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    <title>INK TANK</title>
    
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    <id>tag:typepad.com,2003:weblog-534098</id>
    <updated>2013-04-22T17:09:50-04:00</updated>
    <subtitle>Commentary on Radio &amp; Audio</subtitle>
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    <atom10:link xmlns:atom10="http://www.w3.org/2005/Atom" rel="self" type="application/atom+xml" href="http://feeds.feedburner.com/blogs/LazX" /><feedburner:info uri="blogs/lazx" /><atom10:link xmlns:atom10="http://www.w3.org/2005/Atom" rel="hub" href="http://pubsubhubbub.appspot.com/" /><feedburner:browserFriendly></feedburner:browserFriendly><entry>
        <title>Radio Is The Lifeline For America</title>
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        <id>tag:typepad.com,2003:post-6a00d834c9d85969e2017d430722c9970c</id>
        <published>2013-04-22T17:09:50-04:00</published>
        <updated>2013-04-22T17:14:00-04:00</updated>
        <summary>Radio, it seems, has become like a utility: We take it for granted because it's always there. Like the lights, we don’t appreciate them until they go out. Radio bashing is popular these days. Everyone wants to take a shot,...</summary>
        <author>
            <name>Eric Rhoads</name>
        </author>
        
        
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<div xmlns="http://www.w3.org/1999/xhtml"><p>Radio, it seems, has become like a utility: We take it for
granted because it's always there. Like the lights, we don’t appreciate them
until they go out.
</p>
<p>Radio bashing is popular these days. Everyone wants to take a shot, because radio has been around so long and because they are 
assuming -- wrongly -- that radio has lost its audience to television and the Internet.</p>
<p>True, new technology is changing everything. Craigslist and
online news content dramatically altered the newspaper business years ago, and there's little sign of recovery. Yet in spite of the success of online audio, there is no evidence
that it has dramatically altered terrestrial radio listening. Yes, radio
listeners are sharing listening with online audio, but they have not abandoned
radio the way so many readers abandoned the newspaper.</p>
<p>It seems to me that just about every time someone makes a
case for radio becoming the next disappearing act, an event occurs that reinforces what cannot be done -- or at least, isn't being done -- by digital audio.</p>
<p>Last week's unfortunate events in Boston were a perfect
example. A crowd of hundreds of thousands was dispersed following the bombings
and told to go home immediately. Many left on foot, but most of Boston
commutes by car, and those curious commuters turned to radio for their coverage.
And for those who want to say, "Yeah, but they
have their smartphones," let's not forget that cell service soon became unavailable -- most likely through overload, though some reported that authorities had service shut down to prevent the triggering of additional devices
by cell phone.</p>
<p>There is no doubt that Boston radio stations rose to the occasion. <em>Radio Ink</em> has reported
on many instances in which radio covered stories others just did not have. Because of
great radio stations equipped with street reporters and large operations, radio
in Boston stepped up the plate for Boston residents,  further reinforcing radio’s
value.</p>
<p>I'm sure the residents felt a huge loss when their smartphones became useless, but there would have been fear and outrage if the radio had not been there to inform them.</p>
<p>Further reinforcing radio's value was Hurricane Sandy, earlier
in the year, when residents were stranded for days, and, in some cases, weeks without power. No power to charge their mobile devices, no cable or Internet
service in their homes, no power to mobile towers, no ability to deliver
newspapers, no way to power the television. </p>
<p>It's time radio became recognized for what it offers. Though
the digital era may usher in change, we must not forget that radio's
distribution is deep, with an average of 5.5 units per home and distribution in virtually
every car. We must also reinforce that we have backup transmitters at almost
every radio tower site in America that can operate for days when power is
down and battery-operated or car radios are the only form of mass communication
in town.
</p>
<p>There are only a few instances a year when the Internet and power are out and there is no way to charge a smartphone, yet
those are the times people instinctively turn to their radios. You may be
entertaining yourself on your iPad, but when you're driving and see a looming
storm, a burning building, or even just a traffic jam, radio continues to be your
lifeline.</p>
<p>Everyone, it seems, wants to imitate us, grab our audiences
and our advertisers,  yet few are willing to build the teams necessary to cover a major tragedy in town or keep the staff available to inform a community -- and none
can touch radio's ability to remain on the air when the power, the Internet, and other forms of communication fail.</p>
<p>One area we can improve as an industry is in our ability to
sell our strengths in times when radio shines extraordinarily bright. Attacks
from other sources will continue with the intent of stealing our audience
relationships. New music or radio services from giants like Facebook, Twitter,
Google, YouTube, and Apple will continue to try to erode our audience loyalty.
We must not get complacent and assume they cannot make progress, or let any complacency
extend to our own industry promotion efforts. When radio shines, we need to
make sure the world knows, to remind them of what we already know. Radio is the lifeline for America.</p></div>
</content>



    </entry>
    <entry>
        <title>Retraction: The Exact AM/FM Dash Story</title>
        <link rel="alternate" type="text/html" href="http://ericrhoads.blogs.com/ink_tank/2013/03/retraction-the-exact-amfm-dash-story.html" />
        <link rel="replies" type="text/html" href="http://ericrhoads.blogs.com/ink_tank/2013/03/retraction-the-exact-amfm-dash-story.html" thr:count="18" thr:updated="2013-03-22T14:43:31-04:00" />
        <id>tag:typepad.com,2003:post-6a00d834c9d85969e2017d41ea2dc9970c</id>
        <published>2013-03-15T17:32:19-04:00</published>
        <updated>2013-03-15T18:48:32-04:00</updated>
        <summary>Dear Readers: My Editorial about AM/FM removal from cars has caused great concern in the radio industry. My mistake is that I put something in quotes from my recollections of the panel and the discussions afterward and my quote was...</summary>
        <author>
            <name>Eric Rhoads</name>
        </author>
        
        
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<div xmlns="http://www.w3.org/1999/xhtml"><p>Dear Readers:</p>
<p>My <a href="http://ericrhoads.blogs.com/ink_tank/2013/03/a-cold-harsh-reality-for-radio.html" target="_self">Editorial</a> about AM/FM removal from cars has caused great concern in the radio industry. My mistake is that I put something in quotes from my recollections of the panel and the discussions afterward and my quote was inaccurate. Furthermore, my mistake was that I did not verify what was said by contacting the car companies directly for confirmation before running the story. As I received concerns from within the industry I looked at the video and learned my quote was inaccurate. My editorial stated two inaccuracies: I quoted, "AM and FM are being eliminated from the dash of two car companies within two years and will be eliminated from the dash of all cars within five years." The fact is, my recollection was incorrect and this was not said on stage as I reported. </p>
<p>So that I can abide by my history of journalistic integrity, here is exact and explicit documentation of what was said, where I thought I heard that quote, which I pulled from the video of the session. </p>
<p>Specifically, Thilo Koslowski, Gartner Research's VP and Practice Leader, Automotive, Car, ICT, Mobility stated: </p>
