Industry Views

SABO SEZ: What You Need to Know About the “Law of 200”

By Walter Sabo
a.k.a. Walter Sterling, Host
WPHT, Philadelphia, “Walter Sterling Every Damn Night”
and TMN syndicated, “Sterling on Sunday”

imgThe risk is real. Suggesting that a technique used with great success in the recent past might be beneficial to the present is a perilous course. Is the idea out of touch with today’s reality? Is the author ignoring current trends?

A factual current event from which our industry and our lives suffer: Sales are down. Sales for the radio industry are down every quarter.

Hard research-and-math-people will point to the usual causes. Add to that list the fact that the same dollars that bought spots priced at X for the big morning show are being fed into podcasts for 10 percent of X. But podcasts are digital! Therefore, they are sexy to Wall Street. The result of that dollar transfer is quarterly investor calls featuring CEOs declaring that “digital is a sweet spot.” Actually, “digital” is a cheap whore but back to the topic:

Methods deployed to sell radio today are not working. Salespeople work hard, but the strategies they are given are weak. That’s why sales are down – every quarter. Spreadsheets, ROI, CPP, programmatic are elegant math-major systems. But our product is not math. Our product is emotion. Match sales techniques to the product. Tap the power of emotion.

Everything is ultimately purchased from our emotions. Everything.  Case in point: Joe Girard* understands cars better than anyone in history. No, no, don’t be dismissive of Joe because he was a car salesman; cars are very expensive. Cars have impacted you and your family for years. Cars make you feel great or awful. Powerful purchase.

Happy Birthday! One month a year, Joe would mail out a birthday card to all of his past customers and all of his prospects. All of them. In the same month. One out of 12 recipients were thrilled that Joe remembered their birthday! The other 11 would call Joe and tell him that he had their birthday date wrong. They called Joe. A car salesman.

Joe gave all of them information on the phone about the latest models and deals for… a new car. They called Joe.

The Law of 200. Catholic funeral masses hand out prayer cards featuring a photo of the deceased. Ask a priest how many cards are printed. The answer is 200. Caterers will tell you that the standard number of wedding guests is… 200!

Seems we know 200 people who will come to our wedding and our funeral. Major life events. Buying a car is a major, emotional life event. Joe realized that if he sold a good car, 200 people would learn that the customer was satisfied.

OR 200 were not happy. He gave all car buyers a box, a box of his business cards. 200 cards. He urged customers to hand out Joe’s cards to their friends.

Do those 22-year-old time buyers still want concert tickets, merchandise, meals, autographs, meet and greets? Before the power point presentation starts, book the good seats.

Yes, our product is emotion driven. How many arguments have you had about music repetition? New music? Controversial topics? Borderline morning show jokes? Those are emotional not intellectual discussions. There’s our power – in the center of the rink. Put the commercial on the mat.

How to Sell Anything to Anybody by Joe Girard https://a.co/d/fTpuzoZ

Walter Sabo has been a C Suite action partner for companies such as SiriusXM, Hearst, Press Broadcasting, Gannett, RKO General and many other leading media outlets. His company HITVIEWS, in 2007, was the first to identify and monetize video influencers.. His nightly show “Walter Sterling Every Damn Night” is heard on WPHT, Philadelphia. His syndicated show, “Sterling On Sunday,” from Talk Media Network, airs 10:00 pm-1:00 am ET, and is now in its 10th year of success. He can be reached by email at sabowalter@gmail.com.

Industry News

SABO SEZ: Cash Comes from Ideas, Not Budgets

By Walter Sabo
a.k.a. Walter Sterling, Host
WPHT, Philadelphia, “Walter Sterling Every Damn Night”
and TMN syndicated, “Sterling on Sunday”

imgThere are two broad categories of thought: Task. Creative. When in creative mode, a person innovates, imagines, plans, and solves problems. An idea bank is a bank! Money grows from the results of imagination: new products, new music, new formats, new sales strategies. Business growth depends on new!

Task mode is focused on the past. Accounting, legal, sorting, painting, mowing, eating, surviving. Tasks are essential activities but financially break even, at best.

Your colleagues probably suffer from thoughts of radio industry consolidation and cutbacks. Personally, there was a moment in my career that still haunts me at this writing. A moment more profound than consolidation or repeal of FCC ownership financial requirements.

The crash moment in the history of radio was when a program director uttered these words:

It’s not in the budget.”

