Showing posts with label RBR. Show all posts
Showing posts with label RBR. Show all posts

Monday, November 25, 2013

Making A (Position) Statement

Is your "position" in your market what you say it is?

Legendary programmer, manager and consultant Neil Gallagher told RBR a story a couple year ago about a battle in Las Vegas which answers that question:
There once was an A/C station that dominated their major market.  They had the best music images in the city. They were well known for presenting the grandest, most desirable contests and promotions with the most expensive and desirable prizes.  They had the highest rated morning show with the city’s most popular radio personalities.  They had an enormous database of at-work listeners that they worked religiously. They were the area’s dominate television and outdoor advertiser, presenting creative messages that tested extremely well in focus groups and articulated their benefits creatively and succinctly and in an extremely entertaining fashion.  They had the most aggressive street presence in the city, appearing at virtually every event in the entire region with an imposing fleet of stunning vehicles.  They owned the weather and traffic information images with their helicopters in the air, immense cellular phone reporter network and the market’s top television station’s popular, experienced and attractive weather reporter appearing frequently throughout every hour of the morning show.  They were the poster child for being a wildly successful, dominate radio station. 

They had very deep pockets allowing them to fend off any attack someone might contemplate. But they also had one very small “Achilles Heel” – a lack of strict discipline in music programming.

They were not alone in the format as there was a relatively new-to-the-format station in town that was very strategically oriented – and more disciplined. 

Both stations used extensive strategic research.  Both stations played similar “Power” and “Secondary” songs. Both played “Lunar” rotation songs for variety. It was this third category that was the narrow point of attack for their competitor.  Both stations had different philosophies on how to present Lunar songs: the dominate station would play the newer releases they thought everyone would enjoy and a wider variety of gold that received less airplay over the years while their new competitor played songs that were well established from considerable air play over the years.  Most radio station music programmers were tired of hearing these songs as they have been played to death in the minds of the music directors and they rationalized that listeners felt the same way. 


Here’s where the competitor’s focus and discipline paid off big time.  
At the dominant station, the average “like-a-lot” and “like-some” totals of the newer songs and wider selection of Lunar gold records played was 20.  This is because the newer songs hadn’t had time to establish yet and the “fresher” oldies based songs, though less tired, did not have as much passion with the audience.

On the new competitor station, the average “like-a-lot” and “like-some” totals was 40. In spite of the fact the programmers felt extreme discomfort playing those songs (feeling the songs were completely ‘burned’), they had the discipline to trust their instruments (research) and the laser-like focus to continue to attack on this narrow gap.
 

The Lunar songs were twice as popular on the competitor as on the dominant station (40 compared to 20 “like-a-lot” and “like-some” totals.)  Lunars were approximately 35% of both station’s playlists.  That meant that overall, the competitors music was 17.5% better than the dominant station's on average (50% of 35%.) 

The luxury casinos on Las Vegas Boulevard were all built on a 6% spread.  Within a few years attacking on this narrow distinction, the competitor took over the lead in the format by a margin of over 2 to 1.  In fact, the former dominant station continued to lose audience to the newcomer and left the format a year later in major defeat.

Lest you think this was some weird anomaly, consider this information that The Research Group’s leader, Bill Moyes sent out to their clients in the mid-1980s. 

The following phenomena are still true today:

  1. The average listener makes their decision on whether you will be their P-1 radio station based on the first 15 to 20 minutes or so that they listen.  So every quarter hour of your programming has to be great.
  2. Of all the different things that would influence a listener to become a P-1 of the station, music is the most important (in a talk based radio station, the equivalent would be the information relevancy and desirability).
  3. The image “playing the best songs for your taste” correlates 3 times as much in forming P-1 status than does having a “fun morning show” or playing “lots of music”.
Remember: nothing kills great advertising like a bad product.

Both stations no doubt hammered "the best music" as their tag, yet it took listeners just one quarter hour to figure out for themselves which one was better.

This is why it's now pointless, if it ever was, to mindlessly repeat a slogan over and over.

Wednesday, May 13, 2009

Bob Pittman: "If TV Is America’s Hobby, Radio Is America’s Companion"

Jim Carnegie at RBR just snagged a fascinating interview with "The Father of MTV” and former AOL Time Warner COO who has remained an active investor in broadcasting:
"The way I’ve used it as a marketer in the past is I used TV to create desire – I’m going to go visit Six Flags this summer. The problem is people think I’m going to do something and then they forget about it, it drops out of their mind. I use radio to remind them – constantly reminding them, remember we’re going to Six Flags, let me tell you about Six Flags. I’ve created the desire to go with TV. I’ve created the reminder to go with radio. I think it still does that extraordinarily well.

"One of t
he reasons the prices are so low is it’s almost impossible to get much leverage, much debt, much credit and if you own a bunch of TV stations and you already have a credit facility you don’t want to start all over again because you’ll never get a deal as good as what you’ve got now. So I think you’re finding even though everybody recognizes the opportunities are out there, there are some impediments to buying them. I think the second issue is that everybody is looking for deals and everybody who has got the TV stations are like people that have an apartment in New York. The prices are down a lot, thank God I don’t have to sell. All it says is buyers right now are shopping for a deal because of lack of credit and a lot of other issues so they will only buy if they can get it at distressed prices and unless you’re distressed you won’t sell."