the World

In June of 2012, as I was listening to a panel at my Convergence conference, I couldn't believe my ears when I heard a representative of the automotive industry predict that radio could be taken out of cars eventually. Instinctively I leapt from my seat, grilled the panel, and probed what they said. This was the shot heard 'round the world as an editorial I wrote spread more than any of the other 700 over the past decades. I was hearing from some very angry radio broadcasters concerned that I would publish this news, I received threats that my career would be destroyed if I continued, and I've lost some relationships over it.

Maybe Everything Isn't OK

At that moment in time, though, many were shooting the messenger and claiming I was being irresponsible. But I was trying to gain clarity on a situation I thought was potentially bad news for radio. What if radio was removed from cars? Heresy! How dare I? It will never happen! Yet I heard it with my own ears and have it on tape. Soon after, I received a call from the vice chairman of GM telling me radio would remain in their cars for "the foreseeable future." Whew. I guess everything is OK. But it really wasn't.

Detroit May Have Misinformation

What I had discovered, quite by accident, was that many in the auto industry were buying into the Silicon Valley perspective that everything digital matters and anything analog does not. I soon started hearing from others telling me radio was no longer a part of the lives of consumers and that consumers wanted other things, like online audio, in their cars. I discovered that consulting firms were feeding this information to Detroit, and I knew we'd better make sure that Detroit knows the full story: that radio is alive and well.

Radio Has Become Hard to Find

Two years ago, the connected car was not on the radar of the radio industry, and today it's front and center, a top priority. Radio, in fact, is not guaranteed a future on the automobile dash. Though we have made great strides in convincing the automotive world that radio is thriving, there are many center console units that have placed radio under hard-to-find layers of button-pushing that has to be done while driving. That sends a signal to me that some don't value radio as much as we think they should. Recently, driving in a connected rental car, I almost had a wreck as I navigated several layers of menus just to find the radio.

Radio's Future Is in Detroit's Hands

If you're of the mindset that radio will always be in the car and that a car is, as the famous Bill Burton always says, "a radio on wheels," it's time to understand that our future is being determined as we speak by some very smart people in Detroit and Silicon Valley. Though we have made great progress in raising awareness of the continued consumer love affair with radio through our DASH conference, there is much work to be done. And the coming conference will be an opportunity to make more progress.

Radio Is Fighting for Its Life

Little did I know that when I wrote that editorial in June 2012 that it would lead to a dialogue between radio and the automotive industry. But that's just what happened, and last year we launched the DASH conference with Fred and Paul Jacobs of Jacobs Media and connected-car expert Valerie Shuman of Shuman Consulting Group. And little did I know that just two years after that editorial, radio would truly be fighting for its life in the car. Thankfully, we discovered it, revealed it, and still have a chance to change it. Otherwise it would have occurred without input from the radio industry.

A Battle Radio Cannot Lose

As a manager, I think it's important that we understand that it's critical that radio make every possible effort to maintain its dominance in the car, where 50 percent of radio listening is done. Our argument for recency -- consumers hearing a message right before they enter a store -- is at stake. Our increased time spent listening during heavy traffic is at stake. Our drivetime inventory is at stake. If we let radio's dominance in the car slip away, a significant percentage of our revenues are at stake. Losing the battle for the car would not be a good omen for radio's sustained future.

Dealers Are Abandoning Radio

Radio and automotive have always been joined at the hip. Radio has always been a significant tool for selling cars. Radio has done millions of car lot remotes with hot dogs and balloons, and has run billions of automotive ads. Yet you may have noticed that is changing. We have discovered whole networks of car dealers that are substituting digital offerings for radio. We are seeing dealers who are no longer using radio. Is our biggest advertising category at risk as well? You should read this blog post Jacobs Media released Monday. It's frightening to think that radio is losing that connection. You need to be empowered to do what you can do locally.

Your Role at the Local Level

This is a pivotal moment in radio history. And though me, Fred and Paul Jacobs, Valerie Shuman, and the 300 or so people attending our DASH conference next week are working hard to do our part to keep radio a significant player in the automobile, we cannot do it alone. This is a time when every smart person in radio needs to be engaged. You need to be working it at a local level to make sure radio remains on the radar -- and not just as a distant blip. This is not something we can hope others will solve for us. This is so important it would be smart to gather your local radio group to focus on this giant new automotive challenge.

