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Serving Two Masters: the Radio Station and the Radio Advertising Client

Radio advertising salespeople serve two masters: their radio stations and their advertising clients. A salesperson's paycheck is written on the radio station's bank account. But the station's account depends entirely on the dollars that come from its advertising clients.

Who, ultimately, is the salesperson's "boss?"

I’ve pondered this relationship for many, many years—the interlocking, occasionally conflicting relationship between “making goal” (putting the station’s needs first) and “serving the customer” (putting the client’s needs first).

It's too simplistic to say that these are (or should be) one-and-the-same. They’re not.

How should the salesperson serve his two masters, station and client? Each has his own priorities and objectives, his own self-interests.

We can bring the two objectives into closer alignment (though never perfectly) by investing in our salespeople, e.g., offering training in the arts of advertising, copywriting, and related marketing skills—and not just sales training, important as it may be—and then by empowering and encouraging them to evaluate, objectively, whether a particular schedule, campaign, or package is truly in the client’s best interest.

Short-term, budget-driven thinking tends in too many cases to see the client only as a means to an end. (There is the flip-side, of course, where a client sees the radio station as just another vendor, and his radio ads as a commodity, nothing more.)

Taking the longer view—and this has been my experience, especially in the second half of a career spanning nearly forty years—giving the client the benefit of the doubt and choosing his interests over the station’s when there’s a conflict, is a surer way to cultivate durable, longstanding relationships built on trust, respect, and honesty—a foundation far more likely in the long run to benefit the station as well.

The Attributes of a Great Radio Advertising Client

The email arrived out of the blue on Thursday a week ago, from someone I'd never met. It contained two questions about radio advertising - more precisely, about radio advertisers - that I've never been asked nor consciously considered before now. I'll let you read them for yourself, exactly as I received them:

Dear Mr. Schwartz,

A thank you from a fledgling radio entrepreneur. I've gotten a lot out of your postings and enjoy your writing style. Your 'Darci' find is delightful-- what a great voice. Quirky but friendly. And she 'being her' has a great pull.

I'm assuming that you wrote the copy -- good work.

Can I ask a radio sales question? How do you target the best prospects for radio advertising? What are the characteristics or demographics of the businesses that become great radio advertising clients? [emphasis mine-RS]

I am working on a business plan to purchase a local AM radio station and need to develop some realistic numbers for our business consultant.

Thanks for all you've shared, Mr. Schwartz. I'm getting quite an education!

All the best from Delaware,

Steve

I didn't have a ready answer, and that bothered me. Usually I'm able to address radio advertising/sales questions quickly and confidently, off the top of my head, but this was not one of those times. Steve's questions demanded deeper delving into thirty-eight years' worth of accumulated experiences and education in the business, to try to identify the traits common to my best and most successful clients over the years.

After pondering these things for several days, I replied late Monday night as follows:

Steve,

Thanks for your kind words - much appreciated. Your questions, while beguilingly simple on the surface, have substantial depth, and I wish I had the time to answer them in as much detail as they deserve.

Setting aside such obvious considerations as the prospect having both the desire to grow his business and the financial capacity to fund that growth through effective advertising, one looks for a number of things. I'll give you 7, in no particular order:

1) someone who runs a good business well, and who has above-average growth potential in the market. (The Wizard would say, someone who's great at running his business but who stinks at advertising it.)

2) someone who is genuinely open to new ideas and willing to embrace a calculated risk, looking at the advertising campaign as a long-term investment in the future of his business;

3) someone who recognizes that results take time, and is willing to give a new campaign several months minimum to gain traction before judging its merits. (Roy Williams has written extensively on this; it's the approach of the farmer, as opposed to that of the hunter. Suggest you go to wizardacademypress.com, find the DVD called "The Most Common Mistakes in Advertising" and watch it at least several times. You'll thank me for the suggestion.)

4) someone who has a compelling story and is willing to entrust you with its uncovery and telling, one installment at a time;

5) someone who impresses YOU to such an extent that you are unwilling to pull your punches or cut corners; rather, you are committed to investing as much time and effort as it takes to get his message and schedule right, and who, in turn, respects your time and talent and is prepared to compensate you fairly for your investment of same in his behalf;

6) someone who isn't likely to be moved by petty criticisms, peer pressure, or the snipes of your competitors, but who will remain committed to the course come hell or high water;

7) someone who can accept occasional setbacks as part of the learning process, and who is willing to move past them. Great advertising is more of a process than an act. It involves testing messages (not your radio station!) and refining them as time goes on. Beware the prospect who is easily distracted by novelty or who will leave you for someone willing to give him a lower price.

Steve, may I invite you to join Radio Sales Cafe - our online network for radio advertising sales professionals? It's free to join, and I think you'd really enjoy the wealth of information, ideas, and experiences members share with one another on a regular basis. I'd be willing to use your questions as the basis of a Friday Poll (you can see what this is about at the site), and let other members weigh in with their thoughts. The information could be priceless - and it won't cost you a dime.

Thanks again for reaching out.

Cordially,

Rod

Steve's reply was waiting in my Inbox the following morning:

Wow, wow, WOW.

