Open Letter to Radio: Focus on Your “Bread and Butter” and “Get Better”

August 29, 2019

Labor Day 2019

An Open Letter to Radio:

The last time the Radio Show came to Texas (Austin 2017), advertising giant P&G took the stage and encouraged radio to focus on your “bread and butter,” namely broadcast radio. “It’s a gimme. You’re selling water in the desert, you have what I want. How can you fail at selling me what I want?”

The reason this advice was necessary? John Fix from P&G recounted hour-long meetings with radio companies where for 50 minutes, “I will hear about everything you’ve never done but want to. I hear about podcasts you’ve never broadcast. I hear about targeting, and what I really want to talk about is how you can touch 93% of the United States.”

Radio is a daily companion for employed consumers, who advertisers need to reach. Meanwhile, people who are out of the workforce don’t listen to a lot of radio. They also don‘t have much disposable income to spend with advertisers.

As Procter & Gamble has ramped up its investment in radio, its stock price has followed suit and is trading at an all-time high. Not a bad testimonial for radio, especially for buyers and advertisers skeptical of radio’s enduring strength and dominance in a digital world.

As the saying goes, it’s harder to stay on top than it is to get there in the first place.

For radio to continue to grow and deliver strong ROI to advertisers, those of us working in the industry need to keep getting better.

In that regard, insights into athletic performance and what separates champions from the rest of the field are both interesting and informative.

Researchers have found that champions consistently have a unique reaction to challenges. They view obstacles in a positive light – as opportunities to grow – and overcome them thanks to a “never satisfied” attitude.

This runs in contrast to almost champions, who blame setbacks on external causes, become negative, and lose motivation.

Most notably, researchers have discovered that the best goal is also the simplest: Get better. 

Champions are driven from within. Their primary concern is self-improvement. They hold themselves to high standards, but judge themselves against prior versions of themselves, not against others.

Almost champions on the other hand, focus on external benchmarks, like national rankings or how they compare to rivals.

The research also found that champions seek empowering, lasting mentors. Coaches that empower their athletes and take a longer-term perspective. This differs from the experience of almost champions, who recall their coaches as being focused on immediate results, “often seeming to drive the bus more than the performer.” Not surprisingly, almost champions change coaches frequently whereas champions maintain long-term relationships.

These insights on what separates champions from others applies across radio: programming, sales, promotions, on-air, imaging, management, research, consultants, marketers, software providers, and on down the line.

Advertisers need people across radio to keep getting better and to continue delivering what they can’t get on any other platform – maximum reach to an employed audience with money to spend.

2019 has proven to be an important year for radio and 2020 should be a bumper crop that sets the tone for a new decade as we focus on growing industry revenue to $20 billion by 2022 (#20×22).

We are grateful to work with talented and dedicated professionals across markets and formats as we together enhance radio’s highly profitable business model and ensure an ongoing commitment to operating in the “public interest, convenience and necessity.”

This letter is the latest installment in an annual series that started in 2016, written to coincide with Labor Day, radio’s unofficial holiday, a claim made possible by the dominant percentage of listening that’s delivered by employed persons across markets and formats. Earlier editions of the letter are available here: 2016, 2017, 2018.

On behalf of Catherine Jung, Doug Smith, Jen Clayborn, and everyone at DMR/Interactive, thank you for working to drive radio forward.

Happy Labor Day!

Andrew Curran
President and COO
DMR/Interactive


Amazon Treasure Truck: Inspiring Radio to Raise the Bar

August 9, 2019


With 1 million subscribers across 25 markets, the Amazon Treasure Truck is once again expanding its footprint with an aim to “deliver even more delight.”

It’s a pop up carnival featuring curated daily deals designed to foster brand loyalty and create “new daily habits.”

It’s also an advertising vehicle (both literally and figuratively) as Amazon puts the advertiser and their featured deal of the day on full display.

Supplies are limited, prices are low and the trucks don’t stay in one location for long. According to a article in Vox, “people come out rain or shine for the Treasure Truck.”

Along with picking up your purchase, most stops include free samples, but this is not some discount dumping ground.

“Everything given out on the truck must have a rating of four stars or higher on Amazon’s website, and if the rating slips, the giveaway will be canceled, the goods returned to wherever they came from.

