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"D Peter Maus" wrote in message ... David Eduardo wrote: See, I disagree with that. While I hear your objections, and have heard them before, often at the top of someone's lungs, I've been personally involved in too many meetings where we did, as a radio station, sell directly to an agency, and we did change the parameters of a buy. I"m not saying its easy, but it IS possible. And it does bear fruit...both for the end client and the station, which means it also bears fruit for the agency. The cunundrum or Catch 22 is that any station that tries to program for older demos starts off with no advertising opportunities except local direct and a few local agencies that are willing to look for some different solutions. The agency business that makes or breaks stations in larger metros will, if anything is possible, take years to work on. I understand that agencies are too important to get their hands dirty with Radio. They're agencies. Radio is...well, the home of disk jockeys...and perceptually, that's not a positive. The big reason is that agencies make money on creative and that means print and TV production, not on radio spots. In addition, radio is costly to buy and that means that a buying service is often employed... and that is where no changes in media specs ever happen. One of the many reasons that agencies do the things they do is to throw up walls between themselves and media so that the agency can call the shots. And they're notoriously intractable. And they don't care about anybody's rules. At the Chicago Addy's Leo Burnett used to submit their national McDonald's spots in the local station promo category, where they clearly did not belong. The swept the category. But you are addressing creative. The creative is a joint deal with the client, where the agency does have considerable leeway. The demos, though, come from the client in most cases. Or are worked out with the agency as part of designing the campaign. We got on their buys. Through ups and downs, through manglement changes, PD changes, music changes, and severe ratings slumps. And we stayed on the buy. In this case, you were close enough to effect format acceptance. Try that with demos, though. When the station hit #1, it was converting at 200%+ Sometimes dramatically higher than that. And almost always including demos NOT requested by the agencies. As long as you had enough in demo numbers to justify the buy, the agency is happy. Agencies routinely buy news / talk, but they get a price that is only for the 25-54 component, and meets the CPP goals. It does not matter that there may be more 55+... they just want to come in at a price they set for the demo. I was the ONLY one who had ever been in the store. And when I talked to Gary Benson, who was building the franchise, I was the only one who understand what it was he was trying to build. Because I'd been there. And all the figures, all the hundreds of thousands of dollars spent on demos, including having the London Symphony record a jingle, meant nothing. I'd demonstrated that I could produce the result he was looking for. That was a fortunate and unusual occurance. Most agency business comes from out of town agencies, visited by the station reps. occasionally, the station GSM or GM will go on calls in each market, but generally they meet with the media director at the highest level. The media director has very little demo changing power. In a similar, and related, context, if a spot isn't producing results with 55+, change the pitch. You CAN sell to higher demos. And I understand that lower demos are easier, and less costly to assault. But the higher demos have more ready cash, and they do spend it. Convincing them may require a different effort. May require more of it....but if once you break through, you've tapped into a gold mine. Getting over that hump may require more effort, but once tapped, that reserve of cash comes with new loyalties, and new willingness to do business. Again, agency accounts (the clients) have done cost of sale evaluations and the main reason they don't buy is the conversion cost. THis is why 18-34 is so important. This is why our group is so excited about being the number one TV net 18-34 in the last Nielsens... that is where the money is... where brand preferences are formed. I understand you can't sell 55+ the way you sell 18-34. I'm not disuputing that at all. So you don't. But you don't just give up. We buy. Often the same things. But more often than not, bigger ticket items. You change the pitch. You find a way to sell us that does work. If you're unwilling to do that, we'll take our money and spend it with someone who will. But with an aging population, and declining birth rates, it's something you may wish to consider. As I said, in my case it does little good. I've been talking in generalizations for all stationns in all markets, mostly. But for Hispanic, 18-34 and 18-49 are THE demos as this sector is not ageing and, in fact, has only small population numbers in the over 50 demos.... not enough for a dedicated 40+ radio station to get any kind of salable numbers. I understand exactly what you're saying. But my own experience, again, says that there are ways of getting beyond that wall. Sometimes it's a matter of building a relationship with someone at the rep firm. Sometimes, it's a matter of something so absurd that it gets attention. Absurd works. Years ago, a major textile company had a sign in the President's office: "It it's about advertising, I am not in." I went to a hardware store and