| A Moment of Embarrassment
Long, deadly silence. All eyes were on me, and I imagined all 30 people wondering how I could ever have been placed in the position of CEO for a technology company when I didn't know this basic terminology. It would be like a supposed radio person being asked about the transmitter and not knowing what a transmitter is. I imagined all those people snickering inside. I was embarrassed. Even though I was there to build a company and had surrounded myself with experts who had the answers, I knew at that moment I had blown it. A Defining Moment This was a defining moment. I knew that from that point forward I had to be better prepared. Here I was, meeting with companies like Cisco, Intel, Apple, Microsoft, Oracle, and now that I was the CEO of a technology company and doing business with these people, I had to be better informed. It was an important lesson, and I swore at that moment that I'd never allow that to happen to me again. What about you? You can do radio in your sleep. If I were to awaken you from a dead sleep and throw a question at you about running a radio station, you would give me the right answer. But could you answer important questions about what is occurring in the advertising world as it relates to digital media? Most people I know in the radio industry couldn't answer even basic questions on that topic. In fact, most of the managers and owners I know have fallen seriously behind in their knowledge of digital media and how it is impacting their business. Yet to advertising executives who focus on digital media, it would be hard to believe people in other media don't understand these basics. No Need To Be Embarrassed Frankly, you have a great excuse. Let's see.... you're running a cluster of stations when you used to only run one. You're operating at record speed, doing more work than ever, and you're doing it with fewer people and resources. Then, of course, there is the pressure from the top, the paperwork, the budgets, the meetings -- all of which you have to tend to before tending to your own staff and customers. Or perhaps you're not running a cluster for a big corporation. You're running an independent operation on limited resources, with reduced spending because of the state of the world and a lot more to do. In any case, you have a great excuse. Of course, maybe when you're asked questions, you're answering them to the best of your ability -- and maybe the people on the other side of the table are quietly snickering at you. I hope not. Why It Matters That You Understand Digital Media Now I don't claim to know everything going on in the world of radio, but I try to stay very close to it. I speak with loads of managers weekly, loads of advertisers, and loads of digital people. I can count fewer than 50 people in this industry who really have a grasp of what is happening to media, and to radio. These are the same people who roll their eyes in frustration when they hear most radio people talk about a "digital strategy" that they know is not even close to being a real strategy that will hold up. The Frightening Radio Perspective Radio people I speak with mostly believe radio isn't really changing all that much. Most simply don't see it and feel as though the status quo will carry them through to retirement. Yeah, some have a real digital strategy, and a few are way ahead of the others. Most, however, don't know what they don't know. The Concerned Agency Perspective The advertisers I speak with are a different animal. Most will tell you that their clients are demanding the lion's share of media spending go into digital. Pepsi recently spent $25 million on social media and generated huge results, with very little radio and TV to accompany the campaign. Agencies know advertisers are shifting dollars, and they also know that if they're not up on the digital space, they will lose the business. One major, old school, established mega-agency in New York told me it has lost 50 percent of its business to a small, digitally focused upstart agency. The Lofty Digital Perspective Digital people, of course, think radio is dead because there is no longer a need for transmitters and digital delivery offers such a robust interactive experience. When they hear us clinging to our transmitters, they think we're living in the dark ages, just as we think they're way out there because they think radio could possibly die. The Practical Local Business Owner Perspective The other day at a street fair I saw a bunch of young people in lime green T-shirts promoting something. I saw them hop out of a hip, well painted van, and naturally I thought it was a radio station promotion. As I walked closer, I realized it was a team from a national Internet company that sells to local advertisers in the market. There was no radio station promoting at this street fair that almost everyone in town attended, but an Internet company was out there. Naturally, I took one of their flyers, signed up for their service, and get their daily e-mail with wonderful local business offers. I also received an e-mail saying they are looking to hire a couple of dozen media salespeople in the market and offering perks, a great base salary plus commission, and a $10,000 signing bonus. Gulp. This is radio's new local competition. I've told many people about my neighbor Andy, who stopped his local media advertising and shifted