<p>"The changes we are talking about, they will actually really happen over the next couple of years. They are beginning to now, kind of bloom in certain areas where you have technology readily available like the Bay Area, but eventually you will see this everywhere. The challenge that I see is radio listening in the car consuming content is not going away but the way you do this and the platform that you use, platform meaning the technology that I use in order to get to that content will be very different."<br />Rhoads: "So what I want to know is if I own a radio station, and I'm not trying to put you guys on the spot, I really love what you're saying…"<br />Kowslowski: "Please do, please do."<br />Rhoads: "But if I own a radio station and I've got a lot of money invested in transmitters, or HD Radio or otherwise, and everything's gonna go to IP and you'rre gonna pull that AM and FM receiver to save twelve cents out of each car, I want to know it. Do you think that's likely to happen?"<br />Koslowski: "Absolutely. I think you will see that happening."<br />Rhoads: "When will that happen?"<br />Koslowski: "That will not happen over the next five to ten years, but past that absolutely." <br />Rhoads turns to audience: "Five to ten years, gang."<br />Koslowski: "No, but you will see already some changes happening over the next couple of years. Before it goes away completely that will take a little bit longer but think about it, how many cars can you buy today that have a cassette player? How many cars will you buy going forward that have a CD player? Not that many anymore. There are companies that actually are designing radios that don't have AM."<br />Rhoads: "Who are they?"<br />Koslowski: Shakes head.<br />Rhoads: "No no, who are they? You can’t bring it up without telling us who they are." <br />Koslowski: Shakes head.<br />Rhoads: "You can’t say it, it's confidential?"<br />Though I honestly believed I was accurately reporting what was said, the video reflects that I did indeed misquote what was said and that I clearly thought Mr. Koslowski has stated that the changes would occur within five to ten years when he actually said that it would not happen within that time from but sometime thereafter. His statement about changes happening over the next couple of years was also not as clear as I believed it to be. </p>
<p>My quote referencing two companies in two years was not an exact quote, and my reference to five years was inaccurate. What I wrote was based on my recollection of the session and conversations after the session. In hindsight, I should have waited until I could view the video and put the exact quotes and also should have not just assumed Mr. Koslowski was representing the automotive companies, which is why I should have contacted them.</p>
<p>Furthermore I made this statement based on my recollections from the panel and the behind the scenes discussion: "according to the Convergence panel, radio will be gone from new cars within five years." It was my opinion and was inaccurate.</p>
<p>My editorial has caused many within the radio industry much grief and therefore, I feel it best to rescind my original quote and issue an official apology. I care deeply about this industry. I've been a radio advocate for over four decades and I have always had radio's best interest at heart. My intent in the editorial was to give the industry a heads up about possible looming threats. I was deeply concerned because of my passion and concern for an industry and improperly measured the impact it would have. I truly regret any confusion or misinformation that resulted, and I sincerely apologize for the error.</p>
<p>There is good news in all of this, which is support from one major carmaker. GM issued a statement that they intend to keep AM/FM in their cars. <a href="http://www.radioink.com/article.asp?id=2627785" target="_self">See statement</a>. Furthermore, Ford spoke to Editor Ed Ryan stating their support for radio. Both are a silver lining to this cloud.</p>
<p>Again, I apologize if I created problems or issues for anyone in this industry, which I dearly love. </p>
<p> </p></div>
</content>



    </entry>
    <entry>
        <title>A Cold, Harsh Reality For Radio</title>
        <link rel="alternate" type="text/html" href="http://ericrhoads.blogs.com/ink_tank/2013/03/a-cold-harsh-reality-for-radio.html" />
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        <id>tag:typepad.com,2003:post-6a00d834c9d85969e2017ee911ffc5970d</id>
        <published>2013-03-08T14:24:56-05:00</published>
        <updated>2013-03-15T17:37:31-04:00</updated>
        <summary>CLICK HERE for an important update. I stayed in my seat and listened politely, though I wanted to jump up and cross-examine the people onstage. Frankly, I couldn't believe what I'd just heard, and it was so important that it...</summary>
        <author>
            <name>Eric Rhoads</name>
        </author>
        
        
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<div xmlns="http://www.w3.org/1999/xhtml"><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;"> <a href="http://api.addthis.com/oexchange/0.8/forward/facebook/offer?pco=tbxnj-1.0&amp;url=http%3A%2F%2Fericrhoads.blogs.com%2Fink_tank%2F&amp;pubid=xa-50cf58ef50aba8d1" target="_blank"><img alt="Facebook" src="http://cache.addthiscdn.com/icons/v1/thumbs/facebook.gif" /></a> <a href="http://api.addthis.com/oexchange/0.8/forward/twitter/offer?pco=tbxnj-1.0&amp;url=http%3A%2F%2Fericrhoads.blogs.com%2Fink_tank%2F&amp;pubid=xa-50cf58ef50aba8d1" target="_blank"><img alt="Twitter" src="http://cache.addthiscdn.com/icons/v1/thumbs/twitter.gif" /></a> <a href="http://www.addthis.com/bookmark.php?source=tbxnj-1.0&amp;=300&amp;pubid=xa-50cf58ef50aba8d1&amp;url=http%3A%2F%2Fericrhoads.blogs.com%2Fink_tank%2F" target="_blank"><img alt="More..." src="http://cache.addthiscdn.com/icons/v1/thumbs/more.gif" /></a> </span><br />
<p><span style="font-size: 12pt;"><strong><span style="font-family: arial,helvetica,sans-serif;"><a href="http://ericrhoads.blogs.com/ink_tank/2013/03/retraction-the-exact-amfm-dash-story.html" target="_self">CLICK HERE</a> for an important update.</span></strong></span></p>
<hr />
<p> </p>
<span style="font-size: 12pt;">
I stayed in my seat and listened 
politely, though I wanted to jump up and cross-examine the people 
onstage. Frankly, I couldn't believe what I'd just heard, and it was so 
important that it needed to be clarified immediately. Could it really be
 true? I'd been predicting it for years, but when I heard those words, 
it was like seeing an old friend I loved being knifed in the gut. I felt
 victimized.
</span>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">But I also felt vindicated. The moment I am referring to was during our Radio Ink
 Convergence conference, held earlier this week. For two days, digital 
experts talked about the surprising growth of online radio listening in 
the past 12 months. We heard statistics and facts about significant 
increases. We heard that the iPad is the new transistor radio and the 
smartphone is the new radio receiver. We heard that Google's YouTube is 
about to launch a radio service like Pandora, and that Apple is doing 
the same. So what I heard should have been no surprise, and in a way it 
wasn't. But it was a shock.</span><br />
             <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            For a decade or more, I have been banging my fist on the 
table, telling radio that a moment will come that the industry must 
prepare for. Some listened, but most ignored it as some "out there" 
prediction from an overzealous futurist. Yet what I'm about to tell you 
is not a prediction, and it's not a guess. It's a fact. And it was a 
giant shock for the people who attended Convergence.</span><br />
             <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            On the stage were three representatives of the automotive 
industry: one from Gartner Research, a highly respected tech research 
firm; one from the Silicon Valley offices of General Motors, where they 
design interactive experiences and new technology for their cars; and 
one who represents an industry association for the connected car. They 
were on a panel moderated by Buzz Knight of Greater Media, and they 
talked about the direction of in-car experiences, the digital dashboard,
 and what will be coming next to the dash of the car -- apps, Internet 
radio and audio in the car, and other things we knew were on the way. 
Then, suddenly, this statement was heard:</span><br />
             <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            "AM and FM are being eliminated from the dash of two car 
companies within two years and will be eliminated from the dash of all 
cars within five years."</span><br />
             <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            Gulp. Really? Did someone really just say that?</span><br />
             <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            The panelists went on to say that young people don't use 
radio anymore, and automakers see no need to continue to put radios in 
the car. The kids want Pandora, Spotify, and other audio services, and 
if they want radio, they can get it on TuneIn or iHeart or a similar 
service.</span><br />
             <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            I couldn't sit quietly anymore, so I went to the stage, 
apologized for interrupting, and started cross-examining the panel to 
find out if they really meant what they were saying. I was fuming 
inside, because it appeared they were working from incorrect 
assumptions. I wanted to find out if they were backed by solid data, or 
if they just believe "Nobody listens to the radio."</span><br />
             <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            Probing The Research</span><br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            When I questioned the panelists on their statements about 
the lack of youth listening, I asked if that was based on data, or is 
just a Silicon Valley perception. After all, Arbitron listening 
statistics don't support their claim, and they needed to know that. 
