Industry Views

Sabo Sez: Five Predictions

By Walter Sabo
Consultant, Sabo Media Implementers
A.K.A. Walter Sterling
Radio Host, “Sterling On Sunday”
Talk Media Network

im1. Financial solvency laws. Consolidation is not the problem; it actually saved the radio industry. The problem is the 1986 rule change that dropped financial solvency requirements for station ownership. Prior to 1986, stations could not be purchased with debt. A potential owner had to prove that they could meet the expenses of a station through the duration of its license. Once the financial efficacy rule was dropped and stations could be purchased with debt, the industry was financially decimated. Prediction: Financial solvency laws will be re-instated.

2. Ratings change. Ratings giant Nielsen will change its system of measurement of audio. The PPM was created over 20 years ago by a company that no longer exists. For a station to earn proper audience levels, Nielsen must measure all audio distribution platforms including radio sets, in car, cell phone streaming, computer streaming, satellite, public address systems and ear pods and whatever comes next. Now you choose one – over the air or the stream. This will change or more companies will follow the recent lead of Good Karma Brands radio which just cancelled Nielsen.

3. New leadership. Who’s in charge? Most radio companies are run by very sharp and very senior CEOs and Boards. The Boca effect — I don’t want trouble, just get me to my retirement and condo on Boca. The primary reason FM grew from 10% household usage in 1968 to 60% in 1981 was the “kids” were put in charge – and caused “trouble.” Allen Shaw at ABC FM, Walter Sabo at NBC FM (forgive me), Jerry Lyman at RKO FM and the sons and daughters of the owners of thriving AMs paired with orphaned FMs (think Beau Woods at WEBN, Cincinnati and Bart McClendon in Dallas) were given free range to create and implement brand new formats. While the AM management played golf, those 20-somethings aired daring, new, shocking, amazing radio that drew listeners to FM. No, not stereo or low commercials, it was the FM package of subversiveness. For radio to level up and serve the joy of an audience born with iPhones in their cribs, it will be led by today’s 20-somethings without suffering interference by bosses sharing really interesting stories about their time at CBGBs.  The essential leadership will come from younger programmers and executives who have only known a world with online video stars, a thousand cable channels, and on-demand video and audio entertainment.

4. New sales paradigm. Digital entertainment companies – audio and video – are fueled by stupid money. Venture capitalists launch new businesses with the goal of claiming a stake and then selling the business for their ROI. VCs have no interest in operating profit. Really. That means start-up media companies pay much more for sales executives than radio companies. Start-ups are shinier goals than radio stations to a media advertising seller. There will be a revolution in the way salespeople are identified, recruited, managed, and paid or the decline in radio revenue will accelerate.

5. Renovated voice tracking. Voice tracking is not horrible, it’s an opportunity that has not been realized. Today voice tracking is a poor imitation of being live – without benefits. No time, temp, urgent news. Here’s the miss: Every station has a stunning, amazing production library. Don’t have one? Swipe from YouTube. Rather than pretending to be live, admit to being recorded. Use that production freedom to produce. Tap the production library to create a running drama, comedy, mood, listening environment. Make the show between the songs to be as compelling as Taylor Swift. That’s the future of music radio.

Walter Sabo has been a C Suite action partner for companies such as SiriusXM, Hearst, Press Broadcasting, Gannett, RKO General and many other leading media outlets. His company HITVIEWS, in 2007, was the first to identify and monetize video influencers. HITVIEWS clients included Pepsi, FOX TV, Timberland, Microsoft, and CBS Television. He can be reached at walter@sabomedia.com www.waltersterlingshow.com

Industry Views

Welcome to No Brand Land!

imConsultant Gary Begin of Sound Advantage Media writes today in a piece for TALKERS magazine in which he says that quite often there is a disconnect between the brand of a radio station and the brand-supporting messages that the sales staff is presenting to prospects. He says, “Experts in branding seem to be coming around to the idea that the power to make or break your brand-building effort lies not in the quality of your advertising but in the customer’s experience at the point of sale. In radio, that’s your over-the-air product and how your ad rep handles the advertiser.” He adds, “To navigate and successfully cross No Brand’s Land effectively, marketers must start by adapting brand message creation and delivery to today’s strategic sales processes.” He says there are two trends that will drive marketers’ efforts to create brand-supporting content that helps salespeople sell.” Read about them in his column here.

