> Though they complain, the managers who created this
> world---and engendered the coming regulatory backlash---will
> have no one to blame but themselves. Ironically, what they
> will be forced to do will make the business not only more
> diverse, but overall a lot healthier for everyone, even for
> them.
Bob,
Along those lines, this post attributed to Bill Figenshu, ex-corporate guy and new consultant, that appeared in "net talk" on allaccess.com today... (sorry for the length, but it's a great read)
Reality Becoming Perception
I believe radio company CEO's and other assorted company leaders are really
smart, hard working, well intentioned individuals. They are under constant
pressure to perform. They can't work any harder. It's time for them/us to
work a little smarter.
I believe we are now in for the battle of our career. Part of it is a
perception battle, the other part is real. With all the press on satellite
radio, I-Pods, broadband, and the general state of changing technology, you
would think these technology changes have rendered commercial radio
obsolete. Satellite radio is getting so much positive press, you would think
they have more listeners than we do! (hint, they don't, not by a long shot.)
This is the perception. Do you think listeners believe satellite radio has
more listeners than they have? I do!
Corporate radio is getting so much negative press, I believe it is starting
to sink into the public psyche.
We are making a few MAJOR mistakes. And here is where the reality comes in.
We are all being made out to be the greedy Gordon Gecko's of the media
business. Good solid everyday radio broadcasters are now being painted (by
Wall Street, the press, and in some cases, OURSELVES!) with the same brush.
And our competition is LOVING it! We are acting like the stupid competitor
across the street that is making it WORSE every time they try to make it
better. In short, we are playing defense - not offense. We suck at defense.
And our offense is weak.
Over the air radio has a bright future! No kidding, it really does. But we
better start making the changes necessary to operate in the future, or we
will struggle for years to come.
There are exceptions, but.....(here I speak in generalities. Not EVERY
station, cluster & company is like this. It just seems like it!)
It's difficult to buy national spot radio. And expensive. National rep
firms are still doing business the same way they did 10-15 years ago. Except
we are paying them HALF. No wonder they are not investing in resources.
National spot radio will continue to shrink if we don't streamline the
paper, and ease of buying. It can be done. but we are going to have to spend
money to fix it. Many national people are overworked with the amount of
paper piled on by handling way too many stations. Some can handle it. Many
cannot. They have been through so many cuts, they are scared to say anything
about it. Many are dismayed at what the business has become. They are
overworked, and beat up. I'll bet 50% of the national sellers would
re-locate to another career if they could. This business needs a complete
re-think. If we don't, someone else will. (yes, I have specific solutions.
If you want to know them, call me.)
We must address the 18-34 issue RIGHT NOW! We are not attracting young
listeners to radio. There is little for them here. We have cut research,
marketing, and a conduit into the minds of these people. Quick! (with the
exception of ethnic formats) Name ONE new successful format developed for
young people in the USA. (don't say Jack, it came from Canada. and it's not
18-34.) There is little if any R&D going on in the corporate halls of radio.
(especially the research part.) There is little talent development for this
demographic. Where are the next generation of morning show's, talk hosts,
and yes, dare I say, DJ's? We have cut out the incubator. No overnight,
weekend, 7p to midnight shows are being developed because we have NO LIVE
PEOPLE ON THE AIR. I'll bet (with a few exceptions) there are no more than 2
live people on the air in major markets on Saturday night. None in smaller
markets. And the pay is just above the 3d shift at Burger King. Many PD's
know this. GM's do too! Some can handle it. Many cannot. They have been
through so many cuts, they are scared to say anything about it. Many are
dismayed at what the business has become. They are overworked, and beat up.
I'll bet 50% of the GM's & PD's (given the choice) would re-locate to
another career if they could.
Speaking of 18-34, we are NOT educating our young managers. GM's, PD's &
Sales Managers are NOT being trained in the skills necessary to compete in
the new media world. We have cut research, sales training, music testing,
and GM development. First time managers are being given 2-3-5 even 8
stations to run. Are they Qualified? Trained? No. They are buried in paper.
(part of the blame is Sarbanes-Oxley) GM's, PD's & GSM's are spending their
day running from meeting to meeting, trying to administrate the massive
amount of accountability required of them from corporate. They have no
"thinking" time. Remember, this is a creative business. It's NOT Wall Mart.
Today';s managers are being told what to do from above. They are NOT being
trained to think for themselves. They are simply managing the expenses and
pushing for every dollar they can find. We are paying managers less money
for more responsibility. 10 years ago, in most major cities there were 1 or
2 station managers (PD's GM's & GSM's) per station. Now there are 1 or 2
managers per 3 to 8 stations. Some can handle it. Many cannot. They have
been through so many cuts, they are scared to say anything about it. Many
are dismayed at what the business has become. They are overworked, and beat
up. I'll bet 50% of the big company GM's (given the choice) would re-locate
to another career if they could.