You know, having only been on the periphery of radio (Traffic Director, 3 yrs; Broadcast Engineer, 6 years -- never an owner, airstaff, salesman, PD, or GM) I am constantly amazed at the kindness being shown to me, by the generous amount of time that strangers, really, are willing to give in order to help someone come into their world. Thank you very much, Rod. I hope you can repurpose your extensive reply. Yes -- I think it's a great idea for Radio Sales Cafe. (Can't remember if I found your blog through Grace or Radio Sales Cafe first.) It is very scary to think that I am moving towards the radio world (as a business, away from what I do now http://www.illuminova.com) so I'm moving slowly. With guidance from sound business minds - the 'Peter Drucker of Delaware' - and professionals and friends like yourself. Thanks again. I'll see you at the Radio Sales Cafe. All the best from Delaware, Steve

Did you smile when you read his observations on the reception he's had from people in the radio industry: "I am constantly amazed at the kindness being shown to me, by the generous amount of time that strangers, really, are willing to give in order to help someone come into their world." This is something I observed very early in my radio advertising sales career, the open doors and open hearts of station owners and managers, willing to help a newbie succeed in the business. I'd often tell new hires that one of the best things about our industry was that there would always be a job available anywhere in the country for someone who enjoyed radio advertising sales and became good at it. I believed it then, and I believe it today.

Given his attitude, perspicacity, and focus, I predict that Steve will succeed in spades when he launches his station. I hope he is able quickly to find good employees and cultivate great client relationships.

And I hope that he, in turn, will pass along to others what he learns in the process.

Who's Your Darci?

Darci the bank teller caught me off guard.

"I want to do a radio commercial. I want to be on the radio," she said.

"Really." I replied.

"Yeah, I want to do a spot for our new CD. I'd be good at it!"

In the short time Darci had been working at the bank she'd become a favorite with her customers, myself included. Her quirky repartee was equally amusing and endearing; people rarely left her window without smiling or chuckling.

Why not? I thought. The bank manager was a good client, and I knew he wouldn't object to the experiment. If it worked, he'd be glad to put it on the air. If not...well, no harm done.

"OK, sure. Let's give it a try." Darci was genuinely excited and said she had some ideas for the commercial. We scheduled a recording session, allowing ourselves plenty of time for improvisation. The result was this:



The bank manager liked it, authorized it for airplay, and for several weeks Darci became the new voice of the bank.

Fast forward a few years. Darci is now working full-time for the school district and I haven't seen her in ages. One day I get a call from my CPA, for whom I've done some advertising during tax season. She tells me that she's purchasing a local video store, a mom-and-pop operation that's been a steady advertising client of mine for years, under a couple of different owners, and she wants to relaunch the store with an advertising blitz featuring a new spokesman—Darci!

Turns out Darci is her neighbor and friend. And she thinks Darci's unique personality and voice are perfect for the new campaign.

So, once again Darci and I are collaborating together in the recording studio, playing with different ideas and angles. Before long, this spot has more or less written itself:



From Day One it generates comments from listeners and customers who think Darci's a hoot. And we have the makings of a brand new schtick for the client. A few weeks later, a second spot follows. Then a third. And a fourth. Over the next several years, Darci records at least thirteen different commercials, including this one, a finalist in the 2005 Radio-Mercury Awards competition:



Since then, Darci has done other work for me. I've hired her to voice some of our syndicated features for GBS, and I've had clients hire her to do their commercials. Although she's had no formal training as either an actress or producer, she's proven capable of doing terrific work.

So, I consider myself fortunate to have been standing in line at the bank the day Darci had the itch to "be on the radio." And I sometimes wonder, who else might be out there — waiting tables, running a cash register, answering phones or reading to kids at the public library — waiting to be discovered and recruited for radio advertising work.

Might there not be someone in your market, too - someone with whom you interact regularly, just waiting to become your Darci?

A Meaningful and Memorable Spiff for Meeting a Radio Advertising Sales Goal

The Friday Poll question at Radio Sales Café last week was: "What is the most meaningful or memorable spiff you've ever received as a salesperson? What did you do to earn it?"

The question brought back vivid memories of a formative period in my professional life, and I felt compelled to take time to answer the question in some detail. Here is my reply:

Hands-down, the most meaningful and memorable spiff I ever received took place over three decades ago.

It was sometime during the autumn of 1976. Around the conference table where we held our weekly sales meetings sat all the salespeople, general manager Len, owner Jerry, and sales trainer Jim Williams, with whom we'd just completed an intensive day or two of training.

Jim turned to Jerry and said, "Did you bring it?" Jerry nodded, reached into a pocket, pulled out an envelope and extracted from it a $1000 bill. Jim asked him to pass it to the person next to him, and so forth, stressing that each individual at the table should spend a few moments handling (he may have said "fondling") the unusual bill. I'd never seen one before, and I'm sure there was a silly smile on my face as I examined the bill with President Grover Cleveland's image on it.

Amidst the ooohs and ahhhs, Jim said: "Sell one 'standard month' in the next 60 days and this is yours."

