Radio & TV execs throw alot of  money, manpower & worthless research at digital

Will any of this be honestly discussed at the NAB Radio Show 2011 in Chicago? Probably not. Will the NAB or RAB step up and sound the alarm? Hmmmm. I wouldn’t hold my breath. By the looks of the 2011 Radio Show agenda and list of same speakers we hear, year after year, the Internet is still being downplayed and discussed as a “nuisance”. No wonder Radio get less than 2% local web revenue share.

Broadcasters still haven’t gotten their digital-revenue act together. They still haven’t understood the very real threat of these new, hyper-local competitors who are out to eat their lunch.

The reason why Radio and TV struggles with online revenue generation is simple:

The wrong people are probably in charge of the digital assets. Their compensation package doesn’t light a digital fire under their ass, so why should they worry about profit?

Still letting a program director or webmaster call the digital shots? Your newsroom manager controlling everything that goes online? Well, good luck with that. There’s no motivation and penalty from those executives to get them serious about making you a big, fat, digital profit. So why did you put them in charge?

What to do: The one person who is ultimately responsible for the financial success of your web initiative must have their compensation directly tied to digital profit.

Newspaper recently came to grips with this sticky issue and is steadily replacing old school, newsroom managers with digital-first executives with biz-dev skills. They had to, as they saw Patch poaching their staff. They saw Facebook, DataSphere, and cable operators ramping up their local, online sales efforts.

At the recent NAB Las Vegas show, CBS Radio’s Dan Mason admitted to getting his staffers digitally motivated was still a big problem. “Our biggest frustration is educating and bringing along our own people” said the CBS Radio chief.

Dan also compared the threat of Pandora, to 8-tracks and satellite radio. Funny, the Newspaper industry made the same kind of dismissive mistake by blowing off Craigslist a few years back, and lost most of their classified advertising.

Have ya noticed? Local media CEO’s always boast about their Internet efforts at conferences. They claim growth in streaming hours, page views and Facebook fans as if any of that really matters. It doesn’t. What really matters is cash flow and digital profit margin.

In TV & Radio you have one person who calls the final shot. That’s the GM. If you have a “team” that’s in charge of the website, your screwed. You don’t have an Internet business model…..you have hobby.

Putting a finer point on it: you have a non-profit hobby that’s a time and money suck.

Watch this video clip that describes the growing digital threats that Radio and TV face in their local markets.

Related posts:

1. NAB Radio Show, Web Revenue Chokepoints NAB and RAB Radio Show 2010. Digital still being given lip service by Broadcasters? Maybe, since Radio barely pulls 2% of online revenue share. Cool websites are not enough &...
2. Recap: 2011 Key Executive Conference Here are some prime take-aways from the 2011 Key Executive Multi-media conference, held in St. Petersburg, Florida, Feb 21-23. Take your foot off the brake. You can’t make meaningful web...
3. Ex CBS Radio Jocks Stream Show Online The talk format is exploding online. Some of this growth is due the ‘downsizing’ of on air talent. Matt and Huggy were shown the door after 11 years on the...

This post is password protected. To view it please enter your password below:

Password:

Related posts:

1. Radio Ink Forecast, Online Revenue Strategy Radio Ink‘s Forecast is the annual radio-industry financial conference that gathers station group owners, CEOs, CFOs, managers, and Wall Streeters to discuss current industry conditions and reveal their predictions for...
2. Online Video Revenue When will local newspaper websites and hyper local blogs start making money with video? Short answer: When they start sharing their video equipment with sales department. For now, the big...
3. Revenue: Online Community Journalism TCU in Fort Worth recently played host to an excellent journalism workshop focused on helping community newspapers turn a profit with their websites. I was invited to speak to this...

In 2007, WYSP Radio in Philadelphia, a CBS station, sent the mid-day team of Matt and Huggy.. packin’.

Instead of hitting the beach, this radio duo took their show to the web. The loyal fan base downloaded their podcast, and packed nightclubs with their live streaming events.

