The clues are everywhere. Radio's value is being challenged by new media choices for the consumer and the client.

The Station-Centered Website

• Perhaps 5% of all station websites have enough traffic to even be counted by principal web measurement services like compete.com or alexa.com. Even the combined traffic of a large cluster isn’t enough to make a competitive dent.

• New Media, in all its forms, is being embraced by the business world. Texting, mobile apps, search, social media, online video, and online couponing, are making fortunes.

• Advertisers who nickel-and-dime radio rates have wide open wallets for digital offerings.

“We sell ‘Radio’ Dammit!”

We’ve all heard this by now. Radio's big new media selling mistake is how we both think of ourselves and position ourselves in today’s world of new media. We're doing it backwards, to our detriment. If we continue the practice, it will damage us permanently.

1. Of course owners are fixated on protecting the primary asset (the value of which has been in decline anyhow).

2. Most groups now have equity “partners” (superiors), who vibrate when they hear phrases like R&D, new product development or more content. They never got the value proposition of “live & local.”

3. When we started web selling, we needed to account for them, so we created separate line items and separate budgets. Typically they became the on-air budget and the Web/Online/Digital budget. That accounting logic poured over into sales and how we thought about these new revenue streams. We even have separate commission rates for them. We argued about “one sales staff or two?”

4. We put ourselves into discreet vertical sales forces and took those products to market separately.

5. All these divisions, titles and departments, refer to us and what we do. The problem is that most clients aren't looking for any of the above - they're looking for a solution to a problem.

They’re Looking for a “Solution”

Further, they really don't care what the medium is - just that it solves their problem. The answer is to integrate every tool at our disposal into solution packages for clients. Here’s the bulletin: Radio need not be the principal part of a given solution, indeed it might not be needed at all.

Not include radio as the prime mover? Unthinkable, you say?

Let's say we propose 50 spots at $100 bucks a pop; $5,000. What if we could create a solution package that comprises texting, search, a Facebook page and a coupon? Who’s to say that it's not worth $5,000 to the client on its own?

We started our web products by selling them cheap. That's what we think they're worth. However, it’s been ten years since stations started selling online products and in that time the business world now considers them a primary economic mover.

Self-Fulfilling Prophesy

When we identify ourselves to a client, we limit our value to a client by presenting ourselves as the radio solution. Even our business cards show logo(s) of radio stations. That's what the client thinks we do; Radio – that’s all. Why encourage the client to pigeon-hole us into "radio" only? Why must we limit ourselves to one 80-year-old medium and put the entire spectrum of new media – taking the business world by storm - in a minor position?

For example, instead of "Radio Station Account Executive" we could be identifying ourselves to the client as something they’re much more interested in, like…

• Business Development Specialist
• Consultant

• Technician
• Professional
• Counsel, or Counselor
• Advisor
• Solutions Specialist

PS. When we say Business Development, we’re talking about their business, not ours.

The Smart Guys

• Beyond station-oriented sites, the smartest broadcasters are creating separate community or local life-style sites - separate businesses. They’re finding that there’s major revenue in user-generated search, using their stations as promotional tools for the new sites, which gives them an awesome advantage.

• I’m constantly impressed with Emmis Interactive’s commitment to new ideas. I’m familiar with a couple other broadcast companies doing a spectacular job in this area who’ve requested that I not mention their names.

Imagine

We’ve been handed an entire spectrum of new media that requires no federal licensing, no financing, no tower, no EPA or FAA approval. It has an unlimited signal and requires no major capital commitment. We have an existing infrastructure to create content, salespeople who can sell it, tons of existing client relationships. Finally, we have radio stations that can promote all of it better and cheaper than the pure-plays. Not just the website, but also texting, online couponing, mobile apps and video, which are only a few of the opportunities.

And now comes the Smartphone and the iPad, another revolution in connecting with consumers, containing even more opportunities to show business that we know how to move product for them.
Radio is in a breathtaking position, to do and make so much more if it embraces all the new media innovations as a co-equal to radio and not a step-child to radio. If we pass on the opportunity we’re passing on our future.

What do you think?

---

Jim Taszarek is a media veteran having successfully managed sales in radio, TV, print and online. He now consults, strategizes with and speaks to scores of media companies and State Broadcaster Associations. He loves this subject and would enjoy visiting with you. taz@tazmedia.com and/or (480) 970-4200