Bad decisions about buying good stations

[Element9]

Reportedly, a few Entercom AEs have contacted the outgoing personnel. It will be interesting to see if production people from Townsquare and Cumulus, as well as other independent producers, pick up a few side deals as a result of Entercom's outsourcing, and if TSQ and CMLS AEs use Entercom's outsourcing as leverage. The issue will be price. Clients expect continuity and production to be part of the package, aka "free." Also, in WNY a number of clients voice their own commercials. Word is this procedure will continue at Entercom but the commercials will be "assembled in Philadelphia and/or Kansas City." MEGA* hat not included.


*Make Entercom Great Again.

 

[TheBigA]

The issue will be price. Clients expect continuity and production to be part of the package, aka "free."

It's just a budgeting thing. It's much easier to justify an expense vs. a salary + benefits. They're trying to pare down the number of people receiving full benefits.

 

[davideduardo]

What I don't understand is why outsource to a market nearly 1000 miles and one time zone away? Couldn't Buffalo and Rochester combine production duties? Or Hartford?

We're not talking about a couple of stations. We are talking about hundreds, and a center with copywriters, voices on call (from anywhere) and production facilities including licensed production libraries.

Ad agencies produce national and regional radio and TV spots all the time... generally not for the markets the shops are located in. Why not radio?

 

[tbolt909]

It's just a budgeting thing. It's much easier to justify an expense vs. a salary + benefits. They're trying to pare down the number of people receiving full benefits.

Some companies refer to employees as "Nuisance Costs". Entercom wants to rid itself of older workers who likely will need to use their health care. The merge with CBS is just accelerating this practice. It's great for David Field and his Goldman Sachs pals, but not so much for the soldier ants...

 

[TheBigA]

It's great for David Field and his Goldman Sachs pals, but not so much for the soldier ants...

In the same way, the companies are selling their tower sites and buildings, and leasing them back. That way they don't have to deal with the regulations and the insurance. CBS just sold Television City in Los Angeles, but they're leasing back the space.

 

[Element9]

It just occurred to me how moot this discussion is. Each of my kids has Amazon Prime. It's what they listen to. Sometimes Spotify. Occasionally Pandora. I've never heard them stream a radio station or iHeart. If they listen to radio in their cars, they also stream. They're content to pay for it. My friends kids are mostly the same, although they have Sirius. They bitch about the subscription fees but they always wangle a deal and renew.

It's an Amazon and WalMart world.

 

[TheBigA]

It just occurred to me how moot this discussion is. Each of my kids has Amazon Prime. It's what they listen to.

It's really a function of the music they like. If they want a certain kind of rap that can't be played on OTA, then streaming is their only option. If they want to create their own playlist, the only way to do that is by streaming. Even Sirius doesn't offer that option. People want what they want. Would you tune in for local talent if they don't play the music you like? That's the question you need to ask. On the other hand, they may get to a point where they're less particular about their music and have less time to create their own playlists. That's when OTA radio is more useful.

 

[Rob Piotrowski]

Ad agencies produce national and regional radio and TV spots all the time... generally not for the markets the shops are located in. Why not radio?

Because many radio spots are still local, non-agency buys. Write the spec script, get it produced, play it for the client, revise it, lather, rinse, repeat. You know the drill.

 

[davideduardo]

Because many radio spots are still local, non-agency buys. Write the spec script, get it produced, play it for the client, revise it, lather, rinse, repeat. You know the drill.

I was using agencies that routinely produce spots in cities where the spot may not even run as an example of how centralization and production out of a market are not bad things per se.

A production center can have a deep staff with people who are experts in every aspect of production. Most local production is a sidebar to the job a jock or talent is hired for, and often not the strongest skill in the individual's toolkit.

Usually, a spec spot can be written and produced for a client faster than when done locally because there are more people to do it, a variety of copywriters and deeper knowledge of the cuts in the production libraries.

I started doing production at a central location for stations in a half-dozen cities over 50 years ago... it worked well then and it works better now because we are wired to make thinks happen almost instantly.

 

[SirRoxalot]

Since about 70% of radio revenue comes from local sponsors it would seem that local knowledge would be a very useful tool in the production of commercials. If you're producing national spots for wide distribution you're not really trying to reach the specific audience that a smart advertiser and/or AE is selling. In WNY, we get plenty of commercials produced in Toronto - about 90 miles away - from some large regional and national advertisers. They stand out as not sounding local. Sometimes it's not so much about slick as it is about relatable, and it seems to me that hubbing on a massing scale gives that up.

I guess it's good news for local guys who'll do testimonial advertising. If I were a buyer I'd be willing to spend a little extra on locally-known voice - with or without an endorsement. If I was an AE, I'd be encouraging that for some of my clients - and maybe making up a few of the dollars that Entercom and others have "restructured" out of my paycheck by getting a taste from my local production guy as a finder's fee.

 

[davideduardo]

Since about 70% of radio revenue comes from local sponsors it would seem that local knowledge would be a very useful tool in the production of commercials. If you're producing national spots for wide distribution you're not really trying to reach the specific audience that a smart advertiser and/or AE is selling. In WNY, we get plenty of commercials produced in Toronto - about 90 miles away - from some large regional and national advertisers. They stand out as not sounding local. Sometimes it's not so much about slick as it is about relatable, and it seems to me that hubbing on a massing scale gives that up.