bought one of those mini doors that lock companies use to show off knobs and locks. I had "what does it take to open your door" and our group logo stenciled on it, and sent it by messenger. The next day, I got a call, an appointment and a sale. The real issue is that access to clients is dangerous... many agencies view it as betrayal, and it costs you. And so many clients are in cities you can not afford to travel to all the time. I disagree, here, David. I've been involved. I've seen it done. I"ve helped do it. And not only in Chicago. It's not easy. And not every effort is successful. But it can be done. And it's done every day. Nice if you are in a city where many clients are also located. But impractical... the real solution is to have groups like the RAB or an ad hoc group of stations catering to 50 and over do a conserted effort. Most agencies will not look at one ageing station in one market. Those stations, particularly oldies, news talk, etc., should do this. But I see no evidence that they ever do. Once again, research is a snapshot of conditions as they exist pertinent to an array of assumptions. Assumptions that are scientifically arrived at, perhaps, but assumptions nonetheless. And assumptions take on an axiomatic inviolability that is accepted as law within the context of research. However, these assumptions are based on an average of characteristics applied to individuals, and narrowed statistically, ignoring wider, and broader variations in human behaviour, tastes, beliefs, politics and understanding...and a hundred others. Research today is often based on actual observance of families, in the home, like reality shows. Qustions are asked at the end about why certain things were done, such as purchases, menu decisions, etc. It is very in depth and very expensive. But when companies combine this data with sales data, they spot the correlations and that is how they develop marketing plans for many consumer products. It's a pretty specific and scientifically arrived at snapshot. But it's only a snapshot. And like photographs in Life, it's only a picture of a moment. A product of a myriad of influences that are not seen, and are not measured in favor of the more easily arrived at characteristics. The in-homes overcome most of these objections. Take an example. AM talk formats experience a younger demo ratings spike after moving to FM. The assumption is that they're listening now because of the improved audio quality. Which may be true. Which is likely true. But it's not the only reason. The new format may be where there was an older, less successful station, but with some credible ratings. Suddenly there's a new station there. In most cases we are looking at, it's the same station moved to FM... like KTAR in Phoenix or the KSL situation in SLC or WTOP in DC... or small markets like WNLS in Talahassee. First book, the 35-54 show up. Neever had them before, and then they stay. No format change, no competitive influence. FM is acceptable, FM sounds better. AM does not meet those criteria. You talk about being Oldsmobiled? Who listens to AM? The same people who didn't buy an Alero, even though it was a cleaner, more stylsh line, with better performance and more comprehensive features. But it was an Olds. The brand had an image of being "the last car you will ever buy." It was one step away from a hearse. But the Olds was a good car, as good as many American cars. AM sounds crappy, and did way before NRSC and such. Whether we blame the receiver manufacturers or the change to FM does not matter. When the same listeners like the same programming on FM, but shun it on AM, it means the band is old, decrepit and it sounds bad. Research infers that younger demos will listen to AM if the audio were clearer. Perhaps. But will they sample it? Honestly sample it? Probably not. "Why" is individually determined, and out of the reach of the research snapshot. But the ones who will not listen to AM now, will not listen, simply because you improve the audio (debatable given IBOC performance I've experienced). It's their father's radio. It's unhip. It's bad sound. Whatever the reason, there's nothing that will get them to sample AM. This is the hope of some that promote HD for AM. It is a last-ditch effort.... I encourage it, because all HD radios will have AM as well and there is a chance that some decent signal AMs may slow down the erosion. The point is not about income, etc. The point is that to create a change in brand preference costs too much and makes the sale undesirable. Actually, 55+ includes, mostly, retired people. And that is where you see the scary figures on how many people live only on social security, and about a million have moved to Mexico because they can not afford to live in the US. Look at income figures overall for 55+ and only a small percentage have any significant savings. And most have very little discretionary income. Radio stations pitch clients every day. Every day. That's what the Sales staff is for. If a station ONLY accepts agency buys, you telling me you have no Sales staff. Direct sellers pitch the client. But most direct money is at lower rastes and with higher maintenance. Agency accounts are serviced more than they are sold. But the money is worth it. I had three sellers for the top billing station in market #13. We tried direct sales, but we got mostly no pay and slow pay and low rates. The clients with money went to agencies. We led the market in revenues and power ratio, because we did not spend on lost causes. There is no money in 55+. No single radio station, and no