I no longer recall whether a standard month was $5000 or $10,000 run within a 30-day period by a single client. (Do any other RSC members familiar with Williams remember which it was?) But in either case, that kind of sale to a single client represented a ton of money for a station in a town of 26,000 back in 1976. It had never been done before at our stations.

At the time, I was calling on the local Pamida/Gibson discount store and had them on the air using primarily coop dollars. My practice was to call the coop manager at their headquarters in Omaha to find out if they had funds for, say, Black & Decker, Hamilton Beach, West Bend, Skil tools, and so forth. I had learned that many, perhaps most of the stores in the chain were not using the radio coop dollars they'd accrued, so if I went "overboard" on occasion, the funds were typically there to cover the local store's excesses.

Since the holiday season was approaching and most radio coop funds expired at the end of the calendar year, I seized upon what seemed a natural opportunity. I went to the local manager with an ambitious proposal for the months of November and December, easily equal to two of Williams' "standard months." He agreed to sign the proposal on the condition that I secure home office approval for the excessive coop funds. I called my contact at headquarters in Omaha, he said the funds were available. (He also asked me to "go easy." I failed to ask him what that meant.)

So, Gibson's became by far and away the dominant advertiser on the stations those two months, filling the airwaves with exciting reminders to buy electric drills and jigsaws, blenders and crock pots, and all manner of name-brand gifts for Christmas...and I earned two spiffs, one for each of the "standard months." The combination of those spiffs, my regular commission, and a nice tax refund the following spring, enabled me to make the down payment on my first house in April 1977. We moved in just a few days before the birth of our second child.

I wish I could say that the experience was 100% positive, but in truth it was not. My expectation, based on the words that came out of Jim Williams' mouth and seemingly confirmed by my employer, was that the bonus would be a $1000 bill, just like the one we passed around the room. When the time came though, I was paid by check...with the standard withholding and SS deductions taken from the amount of the bonus. As much as I hate to admit it, this was something of a letdown. (Yes, I realize this sounds like niggling.) I'd understood the bonus to be that $1000 bill we passed around; that's what I was expecting!

Now, under the circumstances I didn't complain, of course. In fact, until this moment, only my dear wife has been aware of my disappointment. But I mention it now only because it taught me a valuable lesson about the importance of fulfilling the implicit terms of an agreement, and striving to meet (if not exceed) the legitimate expectations of others grounded in a commitment I've made to them.

So, I am grateful both for the bonus and for the lessons that came with it. And there it is...meaningful and memorable, thirty-three years later!

The Punk Marketing Manifesto

Just discovered these punk marketing guys earlier in the week. Dove into Richard Laermer's substantial marketing/PR blog and poked around the website, where I came across their "Punk Marketing Manifesto" - Their subject is brands. As radio advertising sales professionals, we are brands to our clients. They, in turn, are brands to their customers. With this in mind, here are a few pearls from the Manifesto:

#1: "AVOID RISK AND DIE: In times of change the greatest risk is to take none at all." The greatest rewards go to the risk-takers who refuse to be intimidated by adversity and press on with their eyes on the objective. When confronted by enemy artillery firing at his advancing troops, Patton's typical response was not to retreat or take cover, but to advance rapidly toward the enemy. Experience had taught him that the enemy most often underestimated the distance to be closed, leading them to overshoot their mark. Patton's aggressiveness saved many American lives. He covered more ground, liberated more cities, killed or captured more of the enemy, and turned in fewer casualties than his peers. The greatest accomplishments in any field - including sales and business - usually involve calculated risk-taking.

Related to risk, #3: "TAKE A STRONG STAND: Trying to be all things to everyone...inevitably results in meaning little of interest to just about everybody." How often do advertisers ask us to throw everything but the kitchen sink into their advertising messages, diluting them to the point of ineffectiveness? "The commercial sounds great. But could you put my phone number in at the end? And my store hours? And that we have a combined 37 years of experience? And..." You have to say No. For the client's sake and that of the campaign. Remember Roy Williams' nine-word dictum: The Risk of Insult is the Price of Clarity.

Related to taking a stand, #7: "MAKE ENEMIES: All brands need to position themselves against an alternative." Roy's dictum again. Uncover and focus on your strengths; let the rest go. Your presentations and results will be the better for it.

I've ordered Laermer's books and am looking forward to delving into them. Stay tuned.

Harness the Power of a Five-second Commercial

I sold my first five-second radio commercials back in 1975. (For the record, that's thirty years before Clear Channel would proclaim "Less Is More" and with great fanfare begin offering five-second "adlets" or two-second "blinks." Twitter founder Jack Dorsey had not yet been born. Heck, Al Gore hadn't even invented the Internet, though he may have been toying with the idea. But I digress.)

I started selling five-second ads because a legendary radio sales trainer taught me how effective they could be. He wasn't alone. The Radio Advertising Bureau also reported that some stations were having success with what they called "eight-word ads."

There are at least three advantages to shorter ads:

1) They force the ad writer to craft a clear, concise message. There's no room for "fat" in a five-second ad.