Selling Radio's Deep Connectivity to Detroit

For decades I've brought you challenges. But this may be the battle of our lives, and right now I'm not convinced we are winning that battle. Yes, radio will be in most (not all) dashboard systems for the near future, but what about five years out? Data consumption by consumers will drive decisions. Auto companies can track every button pushed in a connected car, can track how much time consumers are spending with radio vs. their music library or favorite Internet audio source. That data will make the decision about radio in the car, ultimately. Meanwhile, it's critical to help the automotive world understand radio's deep connection with audiences, its strong numbers. Last year at DASH, every person attending had a chance to share their feelings in roundtables. You actually can make a difference, which is why we structured the conference with interactive components.

A World Without Radio?

As a manager, you should not assume radio will prevail on its own. Having spent time with major automotive executives, I can tell you that their data is telling them something different from ours. Though we cannot see a world without in-car radio because we're so close to it, the auto world is interested in seeking advantages to sell cars. Though we think radio is a must, not all people in that industry feel the same. It was the auto industry that was really behind the adoption of 8-tracks, cassettes, CDs and even mobile phones (remember when they used to come mounted in the car)? They have the power to determine the direction in the future. And although their systems have always included radios, today those radios are often hard to find and hard to use -- not easy and automatic, as listeners are accustomed to.

Understanding What You're Up Against Though I'd love to have every manager in radio attend DASH so they can hear the specifics of how the world is rapidly changing (it's an eye-opener), if you cannot come, at the very least you and your program directors need to go drive connected cars. They are all different, so you need to experience multiple brands. You need to make an effort to understand the new world car dealers are moving toward so you can find a seat at the table and keep radio in the game. When was the last time you, as a manager, sat face-to0face with the dealers in your town... to listen, not to pitch?

Radio's Pivotal Moment I'm not interested in selling fear, though it may appear that way here. I'm often criticized for not being Mr. Positive and taking the pro-radio stance at every turn. While some think radio in the car is secure because consumers will demand its presence, consumers, we are learning, may not care as much as we hope they will. Time will tell, but some of what we are seeing is less than encouraging. We will reveal more new research next week. If radio loses its dominance in the car, we lose a significant part of our business. Again: This is a pivotal moment for radio.

Radio Foot Soldiers I'm calling for your help. Radio Ink brought this issue to the forefront of radio and this small team of Radio Ink/Jacobs Media/Shuman Consulting Group has orchestrated this event to build a dialogue between radio and the world of automotive, but we cannot do it alone. This requires foot soldiers in every market who understand what is happening and who work collectively to make change, market by market. Detroit listens to local dealers, and if those dealers insist that radio has a prominent place on the dash, and must be easy to find and use, they will get their way.

 

 

Comments

[Ken Hensley]

Eric I am a 43 year veteran of the radio business. I have read your columns for many years...sometimes I agree and sometimes I wonder what your are thinking. Anyway, the 20-30 somethings in Detroit can plan all they want but the power of the consumer is now and will continue to dictate what they offer their customers. If car makers take the AM/FM option from the consumer then the consumer will get it from someone else. Local radio is still the place that people go to first when they are looking for road conditions, weather alerts, disaster help, etc, etc, etc.

I have no idea what the major market radio stations are doing but I can guarantee you, those of us who live and work in the Midwest are doing just fine...in fact... revenues are up and our listener base is growing...not reducing! This covers the 18-34..25-54 and 35-64. As long as we keep involvement in our communities and give our listener base what they want our stations listener base we will continue to be useful and we will be around for quite some time. We share this with computers, smart phones and satellite radio now. From what I see...here in the Midwest...we are not going anywhere.

[Joseph M. Calisi]

While I sympathize with the plight you've stated, I feel it is a by product of what's been going on in the industry.

In the early 1980s, I was an on air jock. When the station was sold, I was out of the best radio job I'd ever get as it turned out. As time went on, weekends jobs disappeared in favor of automation - efficient but impersonal. I like many before and after me, quit the radio industry in favor of IT so I could have a job and benefits.

So now people are buying cars WITHOUT radios so they can play their iPads with their own playlists. I wonder why - there might be a connection somewhere.