group can change a client's attitude if the client is going to say, "I can not get a decent ROI on that demo" or "my product was designed for 18-34 year olds and I hope we don't get Oldsmobiled." That's where your superiour knowledge and experience comes in. Accepting 'can't' because someone waving a check has said it, isn't Leadership. It isn't even Management. Nothing is 'can't.' There are always possibilities. It's your job as Manglement and Sales to make that pitch. Accepting the snapshot only guarantees that you'll live within the confines of the snapshot. The future is finding what's outside the frame. Again, this is for someone else to do. We don't have a 55+ population to serve, and the average age of our sector is in the mid to low 20's. So we have to deal with getting 18-24 on the general market agency buys, because we have no 55+ to offer. Stan Freberg demonstrated three decades ago that you can sell anything on radio. It's the most visual of electronic media. I think that is true Urban Legend. Appetite appeal is so critical to come campaigns that radio, if use, supports recall at POP, not sales. Mel Karmazin said, and repeatedly, I might add, that revenues are commonly linked to ratings. They're not. A station can always outperform it's ratings. Always. And it does so through high expectations, and retaining control of it's inventory, And by believing in possibilities instead of obstacles. Stations that outperform give a specific desirable demo with little spillage, like all sports. They get the power ratios that are close to 1:1. CHR gets 0.7 or 0.8 to one because advertisers don't want the teens. And so on. Again, perceptions. If you accept them, they become what you believe to be realities. They do not become realities themselves. If you're not succeeding at selling this, then change you pitch. I am pretty sure that in 15 years, WDUV has tried every technique immaginable. None have worked so far. |
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David Eduardo wrote:
"D Peter Maus" wrote in message ... David Eduardo wrote: See, I disagree with that. While I hear your objections, and have heard them before, often at the top of someone's lungs, I've been personally involved in too many meetings where we did, as a radio station, sell directly to an agency, and we did change the parameters of a buy. I"m not saying its easy, but it IS possible. And it does bear fruit...both for the end client and the station, which means it also bears fruit for the agency. The cunundrum or Catch 22 is that any station that tries to program for older demos starts off with no advertising opportunities except local direct and a few local agencies that are willing to look for some different solutions. The agency business that makes or breaks stations in larger metros will, if anything is possible, take years to work on. I think you're missing what I'm suggesting....I don't think you want to overhaul your programming to target older demos. But I do think it would be wise to include them. For a music station, that wouldn't be much more than a few carefully selected songs, and a delivery that acknowledges the listeners with some miles on them. For talk, it may be no more than simply taking a few mature calls. When Michael Packer was programmer of WLS, a memo went out that there were to be no callers who didn't sound under 35. Well, c'mon...you're talking political content, local controversy and Chicago related issues, you're going to have people over 35 listening. Still, they weeded out the calls. A copy of the memo hit Feder's desk at the Sun-Times and the fit hit the shan. Now it was a public matter, and there was no end to the reaction. Now, I know what he was going for. But the fact remains that there is a segment of the audience, a sizable segment, at that, that was simply excluded from participation. All it would have taken is a few calls from older demos. Nothing dramatic. But a good call is a good call, if it happens to be from an older listener, without changing the content of the conversation...why make the exclusion if you don't have to. When Kipper took over, things changed. There is a balance again. And I'm sure there's a proportion of demographic representation on the calls, but there's clearly no hard cut-off, and upper demos are served. When LeeAnn Lewis was GM of KMBQ, she mandated that no disk jockeys put callers on the air younger than 25. That didn't, ultimately, serve, her, either. One of the hottest things for a parent to do was to put their kid on the phone to the radio station. Getting their kid on the air was a high for them. Cutting that off, also cut off a lot of response from their target demo, 25-49, because that's where the young parents were. The station fell, rapidly, from grace. Serving out-of-target demos need not be something that requires dramatic, or even significant program content changes. A little fringe attention. Widening the niche, as it were. Sometimes, acknowledgement is all it takes. Older demos, especially, don't suddenly start listening to Tommy Dorsey (one of my all time favorites, btw) just because they hit middle age. And they don't get locked into The Grateful Dead just because they lived through the Dead's heyday. Older demos are like everyone else, just more experienced. They still sample new music. They still see new movies. They still laugh at contemporary commentary. Not acknowledging that is shortsighted in the extreme. My G/F and I listen to Tommy Dorsey in the car. Along with Pink Floyd, Gary Puckett and the Union Gap, Psapp, Rilo Kiley and dozens of