Though I've seen personal evidence that young people seem to be 
listening less, Arbitron numbers say that's not true. </span></p>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">The answer I received from the General Motors panelist is that GM uses youth consultants <a href="http://www.nytimes.com/2012/03/23/business/media/to-draw-reluctant-young-buyers-gm-turns-to-mtv.html?pagewanted=all&amp;_r=0">MTV Scratch</a>, a unit of the giant
 media company Viacom that consults with brands about connecting with 
consumers and advises GM on trends. I was told there was extensive 
research to support the lack of interest in radio among youth and that 
GM researches everything to make sure they are giving consumers what 
they want. When I asked who did the research, I was told these are 
proprietary studies but clearly show trends saying young people no 
longer use radio. </span><br />
             <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            Goodbye, AM &amp; FM</span><br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            Now that I'd established that GM doesn't believe that youth 
listen to radio, I wanted to probe the statement that two car companies 
are pulling AM and FM radios, looking for specifics. I was told that is 
proprietary information, and that which two companies won't have in-dash
 AM and FM couldn't be shared. All they would say is that it was decided
 a year ago, and it will be happening within two years. The change is 
already in the works. This wasn't a prediction that this might happen.It was stated as a fact by a top industry researcher. And it seems GM's Chevrolet could be one of those automakers.</span><br />
             <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            Will Others Follow?</span><br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            Before the conference I'd heard a rumor that Ford and 
Toyota both believe AM/FM should be left out of new cars, and that these
 big radio advertisers want cars to have online radio only so they'll be
 able to measure their advertising reach precisely, rather than relying 
on estimates. Frankly, all other advertising has gone in that direction.
 Why not radio? Another motivation is that these companies will be 
offering LTE 
service in their cars. So they may be doing this for the income from 
data consumption, much as Apple makes money for having these services 
on iPads.</span><br />
             <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            We've known for a long time that radio is losing its in-car 
monopoly as other music services hit the dash. But until this moment, we
 didn't have confirmation from anyone in the auto industry that AM/FM 
receivers will be eliminated -- by at least two companies, and soon.</span></p>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">If this is true -- and these people have 
no reason to mislead us -- this is the most important "unofficial" 
announcement in history regarding the future of broadcast radio. Though 
radio broadcasts will be available through distributors like TuneIn and 
iHeartRadio, your competition won't just be in-market stations anymore. 
You will be facing a world full of competitors. </span><br />
             <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            Many readers will be in denial after they hear this, saying 
it could never happen. One commenter on our website said AM and FM will 
not be removed from the dash in our lifetimes, while others raised the 
costs of bandwidth. Most who hear this will be tempted to ignore it.</span><br />
             <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            Alert: Within two years, AM and FM will no longer be offered by two automakers.
 According to the Convergence panel, radio will be gone from all new 
cars within five years. Since the automotive companies work three years 
in advance, these decisions are being made now. It appears that radio 
really will be gone from the dash unless it's heard through an Internet 
radio distribution platform.</span></p>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">What can be done about this? It depends on
 which camp you're in. I happen to believe that this was inevitable, and
 I've been warning about it for a decade. Internet radio in car gives an
 exact measurement of listening, and that could be a good thing.</span><br />
             <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            But I am deeply concerned about two things:</span><br />
             <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            1. Are the car companies operating on incorrectly skewed 
research, or on the opinions of a youth-oriented consulting company? 
It's easy to say radio is dead, but the Arbitron numbers don't support 
it. GM and other car companies need to understand that if they are 
wrong, there will be consumer backlash if they remove AM and FM from 
cars. People love their radios. Young people don't often buy cars, and 
radio is clearly stronger with baby boomers and older adults.</span></p>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">2. Safety is a giant concern. AM and FM 
radio stays available when the power goes down. Cell towers and the 
Internet do not. You can't communicate with consumers in their cars 
during a storm or a mass evacuation when the signals cannot reach the 
car. Plus, there are still dead spots in America where there is no cell 
coverage. Is a car owner in a remote community to go without a car radio
 that works?</span></p>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">This is a slippery slope. </span></p>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">So what can you do?</span></p>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">1. You need to believe this is happening. It's now a fact, directly from the mouths of the people behind it. </span><br />
            <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            2. You had better start working out a strategy to strengthen
 your brand relationship with your audience now so they'll still seek 
you out when they have tens of thousands of other choices.</span><br />
            <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            3. You need to be on the TuneIn or iHeart platforms (probably both), and you need to be streaming.</span><br />
            <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            4. If you want to fight this, you may want to consider 
starting with your local congressman. Congress may wish to consider 
legislation to require in-car receivers for safety purposes -- though 
I'm not big on forcing regulation on consumer preferences. But Hurricane
 Sandy made it clear once again that Internet and cell signals cannot be
 relied upon for safety, and radio is the only means of communication 
that stays on the air in an emergency. Removing it from cars might not 
go over well with consumers for that reason alone.</span><br />
            <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            5. You may consider having a talk with your biggest 
advertisers, local car dealers, to ask them to offer their input to the 
car companies. Pressure can change things quickly -- but be careful; 
this approach could backfire.</span><br />
             <br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">
            Whatever you do, don't ignore this. As Bill Burton of the 
Detroit Radio Advertising Group always says, a car is a radio on wheels.
 We've owned the car, and traffic has been a friend to radio 
listening. But it appears that, unless something changes, the AM/FM 
signal to the car will soon be a thing of the past. Whether these same 
companies will still offer HD Radio needs to be addressed -- it may or 
may not be part of their plans. If it is, you'll be forced to upgrade to
 HD to reach people in new cars.</span></p>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">Most people at the conference found this 
very unsettling, and I suspect it will create quite a ruckus in our 
industry, forcing the issue and bringing more details to light. Let's 
hope so. We need all the facts so we as an industry can properly 
respond.</span></p></div>
</content>



    </entry>
    <entry>
        <title>Why I’ve Doubled Down On My Commitment to Radio </title>
        <link rel="alternate" type="text/html" href="http://ericrhoads.blogs.com/ink_tank/2013/02/why-ive-doubled-down-on-my-commitment-to-radio-.html" />
        <link rel="replies" type="text/html" href="http://ericrhoads.blogs.com/ink_tank/2013/02/why-ive-doubled-down-on-my-commitment-to-radio-.html" thr:count="1" thr:updated="2013-02-11T13:13:34-05:00" />
        <id>tag:typepad.com,2003:post-6a00d834c9d85969e2017ee8589a29970d</id>
        <published>2013-02-11T09:15:00-05:00</published>
        <updated>2013-02-08T18:53:52-05:00</updated>
        <summary>When Radio Ink turned 20 last year, I made a conscious decision to re-commit myself to radio. Though my head may be grayer, my goal has never really changed: to challenge broadcasters to grow, to consider new innovations, and not...</summary>
        <author>
            <name>Eric Rhoads</name>
        </author>
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://ericrhoads.blogs.com/ink_tank/">
<div xmlns="http://www.w3.org/1999/xhtml"><p>When <em>Radio Ink</em> turned 20 last year, I made a conscious decision to re-commit myself to radio. Though my head may be grayer, my goal has never really changed: to challenge broadcasters to grow, to consider new innovations, and not to accept the status quo. Since getting into the publishing business 20-plus years ago, I have wanted to help make the radio industry stronger, offer fresh ideas, and be a resource for those of you who own and operate radio stations. While all other print magazines in our sector have disappeared,<em>Radio Ink</em> remains committed. Of course we’re also very digital, with tablet editions, RadioInk.com, and Radio Ink Daily Headlines.</p>
<p>As you know, the radio industry is littered with trade publications, many of which serve a specific niche. They all provide value to the industry, and though we all tend to compete for some advertising dollars or for readers, each has a purpose and a good reason to exist. 
Technology is making this a very exciting time; today, any good thinker can put up a blog and be seen by huge numbers of people. There are many news outlets within our industry that essentially amount to an enthusiast with a keyboard. In fact, today most fit into that category, and many do a wonderful job.
</p>
<p>An Era Of Publishing Giants</p>
<p>There was once an era of publishing giants in radio. A big gun like <em>Radio &amp; Records</em> had a floor or two in a skyscraper in L.A. and offices in Nashville. Even <em>Radio Ink</em> at one time occupied an entire floor of an office building. But as the Internet became dominant, things changed, and life at those big operations began to falter. No longer was it practical to have a staff of 40 or 50 people. Most publications struggled to survive, and many fell. Fortunately, during that era <em>Radio Ink</em> was challenging radio to embrace new technology, and we had access to the great minds of the Internet as we built our Convergence conference (at that time called the <em>Radio Ink</em> Internet Conference). So we had some indication of what was ahead — in fact, <em>Radio Ink</em> offered the first free online news e-mail and website in radio.We trimmed our operations elsewhere so we could continue to produce a print product, which not only survived, but remains viable today. 
