ARE YOU OBSERVING “THE NEW FRUGALITY?”

[Holland Cooke]

I don’t just mean “observing” in the obvious way:

• Sure, lately we -- inside-the-box -- are all challenged to be more resourceful. Cutbacks and layoffs continue at every level.

• But look around. Are you observing listeners’ behavioral changes…addressing that in your programming….and introducing them to advertisers whose products and services enable “the new normal?”

I admit it. I lurk. I spend lots of time eavesdropping on **** sapiens, the folks who get Arbitron diaries and PPMs, the folks your local direct retail advertisers want to see pulling-into the parking lot. Here’s some of what I’m seeing lately, admittedly anecdotal:

• More interest in gasolne prices than some stations maintain. Back in May, during the perennial Memorial Day spike, radio was doing better a better job following this important street-level issue than many stations continue to do as prices have moderated lately. This past week, while I was visiting a client station, we noticed, on-the-way-TO-lunch, that gasoline prices had fallen from $2.90-something in morning drive to $279.9. On the way back FROM lunch, we spotted a station that was down to $259.9. Smart stations talk-this-up on-air and invite listeners to post best-prices-they’ve-spotted online, “sponsored by…”

• Generally, price-and-item data doesn’t work as well in radio commercial copy as it does in newspaper ads. But lately, I’m overhearing people telling each other about specific bargains they’ve found. Well-written spots that aim listeners at values can drive traffic. “YOU WON’T FIND THIS PRICE ANYWHERE ELSE!”

• It’s interesting watching shoppers at warehouse clubs like Costco and Sam’s. It’s not for me to say whether, by-whatever-technical-measure, consumers are “hoarding,” but they sure seem to stocking-up.

The bottom line? LISTENERS’ bottom line. Tell pertinent stories, and you’ll be more-engaging than the typical “Democrats bad, Republicans good” show that Talk radio has allowed itself to be typecast as. If you’re a music station, DJ and newscast content should favor such information.

HC
www.HollandCooke.com

 

[Goat Rodeo Cowboy]

• Generally, price-and-item data doesn’t work as well in radio commercial copy as it does in newspaper ads. But lately, I’m overhearing people telling each other about specific bargains they’ve found. Well-written spots that aim listeners at values can drive traffic. “YOU WON’T FIND THIS PRICE ANYWHERE ELSE!”

He did operate in small markets rather than big cities, and when he developed the concept, small markets were still "single station" markets.

I have struggled for years with this "price and item" issue, or as I sometimes see it described today, "transactional copy".

You are aware that Jerrell Shepherd built a broadcasting dynasty several years ago based in Moberly, MO and woe be to the salesman who tried to turn in copy that was NOT price-and-item?

We may be entering an era when those broadcasters who today are disciples of the Shepherd concepts may be at the right place at the right time.

 

[gr8oldies]

When average people can tell you what oil closed at yesterday, yeah, different world.

 

[cm454]

• Sure, lately we -- inside-the-box -- are all challenged to be more resourceful. Cutbacks and layoffs continue at every level.

It's very hard to believe that what can be cut, hasn't ALREADY been cut.
Not much fat left at most stations/clusters I'm familiar with.

How much further can we degrade the product before we lose many more of our current and future customers?

 

[KFodor]

• Sure, lately we -- inside-the-box -- are all challenged to be more resourceful. Cutbacks and layoffs continue at every level.

It's very hard to believe that what can be cut, hasn't ALREADY been cut.
Not much fat left at most stations/clusters I'm familiar with.

How much further can we degrade the product before we lose many more of our current and future customers?

Let the economy continue to deteriorate much further and we'll find out...and it might not be pretty. Though, it could be a necessity to keep from going out of business.

And yes...we do keep a daily watch on gas prices which airs multiple times per day in newscasts, more often when major spikes up or down happen.

 

[cm454]

Let the economy continue to deteriorate much further and we'll find out...and it might not be pretty. Though, it could be a necessity to keep from going out of business.

Just another reason to hope for more companies going private.

Privately run broadcasting operators are far more tolerant of downturns than Wall Street.

The private or independant operator knows that if you have a bad quarter or year, you don't always have to slash and burn the product---especially since that will make the rebound all the more difficult, if not impossible.

Wall Street has far less patience. Of course, we may be on the brink of seeing a far more tolerant and patient Wall Street---one which would rather see modest profits that are steady, vs. greater and faster profits that only lead to mayhem.

 

[Holland Cooke]

another...