The words were less shocking than the source. Owners and general managers had said, we don’t have the money, but never the program director. Program directors, in my experience, lived in a charged creative fantasy. They imagined better shows, contests, DJ patter, bigger, better, fun-er radio for bigger ratings. Programmers thrived in an environment of creative challenges rather than tasks. PDs were often not even shown their budgets.

Creative-mode results in breathtaking promotions (win a house, win your rent, win a six pack of Corvettes.) Audience-daring formats such as album-oriented rock and all sports. Exciting air talent: Howard SternNeil RogersJake FogelnestJohn Kobylt.

Programmers heard general managers say, “A good salesman is one with a good product.” Or, “If you deliver ratings, the sales department will sell it.” Intuitively, general managers and owners knew that if they kept their programmers and talent on the creative side of their brains, the station could succeed.

There were conversations between general managers and program directors when the PD would have “suggestions” about sales and the GMs would say, “That’s the sales manager’s job” and shut down the PD! Therefore, PDs were kept on the creative side of their brains, the idea bank.

Driving a new idea, a new format, promotion, or on-air technique demands a programmer’s knowledge and passion. Without passion, few new strategies are launched. Birthing a new idea in radio is way too difficult to achieve with just logic. New ideas come to exist by fighting for budgets, fighting to win acceptance from staff.

New ideas are worth the fight because they can bring audience growth and fresh cash.

As the industry puzzles over declining sales, declining youth listening, and declining buzz, don’t blame consolidation and streaming. Blame owners that have given programmers the ultimate excuse to not try new ideas, not push new promotions, not embrace fresh talent, not take risks that lead to growth. “It’s not in the budget.” 

Shut the door on your way out. 

Walter Sabo has been a C Suite action partner for companies such as SiriusXM, Hearst, Press Broadcasting, Gannett, RKO General and many other leading media outlets. His company HITVIEWS, in 2007, was the first to identify and monetize video influencers.. His nightly show “Walter Sterling Every Damn Night” is heard on WPHT, Philadelphia. His syndicated show, “Sterling On Sunday,” from Talk Media Network, airs 10:00 pm-1:00 am ET, and is now in its 10th year of success. He can be reached by email at sabowalter@gmail.com.

Industry News

Seasoned Radio Journalist Veronica Carter is the New Co-Host of San Diego’s Morning News on KOGO-AM

Industry News

RHoF Opens Nominations for Class of 2024

The Museum of Broadcast Communications announces the Radio Hall of Fame nominating committee is accepting suggestions for 2024 nominees now through Sunday, March 31 at 11:59 pm PT. Submit suggestions for possible honorees for consideration here. Twenty-four names will be selected asim nominees to be voted upon by industry personnel later this year, leading to the selection of the 2024 Radio Hall of Fame Induction Class. Kraig T. Kitchin, co-chairman of the Radio Hall of Fame, comments, “The input from fellow radio industry members and listeners alike helps our nominating committee contemplate so many more individuals worthy of a nomination. We’re grateful for the input and the ideas offered.”

Industry News

Kraig T. Kitchin is This Week’s Guest on Harrison Podcast

Noted talent manager, advisor and chair of the Radio Hall of FameKraig T. Kitchin is this week’s guest on the award-winning PodcastOne series, “The Michael Harrison Interview.” Harrison states, “Kraig is one of the smartest, most-respected and congenial behind-the-scenes movers and shakers in the radio industry. His illustrious career goes back decades and his positive contributions to the radio business – including advising some of its greatest talents including the late Rush Limbaugh – have been indelible and immeasurable.” Kitchin was honored several weeks ago by the TALKERS magazine editorial board with the highly prestigious Jim Bohannon Memorial Award for Lifetime Achievement in Radio. Since 2008, he’s been president of the talent management firm, Sound MindLLC. He also serves as a strategic advisor to Oxford Road, a media placement agency with more than 50 clients specializing in audio advertising. Kitchin also serves as chairman of the Radio Hall of Fame to which he was appointed in 2014. Prior to launching his own firm, after working his way up in the industry through local radio and then national agency sales, he was one of the founders of Premiere Radio Networks in 1987. Harrison and Kitchin discuss the quirky role of ego and psychology in the talent business as well as today’s rapidly changing fabric of communications and culture. Don’t miss this! Listen to the entire podcast here.