</p>
<p>Giant Press Teams
</p>
<p>Today very few radio news outlets have large teams of reporters to gather the news. A large staff isn’t as necessary when serving a niche of the industry. But staff is still crucial for a publication offering serious news coverage and volumes of data. Since I made a new commitment to radio, it was my goal to seek out strategic relationships and acquisitions to strengthen my own platform and own more than one of the “big gun” publications. After R&amp;R went away, there only three big heritage publications left: <em>Radio Ink, Radio Business Report</em>, and <em>Inside Radio</em>. A research study we recently commissioned from Harker Research indicated that these three brands remain dominant in daily readership. Since<em> Inside Radio</em> is owned by Clear Channel, it became clear to me that my only acquisition target was <em>Radio Business Report</em>. Discussions began.
</p>
<p><a href="http://ericrhoads.blogs.com/.a/6a00d834c9d85969e2017ee8589a07970d-pi" style="float: left;"><img alt="Cathy_Carnegie_Jim_Carnegie1" border="0" src="http://ericrhoads.blogs.com/.a/6a00d834c9d85969e2017ee8589a07970d-800wi" style="margin: 0px 5px 5px 0px;" title="Cathy_Carnegie_Jim_Carnegie1" /></a>Targeting A New Life
</p>
<p>In 2011, Jim and Cathy Carnegie, the founders of <em>Radio Business Report</em>, made a decision that they would sell the publication when they hit the 30-year mark. Both had worked 16-hour days over many long years, and the idea of the beach, a drink with an umbrella, and life on a golf course sounded very appealing. Plus, Jim wanted to go back to his roots and do some hands-on work with stations again. Jim contacted me at that time and our talks continued, but everything came to a halt when Cathy died suddenly of a brain aneurysm. Only slowly, as Jim became able to tear himself away from his grief, did discussions resume.
</p>
<p>Two Directions
</p>
<p>By now you’ve seen the announcement that this very strategic acquisition has been completed. Today RBR is part of the Streamline team, and today we offer the industry two of the big gun publications in radio. Each will remain independent. We won’t share stories. RBR and Radio Ink serve the same industry, but each serves a separate purpose. 
Radio Ink has always been a manager’s tool, helping owners, managers, sales managers, and sellers with strategic ideas to improve their businesses. Our news leans toward solution-based thinking, and “What would I do if this happened to my station?” RBR leans toward the financial sector, offering deep data and deep analysis. They “follow the money.” Both publications play critical roles. </p>
<p>Of course, RBR also has TVBR, which puts Streamline in the television/cable reporting business as well. TVBR is widely read and respected. RBR-TVBR offers free daily news, but also offers deep analysis and detail for operators and investors, available only to subscribers. Though it’s already a huge success, we intend to expand the content with more white papers and reports, and deep intelligence to help broadcasters make more money, understand trends, and make sound decisions.
<em>Radio Ink</em>, meanwhile, will enhance the depth of its commitment to the hands-on operator. Both publications will carry our passion and commitment to this industry.
</p>
<p>Committed To Radio
</p>
<p>As a business founder who shows up at my desk and stays there for 16 hours most days, I too know the day will come when I have to part with the dream I’ve built. At our closing with Jim Carnegie, I realized that it must be a bittersweet parting —sweet with dreams of retirement, travel, and a different brand of fun, and sweet because Jim’s consulting practice will afford him the time to influence stations and companies. But bitter because he is parting from the team he built, most of whom have been with him 15 years, 20 years, or more. He remains passionate and committed to radio.
</p>
<p>Offering Kudos
</p>
<p>
I want to encourage you to give your heartfelt thanks to Jim Carnegie for his 30 years of devotion to radio. Love him or not (he tends to have strong opinions and a no-BS attitude), he gave our industry a great brand in RBR-TVBR, and gave you 30 years of his life.
Sadly, Jim and Cathy never got to realize their dream of retiring together. But Jim, in his normal headstrong, disciplined manner, is hell-bent on living up to the commitment he made to Cathy, which I think is admirable.
</p>
<p>Practicing High Standards
</p>
<p>At our closing, I learned of all the companies that tried to get RBR. Jim could have sold it to anyone, including a giant radio company that chased it, a competing trade publication, and a large, well-funded start-up. At the end of the day, he lived up to his own standards: to make sure his loyal team was in good hands, make sure the publication remained independent so it would never be putting company press releases before real news, and making sure RBR went to someone full of passion for the industry. Jim and Cathy had no children; RBR was their child, and it was their intention to have its new adoptive parents have similar standards.
</p>
<p>An Industry We Love
</p>
<p>Though it’s no secret to Jim or anyone else that we have often disagreed about style, one thing we never disagreed on was our passion for an industry we love. We both started our careers on the air at a young age. I’m honored that Jim Carnegie made the decision to place the future of his enterprise in our hands, and I can assure his readers that we’re not here to change it, to cut its staff and trim expenses, or to strip RBR-TVBR of its resources. We’re here to operate it, grow it, and add it to our platform, to offer viable solutions and give our readers and advertisers two of the big guns in the radio trade press. 
</p>
<p>As my grandmother used to say, “This is a red letter day.” Indeed, it is cause for celebration!</p></div>
</content>



    </entry>
    <entry>
        <title>The $45 Million Kiss</title>
        <link rel="alternate" type="text/html" href="http://ericrhoads.blogs.com/ink_tank/2013/02/the-45-million-kiss.html" />
        <link rel="replies" type="text/html" href="http://ericrhoads.blogs.com/ink_tank/2013/02/the-45-million-kiss.html" thr:count="3" thr:updated="2013-02-05T19:57:52-05:00" />
        <id>tag:typepad.com,2003:post-6a00d834c9d85969e2017d40c427c5970c</id>
        <published>2013-02-04T16:32:47-05:00</published>
        <updated>2013-02-04T16:32:47-05:00</updated>
        <summary>You scratch my back, I’ll scratch yours. You put radio in Sprint smartphones, and we’ll make it worthwhile by placing the weight of the radio industry behind it. $15 million a year for three years. The radio industry’s deal to...</summary>
        <author>
            <name>Eric Rhoads</name>
        </author>
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://ericrhoads.blogs.com/ink_tank/">
<div xmlns="http://www.w3.org/1999/xhtml"><p>You scratch my back, I’ll scratch
yours. You put radio in Sprint smartphones, and we’ll make it worthwhile by
placing the weight of the radio industry behind it. $15 million a year for
three years. The radio industry’s deal to promote Sprint and the NextRadio app
seems to me like a giant win for radio. Why?
</p>
<p>First and foremost, no one really
knows what will happen when you put that many smartphones in the market with a
radio built in. Will it be used? Will radio replace streaming listening? Will
radio see an increase in listening overall? </p>
<p>There’s bound to be a bump in radio
use, and that’s a good thing. If I have any concern at all, it’s that
Arbitron’s PPM measurement won’t capture listening over headphones, the way
most smartphone audio is heard. Still, more radio listening — and more response
to advertisers — even if some of that listening is not recorded, can only be
good.</p>
<p>But better still is that we, the
people of radio, have a giant opportunity to show what radio can do to drive
adoption of phones with radio on board. It’s a giant test to show how radio
performs — and proof is critically important today.</p>
<p>Last, this will gain the attention
of other phone manufacturers, which may also look to radio to boost their sales
by committing to put radio chips in their phones as well.</p>
<p>Should radio continue to push for
other smartphones with radio built in? Absolutely. Now is the time for radio to
step up to the plate. This is a brilliant strategy, a reasonable quid pro quo,
and a chance to keep radio in the hands of every American.</p>
<p>Congratulations again to Jeff
Smulyan for his leadership and to the RAB’s Erica Farber and her board for
making this commitment happen. Only good things can come from this.</p>
<p> </p></div>
</content>



    </entry>
    <entry>
        <title>Why Sprint's Adding Radio On Smartphones Matters</title>
        <link rel="alternate" type="text/html" href="http://ericrhoads.blogs.com/ink_tank/2013/01/why-sprints-adding-radio-on-smartphones-matters.html" />
        <link rel="replies" type="text/html" href="http://ericrhoads.blogs.com/ink_tank/2013/01/why-sprints-adding-radio-on-smartphones-matters.html" thr:count="11" thr:updated="2013-01-14T15:44:36-05:00" />
        <id>tag:typepad.com,2003:post-6a00d834c9d85969e2017c3580fa10970b</id>
        <published>2013-01-09T13:02:53-05:00</published>
        <updated>2013-01-09T13:02:53-05:00</updated>
        <summary>Yesterday while I was sitting at my desk, my cell phone made an alert noise (even though the volume was turned down) and an Amber Alert flashed on the screen. That reminded me of the need to put radio on...</summary>
        <author>
            <name>Eric Rhoads</name>
        </author>
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://ericrhoads.blogs.com/ink_tank/">
<div xmlns="http://www.w3.org/1999/xhtml"><p>Yesterday
 while I was sitting at my desk, my cell phone made an alert noise (even
 though the volume was turned down) and an Amber Alert flashed on the 
screen. That reminded me of the need to put radio on mobile phones, not 
only so radio can entertain, but so alerts can go out to phones even 
when cell towers are down or not functioning, as during Hurricane Sandy.