2) It's much easier for a listener to comprehend, retain, and recall a short message in its entirety. It's in-and-done before the listener can even react to it! (Stick around and I'll share with you a powerful technique for demonstrating this effectively to a prospect.)

3) Because five-second ads cost less than :30's or :60's, the advertiser's budget buys him greater frequency (more repetition of his message).

Short ads can be deployed to trip the recall switch, reminding the listener of something he's heard about in greater detail in a longer commercial. Think of this technique as "clutter busting" - referring not so much to the other ads on your station as to all of the messages that bombard us daily everywhere we turn, from computer monitors and cell phones to the chatter of our co-workers, from in-store POP to ads on public benches, buses, billboards, and buildings, television, newspaper, magazines. While there may be disagreement as to how many advertising messages we see or hear in each day, we can agree that there's plenty of competition for a listener's attention. We live in an age when distractions are plentiful.

So, let's say you've sold your client a schedule of :30's or :60's to get the word out about his big store-wide sale. His commercials include a number of price-and-item illustrations, maybe a special financing offer, prize drawings, and so forth. Let's imagine that he's running ten commercials a day for ten days, and these ads are scheduled to run between 6:00 a.m. and 7:00 p.m. Assuming even distribution, he's running one ad every 78 minutes.

By adding just ten five-second ads per day to his schedule, you've doubled his frequency, cutting the time between exposures in half. Add another ten and now your listeners are being reminded about his sale every 26 minutes. The marginal cost of the additional five-second ads has tripled his frequency!

All other factors being equal, this advertiser is going to enjoy better results from his buy on your station, which ought to bring him back for more.

Sometimes longer ads aren't even necessary. It's quite possible to build an entire campaign around five-second ads exclusively. I have a client who for many years has sponsored the weather update following network news at the top of the hour. His five-second message - usually a positioning statement, but occasionally a call-to-action - runs once an hour, 24 hours a day, 7 days a week. For all intents and purposes, his advertising message reaches the station's entire audience.

Every listener, every day.

Think about that. How many of your advertisers can claim with reasonable certainty to reach every single listener on your station during the course of a day or a week, let alone all year long? It's terrific exposure, and much easier for an advertiser to achieve and afford with a five-second ad.

The proliferation of satellite-delivered syndicated programming has all but eliminated the flexibility most stations once enjoyed when it came to scheduling commercials. If your station does all its own programming, consider yourself fortunate, indeed. You still have the freedom, or at least the potential, to schedule ads of any length, in any combination, at any time. The world is your oyster. Go for it. Stations whose programming comes via a bird in the sky have little choice but to fill fixed-length breaks with fixed-length ads at fixed times, with few opportunities for deviation from the :30/:60 standard. It might be worth sitting down with your Program Director and asking him to identify any possibilities for running short ads (such as the :05 weather sponsorship mentioned earlier).

If you are able to identify and secure the appropriate inventory, and you're ready to put it to work for an advertiser, here's a technique you can use to demonstrate to your prospective client the power of a five-second ad:

First, write the copy. Create the actual message that you're going to propose the client run for this campaign. Take the time to make it a good one. (I recall this Jim Williams classic: "Don't Make a $500 Mistake. Bob's Used Cars.")

When you're sitting across from the prospect, tell him, "I'd like you to help me with a little experiment." Pause. Make sure you have his undivided attention. Then, read the five-second copy aloud, with appropriate feeling.

Read it a second time.

Read it a third time.

Then, ask him to repeat what you just read.

In most cases, he'll repeat it verbatim without hesitation.

"You've just demonstrated the power of a five-second ad. I read it to you only three times and already you have it memorized, the whole thing."

Rehearse the advantages of the five-second ad with him:
1) forces lean, concise copy;
2) more easily understood, retained, and recalled by the listener (as he just demonstrated)
3) allows more frequency within a given budget

Then, present your proposal. Make the sale. And enjoy the results.

More than three decades ago, I used to drive the 55 miles between Winona and Rochester, Minnesota, two or three times a week. One Sunday I tuned in to Chicago's WGN (720 AM) and kept it there to hear what was happening in my old hometown. I don't remember the name of the host (though as I recall he had the most wonderfully soothing rich bass voice), but to this day I do remember two ads that he read live, several times each, during the course of my commute:

"Seven-Up, the Uncola. Chicagoland's Number One Refresher."

"Chapped Lips Need Blistex. Buy Blistex."

I swear, I never intended to memorize them. It just happened.

Like magic.

An Offer You Can't (or Shouldn't) Refuse...

When I learned that the Radio Advertising Bureau has begun to offer personal memberships, I could hardly wait to sign up.

At $210 a year, it's a bargain.

$210 a year. $4.04 a week. About the price of a 20-ounce Espresso drink. Or a Happy Meal.

For a veritable treasure trove of research and resources quite likely unsurpassed by any other advertising organization.

The RAB's vast archives contain tools to make creating and selling radio advertising easier, more productive, and more likely to generate results for radio advertisers.