I guess it's good news for local guys who'll do testimonial advertising. If I were a buyer I'd be willing to spend a little extra on locally-known voice - with or without an endorsement. If I was an AE, I'd be encouraging that for some of my clients - and maybe making up a few of the dollars that Entercom and others have "restructured" out of my paycheck by getting a taste from my local production guy as a finder's fee.

One of the abilities of both current technology and a centralized production facility is to get reads from station talent and then do the work of making the completed spot. I've seen cases where a station talent does the voice work while still on the air doing their show without even leaving the studio.

 

[Rob Piotrowski]

One of the abilities of both current technology and a centralized production facility is to get reads from station talent and then do the work of making the completed spot. I've seen cases where a station talent does the voice work while still on the air doing their show without even leaving the studio.

Oh dear lord.

Of course they can do that. Take their focus away from doing a live show to stick in a read during breaks or "Stairway to Heaven". And those doing talk shows can voice spots during news briefs. Screw the bathroom break - let them pee in a bottle.

Hope nobody spills any barbecue sauce on the Cisco router.

 

[TheBigA]

They stand out as not sounding local. Sometimes it's not so much about slick as it is about relatable, and it seems to me that hubbing on a massing scale gives that up.

So hokey sounding production is OK because it's local. I'll keep that in mind.

 

[Rob Piotrowski]

So hokey sounding production is OK because it's local. I'll keep that in mind.

In some cases, yes. Google "House of Guitars".

 

[TheBigA]

In some cases, yes. Google "House of Guitars".

Google Chicken Little...that's more like it.

If they don't like the changes, they can work for Buddy.

 

[TVEngineerArk]

I'm sorry to hear about what has happened to my former co-workers at Entercom Buffalo. But the idea that decent production that garners advertiser success must be done in house due to the nuances of a given local area are simply not the case anymore. While I am now a TV engineer on a full time basis, I also keep my hand in radio in my role as chief engineer for a standalone regional FM signal in my area on a part-time basis. This station serves many small rural cities and relies on small advertisers. The station used to employ an Operations Manager who doubled as a production director and provided most of the voices for the spots. When he left in 2012 the owner decided to try not replacing him and going with free lance voices instead. The results have been extremely positive. The different voices on the station tend to make the advertisers stand out from one another while the station owner doesn't have a full time salary to pay. In return the owner has put a good deal of money into the technical facilities to maintain the audio quality and reliability of the that aspect of his business. It's been a winner for him.

I always hate to see positions eliminated but in this case I understand his reasoning. Plus, when I see a hands on station owner who cares enough to buy all new digital studio gear, new and uncompressed music library, a transmitter and to purchase a $13k audio processor just to make sure his audio quality is as good as it can be it makes the engineer/audiophile in me appreciate them.

 

[davideduardo]

Oh dear lord.

Of course they can do that. Take their focus away from doing a live show to stick in a read during breaks or "Stairway to Heaven". And those doing talk shows can voice spots during news briefs. Screw the bathroom break - let them pee in a bottle.

Hope nobody spills any barbecue sauce on the Cisco router.

You know as well as I do that there are long periods in a show today that are segued by each station's digital storage system. Music sweeps, etc. While a talent waits for a set or a stopset to end, they can easily read a couple of times a piece of copy. No wasted time, and perhaps no need to spend extra after-shift hours waiting for or helping to do production.

 

[Rusty Bridges]

In some cases, yes. Google "House of Guitars".

Up there with the worst spots ever, typically overloaded, loud and breathless. rivaling bloated Billy Fucillo. BTW, haven't heard much from the gasbag of gears. Has he gone under?

 

[kw1025]

Well, start getting your backers together, "Not Buddy." It's all or nothing. They're not going to sell the FMs piecemeal, and the AMs aren't worth much.

Can you be correct about anything?.... you are wrong again.

 

[kw1025]

I'm sorry to hear about what has happened to my former co-workers at Entercom Buffalo. But the idea that decent production that garners advertiser success must be done in house due to the nuances of a given local area are simply not the case anymore. While I am now a TV engineer on a full time basis, I also keep my hand in radio in my role as chief engineer for a standalone regional FM signal in my area on a part-time basis. This station serves many small rural cities and relies on small advertisers. The station used to employ an Operations Manager who doubled as a production director and provided most of the voices for the spots. When he left in 2012 the owner decided to try not replacing him and going with free lance voices instead. The results have been extremely positive. The different voices on the station tend to make the advertisers stand out from one another while the station owner doesn't have a full time salary to pay. In return the owner has put a good deal of money into the technical facilities to maintain the audio quality and reliability of the that aspect of his business. It's been a winner for him.

I always hate to see positions eliminated but in this case I understand his reasoning. Plus, when I see a hands on station owner who cares enough to buy all new digital studio gear, new and uncompressed music library, a transmitter and to purchase a $13k audio processor just to make sure his audio quality is as good as it can be it makes the engineer/audiophile in me appreciate them.

Thank you.