Click above to watch the short, 5 minute video we produced to show how this worked, and how successful it was.

Watch for other “out of work” DJ’s to adopt these online tactics.

Today, Huggy is on the air at WTKK, Boston Talks Radio. 

Related posts:

1. Ex CBS Radio Jocks Stream Show Online The talk format is exploding online. Some of this growth is due the ‘downsizing’ of on air talent. Matt and Huggy were shown the door after 11 years on the...
2. Radio Ink Forecast, Online Revenue Strategy Radio Ink‘s Forecast is the annual radio-industry financial conference that gathers station group owners, CEOs, CFOs, managers, and Wall Streeters to discuss current industry conditions and reveal their predictions for...
3. NAB Radio Show 2011. Web as Nuisance. Radio & TV execs throw alot of  money, manpower & worthless research at digital. Radio still only gets a 2% share of local web revenue and TV claws for about 10%....

So goes the battle cry from the movie….. ’300′.

Spartans are a proud people protecting their land and way of life from the incoming Persians. Do I smell a historical analogy coming on ?

The Spartans: Local TV, Radio and Newspaper properties. They’ve had a very nice run for the past 50 to 100 years or so. Profit margins hovering around 50%, huge barriers to entry, powerful lobbying arms, virtual ownership of all local advertising revenues, etc.

They would like to protect this way of life. It is has been good. Real good.

The Persians: Recently created outsiders like Google, online ad networks like Centro,  pure-play sites like Patch, Facebook and ReachLocal. They have their eye set on the next massive pot of Internet gold; the local marketplace. They want to infiltrate, take share, and take-over the lion’s share of local ad expenditures. They’re willing to initially cooperate, share the growing riches, and work with the local properties………until they have their hooks in real deep. Then watch out.

King Leonidas; the bearded Spartan general, desperately tries to warn his Greek countrymen that the crafty and be-jeweled Persian King Xerxes, doesn’t just want to ‘partner’ with them, but ultimately wants to make them their slaves.

In the short term the offer seems genuine and generous. Yet, Leonidas knows it would likely be the beginning of the end for their local state, culture and freedom.

And so the 300 fight……to no avail. They’re crushed by the insurmountable forces from afar.

Alas, the mighty Spartans did not get full support and buy-in from their own country’s leaders. They were held back by the politician’s legacy thinking, fear and lack of vision.

If you’ve seen the movie or know about this piece of ancient history, it may provide some insight as to what local media is facing right now.

What needs to be done? Broadcast and Newspaper need to develop and execute an aggressive war-plan NOW, in order to defeat (or at least keep in check) the forces looking to invade their local media turf.

Today’s lesson: Those who ignore history, are doomed to repeat it.

Related posts:

1. Patch, Reach Local & Pandora The new, local online competition; more than just the other newspaper or TV station across the street. Outsiders like Patch, Reach Local, Groupon and Pandora are hell-bent on siphoning ad...
2. Google Targets Local Business Reach Local is one of the most aggressive purveyors of digital marketing solutions for small business. With a team of internet marketing consultants in most major markets, they have deftly...
3. Tribune’s 435 Digital & Local Business Tribune has launched 435 Digital; a social & web-focused subsidiary of the Chicago based company. Forward-thinking media companies are smartly diversifying their advertiser product line, with digital first offerings like...

Pandora is the leading online music site with a serious buzz….and major advertiser support from Planters, The History Channel and many others. Recently, Pandora threw a party at a local Philly hot spot. It was sponsored by Budweiser. Yes, the King of Beers re-allocated a nice chunk of their Philly marketing budget, and gave it to Pandora. They even had one of their online personalities (Kevin Seal) host the gig, and give away prizes. Sounds like a Radio appearance….right?

As a former DJ who has done his share of club appearances, I was blown away by the FREE BEER, tons of T-shirts, and other give-aways that Pandora and Budweiser provided. By comparison, more and more Radio club appearances consist of a ‘street team’; low paid interns that put up plastic banners, and hand out a t-shirt or two. Maybe.