Now, I've not agreed with everything RAB has said or promoted over the years. Decades ago, they often seemed to reflect and reinforce Radio's inferiority complex, the idea that the highest and best use of our medium was in a supporting role to print or TV, as part of a media mix. (If the ad buy were a martini, Radio was the vermouth or the olive.)

But gradually the RAB reflected a growing confidence in our medium, i.e., that Radio as a primary medium was capable of carrying 100% of the weight of a campaign and make it work!

Beginning with radio sales trainer Jim Williams, his protegés Chris Lytle, Chuck Mefford, Darrell Solberg...along with folks like Sean Luce, Dave Gifford, Jim Taszarek, Paul Weyland, and Jerry Frentress...and more recently Norton Warner, Jeff Dostal, Michael Tate and Matt Hackett, radio advertising sales professionals have had unparalleled opportunities to understand and unleash the unlimited potential of our medium. Support from the ad creation side has come from folks like Roy Williams, Dan O'Day, Jeffrey Hedquist, and others (watch for a guy named Doug Zanger to be making big radio waves in coming years). I'm sure there are many more I've failed to name (Jason Jennings just came to mind).

The point is, for many years now the RAB has been leveraging the talents of these folks and others for the good of our radio team and every last player.

$4.04 a week ought to be impossibly attractive, like the sizzle and smell of a prime ribsteak on a bed of hot coals (sorry ... it's Friday dinnertime and I'm fantasizing).

Personally, I was thrilled to be able to secure a personal RAB membership, for my benefit and ultimately the benefit of my clients.

Eric Rhoads, publisher of RadioINK, wrote a thought-provoking piece in which he expressed his concern for the future of RAB, which is facing cutbacks in the support it typically has enjoyed from the largest broadcast groups. They recently (and undoubtedly painfully) announced layoffs that included veterans George Hyde and Mike Mahone, themselves champions of education and training for thousands of radio advertising salespeople.

Whatever the reality of their present circumstances, of this much I'm certain: every membership matters to RAB.

Please consider supporting them with yours.

Thank you!

$2500+ for Thirty Seconds: "Don't Tax That Dial!"

The NAB has announced a contest, open to all over-the-air U.S. broadcast radio stations, to create a thirty-second political spot encouraging defeat of the so-called "performance tax" on radio stations. The (mainly foreign-owned) record industry, represented by the RIAA, is trying to compensate for a failing business model by levying a fee on radio stations that play music, utterly destroying the symbiotic relationship that has existed for many decades, to the mutual benefit of artists, stations, and listeners.

According to an article in RADIO magazine:

The winning entry will be awarded $2,500 and be recognized at The 2009 NAB Radio Show in Philadelphia. Additionally, airfare, hotel accommodations and complimentary NAB Radio Show registration for two will be provided to the winning entry. Entries for the competition, open to over-the-air U.S. broadcast radio stations, must be submitted to the NAB no later than 11 p.m. EDT on July 31, 2009. Stations must complete a Political Agreement Form and place it in the political portion of their public file for a period of two years. Complete rules, guidelines and supporting material can be found on the NAB website

OK, so here's an idea: invite several of the station's best clients to participate in the effort personally. Presumably these advertisers have a vested interest in the continued existence and health of the station, their valued marketing partner. So, they talk about the station's importance to them, both as listeners and as advertisers, and urge their fellow listeners to contact their legislators to reject the Performance Tax. Advertisers enjoy some additional exposure, reinforcing their ties with the station and its listeners, and the station gets the message out in a "bigger" way.

Everybody wins.

In fact, stations could even sell these opportunities to advertisers (rather than giving them away) - with an offer to share the cost of the schedule in view of the shared benefit. I can think of a few advertisers in our own market who would take advantage of such an offer.

After all, it's essentially cause-related advertising, right?

Only in this case, the cause is us.

Worth considering.

Does Not Advertising Mean You're Going Out of Business?

From today's "Radio Sales Today" newsletter, research on how not advertising during a recession can hurt your brand.

The research study, "Advertising's Impact in a Soft Economy," which was undertaken to determine whether stopping advertising during the recession could harm a business, takes an in-depth look at specific consumer perceptions regarding firms that continue to advertise in the current economy, as well as those that do not.

Not advertising can harm brand

Advertising appears to play a key role in consumers' view of how a business is doing, the study found. By not advertising, businesses may be sending a warning signal to current and potential customers, Ad-ology said.

For example, when consumers no longer see/hear advertising from an auto dealership during a down economy, 50 percent say they view the dealership as "struggling." In addition, 19 percent feel these dealers are "less willing to deal," and only 7 percent believe they "must be doing well."

On the other hand, when a dealership advertises during tough times, 34 percent believe the dealership to be committed to doing business.

Consumer perception is similar for stores and banks.

Click on the link for the full article. (Source: Marketing Charts, 05/25/09)

Speaking of Better Radio Ads...

Listening to the finalists in the 2009 Radio-Mercury Awards and reviewing the briefs for the integrated campaigns is as instructive as it is entertaining.

Don't miss the opportunity to gain valuable insights into the inner workings of these million-dollar campaigns. The education is priceless. The tuition, free.

