Sales & Management

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No Soup For You

By Lindsay Wood Davis, Broadcast Management Strategies

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Radio’s institutions are all reacting differently to the triple-whammy of Time, Technology and Tight money. The responses that these institutions choose will obviously weigh heavily on the reactions that come from Radio. One institution that I wrote about a few weeks ago, NAB, has chosen to seek new leadership. In the meantime another, Radio and Records, decided to go ahead and jump off the Tallahatchie Bridge. Here’s another, very different, example:

As one who literally grew up in Radio, I remember when Arbitron was “The American Research Bureau, a division of Control Data.” For sometime after that, their studies were called the ARBs, because ARB was what they called the company. However, no matter when you began doing business with them, what their clients thought of Arbitron really didn’t change over the years. Difficult, unyielding, pompous, authoritarian, stingy, bullying, stiff-necked; all of these were used to describe the folks from Maryland. If you stood around a bar at an NAB or RAB conference and overheard the term, “arrogant bastards,” the odds were at least even that the conversation involved Arbitron.

Customer relations with Arbitron often felt as if it was based on the famous Seinfeld episode about the Soup Nazi. Do it EXACTLY their way or, “No soup for you!” At anything less than the very top, it often didn’t seem to matter who you were dealing with, either. Somewhere in the great Arbitron training and indoctrination process there must be a secret blood-oath ceremony where one swears to always look for the hardest way, the more difficult course, the path of greatest resistance.

Are there exceptions to this? Oh, of course there are. Arbitron has (and has always had) many great employees. And most of them are fully aware that they work (or worked) for a company whose arrogance fit it like a patent-leather cat woman suit.

So it comes as more than a bit of surprise to find that things appear to actually be changing at Arbitron, and that those changes seem to be very much for the better. New CEO Michael Skarzynski is employing the ancient management dictum that, “a new broom sweeps clean” as he blows out position after position, and replaces the departed with dreaded “outsiders.” Thank the Good Lord. There is at least a chance that these new people won’t have taken the blood oath (at least not yet). In spite of the loss of a number of good souls who would be a credit to any company, no organization anywhere near as important to Radio needs a thorough cultural housecleaning as badly as Arbitron.

After the most recent round of upgrading, there was some discussion that perhaps Arbitron was in danger of losing its “institutional memory.” I certainly hope so! The sooner that Arbitron forgets that they have the only answer, or that they alone even know what the question is, the sooner Radio has a chance to be well-served by this important business.

Radio done right has always been a test of the mixture of Art and Science. Because (with a few notable exceptions) Arbitron has almost always aced the science part of the exam, they must have missed or just ignored the fact that, year in and year out, Arbitron flat-out flunked the Art portion, the part about transparent business practices and top-notch customer service. Perhaps Michael Skarzynski understands that the mixture of Art and Science isn’t an either/or proposition; his predecessors seldom did. Arbitron was tone deaf to Radio’s objections because they either didn’t know how to listen or just didn’t care. Let’s hope that what we are seeing is a sign of real change.

There will always be challenges and conflicts with a supplier as important to Radio as Arbitron. Today, it is the continuing PPM roll-out and how they handle the very real uproar over Hispanic PPM. Tomorrow, it will certainly include how well Arbitron succeeds in directly helping Radio develop new business. But how refreshing the idea that our industry, our ownership and interest groups and our individual stations can have conversations WITH Arbitron rather than have Arbitron simply deliver its pronouncements from on high.

Scrub behind every counter in your kitchen, Mr. Skarzynski; we'd very much like to buy your excellent soup, but we're tired of the heaping portions of bad attitude that so often came as an unwanted side dish with every order. Scrape in every corner, and build us a new business that can deliver what we need, what we want, when and how we want it. We'd love to be your satisfied customers.

Lindsay Wood Davis, Broadcast Management Strategies
lwdnrg@aol.com

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From NAB Radio Show: Radio got "fat and happy" and vulnerable

GAP Central CEO George Laughlin says in the past, the radio industry “looked at the 50-60% margins, and we stuck it in our pockets. We didn’t try to keep up with the other media.” Now radio’s got to play catch-up in areas like investing in new media, and its own talent. Answering moderator David Kennedy’s question about what radio should have done differently, Regent’s Bill Stakelin says “we’ve been out-shouted by other media, we’ve been out-promoted by other media. We’ve pulled back on marketing, pulled back on research.” Charles Warfield of ICBC (and the current NAB Radio Board chair) says “I see us pulling away from our industry” at the very moment in time when stations need to support the NAB, RAB, state broadcasters associations and local groups – especially to fight threats such as the performance royalty.

Layoffs at the Radio Advertising Bureau; annual RAB show moves alongside NAB Fall show

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Radio-Info hears that Executive VP of Training George Hyde and Executive VP of Services Mike Mahone were laid off today. While President/CEO Jeff Haley says “we will further reduce our staff by nine positions in Dallas this week.” Haley says there will be “a renewed focus on membership” – led by Executive VP/Stations Ron Ruth. The other news is that after many years of talks with the NAB, the annual RAB sales training conference will be co-located with the NAB’s Fall Radio Show – beginning in 2010. The RAB has already held its 2009 meeting, earlier this year in Orlando. Why the changes in personnel and convention-siting? Radio-Info’s T-R-I newsletter has speculated about financial pressures on the RAB. The Boards are discussing it here:

The Radio Advertising Bureau re-thinks its pitch to advertisers

RAB_logoCEO Jeff Haley has made few changes since he took over for longtime RAB chief Gary Fries - until now. Haley's re-structuring the national marketing department into two units: a business development group dedicated to calling on "key advertisers", and a new Marketing/Communications department to be run by Leah ("LAY-uh") Kamon, who joins from Haley's former company, Time Warner. Kamon takes the position of Senior VP, Marketing & Communications, and she'll report directly to Haley. Expect more to come about the "Radio 2020" initiative that was announced at last Fall's NAB Radio Show in Charlotte - something Kamon will be focusing on. One consequence of the re-organization is that 12-executive VP of National Marketing Mary Bennett is leaving, with Haley saying she's done "25 years of work in her 12 years here."

"The goal is to have an FM radio in every PDA and cellphone"

Jeff_Haley_with_Dual An FM tuner is "the #1 accessory" for the iPod, says RAB chief Jeff Haley in this morning's keynote speech in Atlanta. He urges the industry to set a goal of having an FM on "every PDA and cellphone." Haley didn't just talk about the new devices that were showcased at last month's CES - he demonstrated them, using working models, including a Dual in-car unit that transmits timely traffic and other info to the dashboard with MSN and (in Atlanta) Clear Channel. (That's Haley in the picture, at the controls.) Haley also talked up the Radio 2020 initiative, announced at last September's NAB Radio Show in Charlotte, to #1, address radio's concerns "head-on", to #2, "engage the industry and technology partners", and #3, to engage consumers who "need a little nudge to re-ignite the passion." Haley also delivered a strong endorsement of posting (guaranteeing delivery of audience to advertisers) and an "unprecedented joint venture with Katz and Interep" to market radio to new advertisers. He says radio "must speak with one voice" on the subject of electronic measurement - whatever the choice of systems is - and he says "we're our own toughest critic." But radio remains "the #2 most consumed medium in America."

NAB and RAB cooperate on a new "Radio 2020" campaign

NAB_logoThough the research behind the campaign found that listeners want more variety in station playlists and more local control, NAB President/CEO David Rehr says the positives include accessibility and almost universal use. The marketing drive by the NAB, RAB and HD Radio Alliance points to where radio wants to be in the year 2020. Read the NAB's release here.

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