Most beer marketing dollars used to go to Radio…..but this club event was solid proof that major sponsors looking to reach 20 somethings, are ramping up their LOCAL online spends. More of these budgets are being targeted to independent music/entertainment sites like Philly2Nite,……not terrestrial Radio.

Can Radio step up and build online platforms that can attract these dollars ? The answer is YES if they take more dramatic steps to hire for, train for, and invest in these types of online efforts. Simply re-purposing content and firing up the sales troops will not be enough. Can Radio managers handle this challenge?

Related posts:

1. Patch, Reach Local & Pandora The new, local online competition; more than just the other newspaper or TV station across the street. Outsiders like Patch, Reach Local, Groupon and Pandora are hell-bent on siphoning ad...
2. NAB Radio Show 2011. Web as Nuisance. Radio & TV execs throw alot of  money, manpower & worthless research at digital. Radio still only gets a 2% share of local web revenue and TV claws for about 10%....
3. For Publishers Only. Website Money Pit Description of a training session and workshop that I do more often. For Publishers Only. The Un-varnished Truth about Newspaper Website Business Models. Mel Taylor Media exposes why most local...

Spent some time with a New York City based advertising agency today. Spoke with the interactive buyers, as well as those in charge of broadcast and print. Guess what? They’re ALL interested in buying web in some form, even non-banner inventory, even though they may have originally been focused on broadcast or print, or plain ole banners.

At first I thought all 3 buyers would have a separate bucket of marketing dollars from which to pull. But no. All 3 that I talked to, had access to a central pool of dollars that they could use to solve a marketing challenge; whether it be in print, broadcast, online or some other form of marketing or promotion.

Makes sense. The days of relying specifically on one form of marketing or another, are over. Lucky for me, I had a fairly large bag of tricks up my sleeve; rich media display ads, sem/seo, online video solutions, as well as event marketing placement.

Related posts:

1. Can Local Media learn from Theme Parks ? Took a break from posting for a few days due to some business travel in the Sunshine State. And as you could imagine, there are some nice benefits of having clients...
2. Newspaper Web Conference: E-EDGE It’s no secret. I’m bullish on the future of Newspapers. Not only in it’s current print form, but it’s future as hyper-local, multi-media news/info organizations. Reverse publishing strategy, development of...
3. Tips for Keeping your Media Job ? Think your job is safe in Broadcast or Newspaper?  Hopefully it is. But just in case you want to be pro-active in order to increase your chances of avoiding a...

Think your job is safe in Broadcast or Newspaper?  Hopefully it is. But just in case you want to be pro-active in order to increase your chances of avoiding a layoff…..read this……

After 32 years in the biz, sport writer Paul Oberjuerge got whacked from the San Berdardino Sun. Unfortunately, this is an all to common occurrence. Not just in Newspaper, but in Broadcast too.  Paul drew up a list of  “Tips on Keeping Your Print Journalism Job.”  Some of it is politically incorrect. Some might make you cringe. Yet, it’s worth a read.

Alot of this stuff applies to those in TV and Radio as well.  Note that “embrace the Web” is Number One. Here’s a few from the list:

Ten Tips for Staying Employed:

1. Embrace the web. It’s going to be extra work, and you’re going to be on your own 24-hour news/opinion cycle. But that’s how it is; you can rest up when you’re dead. Management is keenly aware of the foot-draggers on this front. Don’t wait to be ordered to “serve other platforms” of the paper. Volunteer. Blog. Post photos. Consider video. Offer podcasts. Do web-only quick-and-dirty news stories. You’re a multi-media machine now!

4. Stop whining. Journalism is a business notorious for its contrary and crabby people, for second-guessers and “that’s not how we’ve done it before” grousers. Five years ago you might have been overlooked as the Charming Curmudgeon. Now, you’re the Negative Nellie. When the call comes down to trash another 10 percent of the newsroom, don’t be the relentless kvetcher who immediately pops into the editor’s mind. Oh, and remember, “second-guessing” now consists of anything other than instant acceptance.

 Read all 10 here.

No related posts.