Here's the link.

How to Make Better Radio Ads

Eleven of the top creative directors in the country participated in a round-table discussion in New York recently. They were gathered to judge entries in this year's Radio Mercury Awards, but they took some time after the judging to discuss the disconnect between the growth of Radio's audience (up by 3 million pairs of ears in 2008) and the decline in Radio's ad revenue (down by 9% in 2008).

Andrew Hampp's article in Advertising Age (the online version includes an 8-minute video excerpt from the roundtable) is enlightening and instructive, a valuable read for any radio advertising sales or creative professional.

Toward the end of the video, RAB President Jeff Haley talks about a Houston study by Coleman Research in which researchers observed listener behavior during 92,000 commercial "pods." Haley noted that the "breakaway" (listeners going elsewhere) was just 8%, even in the middle of a lengthy 6-minute break. The majority of listeners stayed with their station.

NOTE: That's not perception; that's measured behavior!

But if you listen carefully to this segment of the video, right after Mr. Haley mentions people listening to 92,000 commercial pods, one of the panelists interjects, "Poor people!"

Why did he say that?

Obviously, because many (if not most) ads on radio are notoriously "bad."

"Radio needs to get better before radio ads can get better," said Crispin's Bill Wright. "When I read a magazine, all the ads don't annoy me. When I watch TV, all the ads don't annoy me. Even when you do a good radio spot, it's still the best-looking house in a bad neighborhood."

There's our problem. And our opportunity. To change, one ad at a time, one client at a time, on stations across America, the quality of the commercials we write and produce.

Radio, as a medium, is powerful, versatile, and personal. It's everything an advertiser could ask for.

But radio advertising needs to improve, to exploit the full potential of our medium, to achieve its highest and best uses in the marketplace.

This is our job, our challenge, and our responsibility as radio advertising professionals. We can't make the industry better apart from making our commercials better. And that, my friend, is an individual operation.

What Does It Take to Create Good Radio Advertising?

"Creating great radio ads is hard work
and an acquired skill." - Bob McCurdy

Bob McCurdy is the president of Katz Marketing Solutions, the national marketing unit of the Katz Media Group, a division of Clear Channel Communications.

Right on, Bob!

That statement ought to be printed in 60-point boldface type, framed and posted at the desk of every radio advertising salesperson, sales manager, general manager, operations manager, production director, copywriter, producer, and board op at every radio station in America.

Right next to it should be posted a list of cliches* that from henceforth are banned and must never appear in a radio commercial without severe consequences to the perpetrator or perpetratrix.

Creating good radio commercials is painstaking, time-consuming work.

Anyone undertaking the responsibility of writing advertising for a client must understand the fundamentals of advertising. What works, what doesn't, and why. This information is readily available in books, on CD's, videos, online, in the library.

Writing good advertising involves an investment of time for research, to understand the advertiser's customers, as well as his product/service, market, competition.

It involves think-time, before and during the process of writing, editing, tweaking, refining and polishing, spinning words into gold.

It involves choosing an appropriate spokesman. Extensive casting opportunities may be out of reach for many stations, but thought should still be given as to who should deliver the message. Often the advertisers themselves make great spokespeople (I can hear the protests rumbling from the "professional" bench already. Don't bother. I've been writing for and coaching ordinary folks for years, decades really - with consistent, bankable results for the client! It CAN be done. Just takes a little more time, patience, and perseverance, that's all. Want to hear examples? I can provide you with plenty.)

Great production won't compensate for poor copy. If you can't have both, put your money into the copywriting. Great copy always trumps great production.

Invest in improving the quality of your advertising copy for clients and the inevitable improvement in their results will keep them on the air.

It's just that simple.

And because it is, there's no reason it can't be done.

*Cliches that should be forever banned from radio commercials include:

for all your ______ needs
conveniently located at ___________
the friendly folks at ___________
the professionals at ___________
your ________ headquarters
and much, much more
just in time for ________
like never before
the sale you’ve been waiting for
lowest prices of the year/season/ever
it’s that time of year again
we sell the best and service the rest
our service is second to none
our friendly, knowledgeable staff
you heard it right
it’s happening right now
(Season) is right around the corner

Bob McCurdy's article appeared in Media Post's Marketing Daily Commentary.

Google Radio Redux

The Wall Street Journal's Jessica E. Vascellaro does an excellent job of recapping the rise and fall of Google's moribund radio advertising initiative.

In a nutshell,

Google Inc.'s foray into selling radio ads was supposed to show how its online-advertising brainpower could revolutionize an old-fashioned people business.

The company teamed up with Chad and Ryan Steelberg, brothers who were sharp dressers and wore deep Southern California tans. They had a technology for transmitting, scheduling and tracking radio ads. "Google is going to conquer radio," boasted the exuberant Chad in 2006.

Instead, radio tripped up Google. The company is pulling the plug on its attempt to automate radio-ad sales on May 31, exposing how far Google is from its goal of grabbing a big chunk of the multibillion-dollar business of off-line ad sales.