</p>
<p>Coincidentally, Ed Ryan yesterday <a href="http://www.radioink.com/Article.asp?id=2602421&amp;spid=24698">broke the story</a>
 that Sprint had announced that several models of Android and Windows 
smartphones will be enabled over the next few years with FM radio chips 
and the NextRadio platform, developed by Emmis Communications.</p>
<p>Though
 Sprint has already had offered some phones with FM chips in the past (I
 had it on my HTC Evo two years ago), this is the first time FM will be 
offered on a wide variety of devices.</p>
<p>Why is this a big deal? As I have <a href="http://ericrhoads.blogs.com/ink_tank/2012/07/the-weakest-link.html">written in the past</a>, radio transmitters work when the power is down and when cell phone towers are not working. An FM
 chip can send emergency messages to all enabled phones during a storm, a
 power outage, or a national emergency. The cell companies can't do that
 without placing expensive generator plants at all cell tower locations,
 a virtual impossibility.</p>
<p>Additionally,
 some claim the carriers cannot possibly keep up with ever-growing 
bandwidth consumption, and this will allow radio listening on a phone 
without the need for streaming. Phones may soon be able to transparently
 switch between streaming and a local radio signal, saving both 
bandwidth and battery life.</p>
<p>Radio's
 big win here is that now we have expanded our potential reach. We're in
 100 percent of cars and now on more smartphones. Though it's only 
Sprint so far among the major carriers and won't include Apple devices, 
this sends a giant pro-radio signal to the marketplace, offering Sprint a
 competitive advantage until others catch up. After all, radio listening
 remains strong, and we will see increases in listening with the 
convenience of a radio in the pocket.</p>
<p>Will
 others follow? Hard to tell, but this is great news and a giant leap 
for radio, thanks to the leadership of Emmis CEO Jeff Smulyan, who has 
made this his top mission for the industry.</p>
<p>Last year <em>Radio Ink</em>
 and Dick Orkin's Radio Ranch made radio spots available to put pressure
 on wireless providers and consumer electronics manufacturers to offer 
radio in cell phones. Many stations are still running these spots, and 
they continue to be available <a href="http://www.radioink.com/goout.asp?u=http://www.radioink.com/Article.asp?id=2215178">here</a>.</p>
<p>Though
 the battle to be on all mobile phones continues to be a lofty goal, 
congratulations are in order to Jeff Smulyan and his team.</p>
<p>Eric Rhoads</p></div>
</content>



    </entry>
    <entry>
        <title>How Nielsen Can Transform Arbitron</title>
        <link rel="alternate" type="text/html" href="http://ericrhoads.blogs.com/ink_tank/2012/12/how-nielsen-can-transform-arbitron.html" />
        <link rel="replies" type="text/html" href="http://ericrhoads.blogs.com/ink_tank/2012/12/how-nielsen-can-transform-arbitron.html" thr:count="2" thr:updated="2013-02-04T06:50:09-05:00" />
        <id>tag:typepad.com,2003:post-6a00d834c9d85969e2017d3ef857c9970c</id>
        <published>2012-12-19T15:39:00-05:00</published>
        <updated>2012-12-19T15:39:00-05:00</updated>
        <summary>Discussion boards have been buzzing with the news of Arbitron's being acquired by Nielsen. What does it mean for radio? I wasn't sure what to think at first. After all, Nielsen went into the radio ratings business and only stuck...</summary>
        <author>
            <name>Eric Rhoads</name>
        </author>
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://ericrhoads.blogs.com/ink_tank/">
<div xmlns="http://www.w3.org/1999/xhtml"><p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">Discussion boards have been buzzing with the news of Arbitron's being acquired by Nielsen. What does it mean for radio?</span></p>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">I wasn't sure what to think at first. After all, Nielsen went into the radio ratings business and only stuck with it for two years before they realized the industry would not embrace it. It wasn't for lack of trying -- Lorraine Hadfield put her heart and soul into it. Yet they were using a paper-diary methodology in an increasingly digital world. The promise of PPM was a lot to go up against. </span></p>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">It was also difficult to get radio companies to pay for two services, even with the prospect of eventually abandoning Arbitron. But Nielsen clearly still sees radio as a powerful place to invest, and its purchase of Arbitron makes perfect sense.</span></p>
<p><strong><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">The Advertiser Perception</span></strong><br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">Though Arbitron has been a powerhouse and has been before the agency world for decades, there is no doubt that Nielsen holds a highly esteemed position in the minds of advertisers. My guess is that its re-entry into radio will send a message: If radio is interesting enough for Nielsen to invest in it, there must be something to this radio thing. My guess is that Nielsen will bring the radio industry greater credibility with advertisers.</span></p>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">So should Nielsen keep the Arbitron name? I think it should become Nielsen/Arbitron to make sure everyone recognizes that Arbitron is now a Nielsen division. It benefits them, benefits radio, and strengthens the Arbitron brand. </span></p>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">But what about measurement techniques? What about PPM?</span></p>
<p><strong><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">Special Meetings With Broadcasters </span></strong><br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">If I were running this newly acquired division of Nielsen, I'd say the first step is simply to be all ears. In spite of significant improvements over the years, Arbitron is still perceived by many in radio as a necessary evil. There are decades of pent-up anger over unresolved issues, mostly based on strong-arm practices from years or even decades ago. Though today it's a different Arbitron, there's no doubt that old wounds heal slowly. </span></p>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">The first step, therefore, needs to be a series of meetings with radio groups and owners at all levels and market sizes -- not just the big guns. There should be high-level meetings with leaders in formats that feel PPM has disadvantaged them (Hispanic, Urban, Talk, etc.).</span></p>
<p><strong><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">Share Your Voice Now</span></strong><br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">Now is the time for radio to speak up again, loudly, about the issues related to PPM: how it has damaged some formats, concerns about numbers dropping sharply after first-hour listening (due to uncontrolled exposure to radio), how PPM has resulted in lower prices for radio across the board, and a bevy of other issues. Rather than ignoring the elephant in the room, the air needs to be cleared and radio overall needs to feel the issues are being resolved. </span></p>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">I think our industry is exhausted, and has largely given up on discussing the PPM. But these concerns are still in the back of our minds, and need to be properly addressed. Nielsen should also meet with people like Ed Christian and others who have some valid ideas to make PPM stronger. This is the time for every operator and every manager in radio to speak up and share your true feelings about what you feel needs to be addressed. </span></p>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">We also need to see new life breathed into the Arbitron Radio Advisory Council to make sure the industry is fully represented and that Nielsen will be listening and, more importantly, responding. Frankly, Nielsen needs to understand the vitriol that still surrounds the PPM and make sure they can resolve the issues to radio's satisfaction.</span></p>