others. I also listen to Classical, and traditional jazz. She also enjoys standards redone by Robert Downey, light classics and today's hot hits. So the iPods get quite the eclectic workout. We both get today's humor. We both follow today's street. We're both politically active. And we both spend discretionary income on products advertised by local radio stations. Stations that prefer to ignore us. Similarly, my friends and colleagues have not stopped living because we hit 55. And to service us at Radio takes so little. And requires no significant change in content. Just because we hit 55 doesn't mean we overhaul our tastes, start carrying mothballs, or dress like Aunt Pat's couch. Presenting that to your stations should be simple. Presenting it to your advertisers might even be unnecessary. I understand that agencies are too important to get their hands dirty with Radio. They're agencies. Radio is...well, the home of disk jockeys...and perceptually, that's not a positive. The big reason is that agencies make money on creative and that means print and TV production, not on radio spots. In addition, radio is costly to buy and that means that a buying service is often employed... and that is where no changes in media specs ever happen. Again, even in that scenario, I've done work that directly contravenes this station. I"ve seen it done every day. Even with big agencies, even with media buying services. One of the many reasons that agencies do the things they do is to throw up walls between themselves and media so that the agency can call the shots. And they're notoriously intractable. And they don't care about anybody's rules. At the Chicago Addy's Leo Burnett used to submit their national McDonald's spots in the local station promo category, where they clearly did not belong. The swept the category. But you are addressing creative. The creative is a joint deal with the client, where the agency does have considerable leeway. The demos, though, come from the client in most cases. Or are worked out with the agency as part of designing the campaign. In which case, the agency would have influence, and you would have, through the agency depending on your salesmanship, relationship, or choice of drinking buddies, influence, as well. Some of the most important changes in media buys, when I was with Cook Inlet, took place during the prayer meetings in the Chapel at the bottom of the Hancock. Two or three sacraments is all it took to get the ecumenicals started. You had the Sales and General Mangler from the station, you had reps from two or three agencies, and you had a LOT of tequila. Seeds were planted (in more ways than would be polite to mention here) and things got changed. It happens every day. We got on their buys. Through ups and downs, through manglement changes, PD changes, music changes, and severe ratings slumps. And we stayed on the buy. In this case, you were close enough to effect format acceptance. Try that with demos, though. We did. And we expanded buys targeted below 34 to include up to 55. We did it all the time. And we commanded premium rates for it to boot. When the station hit #1, it was converting at 200%+ Sometimes dramatically higher than that. And almost always including demos NOT requested by the agencies. As long as you had enough in demo numbers to justify the buy, the agency is happy. Agencies routinely buy news / talk, but they get a price that is only for the 25-54 component, and meets the CPP goals. It does not matter that there may be more 55+... they just want to come in at a price they set for the demo. Sometimes true, sometimes, not so. But we always converted high, and we always got them to buy demos that they specifically hadn't considered. Salesmanship, and relationships. They go a long way toward changing things. I was the ONLY one who had ever been in the store. And when I talked to Gary Benson, who was building the franchise, I was the only one who understand what it was he was trying to build. Because I'd been there. And all the figures, all the hundreds of thousands of dollars spent on demos, including having the London Symphony record a jingle, meant nothing. I'd demonstrated that I could produce the result he was looking for. That was a fortunate and unusual occurance. Most agency business comes from out of town agencies, visited by the station reps. occasionally, the station GSM or GM will go on calls in each market, but generally they meet with the media director at the highest level. The media director has very little demo changing power. It was definitely a rare event, to be sure. And I don't know that it's happened since. But more than a personal victory, it was quite the object lesson that you don't just accept what you're handed. There are always new ways of solving seemingly insurmountable problems that achieve the desired goals based on old fashioned results. I know it may be a surprise, to you, but I'm not the kind of guy who 'fits-in.' I"m not a joiner. And my social circle is very small. Most of the time, people at work just ignored me. Even the GM forgot I was there sometimes. But when it came to getting something done that 'couldn't be done,' I was the first one they called. And the given credit for the win...but that's another story. The reason I lasted so long through so many PD's, so may GM's and so many sales manglers, is because I saw solutions that traditional thinking didn't recognize. But the results produced were traditional results. Usually a bit over the top. So, what I'm saying is not to abandon your thinking, or abandon your targets, goals