Today's Regional managers are also overworked. Charged with "getting the
money" they must coax every dollar out of every station. They don't have
time to address the subtleties of each individual station or situation. Just
"bottom line me". They are getting 150 to 200+ e-mails per day. They are the
gatekeepers of the expenses. They live in airports going from conference
room to conference room. What would be the average time spent per station
issue in a given week? Hmmm, lets see, 80 stations times 40 hours per week =
30 minutes per station. Add in corporate responsibility at 3 hours per day =
55 hours per week. Stir in a dash of legal, HR & travel and bada bing! You
got one busy person. With too many calls to return and not enough day to do
it. Some can handle it. Many cannot. They have been through so many cuts,
they are scared to say anything about it. Many are dismayed at what the
business has become. They are overworked, and beat up. They want to do the
right things for the station. They know what to do. They are very smart.
They don't have the money to give the GM's to support the product. They know
not to ask upstairs. The answer is mostly "no". They stop asking.
Now to the CEO/President job. Radio leaders must re-think what they are
doing. It's not working.
Wall Street is leaving. No use sucking up to them. The stock options are
under water anyway. We can't please them anymore. We have to get the growth
back to get them back. We can't cut our way to growth anymore. We must
invest in these clusters right away. They (Wall Street) won't like that.
But, we have no choice.
There are too many layers between CEO's, the listeners, advertisers and
everyday employees. The CEO's are not going down to the front. They are NOT
approachable. they are too busy defending their actions. Many are hard
working, well intentioned professionals. But the world is changing. And they
are not listening to the listeners. They fail to see the personal
relationship between the audience and the station. "Less is more" is fine,
BUT WHO GAVE THEM MORE (spots) and LESS (music) in the first place? We did.
We were wrong. We screwed up.
Leaders are NOT listening to their own GM's, Regional & department heads.
They don't want to hear it. "No excuses, just get the money" they cry! If
you tell Wall Street the radio stations are going to grow 4%, and the
budget for the stations is 12% (BCF) while the local market advertising
growth rate is +1%, there is eventually going to be a problem.
(hint, some stations are going to get a new competitor, they won't grow no
matter what you say. If there is no money to defend your attack, you may
lose the brand forever. CEO's know this. They are not stupid. They just
can't afford to defend every attack. They must pick the battles. but they
need local input to make the decisions. They are not always getting it. Or
don't want to hear it. )
Each station should have a soul if it is to succeed. Each must strike a
chord with listeners, advertisers, & employees. We can't keep assuming that
whatever we do, the "people" out there will like it. Just because we want
the stations to bill a certain amount, it doesn't mean it will. Advertisers
are getting picky. They now have choices. And the new marketplace will
dictate the results. Not us, try as we may.
I am not suggesting we throw money at every problem. Clearly, there are
reasons NOT to spend money on inferior products, bad employees, or
lackluster marketing. I am suggesting that Station Managers, Regional VP's,
and people in the corporate office must re-think the way we are doing
commercial radio in 2005/2006.
We must start putting money back into many of these great brands, and the
people who make them work. .
We must realize the limits of local staff vs. work load. If the FCC would
let us own 20 stations in a market, would we have the head count per station
that we have now?
Me must put many decisions back into the local community. We must trust our
local managers to do it right. (or get rid of them)
We must market our local content to a public that believes we are in some
ways inferior. (perception here too.) This means spend money on well
programmed brands.
Many CEO's and company Presidents, Regionals, & GM's are doing things RIGHT
everyday! They are just NOT getting the credit for it. Perhaps it's time for
a dialogue. It's time to play offense. It's time to address the cost,
talent, future, and competitive issues in a frank, logical, and even cost
effective way. Are we doing it now? If so, it's not working. We aren't
landing any punches. We are running for election. And the words are NOT
resonating with the voters. The competition's message is! (for the most
part).
Are many of our stations sounding good? You bet your ass they are! I would
put many of them up against any satellite, I-Podcast, Internet, future
whatever, any day of the week.
But,
Our share of market is down, our TSL is down, our 18-34 is down, our cash
flow is down, our morale is down, our stock price is down, our rates are
down, our national is down, our confidence is down, our "will to win" is
down, the audience perception of us is down, the press is down on us, our
expenses are down, but our revenue is down too!. (yes, I know there are
exceptions.) So, let's just be honest with ourselves. At least it's a start.
Fig (Bill Figenshu)
www.figmedia1.com