his budget to Google search. He claims he gets better results and saves 75 percent of his budget. He used to be a big local media advertiser. Do you see where this is going? Local advertisers are no longer just hearing from radio, TV, cable, newspaper, shoppers, and direct mail companies. They are hearing from local Google and Yahoo reps, plus reps from dozens of local and national digital media companies. When I click open Facebook, I'll see a relevant advertiser in my neighborhood. The other day I listened to a radio station streaming from France and an ad popped up on the player for a local plastic surgeon in my town. The targetability is incredibly efficient. I'm not saying I've lost an ounce of faith in radio. I am saying we're being assaulted from every angle, and using a digital strategy that amounts to "radio is great for driving traffic to websites" won't cut it anymore. Your station needs to be able to compete on a whole new level, or the revenue losses will be staggering. Most traditional media companies think the recession alone drove the declines in business, but it's deeper. There is a giant shift taking place. Me, The Ostrich With My Head In The Sand I'd rather stick my long feathered neck into the sand and avoid all this change. But I know that it's my responsibility to remain relevant, to understand the trends, and to help radio take action. Far too many managers and owners also have their heads in the sand, hoping to pop out someday when everything is back to normal. The "new normal" is frequent change. Sticking to our knitting will render us irrelevant in the eyes of most advertisers, including local advertisers. The Inside Of A Bottle Roy Williams, who writes for Radio Ink and is a brilliant marketer and author, used to talk about how most business owners see the world from inside the bottle and how the only way to thrive is to see yourself as the world sees you, from the outside. Peter Drucker always said innovation is next to impossible from insiders, and that innovation always comes from someone who doesn't understand the industry. Meanwhile, those inside the industry are always caught saying, "How could they possibly succeed? They don't understand our industry." But look at how many industries have been displaced in the last 20 years alone. Ask Kodak about their business. Ask a travel agent, if you can find one. Why Outsiders Rule I don't claim to have all the answers for radio, but I know Drucker was right. Therefore I see my role as helping you gain new perspectives so you don't become unemployable, irrelevant, or the one your advertisers are snickering at. It's why I do my Convergence conference and why I bring in outside names to speak to you and open your eyes. Maybe you've heard of some of them, others you'll never have heard of, yet I'm bringing people I believe you need to hear. I'm trying to make your head spin. I want to take you out of your comfort zone. Radio Ink has lined up four outside keynote speakers for Convergence 2010: Speaker, author, and social media guru Guy Kawasaki; best-selling author and Internet marketing pioneer Jeffrey Eisenberg; Promote A Book founder Michael Drew; and Greenspun Media Group/Las Vegas Sun Sr. Editor/Digital Media Rob Curley. These people have things to say that you need to hear. And yes, we have many other brilliant minds; more outsiders and some great insiders who will give you survival skills and help put a strategy in your brain so you can return with an arsenal of practical ideas. You may return from Convergence as the only radio person in your market whom clients can truly count on to understand the digital media landscape. Can you say ADVANTAGE? In fact, if I were you, I'd bring my top five clients along. You'll look smarter than ever. Don't miss your chance to be part of it. Call and ask about our team discount so you can bring the whole team: 561-655-8778. Eric Rhoads P.S.: You won't find us playing the old "We've extended our early bird pricing deadline" game. Not only does it really say "Things aren't going well," but in the case of Convergence, we have sold out every conference since we began. We limit attendance to 250 people, and there are exactly 250 seats in the Microsoft auditorium in Silicon Valley. You should probably pick up the phone now, because the price goes up $200 more after 5 p.m. Eastern today. Oh, and don't delegate this to someone else. Leadership requires understanding. Bring your team. We have several CEOs attending this year, when last year there were only two. The word is finally getting out that you can't lead what you don't understand. Please e-mail this to everyone you know in the industry with the comment, "I'm going. Are you?"
To register for Convergence, go to www.radioink.com/convergence, click here, or phone
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I cannot remember ever being as embarrassed as the day I sat down in a meeting with one of the leading technology firms in Silicon Valley. I had just completed the first of many rounds of financing for my venture-funded tech company, and I found myself with my key team members in a large conference room, with about 30 people around the table. The CEO of that company threw a question at me that I couldn't answer. Nor could I bluff it through. I simply had to say, "I don't know what that means."
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