Advice

Welcome to No-Brand Land!

By Gary Begin
Sound Advantage Media

imBroadcasting executives spend millions building their radio station’s brand in the marketplace. But is it being spent in the right place?

The frontline salesperson is a marketer’s greatest asset in creating brand justice and impact. But if you ask brand managers to look at their brand-building budgets, you’d probably see expenses allocated opposite to what drives brand purchase decisions.

Brand marketers continue to pump big bucks into extensive ad campaigns while doing next to nothing to deliver relevant, brand-supporting messages at the all-important, more significant level—the distance between a company’s sales voice and a prospect’s purchase decision.

What’s the answer?

It probably lies somewhere between (1) the unwillingness of radio stations and brand managers to go further “downstream” with their strategic recommendations and (2) the lack of useful tools to get them there.

Welcome to No Brand’s Land

Increasingly, a company’s branding success depends less on what they sell and more on how they sell it. Selected experts in branding seem to be coming around the idea that the power to make or break your brand-building effort lies not in the quality of your advertising but in the customer’s experience at the point of sale. In radio, that’s your over-the-air product and how your ad rep handles the advertiser.

On one side of No Brand’s Land, brand marketers can control all the implementation, ensuring the advertising campaign is right on, the media coverage generated by your on-air promotion is consistent, your Web site looks the same, and your corporate design is in place.

But on the other side of the No Brand’s Land, salespeople are still doing their own thing. They are cutting and pasting old proposals with outdated information and incorrect messages. They’re fabricating homegrown collateral tools and PowerPoint presentations that are, at best, inconsistent with corporate positioning or, worse, downright inaccurate.

The most frightening thing for brand marketers is that these cobbled-together documents must walk the halls of prospective customers, representing the company’s brand at the most critical points in the sales process. Ouch.

Adding insult to injury, the field-fabrication virus spreads exponentially as this lousy information is perpetuated across the channel on the brand’s intranet.

Crossing Over No Brand’s Land

To navigate and successfully cross No Brand’s Land effectively, marketers must start by adapting brand message creation and delivery to today’s strategic sales processes. Two trends will drive marketers’ efforts to create brand-supporting content that helps salespeople sell.

Trend #1: Value Selling

For more than a decade, sales training and methodology experts have focused on improving the consultative selling skills of salespeople—especially in complex selling environments. The concept is simple: first, salespeople identify customers’ needs; then, they demonstrate the ability of a solution to respond to that customer’s specific needs successfully.

Often called Value Selling or Solution Selling, this dynamic and interactive sales process replaces previously static, one-way techniques that debate the merits of competing features and functions.

While salespeople move toward creating a much more customized sales experience for each prospect, most marketing departments continue to deliver generic messaging using static collateral tools—a one-size-fits-all approach for a one-to-one world. No wonder salespeople are forced to scramble to create custom content, piecemealed from various sources, to demonstrate they have listened to the customer.

The first thing brand managers can do to help is translate their high-level positioning into street-ready value propositions and solution messaging that speak to customers the way salespeople have been trained to sell:

  • Create customer empathy by identifying and demonstrating a proper understanding of the critical do-or-die issues facing your customers. Do that for each level of the decision-making team and link it back to how they do their jobs today.
  • Next, determine and articulate the risks if they do not address these issues. Also, firmly establish and highlight the rewards if they do act. Take special care to find out how your customers will define success—determine what they want to brag about if they are successful in achieving positive results.
  • Then demonstrate how your company’s solution helps them respond specifically—and successfully—to their key do-or-die issues.

Trend #2: Dynamic, Personalized Collateral Building

Value selling has raised the bar, forever changing customer expectations about sales experiences. Customers expect company interactions to be personal, relevant, and tailored to their specific needs.

Meanwhile, marketing departments have tried to keep pace by adopting segmentation strategies, doing their best to tailor messages and create more customer-relevant positioning. However, the tools to deliver these increasingly sophisticated messages through the sales channels have lagged. So, we’ve seen a proliferation of static collateral tools designed to fit every occasion.