A look at what went wrong shows that Google misjudged the capacity of its technology to work beyond the Web, and underestimated the human side of the business [emphasis mine]. Radio stations refused to turn over airtime to a computer algorithm that set prices far lower than their own rates. Big advertisers steered clear.

Good story. Good reminder that some things, like human relationships and interactions, are not reducible to automation.

Read the FULL STORY HERE (for as long as WSJ keeps it available to the public):

Radio Works for Constant Contact

Radio advertising works.

And not everyone is hurting these days.

Just ask the folks at Constant Comment, a provider of email marketing services.

Perhaps you've heard their ads running in radio network news broadcasts and syndicated programs.

How are the ads working? According to company President and CEO Gail F. Goodman:

Summarizing our results for the first quarter. Revenue was $28.1 million, an increase of 55% year-over-year and adjusted EBITDA came in at $1.7 million, which was up a 112% on a year-over-year basis.

During the quarter, all of our sales and marketing channels performed well. We believe our national radio advertising campaign helped drive much of the better than expected demand for our email marketing service. Equally important based on the statistical analysis we have recently completed national radio is delivering results within our cost expectations. We expect to continue national radio advertising in the fall following our usual seasonal marketing pullback across all of our acquisition channels during the summer months...

Read the transcript of Constant Contact's 5/7/09 conference call HERE.

The Real Reason Advertisers Are Abandoning Newspaper?

Business columnist and author Geoffrey James returned from a recent Society of American Business Editors and Writers (SABEW) confab with a stinging indictment of the newspaper advertising industry.

According to James, the reason newspapers across the country are folding faster than a bad poker hand is not the national economy, but "...that advertisers have finally figured out that newspapers, in collusion with clueless marketers and unscrupulous ad execs, have been fleecing them for decades."

The writer asked a room full of newspaper writers how many of them actually read the ads that appear in their papers.

Fewer than five percent said they did.

This made me wonder, what if a similar question were asked of radio broadcasters? How much higher would our percentage be? (You do listen to the ads on your station, don't you?)

After all, radio advertising is intrusive. When the radio is turned on, the listener can't help but hear the ads. (As someone once said, God's gift to Radio is that He created human beings without earlids.)

Whereas newspaper advertising tends to be passive: ...if the reader happens to open that day's paper to the right section...and if she happens to turn to the right page...and if she happens to notice your ad...she might actually read it.

Or she might not.

James' real problem with newspaper advertising is its lack of measurability and/or accountability. Is it effective? Do you know for sure? How do you know?

The problem with newspaper advertising is that, in most cases, you have NO idea whether anyone is reading an ad, or whether that ad is driving buying behavior. And because nothing is being measured, newspapers and ad agencies have been able to artificially inflate the price of their space ads. Massively.

One way newspapers do this is to simply lie about circulation. For example, it’s not uncommon for a newspaper to claim that each distributed copy is read by 3 or 4 people. But that’s total BS. Many copies of most print publications don’t get cracked even once. And the ones that do, I’ll bet that only a fraction of the content ever actually wins the reader’s eye.

As for the ads themselves, only a tiny fraction of the circulation reads them, and the number of people who take action as result is probably in the single digits. (I’m talking the actual number here, not the percentage.)

Newspapers also cook the books is by setting the value of advertising based upon what other newspapers are asking. As if that made any difference. But it worked, in the past at least, because marketers (many of whom don’t want to be measured anyway) never asked the obvious question: how much revenue will this ad generate?

James is bullish on online advertising because click-throughs can be tracked and ad performance measured with greater accuracy. In this, he echoes Ken Dardis of Audiographics - a former terrestrial radio guy, now SVP of Spacial Audio Solutions, an authority on Internet radio, and an outspoken critic of "business-as-usual" where Radio is concerned. For Dardis, the Internet holds the key to Radio's future, which makes him either a gadfly or an augur - or both, depending on whose ox is being gored at the moment.

Ken Dardis is passionate about Radio, but critical of the status quo. His company recently gave away hundreds of thousands of dollars worth of software and hosting to displaced terrestrial broadcasters willing to start their own Internet radio stations.

In other words, he's walking his talk.

The take-away from all of this, for those of us who make our living as radio advertising professionals, is our responsibility to exert every effort to create advertising that is as effective (and measurable) as we can make it.

We do this by investing as much time and energy as needed to understand our advertisers' objectives, their customers' needs/desires/motivation/buying behavior, and the realities of the marketplace that may affect how they interact. Only then can we begin to write and produce the advertising messages that have what it takes to move people and products.

I remain optimistic about Radio's future. Terrestrial stations and online stations both have a place in the new media landscape. They may differ in their delivery, degrees of accountability, and demographics, but they will still provide valuable information, entertainment, and advertising to their audiences.

Read Geoffrey James' full article here.

This from NPR: "Radio Ads Are a Good Thing!"

It is SO enjoyable to hear Real Radio Ads (A Bud Light "Real Men of Genius" spot, no less!) airing on..."ad-free" National Public Radio.

All Things Considered, April 28, 2009 · Radio offers advertisers the last captive audience.