<p><strong><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">Solving Radio's Giant Problem</span></strong><br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">It is in Nielsen's best interest, as it was in Arbitron's, to keep radio thriving and healthy. (Some would argue that radio doesn't need Arbitron, but I'll not address that today.) At our Forecast conference last month, it was revealed that radio has a serious credibility problem in the agency community, based on two primary issues: 1) the lack of evidence that radio actually works and 2) the belief that radio is no longer relevant in a digital world. </span></p>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">Nielsen has the brand strength and credibility to conduct an in-depth study of radio's viability as an industry -- something I wrote about a couple of weeks ago. Radio needs to invest in proving our ability to drive business, as other media has done, so firm metrics can be provided to advertisers. This is an excellent opportunity for Nielsen to help radio get to the next level.</span> </p>
<p><strong><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">Partnership, Not Forced Relationship</span></strong><br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">Finally, Nielsen needs to understand that it's in their interest to create a real partnership with radio. The company needs to make sure the culture of Nielsen/Arbitron is about making sure radio remains successful. (I'm not talking about keeping numbers falsely high, but working with us to develop the tools needed to take us to the next level.) Talk is cheap, and action is what radio needs from the new Nielsen/Arbitron.</span></p>
<p><strong><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">Under New Management</span></strong><br /><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">I'm heartened by Nielsen's acquisition of Arbitron. They have an opportunity to strengthen radio, to give radio more credibility, and to move us into the digital era both literally and perceptually. But most of all, I'm encouraged by the fact that Nielsen has a history of listening, and my guess is that they will truly transform Arbitron. Though I've been encouraged by the actions taken by the Arbitron team over the past couple of years, it's still been like that restaurant you tolerate and keep going back to, but always wish was better. The "Under New Management" sign hanging out gives us all hope that the service and the food will improve.  </span></p>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;">Time is of the essence, though. Quick action, quick listening, and bold actions are what will prove to radio that Nielsen is truly serious about making Arbitron the partner it should be.</span></p>
<p> </p>
<p><span style="font-family: arial,helvetica,sans-serif; font-size: 12pt;"> </span></p></div>
</content>



    </entry>
    <entry>
        <title>Reflecting A Nation's Grief</title>
        <link rel="alternate" type="text/html" href="http://ericrhoads.blogs.com/ink_tank/2012/12/reflecting-a-nations-grief.html" />
        <link rel="replies" type="text/html" href="http://ericrhoads.blogs.com/ink_tank/2012/12/reflecting-a-nations-grief.html" thr:count="3" thr:updated="2012-12-19T16:06:27-05:00" />
        <id>tag:typepad.com,2003:post-6a00d834c9d85969e2017c34b5ad3d970b</id>
        <published>2012-12-17T13:31:10-05:00</published>
        <updated>2012-12-17T13:31:10-05:00</updated>
        <summary>As America mourns the tragedy in Newtown, I was curious how radio would respond to the crisis. Thanks to apps like TuneIn and iHeartRadio, I was able to listen to stations in the Connecticut area. (Here's how Cox Media Group...</summary>
        <author>
            <name>Eric Rhoads</name>
        </author>
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://ericrhoads.blogs.com/ink_tank/">
<div xmlns="http://www.w3.org/1999/xhtml"><p><span style="color: #000000;"><span style="font-size: medium;"><span style="font-family: Georgia;">As America mourns the tragedy in Newtown, I was curious how radio would respond to the crisis. Thanks to apps like TuneIn and iHeartRadio, I was able to listen to stations in the Connecticut area. (<em>Here's how Cox Media Group in Connecticut </em></span></span><a href="http://www.radioink.com/Article.asp?id=2594260&amp;spid=24698" style="font: 12px/normal arial, sans-serif; color: #1155cc; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: #ffffff;" target="_blank"><span style="font-size: medium;"><span style="font-family: Georgia;"><em>covered the <br />events</em></span></span></a><span style="font-size: medium;"><span style="font-family: Georgia;"><em> as they unfolded.)</em><br /><br />To my surprise, during my brief sampling of music stations, I heard upbeat air personalities playing music as if nothing had happened. Talk stations raised the issue, of course, but I heard little local talk programming, which is why I had tuned in. I wanted to hear the local perspective.<br /><br />Frankly, I heard much more mention of the events on nationally syndicated talk, and even during some non-issues talk programming. For instance, weekend computer guru Kim Komando acknowledged the tragedy at least once each quarter hour, saying she was trying to have a normal broadcast while America grieves. It was appropriate.<br /><br />What are stations to do in times like these? I'm sure programmers across the country are wondering if their normal glib or comic tone is appropriate. Frankly, listening to some stations where cheerful air personalities rambled on about the music felt out of sync with America's grief. Especially stations in Connecticut.<br /><br />And of course, one wonders about automated or voicetracked stations. Were they playing the hits as if nothing was wrong?<br /><br />These are moments when it's not easy for radio, during a tragedy that has touched all of America. What's the right tone for a music station? As a former programmer, I'm not sure what I would have done back then, but today I believe frequent acknowledgment is important, along with a slightly somber or more measured tone. Listening to upbeat DJ breaks just feels wrong somehow.<br /><br />To their credit, loads of stations are showing their true community spirit, including many outside of the Connecticut area, raising funds to help the affected families, having their communities sign cards, etc. This is where radio shines, using local relationships to help.<br /><br />When I was a program director, I used to say my title was really "program reflector" because my job was to make the station a reflection of the community. It is that reflection that makes us more than just another media property; it makes us part of the family. Clearly, this past few days has been a time for radio to reflect, in some way, the grief felt in all communities across America.<br /></span></span></span></p></div>
</content>



    </entry>
    <entry>
        <title>Why Radio Isn't Being Embraced By National Advertisers</title>
        <link rel="alternate" type="text/html" href="http://ericrhoads.blogs.com/ink_tank/2012/12/why-radio-isnt-being-embraced-by-national-advertisers.html" />
        <link rel="replies" type="text/html" href="http://ericrhoads.blogs.com/ink_tank/2012/12/why-radio-isnt-being-embraced-by-national-advertisers.html" thr:count="15" thr:updated="2012-12-17T10:51:10-05:00" />
        <id>tag:typepad.com,2003:post-6a00d834c9d85969e2017c347bc861970b</id>
        <published>2012-12-10T14:50:22-05:00</published>
        <updated>2012-12-10T14:55:54-05:00</updated>
        <summary>For decades, the RAB and others have preached that selling is about being customer-centric. We've all heard it, we've all been trained to interview clients about their needs, and there is not one broadcaster on earth who does not know...</summary>
        <author>
            <name>Eric Rhoads</name>
        </author>
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://ericrhoads.blogs.com/ink_tank/">
<div xmlns="http://www.w3.org/1999/xhtml"><p><span style="color: #000000; font-family: georgia; font-size: large;"><strong /></span><span style="color: #000000; font-family: georgia; font-size: medium;">For
 decades, the RAB and others have preached that selling is about being 
customer-centric. We've all heard it, we've all been trained to 
interview clients about their needs, and there is not one broadcaster on
 earth who does not know this to be true. So why is radio not getting 
its fair share of ad dollars nationwide? I've discovered what is 
probably the major reason.</span>
</p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;"><strong>A Dream Team<br />
            </strong>"What if," I thought, "I could put together a dream team
 of advertisers, and ask them why radio is not getting more ad dollars?"
 After all, we in radio think we have a strong story. We think we have 
decent relationships with listeners. We think we can move product. 