and strategies, but rather, just to expand the niche, a bit, to include more creative strategies at attacking issues that are supposed to be unassailable. Create new avenues to include a wider base of listeners, and a wider target for advertisers. Don't just take the numbers you're handed and go away. Create a strategy for getting those numbers, and widening them. Line your pockets with the extra cash. There was a movie with Robert Preston,...late 50's, may have been Kraft Television Theatre, but don't quote me...Preston was a buggy whip salesman and the automobile had just been invented. With predictable results for his company. He tried to find new work, but there was none. Young turks had captured the sales market, and he was a dinosaur. More importantly, he was associated all over his circuit with obsolete buggy whips. In one memorable scene, he was pitching himself to a young sales mangler who just turned him down flat as too old, too obsolete, too irrelevant. In a moment of pique, his frustration led him to one of the most important soliloquies in modern times....in which, and again, don't quote me, he said these words, among others, "Have you ever in a farmer's field, helping him to pull a heifer out of a calf that was too young to have it? Have you ever gotten down knee deep in mud to help him fix a broke plowshare? Sales isn't about numbers, figures and reports, it's about relationships....because what you're really selling is yourself." It went on for about 2 minutes...but you get the idea. Well, the young turk doing the hiring, said, "I disagree." But the speech had gathered the attention of office staff, including the young turk's father, who said, "I don't." And Preston was hired into the new business as a salesman. The rest of the story wasn't so happy. But that moment, that exchange made quite a point, and that is: Sales is not about your product. PURCHASE is about your product. SALES is about selling yourself. That moment also made quite the point that sometimes, being respectful of the business decorum is precisely the most ineffective thing to do. Now, this movie is fiction. It's based on real experiences, but it's fiction. But it does demonstrate a concept that's all to often forgotten in today's business climate, where the only things that matter are numbers, spreadsheets, and research. And that concept is that, before you get to the money, the numbers, the profits, business is about the relationship. You have to have one to do business. And that's true of any business. Of any sales position. Of any Mangler's position. Even the guy behind the microphone at the radio station. You have to establish a relationship. You can do it as a matter of numbers, spreadsheets and research, or you can do some real selling....selling yourself. Your station, your station's personality...you can cultivate a real relationship with your listeners, and your clients. And in that context, widening the niche becomes not only possible, but necessary. And the benefits are long term. Because, once you've sold yourself, you've created a recession resistant relationship that will weather downturns. Ratings, market forces, economy. And you'll weather it through the loyalty built by providing results, and solutions to seemingly unsolvable problems to your clients. But more importantly, you can now create changes in thinking, and you can do it from every source. Media directors, producers, writers, sales, representatives, all can be parts of solutions, instead of automatons living and dying by scenarios handed to them by third and fourth party number crunchers. If you can do this, you create a win-win-win-win. Everyone gets served from listeners to the station, the agency, and the client. And above all, you. Rather than living and dying by numbers over which you have no control, you can live and die by your own knowledge and experience, and use those numbers as tools, not lifelines. In a similar, and related, context, if a spot isn't producing results with 55+, change the pitch. You CAN sell to higher demos. And I understand that lower demos are easier, and less costly to assault. But the higher demos have more ready cash, and they do spend it. Convincing them may require a different effort. May require more of it....but if once you break through, you've tapped into a gold mine. Getting over that hump may require more effort, but once tapped, that reserve of cash comes with new loyalties, and new willingness to do business. Again, agency accounts (the clients) have done cost of sale evaluations and the main reason they don't buy is the conversion cost. THis is why 18-34 is so important. This is why our group is so excited about being the number one TV net 18-34 in the last Nielsens... that is where the money is... where brand preferences are formed. See above. I understand exactly what you're saying. But my own experience, again, says that there are ways of getting beyond that wall. Sometimes it's a matter of building a relationship with someone at the rep firm. Sometimes, it's a matter of something so absurd that it gets attention. Absurd works. Years ago, a major textile company had a sign in the President's office: "It it's about advertising, I am not in." I went to a hardware store and bought one of those mini doors that lock companies use to show off knobs and locks. I had "what does it take to open your door" and our group logo stenciled on it, and sent it by messenger. The next day, I got a call, an appointment and a sale. The real issue is that access to clients is dangerous... many agencies view it as