Radio ads are cheap to produce and buying airtime is inexpensive, too. You can blanket the airwaves with a slogan or jingle in a way you can't with TV.

Warren Berger's forthcoming book is Glimmer: How Design Can Transform Your Life and Maybe Even the World.

Listen to Warren Berger's >enthusiastic evaluation of radio advertising (2 minutes, 50 seconds).

All of us in the radio advertising business ought to appreciate (and emulate) Mr. Berger's enthusiasm!

Thanks to Eric Rhoades for the tip!

Sinking the Boat or Missing the Boat?

Much has been written - and is being written (by marketers and economists alike) - on the subject of marketing during a recession.

Today's Small Market Radio Newsletter carried a fascinating New Yorker piece by James Surowiecki on the subject.

Surowieki contrasts the Depression-era responses of two ready-to-eat cereal makers, Post and Kellogg:

Post did the predictable thing: it reined in expenses and cut back on advertising. But Kellogg doubled its ad budget, moved aggressively into radio advertising (emphasis mine), and heavily pushed its new cereal, Rice Krispies. (Snap, Crackle, and Pop first appeared in the thirties.) By 1933, even as the economy cratered, Kellogg’s profits had risen almost thirty per cent and it had become what it remains today: the industry’s dominant player.

Chrysler took the same approach during the Great Depression and in 1933 passed Ford to become the #2 automaker in America, thanks to its aggressive marketing of the Plymouth brand. This gain was not as long-lived as some, but it demonstrates what can be done when a company goes after market share while others are trying merely to preserve what they have.

I was visiting with a new client earlier in the week. He's in the retail furniture business, a category not exactly thriving these days, given the overall economic climate and contraction in the housing market. But he's not hunkering down. He's planning for expansion and growth. He said to me, "We're in a kind of Ice Age now. And you know what an Ice Age is good for? It kills off the dinosaurs!"

Indeed.

Commenting on why many companies are so quick to cut their advertising during an economic slowdown, Surowiecki cites economist Frank Knight's distinction between risk and uncertainty.

Risk describes a situation where you have a sense of the range and likelihood of possible outcomes. Uncertainty describes a situation where it’s not even clear what might happen, let alone how likely the possible outcomes are. Uncertainty is always a part of business, but in a recession it dominates everything...

For businesses that choose to place their bets on minimizing risks and preserving assets in the short-term, cutting back makes sense.

For others, deep pockets or not, the opportunity to chase a bigger slice of the smaller pie, believing that they'll keep the larger share of their market when the economy rebounds (as inevitably it must), is a worthy challenge and a calculated risk.

Surowiecki concludes:

It’s true that the uncertainty of recessions creates an opportunity for serious profits, and the historical record is full of companies that made successful gambles in hard times: Kraft introduced Miracle Whip in 1933 and saw it become America’s best-selling dressing in six months; Texas Instruments brought out the transistor radio in the 1954 recession; Apple launched the iPod in 2001. Then again, the record is also full of forgotten companies that gambled and failed. The academics Peter Dickson and Joseph Giglierano have argued that companies have to worry about two kinds of failure: “sinking the boat” (wrecking the company by making a bad bet) or “missing the boat” (letting a great opportunity pass). Today, most companies are far more worried about sinking the boat than about missing it. That’s why the opportunity to do what Kellogg did exists. That’s also why it’s so nerve-racking to try it.

I am privileged to work with a number of clients who have the ambition, foresight, and fortitude to pursue relentlessly their goal to be the best they can at what they do.

Counterintuitive though it may seem, this is a great time for smart advertising on Radio!

Read the full article here.

Substance vs. Style

Here's an example of a radio commercial that from a distance sounds terrific. Positive, uplifting, even inspiring.

Until you listen to the actual words.

It might make you chuckle, but not without wincing a bit.

Disclaimer: this spot was part of a RAB Sales Meeting of the Month cassette from long ago. Can't remember who the original advertiser was. The last ten seconds of this commercial contained that real bank advertiser's pitch - if you want to do business with an institution that cares, switch to us.

Clever joke back then.

Perhaps not so much today.

Consumer Confidence Linked to Advertising

"Financial Company Ads: Out of Sight ...Out of Business?"

That's the headline on a post at the Nielsen blog.

The article goes on to say, When asked about their own banks, insurance companies and investment firms, 55% of respondents who said they had seen more advertising for their financial institution reported having “complete confidence” in the financial health and soundness of their financial company and only 18% said they had “little or no confidence” in their company.

Companies that maintain or even increase their ad spend during times of economic slowdown often gain market share at the expense of competitors that cut back. When the economy rebounds (as inevitably it will), the aggressive marketer reaps the benefits of that additional market share. Some in the advertising community call this the (Procter and) Gamble strategy; it's sound thinking.

Now there's additional evidence to support the claim that positive PR and advertising go a long way toward preserving familiarity and boosting consumer confidence in an otherwise chaotic environment.

No medium is better suited to fostering this kind of familiarity and confidence than radio.

A competent and caring radio advertising professional can be worth his/her weight in gold to any client who's serious about weathering the present storm and navigating toward a prosperous future.