Industry Views

Premature Ejection

By Michael Harrison
TALKERS
Publisher

imThere are media and there are media. There are platforms and there are platforms. Not all cultural artifacts are equal in terms of their utilitarian versus cultural value. Damn the tone-deaf corporate bean counters who are ripping the heart out of the spirit that gives humanity its life force! Marketplace obsolescence should not solely be determined by profit and loss. With all due respect to the idea of public service, what about the concept of loyalty? Shame on the automobile industry! Not only is it turning its back on the needs of millions of people, it is in the process of betraying one of its historic partners in not only commerce – but romance and glory. In other words, the automobile industry owes the radio industry a huge debt. The relationship between cars and radios goes a century deep and has been nothing less than a two-way street. Yes, auto industry, don’t be so hasty to save a few bucks by rushing AM (and then FM) radio out the door. You might just find in the long run that “radio” outlasts the private “car” as a fixture of human activity.

A radio is not a cassette, CD, or 8-track player. A radio is a magic box that embodies a century of culture during which it spun the idea that taking a car ride is a lot more soulful than spending time getting from point A to B via the subway, bus, or plane. The car has been the perfect radio-listening chamber and radio has returned the favor in spades with its music and DJs glorifying everything from little deuce coups to Cadillacs to the T-Bird that daddy took away – not to mention bolstering the ubiquitous culture of automobiles with traffic reports, news, weather, and endless references to this particular form of transportation as being a key component of what it is to be a member of society. Radio has provided the car biz with a century long, non-stop free or generously bonused commercial!

From a purely economic position of self-interest and greed, it is understandable why car manufacturers might consider AM radios expendable and are eager to toss them out like the aforementioned obsolete devices of music conveyance.  So, what if millions of people still listen to it and DEPEND on it for free speech, religious expression, ethnic connection, demographic habit and public safety. Couldn’t the car manufacturers wait another decade before turning its back on such an important – and still vital – relationship?

Hey auto industry, be careful what you’re doing. You’re severely mistaken if you think your poop doesn’t stink and your place in our rapidly changing society is guaranteed. You might find rolling along in this brave new world without radio turns out to be a very dangerous road.

Michael Harrison is the publisher of TALKERS and can be reached via email at michael@talkers.com. Meet Michael Harrison at TALKERS 2023 on Friday, June 2 at Hofstra University.

Industry News

Radio’s Digital Sales Approaching $2 Billion

According to data from RAB’s newly released 11th annual benchmarking report in partnership with Borrell Associates, the radio industry is poised to hit $2 billion in digital sales this year. RAB says, “In 2022, radio stations drove $1.8 billion in digital sales, up 21.1% for the year. Those sales accounted for nearly one in five advertising dollars, with a fast-growing portion of it coming from the sale of streaming video advertising. That has led to a ‘tipping point,’ the report concludes, with half of the industry’s top-line growth expected to come from digital sales in 2023 and more local ad revenue coming from video streaming than audio streaming spots.” RAB president and CEO Erica Farber comments, “Digital continues to be the catalyst for growth in today’s environment. A solid foundation in digital is a key driver for today’s successful marketing professional. As technology evolves, revenue and sales gains can only be obtained via digital services and training know-how. RAB continues to provide the training, tools and services needed to realize these gains.” The annual report shows that digital sales in 2022 comprised 19% of total ad revenue, representing between $85,064 for the average small-market station and $1.2 million for a station in a large market. Some market clusters were making tens of millions of dollars from digital ad sales. The full report – an analysis of online ad revenue from 3,753 radio stations, as well as survey responses from 851 local radio buyers and 169 radio managers – is available to RAB members.

Industry Views

Radio’s Valuable Asset

TALKERS publisher Michael Harrison says one of the most valuable assets possessed by the radio industry, at this juncture, is the actual word radio itself regardless of which platform carries its content. At this morning’s TALKERS editorial board meeting, Harrison stated, “The rush to abandon the word radio in favor of audio is short-sighted, foolish and a case of throwing the baby out with the bathwater. This trend is indicative of a major blind spot regarding the basics of media theory and the delicate three-way relationship between form, content and institutional branding.”  Harrison continued, “The rush to convert the ‘magical’ business and products of radio to the utilitarian term audio is akin to the motion picture industry theoretically abandoning the words filmmovie or cinema in favor of video… or the journalism industry trading in the word news for information or data… or the automobile industry ditching the word car for vehicle.”  Harrison concludes, “Looking back, maybe the captains of the railroad industry should have stayed in the train business after all and focused on modernizing and improving it as opposed to getting hung up on transportation and winding up with nothing.”