Unlike other legacy media, it appears radio has not lost its audience. I
 wondered what we could learn if we somehow got the most important 
advertisers in the world together in a room, just to talk about radio.</span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">When I 
raised the idea, I was told, "It will never happen. Why would those 
people bother to take the time to help radio by answering our 
questions?" </span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">"But what 
if I could pull it off?" I asked. "Everyone one in the industry would be
 there to listen. This could be the most powerful focus group in the 
history of radio. Every group head would be in the front row, not only 
to show their support, but to hear what these advertisers are saying."</span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">I like a challenge, so I decided to do it.</span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;"><strong>A $100 Billion Panel<br />
            </strong>At <em>Radio Ink</em>'s recent </span><a href="http://www.radioinkforecast.com"><span style="color: #000000; font-family: georgia; font-size: medium;">Forecast </span></a><span style="color: #000000; font-family: georgia; font-size: medium;">conference,
 this impossible task was accomplished ... almost. We managed to get 
five advertising greats in the room and on a panel to tell us exactly 
how radio can get on their radar. These men represented $100 billion in 
advertising and 75 percent of all advertising spending in America. They 
were:</span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">Bill Koenigsberg, president/CEO and founder, Horizon Media<br />
            Tim Spengler, worldwide CEO, Magna Global<br />
            Doug Ray, president, Carat<br />
            Brian Terkelsen, CEO, Mediavest USA<br />
            David Verklin, marketing consultant (panel moderator) </span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">Yes, we 
pulled it off. We got them there. It was historic. No one before has 
managed to get all five of these giants on a panel together. Each was 
willing to speak frankly about radio. As an opportunity, it may have 
been the most important hour in the history of radio. There was only one
 thing missing. The group heads in the front row.</span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">Though 
there were several radio presidents and CEOs who stayed and listened, 
most of those representing radio's biggest companies were outside of the
 room. And they did not hear the most important advertiser focus group 
in the history of radio. Perhaps they had meetings or e-mails or 
pressing matters to attend to. Perhaps I didn't communicate the real 
power of this panel.</span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">I'm not 
being critical of them. I'm sure some of these group heads and 
advertising executives already know and talk to each other. But if they 
had stayed in the room, and listened, it would have sent a powerful 
message.</span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;"><strong>Critical Feedback</strong><br />
            Had the group heads been there, they would have heard that 
advertisers need to see metrics and measurement techniques that are 
focused on ROI. The panelists told us ratings are not the metrics 
they're looking for; they need proof of our ability to move product and 
engage customers. And they want the research to support it -- 
information they said no one in radio has provided. And they told us 
that other media are considerably more sophisticated about offering the 
proof of ROI agencies need. In other words, these agency heads were 
saying, "Show us the proof that will give us the confidence to invest."</span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">Though they
 want radio to come with more ideas, they also said the discussion 
usually doesn't even get that far. Clients simply won't buy unless we 
first provide proof of radio's relevance and effectiveness. </span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">These execs
 said radio is no longer on the radar of many advertisers -- it's not 
even part of the discussion. When radio does make the media plan, it 
gets little more than crumbs. Agencies find it hard to understand 
radio's value proposition, and they can't interest their clients in it, 
or their creative people. The panelists even said they don't feel they 
know how to get good radio creative.</span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">Asked if 
they have radio departments, most said they have small "audio 
departments," but most of that attention is devoted to online audio. </span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">Koenigsberg
 said, "The product benefit is just the cost of entry. The consumer 
wants value exchange. It used to be about reach, now it's about 
engagement. It used to be about frequency, now it's about relevance. 
It's no longer cost per point, it's cost per value point. Your story has
 to be reinvented. You have not figured out how to take the engagement 
factor and audience engagement and package your story." </span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;"><strong>Digging Deeper<br />
            </strong>After this eye-opening panel, I started exploring the 
problem further and found that what radio is missing is airtight 
econometric examples of performance or payback. Other mediums, including
 television and even print, are laser-focused on proving their ability 
to generate ROI. Radio is not. We've been on the sidelines too long. </span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">When the Internet Advertising Bureau couldn't get advertisers to invest on the Internet, then-CEO Greg Stewart commissioned a</span><a href="http://www.iab.net/insights_research/1672/1678"><span style="color: #000000; font-family: georgia; font-size: medium;"> cross-media optimization study</span></a><span style="color: #000000; font-family: georgia; font-size: medium;"> with more a dozen advertisers, at a cost of millions. </span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">Once the 
IAB proved to advertisers that the Internet could move product, they 
worked with the advertisers to identify the optimal spend -- which was 
more than before the studies. And Internet advertising began to explode.
 </span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">I am not 
saying that these studies were the sole reason for Internet 
advertising's growth, but they played a large role. Stewart has since 
moved to the Mobile Marketing Association -- and again commissioned a 
study the power of the medium, which is opening doors that had been 
closed. </span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">For radio 
to grow, we need to substantiate our claim that radio not only delivers a
 positive ROI, but delivers an ROI that is greater than other media 
options available to advertisers. We are not competing for ad dollars in
 a vacuum.</span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">Earlier 
this year, when Facebook was under pressure to demonstrate its ability 
to generate ROI, the company attacked the issue head-on. According to a 
report in the <em>Wall Street Journal,</em> Facebook personnel were sent 
to work hand-in-hand with advertisers to figure out how they could 
deliver greater results. The reason advertisers are flocking to what we 
call the "shiny new toys" is not because they are new or shiny, but 
because they are accountable and measurable.</span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">It's 
Selling 101: Speak the language of the person to whom you are selling. 
And as an industry, we are not doing that. It is incumbent upon all of 
us to not only bone up on the topics of econometric modeling, ROI, and 
payback, but to really focus on how we as an industry can enhance our 
performance in this arena. </span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">Econometric
 studies cost a lot of money. But it's also generally true that if you 
pay a lot of money for insight, you will typically believe what it tells
 you and act upon it. </span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;"><strong>Where Is The Radio Econometrics Study? <br />
            </strong>There is no econometrics study for radio. Why not? We 
tell advertisers we haven't lost our audiences  -- and we haven't, 
according to Arbitron -- and that we remain strong. We talk about our 
ratings, but advertisers simply don't care. Pandora can not only give 
targeted data by neighborhood, it can tell you how many listeners 
clicked in response to an ad and how many of those went on to make a 
purchase. That is what advertisers are demanding. </span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">And this is
 not only a national issue. A lot of business that is classified as 
"local" on your books is placed directly with your stations by national 
agencies.</span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;"><strong>Are We Living In The Past?<br />
            </strong>The bottom line is that radio's ratings, its audience 
strength, and its relationship with its listeners are of little value to
 advertisers unless we can prove it all translates to business. We're 
using 1970 sales techniques in 2013, and few are paying attention. Media
 alternatives that have studies to prove their effectiveness are blowing
 past radio. </span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">We have to 
prove, via third-party studies, from firms respected by major ad 
agencies,  that radio can provide substantial payback for the 
investment.</span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">This focus 
on ROI is being driven by technology, increased media alternatives, and 
"C suite" expectations. Chief media officers are under tremendous 
pressure to deliver results from their marketing ad spends. The average 
life expectancy for CMOs in a job is around 36 months. These are 
high-paying jobs, they want to keep them, and they realize they need to 
perform. So they choose their media partners the way we all choose 
stocks, investing where they'll get the best return.</span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;"><strong>It's Not About Ratings Anymore<br />
            </strong>Everything radio does needs to be about audience 
engagement and return on investment. Instead we're focusing on keeping 
our PPM numbers high by doing things that likely result in the opposite 
of consumer engagement. Do we really believe a spot buried in the middle
 of a commercial-laden stopset is going to drive business? Sure, it's 
good for PPM listening, but I suspect that if engagement were measured, 
it would show that is not the optimal environment for an ad. </span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">Some might 
say Arbitron's study from last year confirmed that much of radio's 
audience is retained during an ad break, but I would argue that 
retention doesn't equate to engagement. After listening to Bill 
Koenigsberg, I suspect that he would agree.</span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">There's a 
fine balance. We must be passionately driven to deliver results for 
clients. Ratings are not relevant to a client if you can't prove you'll 
accomplish their goals. We must start proving it. Saying it is so does 
not make it so.</span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;"><strong>Focus On Outcome<br />
            </strong>Advertisers care about consumers taking action. Radio 
must stop focusing on features, benefits, audience sizes, targeted 
audiences, and ratings. Those things only matter after we prove we can 
provide significant results. We must focus on outcomes. It's how all 
advertising is being evaluated today.<br />
             <br />
            Clients only care about what you can do for them. Google 
Local and others are proving their value proposition and showing exact 
results. Your local focus needs to be about proof.</span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">The old 
definition of insanity is to repeat the same behavior while expecting 
different results. And I believe that's where radio is today. Yes, we're
 seeing some digital innovation. All that helps, but nothing will bring 
change faster than a national radio study proving that radio moves the 
needle. </span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;">We all 
believe radio moves product. Now it's time for radio to step up to the 
plate and fund a study to prove it. The bottom line is that we need to 
have enough "science" to convince the CMOs that radio is the right place
 to spend their limited ad dollars. If we can show the cause and effect,
 radio's budget will never be cut. It's all about ROI.<br />
            </span></p>
<p><span style="color: #000000; font-family: georgia; font-size: medium;"><br />
            <br />
            </span><em><span style="color: #000000; font-family: georgia; font-size: medium;"><strong style="margin: 0px; width: 30px; height: 30px; border: 0px solid;"> </strong></span></em></p></div>
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    </entry>
    <entry>
        <title>Radio's Next Big Disruption</title>
        <link rel="alternate" type="text/html" href="http://ericrhoads.blogs.com/ink_tank/2012/11/radios-next-big-disruption.html" />
        <link rel="replies" type="text/html" href="http://ericrhoads.blogs.com/ink_tank/2012/11/radios-next-big-disruption.html" thr:count="5" thr:updated="2013-03-30T14:16:11-04:00" />
        <id>tag:typepad.com,2003:post-6a00d834c9d85969e2017c338a1885970b</id>
        <published>2012-11-15T17:28:36-05:00</published>
        <updated>2012-11-15T18:24:46-05:00</updated>
        <summary>Great companies understand that change for the sake of change is important, and that to grow and remain relevant, they need to always have a strong, compelling value proposition. Great companies cannibalize themselves before their competitors eat them up. Revolutions...</summary>
        <author>
            <name>Eric Rhoads</name>
        </author>
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://ericrhoads.blogs.com/ink_tank/">
<div xmlns="http://www.w3.org/1999/xhtml"><p>Great companies understand that change for the sake of change is important, and that to grow and remain relevant, they need to always have a strong, compelling value proposition. Great companies cannibalize themselves before their competitors eat them up.