Unfortunately, salespeople are neither warehouse managers nor librarians, and they have difficulty tracking and finding suitable materials when needed. In response, marketers have set up sales intranets to supply 24×7 access to support materials.

While these intranets improve accessibility to materials, they don’t resolve the most significant issue facing today’s value-selling salespeople: the need to provide prospects with dynamic, personalized sales communications. With only static documentation, salespeople begin creating unique, customized documents for each sales situation.

Typically, this happens at the expense of the brand and the company. The lack of consistency between radio stations and from salesperson to salesperson—undermines the millions spent on brand awareness advertising. The extra time spent by salespeople crafting these personalized proposals, presentations, and collateral pieces keeps them from time better spent with customers.

Marketing’s big win is that every radio salesperson, even within a multi-entertainment environment, will now communicate a consistent company message. Imagine the brand-building power unleashed when sales reps begin delivering a persuasive, powerful, and pre-approved message at every point of customer contact.

Gary Begin can be contacted at: garybegin10@gmail.com.

Industry Views

Remaining Optimistic About Radio

By Walter Sabo
A.K.A. Walter Sterling
Radio Host

An article in the Los Angeles Times shows a picture of a radio DJ next to a control board boasting the headline, THE RESURGENCE OF RADIO. Dateline: 1982.  This headline appears in various forms every few months in articles and blogs throughout the country. Writers discover radio! The power of radio! The popularity of radio! Why is radio either dying or being rediscovered when neither is true?

Recent artifacts: Every single press release from Nielsen reveals that radio is doing fine thank you. After decades of promoting its television clients and bashing radio, now that Nielsen measures radio – son of a gun – radio is thriving, it’s alive, it’s growing, it’s a success. Nielsen’s tone is one of surprise that radio attracts large, loyal audiences.

Why is radio’s 100 years of success a revelation rather an assumption? First it is because radio is ubiquitous. Walk into a store, radio. Turn on the car, radio. Wake up, radio. The sound of radio has always been everywhere and continues to be everywhere. Maybe once a year I go to a gym and hear Spotify, but I have to ask an employee where that music is coming from and they are never sure! Television is not everywhere; it has to be turned on. Magazines, websites, books, direct mail have to be considered and then opened. Not ubiquitous. Radio’s ubiquity renders it invisible on the media landscape. Radio wins by losing.

Radio salespeople sell radio to negotiators, time buyers. The job of a negotiator is to criticize and devalue the product being pitched. That’s their job. A salesperson spends nine hours a day with negotiators telling them that their product is at death’s door. To a radio salesperson, every day is a bad day. They become immersed in the pessimism of radio’s future.

“Do you realize that most 19-year-olds discover new music from the Internet?” declares a time buyer to a radio salesperson. Oddly, the fact that 19-year-olds occasionally find new music on other audio media is a dark mark against proven radio. Until this moment, the location of new music discovery had never been a deal point for the Honda dealer time buyer. But, boy this “discovery” business is charts-and-graphs serious!

To perform as a programmer or talent in radio one must be an optimist about its future. A programmer or host is intimate with listener response to their work. Radio stars see the millions and millions, and millions of dollars raised for quality charities every single year by their words, their appeal — their credibility. TV stations and newspapers rarely conduct fund drives. Have you ever heard a local TV anchor ask for donations for – anything? No, probably because it wouldn’t work as well as a pitch from the morning host on your station. A powerful, yet unseen, spokesperson can be quite persuasive to a listener to donate their money to a charity.

SiriusXM satellite radio’s lead investors, Apollo and Blackstone jointly engaged me to consult the company on site for many years. During that time, I became well-acquainted with the initiatives of all-digital audio platforms: AudibleAmazonPandoraSpotifyGoogle and many others.

At digital media conferences spokespeople for those companies would sit on panels and bash the dinosaurs called AM and FM. However, those same companies insisted on branding themselves as… radio! Spotify RADIO. Pandora RADIO!

Walter Sabo is a long-time radio industry consultant and thought leader.  He hosts and produces a network radio show titled “Sterling on Sunday” 10:00 pm-1:00 am ET.  www.waltersterlingshow.com.   walter@sabomedia.com