Been to the public library lately?
It’s busier there, according to various reports.
Makes sense…the price is right.
Why pay Blockbuster when there are FREE movies on DVD at the library?

Memo to Netflix: new ads should tout gazillions of titles, which was always your advantage over Blockbuster, and certainly the library.

HC
www.HollandCooke.com

PS: For a related Internet NTR opportunity for radio, see idea #3 on page 2 of my November newsletter.

 

[jimwalsh2001]

I see where Citadel's stock is down to thirty-some cents a pop. If this keeps up, Farid may have to start selling off his polo ponies...

Naaaaaaaaaaaaaaaaaaaah... ;D

 

[KFodor]

Let the economy continue to deteriorate much further and we'll find out...and it might not be pretty. Though, it could be a necessity to keep from going out of business.

Just another reason to hope for more companies going private.

Privately run broadcasting operators are far more tolerant of downturns than Wall Street.

The private or independant operator knows that if you have a bad quarter or year, you don't always have to slash and burn the product---especially since that will make the rebound all the more difficult, if not impossible.

Wall Street has far less patience. Of course, we may be on the brink of seeing a far more tolerant and patient Wall Street---one which would rather see modest profits that are steady, vs. greater and faster profits that only lead to mayhem.

It may not be as simple as you suggest. Private companies have less wherewithall (in most cases) than the conglomerates. The moms and pops may have some cash and could exist for a while, but they could also be the ones waving the white flag first.

This economy situation is serious. If you're not taking it seriously, you should be. It could, potentially, affect everyone's job...

 

[del_griffith]

Has there been a spike in adding programs such as Ramsey, Clark Howard or others? Or are the syndie contracts with existing prohibiting or dulling those moves? Or are their shows being seen to close to being one hit wonders?

 

[cm454]

Let the economy continue to deteriorate much further and we'll find out...and it might not be pretty. Though, it could be a necessity to keep from going out of business.

Just another reason to hope for more companies going private.

Privately run broadcasting operators are far more tolerant of downturns than Wall Street.

The private or independant operator knows that if you have a bad quarter or year, you don't always have to slash and burn the product---especially since that will make the rebound all the more difficult, if not impossible.

Wall Street has far less patience. Of course, we may be on the brink of seeing a far more tolerant and patient Wall Street---one which would rather see modest profits that are steady, vs. greater and faster profits that only lead to mayhem.

It may not be as simple as you suggest. Private companies have less wherewithall (in most cases) than the conglomerates. The moms and pops may have some cash and could exist for a while, but they could also be the ones waving the white flag first.

This economy situation is serious. If you're not taking it seriously, you should be. It could, potentially, affect everyone's job...

I am NOT talking about Mom & Pop stations. Those are all but non-existant in the top 50 markets anyway.

I am talking about PRIVATELY held companies---ones that have many properties capable of generating substantial cashflow in medium-large-major markets. THOSE are the stations that stand to gain the most by not having to bow to the pressures of Wall Street, while maintaing some semblence of quality in the product they intend on continuing to make money off of--unlike the conglomerates that make nothing but shortsighted fiscal decisions.

 

[Holland Cooke]

Recommended reading...

Updating my 10/11 post which begins this thread, some recommended reading:
The 10/20 issue of BusinessWeek, on newsstands now (hello from DFW airport).
Cover story: "The New Frugality."

Read-and-route to on-air talent and Sales.

In my November newsletter, I will attempt to connect-the-dots to the issues outlined there, and here, and station content and Sales marketing.

HC
www.HollandCooke.com

 

[OhioMediaWatch]

Has there been a spike in adding programs such as Ramsey, Clark Howard or others? Or are the syndie contracts with existing prohibiting or dulling those moves? Or are their shows being seen to close to being one hit wonders?

Clear Channel's WHLO/640 Akron just added Dave Ramsey for a 2-hour delayed clearance after Mark Levin (8-10 PM local).

Other than that, at least to now, Ramsey and Clark Howard have always been on the fringes here. Ramsey was heard here on Salem's Christian talker in Cleveland, WHKW/1220, until Salem started asking the show to pay for clearances...he got bumped to WCER/900 Canton, a 500 watt station that barely reaches into Akron.

Howard is 12:30-3 PM on one of our suburban talkers, WEOL/930 Elyria.

I suspect they'll gain in affiliates in the financial crunch. Ramsey is pushing hard with a full-page R&R ad recently. But I'm not sure if either could make it to the level that Rush and Sean have reached.