betrayal, and it costs you. And so many clients are in cities you can not afford to travel to all the time. That's why the relationship is SO important. With the correct relationship, you access clients with willing assistance of the agency. Because you've sold the agency on the benefits of your creative solutions. It happens every day. Once again, research is a snapshot of conditions as they exist pertinent to an array of assumptions. Assumptions that are scientifically arrived at, perhaps, but assumptions nonetheless. And assumptions take on an axiomatic inviolability that is accepted as law within the context of research. However, these assumptions are based on an average of characteristics applied to individuals, and narrowed statistically, ignoring wider, and broader variations in human behaviour, tastes, beliefs, politics and understanding...and a hundred others. Research today is often based on actual observance of families, in the home, like reality shows. Qustions are asked at the end about why certain things were done, such as purchases, menu decisions, etc. It is very in depth and very expensive. But when companies combine this data with sales data, they spot the correlations and that is how they develop marketing plans for many consumer products. Correlations between snapshots based on limited observation and assumptions that serve the correlations. Often they're accurate and can infer motivations. But they cannot actually determin what motivates a buyer. Correlation is not causality. And it's causality that drives action. Getting buyers, listeners, or investors to take action requires that you trigger motivations. Correlation cannot determine that. If you want younger people to move to AM to give a realistic valid sampling of HD, you have to determine what's REALLY keeping them from it. Correlation only says that they should, or they may. Causality says they'll be motivated to. Big difference. Arrived at differently than correlation. It's a pretty specific and scientifically arrived at snapshot. But it's only a snapshot. And like photographs in Life, it's only a picture of a moment. A product of a myriad of influences that are not seen, and are not measured in favor of the more easily arrived at characteristics. The in-homes overcome most of these objections. I don't believe that. I've seen too many times it didn't. Take an example. AM talk formats experience a younger demo ratings spike after moving to FM. The assumption is that they're listening now because of the improved audio quality. Which may be true. Which is likely true. But it's not the only reason. The new format may be where there was an older, less successful station, but with some credible ratings. Suddenly there's a new station there. In most cases we are looking at, it's the same station moved to FM... like KTAR in Phoenix or the KSL situation in SLC or WTOP in DC... or small markets like WNLS in Talahassee. First book, the 35-54 show up. Neever had them before, and then they stay. No format change, no competitive influence. FM is acceptable, FM sounds better. AM does not meet those criteria. You missed my point...taking an AM station to FM puts that content before listeners who have never listened, in a place where there was another station before. It's a new station to the listeners. May be the same format, same content, same station, but it's still new to listeners who never listened to AM. So, yes, new listeners come and they stay. Because, 1) there's a new station, on the band where they're already listening, 2) they like the content. Content drives listening, and no change in audio quality alone will change the listening habits of a listener if they don't like the content. AND, you've hit the nail on the head. FM is acceptable. Yes, it does sound better. But that's not the entire issue of acceptability. We're into our second generation of listeners who for whom Radio IS FM. AM is not acceptable because 'nobody listens,' 'my mom listens to....' and other reasons I don't need to repeat. The issue is exactly acceptability. Sound is a part of that. But it's not a motivator. If it were, every Walkman would be AM Stereo, FM Dolby and Quad with FMX. They aren't. Because audio isn't the issue. It's not the audio, it's perception of unacceptability. If you want younger demos to talk radio, move it to FM. That works. But AM HD won't get you there, because they simply will not give band or anything on it a fair sample. And especially not with all the interstation hash. You talk about being Oldsmobiled? Who listens to AM? The same people who didn't buy an Alero, even though it was a cleaner, more stylsh line, with better performance and more comprehensive features. But it was an Olds. The brand had an image of being "the last car you will ever buy." It was one step away from a hearse. But the Olds was a good car, as good as many American cars. Excuse me there was a typo, there....it should have read, who doesn't listen to AM? the same people who didn't buy an Alero, even though it was a cleaner more stylish line, with better performance and more comprehensive features. It was an Olds. Not interested. AM sounds crappy, and did way before NRSC and such. Whether we blame the receiver manufacturers or the change to FM does not matter. When the same listeners like the same programming on FM, but shun it on AM, it means the band is old, decrepit and it sounds bad. No, it means that the band is old, decrepit and sounds bad, but they shun it because it's not FM. Changing the audio will not change the perception that AM is not FM. They're