In contrast, most radio remotes have become a box to be checked, which can’t be over soon enough. In a similar way, the prize pickup experience at stations is also a non-event.

Amazon Offers a Roadmap

As the saying goes, “success leaves clues.” Your Super-Fans and Amplifiers have tremendous passion for your brand. Give them and your advertisers an event that demonstrates the true power of your station and leaves them wanting more.

In the article “5 things you should know about Treasure Truck,” Amazon offers the following advice:

1. You’ll always be greeted by smiling faces – meet the delight squad.

2. Treasure Truck runs on happiness.

3. Act fast to get the treasure before it’s gone.

4. We love dogs. And wearing costumes. And especially love dogs wearing costumes.

5. Most treasures come in nifty red bags. Because treasure chests are too heavy to carry home. And these are reusable.

Smiling faces, fostering happiness, demand that exceeds supply, encouraging people to express their personality, taking home a bag that shows you’re part of the tribe.

None of these are out of reach for radio remotes and prize pick ups.

If you’re looking to further elevate your promotional efforts and front desk experience, here are a few more of our suggestions.

Cross reference advertiser locations with your Hot ZIPs as you schedule remotes. Segment your text and email databases into four geographic quadrants, allowing you to push targeted and relevant messages.

When it comes to prize pickup, roll out the red carpet and treat everyone in your target demo like they are a Nielsen panelist or diary keeper.

On behalf of Catherine Jung, Doug Smith, Jen Clayborn, and everyone at DMR/Interactive, thank you for reading and working to drive radio forward.

Andrew Curran, President and COO


Alexa: What Do Radio and Prime Day Have in Common?

July 8, 2019


Amazon Prime Day grabs so much market share – there’s a downturn in retail foot traffic not just for the day, but for two weeks surrounding the event.

That’s what happens when consumers gobble up 100 million items and spend $4.2 billion as they did last year. Up 33% from a modest $2.41 billion haul back in 2017.

Radio has also started cashing in on Amazon Prime Day as the e-commerce giant surged from outside the top 100 advertisers to #13 for the week last year according to Media Monitors.

In addition, rivals including e-Bay and Macy’s, have bolstered their investment with radio and stepped up their game for what truly has become Christmas in July for retailers.

According to a powerful study commissioned by Westwood One last year, “Heavy AM/FM radio listeners represent half of all Amazon Prime Day purchasers.” 

The blog post recap continues, “Full time employment and having kids in the home makes AM/FM radio the engine of e-commerce. According to Nielsen, the vast majority of AM/FM radio listening comes from Americans with a full time job. AM/FM radio is the soundtrack of the American worker. Most AM/FM radio programming formats over index with homes with children.”

These insights are also backed up by independent reporting, including Business Insider, which says, “While Prime members buy an average of $1,400 a year worth of stuff on the website, regular customers only spend $600.”

The disposable income that a regular paycheck provides certainly helps fuel this increased level of spending.

Winning More Occasions From Those With the Most to Give

Nobody knows the value of Prime members better than Jeff Bezos. Here’s what he said back in 2016: “If you look at Prime members, they buy more on Amazon than non-Prime members … they’re looking around to see, ‘How can I get more value out of the program?’ And so they look across more categories – they shop more. A lot of their behaviors change in ways that are very attractive to us as a business. And the customers utilize more of our services.”

Deepening the connection with the heavy users who have the most to give, thereby winning more occasions. Well said Mr. Bezos.

In his ongoing effort to recruit more Prime members, while keeping the ones he already has engaged and spending, he’s once again raising the bar.

This year as Amazon celebrates its 25th anniversary, Prime Day is now a two day extravaganza (July 15-16) with over 1 million deals along with a kickoff concert with Taylor Swift and friends on July 10th at 9pm that can be streamed, you guessed it, on Amazon Prime Video.

At a time when just 8% of consumers describe themselves as brand loyal according to the latest insights from Nielsen, focusing on the employed, heavy users who matter most applies as much to your business as it does to Amazon’s.

On behalf of Catherine Jung, Doug Smith and everyone at DMR/Interactive, thank you for reading and working to drive radio forward.

Andrew Curran, President and COO