</p>
<p>Revolutions in business don't happen with incremental change or by making slightly better products. They happen by upsetting the status quo, even though it's working and productive. Revolutionary businesses seek ways to deliver their product to customers in better ways, and work to disrupt costs to make their offer more attractive.
</p>
<p>What, then, can cannibalize and disrupt our industry? What might a major player like Clear Channel or Cumulus do to dramatically alter its business? After all, cost cuts can't go much deeper under the status quo. Yet these big companies need to remain competitive and relevant to the needs of the market, and need to be where customers want them to be. They must change the game and grow profits.
</p>
<p>
I've identified the following areas that could disrupt our industry, might (arguably) make it stronger, and could make it more predictable for clients:
</p>
<p><strong>Changing Sales</strong>
</p>
<p>Think about this area for a moment. It's high-turnover, high-cost (with commissions a major cost of doing business), management-intensive, and management-reliant, and it's hard to get 6,000 people trained and delivering consistent messaging and performance. The best sellers are being seduced by pharmaceuticals and Google. Sales are impacted by things like mood, attitude, and environment. So how could you change radio sales?
One way would be to outsource sales to someone already doing it. </p>
<p>Who, not in radio, is calling on the same customers and already has those relationships? Who can do a better job? Who could leverage what they already have to create more sales by combining radio with their own offerings? 
Perhaps it's another radio group -- though that's unlikely. Perhaps it's local cable or television sellers, maybe it's other vendors calling on the same people, maybe it's a company like Google that's hiring sellers anyway and is seeking radio relationships to joint-venture on Google local. Outsourcing and collaboration could be a brilliant move.
</p>
<p>Another way would be to create an automated sales environment. If a system could be developed that made buying as easy as responding to an e-mail or clicking within an app, it could be magical. Of course, we're all trained to believethat sellers make things happen, and they do. But what if you could prove automation would work as well in sales as it has on air? It works for Southwest Airlines, Geico, and Google, and automation brings better yield management, and thus lower prices for customers. With seller commissions eliminated, some of the savings could be passed on to local businesses that could save on their advertising buys, and the rest of the savings goes right to the bottom line. Even if total revenues dropped, there'd be a lot of saved commissions to make up the difference. Radio would be easier to buy -- you could buy it online in the middle of the night, if you wanted to -- and there's a very real possibility customers would be happier.
</p>
<p><strong>Eliminating Local Staffing</strong>
</p>
<p>Buildings and office space are expensive. People are expensive. What if one of the big companies decided it no longer needed local program directors, local sales managers, local traffic, billing and accounting, even reception? Who would be left? One must have local engineering support and someone to care for the public file -- and it could be the same person. If a company like Cumulus or Clear Channel decided to become a true national network, decided to abandon local advertising in exchange for eliminating all local staff, including expensive management, it might still be cash-positive selling national only, and local with automated sales systems. And what can't be eliminated can be outsourced. Plus imagine the cost savings in real estate, desks, studios, and paper clips. 
</p>
<p><strong>The End of Local Programming
</strong></p>
<p>If you considered all the stations and signals inside a company like Clear Channel or Cumulus, you would probably come up with no more than 30 or 40 variations on formats. Local talent is costly, and indications from the Ryan Seacrest experiment seem to show that strong national talent that's syndicated doesn't hurt ratings or business. Even if it did, the cost savings probably outweigh the losses. So why not eliminate local talent and have the best talent for each format doing all the shifts, feeding direct to the transmitter? No local payroll, no local studios, no local production, no expensive mornings shows, and huge cost savings on talent, technical support, and rent. Cumulus is already outsourcing much of its production to Benztown, an independent producer, and has consolidated much of its accounting.
</p>
<p><strong>Digital Revolution</strong>
</p>
<p>It's logical that radio companies will make dramatic moves in digital in the coming months as well. The recent move by Katz to become a deeper digital rep house is probably an indicator that Clear Channel -- which of course owns Katz -- will make bigger commitments to other digital plays that aren't necessarily audio alone. Cumulus, for instance, has devoted a building and a couple of hundred employees to SweetJack, its coupon service. It's also in the magazine business. Smart firms will realize there is no such thing as a "radio business" anymore, and media is becoming all media combined. Advertisers want one solution that gives them exposure to all areas.
</p>
<p><strong>Don't Shoot the Messenger</strong>
</p>
<p>Before you think I'm in favor of this, please know that I have a love and passion for strong local radio, for strong radio sales organizations, and for excellent programming. But I'm also a realist, and I tend to see where things are going. Though I have no indications that any radio company would have the guts to be quite as disruptive as I'm suggesting, my guess is that some or all of this will happen at Clear Channel or Cumulus soon. 
It's a logical next step, it dramatically alters the picture for radio, and it cuts tremendous costs and makes a giant, debt-laden firm strong.It could either be wildly successful or a miserable failure. Though I suspect any reader in a position to be affected by this is fuming at the prospect, it could very possibly become a reality -- and would be disruptive and a game-changer.
</p>
<p>
<strong>Radio in Three Years</strong>
</p>
<p>I believe there will be two kinds of radio companies. Those that take the path described above (if one does it successfully, the other big guns are likely to follow, though they will follow late) and those that continue on the path of deep localism. Consolidation will continue, and you'll see companies like Clear Channel and Cumulus become bigger (or possibly even become one) and you'll see smaller independent firms like Larry Wilson's Alpha or Ginny Morris' Hubbard expand, acquire more stations (maybe Cox?), which will push the 
advantage of strong localism.</p>
<p>
<strong>What Should You Do?
</strong></p>
<p>Though this may not bode well for the bulk of my friends employed within this industry, the only job security is to try to anticipate how to become one of the talents who'll becomes nationally syndicated, or work to get an early foot in the door at one of the companies that will embrace localism. The rest could find themselves seeking alternative employment.
</p>
<p>Will this scenario happen? I've been wrong before, though I feel strongly this almost has to happen. When it does happen, everyone will think it's about budget cuts and won't recognize that it's a deep strategic change. Keep your eyes and your mind open.
</p>
<p>P.S. It will be interesting if this strategy is discussed as a possibility at our upcoming <a href="www.radioinkforecast.com" target="_self">Forecast </a>conference, November 28 at the Harvard Club in New York. All the group heads will be there, and perhaps panel moderator Rita Cosby -- the award-winning journalist formerly with Fox News -- will explore the probability. As always, we've turned down numerous requests by press to cover Forecast, to encourage frank and open answers from the group heads.</p></div>
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