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Tuesday, May 25, 2010

Digital: Radio’s Third Silo?

Digital: Radio’s Third Silo?

If you’ve ever been to the Midwest USA, you’ve seen silos—the big structures that store corn or grain. If you’ve ever worked in radio, you have also likely seen silos—programming and sales.

Radio has long struggled with “silo thinking” where each department stands alone with little or no interaction with other departments. Programming minds their own business while sales minds their own business. Then, occasionally in the department head meetings or via an unfortunate Promotions Director, they’ll volley information and power-grabs.

Now, “digital” appears to be taking a position as radio’s new “third silo.” In most cases, a station hires an Interactive Sales Manager and a “web kid” and gives them a spare cubicle to share with the charge to “go make some magic.” Then, the other silos, programming and sales, carefully avoid too much interaction with them, so they’re not accountable for any more effort or results.

Like any typical silo in an organization, digital struggles to get the attention, priority, or team involvement of any other department. Recently, I spoke with one station’s Interactive Sales Manager who told me that he would be unable to build out a new lifestyle web portal for the station because the programming department “doesn’t have time to help with digital sales initiatives.” Frankly, that PD ought to quit and go back to working in 1987.

The reality of the radio business in 2010 is that everyone is in the business of audience influence—whether its on-air, online, or otherwise. Teamwork across the boundaries of departments (or silos) is the only way to really profit now.

The programming department is producing content that is distributed over a variety of channels (on-air, online). They are influencing audience—not just “creating an audio channel.” The audio channel is a tactic—important, but not the big picture. Influencing audience is the strategy.

The sales department is working with business partners to create messages that motivate and direct the audience’s buying behavior. If the sales department sees themselves as “spot sellers,” they’re also only thinking tactically—not strategically. They are missing the big picture. Spots are just one tactic that can be used to influence the audience’s buying behavior. Audience influence is what they are selling—not spots.

Resist the temptation to put Digital on its own island. Everyone works in the “digital department” just like everyone works in the “FM” department or “AM” department. While your station may have someone to spearhead the company’s charge into the digital space, they will only succeed with everyone’s help.

The best way to encourage teamwork across departments is to structure compensation in a way that rewards teamwork. If your programming department only gets a bonus based on ratings, you are missing a good opportunity to incentivize them and open their minds to the “bigger picture” of your company. If your “digital head” is only earning a bonus based on their own online sales, they are not incentivized to involve the entire team.

Where are the barriers between teams in your organization? Look for the silos and encourage team work around them. Integration = Profit!

About the Writer

Display Daniel Anstandig is President and Co-Founder of Listener Driven Radio, a software company revolutionizing interactive radio programming. Future-minded and passionate about the the digital radio convergence, Anstandig develops content and sales strategies for digital media companies. Reach Daniel at connected@radio-info.com and by phone at 216-965-5440.

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