It’s no secret. I’m bullish on the future of Newspapers. Not only in it’s current print form, but it’s future as hyper-local, multi-media news/info organizations.

Reverse publishing strategy, development of PROFITABLE online video/audio applications, and the re-training/re-deployment of sales & editorial staffs are just some of the areas that I am very enthusiastic about. So, I’ve ramped up my efforts in moderating more conferences that focus on these emerging, revenue generating trends.

Whether you’re a Newspaper exec, or you’re competing against them, you’ ll want to attend this important Web-focused conference. It’s called “e-Edge”. It’s part of the upcoming America East Newspaper Conference, starting March 10, in Hershey, Pa.

I’ll be moderating a panel called “Peek under the Hood”. It’s a look at what Radio & TV are doing to attract business to their websites, and how Newspaper is successfully fighting back with innovative video and audio initiatives.

The panel features:

• Mike Sechrist; former GM of WKRN-TV in Nashville. This web-savvy TV veteran is THE pioneer in the world of TV and Internet. Notable achievements: the local blogger aggregation of Nashville is Talking, and installing the controversial, yet smart VJ/Mobile Journalist model into the newsroom. Mike will highlight some ways that Newspaper can pull advertising dollars away from local TV and Cable.
• Ron James, Content Manager, SignOnSanDiego.com. Ron oversees the San Diego Union Tribune’s groundbreaking online radio efforts; www.SignonRadio.com, and www.AmplifySD.com. Radio is asleep at the wheel in this area, and Newspapers are moving quickly into this space. Ron will share his experience in the start-up efforts, and evolving strategy behind Newspaper’s revenue driven move, into online Radio and Podcasting.
• Ken Dardis, VP, Marketing, Spacial Audio. A veteran radio broadcaster that has lead the charge in helping Radio evolve it’s mature business model to the Web. Ken will share his thoughts on where Radio is going in regards to the Internet, and where they’re making HUGE mistakes. 

Related posts:

1. 2012 America East Newspaper Conference in Hershey The America East Newspaper Conference in Hershey, Pa., starts on Monday, March 12. With online revenue, web strategy and digital-first discussion being a hot topic, I’m looking forward to doing...
2. Mega Conference Recap 2011 Inlander April 2011 Mel Taylor...
3. NAA: Newspaper Website Strategy In cooperation with Blog Talk Radio, I spoke with some heavy hitters in the Newspaper industry at a recent NAA Conference We discussed their current web efforts. Dan Shorter; President...

Radio Ink‘s Forecast is the annual radio-industry financial conference that gathers station group owners, CEOs, CFOs, managers, and Wall Streeters to discuss current industry conditions and reveal their predictions for the coming year.

Here’s the panel I’m moderating:

Radio: Initiatives That Are Changing (and Challenging) Radio
Think things will remain the same in the future? Think again. Radio Ink has identified initiatives that will change radio forever. From creating content to generating sales, radio has faced an onslaught of new media – while still absorbing a decade of change brought about through consolidation. What’s gone right? What’s gone wrong? And how do we fix it? 

Moderated by: Mel Taylor, Mel Taylor & Associates 

>> Drew Hilles, Director/Audio, Google
>> Lisa Namerow, Director, AOL Radio
>> Gary Krantz, Chief Digital Media Officer, Westwood One, Inc.
>> David Goodman, President, Marketing, CBS Radio

Related posts:

1. RAB to Inflict CBS Chief Moonves on Attendees The 2012 RAB Radio Show announced that CBS chief; Les Moonves, will keynote the upcoming event. YAWN. Will Les say something that’ll help YOU build your Radio business? Most doubt...
2. Local Online Strategy: Broadcast vs. Newspaper A few weeks back, we noted that FOX-TVwas smartly building local music sites for some of it’s markets. At the same time, we wondered aloud why TV was moving into this...
3. How Can Radio Win Online ? Radio is being pressured by Wall Street to build online revenue. You read it in the Wall Street Journal and the industry trades. With that in mind….Newspaper websites have been seriously cranking along for...