not listening to AM because it's AM...they're not even getting to the audio quality. Because they're not sampling it. And they won't. It's a foregone conclusion that AM is undesirable. Most importantly, like Oldsmobile, because it's a link to age. Changing the audio won't change that perception. Research infers that younger demos will listen to AM if the audio were clearer. Perhaps. But will they sample it? Honestly sample it? Probably not. "Why" is individually determined, and out of the reach of the research snapshot. But the ones who will not listen to AM now, will not listen, simply because you improve the audio (debatable given IBOC performance I've experienced). It's their father's radio. It's unhip. It's bad sound. Whatever the reason, there's nothing that will get them to sample AM. This is the hope of some that promote HD for AM. It is a last-ditch effort.... I encourage it, because all HD radios will have AM as well and there is a chance that some decent signal AMs may slow down the erosion. The point is not about income, etc. The point is that to create a change in brand preference costs too much and makes the sale undesirable. Actually, 55+ includes, mostly, retired people. And that is where you see the scary figures on how many people live only on social security, and about a million have moved to Mexico because they can not afford to live in the US. Look at income figures overall for 55+ and only a small percentage have any significant savings. And most have very little discretionary income. And it's also where you see the retirees driving Escalades. Business owners vacationing in Italy. Executives spending $12,000 on a watch. It's where you seed big screen plasmas in three or four rooms of a 9000 sq ft home. It's where you see airline pilots living in $450,000 condos in the city. It's where you see airline stewardesses living across the hall from them. There are scary lower income listeners in the lower demos, too. Welfare moms who can't afford heat in the winter, young couples with just enough income to pay the rent, but live on Ramen and Wal-mart bread. C'mon David, you're smarter than this. Radio stations pitch clients every day. Every day. That's what the Sales staff is for. If a station ONLY accepts agency buys, you telling me you have no Sales staff. Direct sellers pitch the client. But most direct money is at lower rastes and with higher maintenance. Agency accounts are serviced more than they are sold. But the money is worth it. I had three sellers for the top billing station in market #13. We tried direct sales, but we got mostly no pay and slow pay and low rates. The clients with money went to agencies. We led the market in revenues and power ratio, because we did not spend on lost causes. No one is saying it's easy. But it's about the relationship, and picking your direct client carefully. There is no money in 55+. No single radio station, and no group can change a client's attitude if the client is going to say, "I can not get a decent ROI on that demo" or "my product was designed for 18-34 year olds and I hope we don't get Oldsmobiled." No one is saying to change the niche. Only widening the niche. Inclusion rather than exclusion. It's all about relationships. Stan Freberg demonstrated three decades ago that you can sell anything on radio. It's the most visual of electronic media. I think that is true Urban Legend. Call the RAB, they'll dig up a copy of the spots for you. They were highly visual. Appetite appeal is so critical to come campaigns that radio, if use, supports recall at POP, not sales. No question. But that's not the only application of radio. And again, widenening the niche. Widening the thinking. And building relationships. It's not impossible. Mel Karmazin said, and repeatedly, I might add, that revenues are commonly linked to ratings. They're not. A station can always outperform it's ratings. Always. And it does so through high expectations, and retaining control of it's inventory, And by believing in possibilities instead of obstacles. Stations that outperform give a specific desirable demo with little spillage, like all sports. They get the power ratios that are close to 1:1. CHR gets 0.7 or 0.8 to one because advertisers don't want the teens. And so on. That's not what he was saying. What Karmazin was saying was that revenue is dependent on demand for your product. Ratings can be related to that, but not necessarily. If you want to create demand, field more sales people. Let them compete with each other to get sponsors on the air. Use a sliding rate card. Drive up the rates. Waiting for orders to come in based on ratings is one way to do it. But you live by the book you die by the book. Creating demand on your own produces results that are recession and ratings proof. WUSN, Chicago remained sold out even after a 50% slide in ratings when Country Music slid off the grid. And they held their rates. WDZ, Decatur had fewer listeners than the police radios, and was sold out. At top market rates. KWKH, Shreveport didn't show up in the book for years, and held top market rates, and was sold out 10 months out of the year. Ratings are one thing. Effective sales are another. Again, perceptions. If you accept them, they become what you believe to be realities. They do not become realities themselves. If you're not succeeding at selling this, then change you pitch. I am pretty sure that in 15 years, WDUV has tried every technique immaginable. None have worked so far. The only failure is quitting the attempt. |
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