[JESUS LOPEZ-VERDUZCO]

There are things that just can not be replaced, Talent and Content, now days human beings are in need of human contact and "talent on air" can not be replaced by "canned" music, for all those who grew listening to radio on the daily basis like myself on my way to School back in my home town "Guadalajara Mexico" I will always remember those advices from Pedro Ferriz, Pepe Cardenas and Denisse Dresser, they shape up our thoughts and sociological opinion, I consider them my family even though I never knew them, It is time to improve, to create, to humanly connect again, just like Einstain said: in time of crisis the greatest get creative and overcome obstacles, I'm part of a new concept in Spanish radio, "Sporst Comedy Show" on ESPN radio Las Vegas 1460am and we are getting ratings we never got before on local sports radio so let's be reasonable as George Bernard Shaw said, radio, God willing will be here forever but it sure will link it's supremacy to talent and good human contact. Should we question Detroit's interest of human contact with their buyers buy eliminating the only source of human communication inside their cars?? Should we question Detroit if it is their will to annihilate human contact that only radio can provide??

[Larry Lomax]

Thanks again for sounding the alarm, Eric.

It's hard to imagine a car dash without radio as we know it, but it's something we have long taken for granted. We need to "hear, not fear" the truth about what's transpiring between the auto and high tech companies, as well as our growing government bent on more control over our industry and personal lives.

So, how do we make our case? Perhaps you already have a bullet list noting the public benefit of local terrestrial radio. Here's what comes to my mind.

• It's free to listen. (digital requires data plan)
• Signal is reliable. (digital is more vulnerable to signal loss)
• Local content & commentary. (people do care about where they live)
• Supports local economy. (when we buy & sell locally, we strengthen locally)

While digital will grow and broadcasters will need to grow with it, I agree we need to step up and make our case for continued open and easy access to terrestrial radio on the car dashboard. I think the public at large would overwhelmingly support it.

This issue you raised is not just about us radio geeks protecting our livelihood, it's very much about the people we serve who choose to make us part of their day.

[Ronald T. Robinson]

So long as radio refuses to innovate and improve its products and services in programming and commercial-generation, and given the difficulties Eric has mentioned, the end result will be that the location of radio's Great Big Wreck will be a shorter distance downrange than we might have thought.
Fortunately, there is still time and strategies are available.
(See dealer for details. Some restrictions may apply. Void where prohibited. Sale ends Saturday. Be there. Don't miss it. Puke.)

[Mike Danvers]

radio has done this to itself. When we become a jukebox and a national political and sports opinion forum, we have eliminated what radio does best. Even in larger markets I hear broadcasters read the traffic report like they're auctioneers, so they can get back to playing as much music as possible. They jam all the ads into one quarter-hour to play as much music as possible. How is that serving the customer? When you create music-based listeners, as soon as you stop playing music they go elsewhere to find more music. As long as larger broadcasters refuse to spend money on local broadcasting, what's the difference between what they're doing and what the internet can provide?

[Jim Schlichting]

For sure, it is the crutch of music programming that has become the Achilles heel of broadcast radio. The last ligament to music is that the music is virtually license free. That will be changing for broadcast radio. As said above by Mike, more investment in programming will be needed for broadcast radio to survive.

[steve driscoll]

Radio delivers information to the local marketplace with content including Traffic, Weather, and Emergency reports when needed. Without Radio you create somewhat of a danger with a mobile public. Radio has always had the ability to bring news and information regardless of format to the local audience. So why would Car Makers take away the one thing you've always relied on while mobile? Good question. Consumers need local Radio.

Thank you,

Steve Dricoll
Program Director
Classic Rock 102

[Mike Schaefer]

Another great article. Broadcasters need to understand that consumers don't differentiate between cable & broadcast. To them it's television. The same thing is going to happen to radio. If it comes out of the "radio". It's radio. As more choices present themselves on the radio it only seems logical that listeners will spend less time with their 2nd, 3rd and 4th choice be it broadcast, mp3' pandora, et al. I believe that we need to invest more in programming that can't be easily duplicated. That's why ESPN and turner just agreed to pay the NBA 24 billion dollars for basketball. If all radio can do is more music I'm afraid we may lose the battle for dash space.