FutureScope… Radio and Records interviews Daniel Anstandig

Recently, Radio and Records’ Keith Berman interviewed Daniel Anstandig on the future of radio.

 

Keith:

You have a unique observation point, being in the industry but not working for a singular broadcaster, so you see the bigger picture…  what do you see as being some radio’s biggest strengths and, conversely, biggest weaknesses right now?

 

Daniel:

At McVay Media, I work with radio stations on their programming and digital media strategies. Approximately forty weeks per year, I’m on the road visiting radio stations around the world. Consulting affords me the opportunity to experience the radio business from many different perspectives. This week, I am working with Communicorp in Europe. The company owns 40+ stations in Ireland, Hungary, Bulgaria, Estonia, Czech Republic, Latvia, and Finland. Communicorp truly values and invests in their programmers. The company holds quarterly programming meetings with all of its PD’s from across the continent, and their stations have been growing and gaining value. They understand that investing in programming pays dividends. Companies that invest in their programming and product retain competitive advantage.

 

Advantages… Radio still has tremendous advantage in the marketplace. Usage of radio is ubiquitous with 94% of the population using radio in an average week. Only a handful of industries in the world have achieved this level of reach. Also, we live in a world of multi-taskers, and radio is a medium that can be consumed by passive listeners. The radio medium is compatible with over-tasked consumers, which is a terrific position to hold. We have the ear of people who are too busy to give their ear elsewhere.

 

A study conducted by Bridge Ratings in 2007 predicts that radio’s weekly cumulative audience will marginally deteriorate over the next fifteen years, moving from 282 million weekly listeners in 2007 to 258 million in 2020. At the same time, Internet-Radio consumption is projected to grow by over 200% to 196.6 million weekly listeners by 2020. The audience is moving about the cabin, and the revenue is gradually following suit. The best news here is that radio will remain popular with the next generation of listeners—just not exclusively AM/FM radio. Internet-Radio is an essential part of our future.

 

Weaknesses… Our industry’s Achilles heel is competition from new media and a spirit of denial about the swiftness with which our audience and market of sponsors can be disrupted.

 

Many radio station programmers and sellers are inexperienced and oblivious to digital media applications.

 

Furthermore, they are not yet knowledgeable on how collate digital advertising applications with on-air advertising opportunities. At the same time, radio Program Directors are under pressure to remain relevant to their listeners—who are becoming increasingly familiar and accustomed to “instant gratification entertainment” through digital media. Programmers must take a new approach to integrating digital media in their content offerings, especially those who are aiming to win among P18-49.

 

In 2008, the radio industry is expected to capture $255 million in local online revenue. That is under 2% market share of the total local online advertising industry. Meanwhile, the local yellow pages are successfully attracting $1.2 billion in local online revenue in 2008. It is clear that radio is not a primary beneficiary (at least right now) of the thunderous growth in the local online advertising sector.

 

Radio needs to leap into a new era. McVay New Media provides spring-boards for radio stations by offering strategies and solutions.

 

Keith:

Where do you see the industry going in the next decade or so?

 

Daniel:

Every radio station needs to have a direct relationship with as much of its audience as it possibly can. Database. Database. Database.

 

Permission marketing is the asset of the future and radio’s unique relationship with the audience, if leveraged properly, can be utilized to build a tighter, more relevant, one to one bond. Programs like Triton’s M2O/Mass2One are database programs that must be utilized in building our future. This type of evolution in thinking on behalf of radio’s programmers and sellers is imperative if we intend to make radio scalable for ALL types of advertisers. In 2008, the average cost of reaching 1000 adults through radio is $139.12. This is simply inefficient and cost-prohibitive when compared to Internet ad-buys (average CPM = $3.65), which can be customized and hyper-targeted.

 

Keith:

Given that Edison is highlighting the younger generation of radio — and since you’re one of them — what do you recommend radio do to not only get younger listeners involved in listening, but also working in the business?

 

Daniel:

I suppose some would suggest more happy hours, trade, and plentiful prescription drugs. I’ll just say, “have more fun.”

 

We simply need to have fun as an industry again. Every day, I wake up excited about what I do. How many people in radio can say that they wake up excited each day to go to work? The audience knows the real answer to that question. Perhaps that’s one reason that other media are gaining share. People (young or old) want to be surrounded by others who are having fun. One thing that I enjoy thoroughly about McVay New Media is that our team loves to laugh and be creative. When I visit clients with Rockie Thomas and Sean Lozensky from our new media team, clients tell us that we are animated and enthusiastic. That’s our most important goal.  We believe that success follows infusion of passion.

 

About young people and the business…

The problem is NOT that there are fewer young creative people. The problem is that fewer young creative people make it through the entrance door of a radio station. Look at Rodney Harris’ website… www.thenews14zone.com. I met Rodney earlier this year when I spoke at the WSDP Graduation Ceremony. Rodney is a student who works at WSDP/Ann Arbor (high school radio station). He’s even selling local advertising on his website newscast—which unfortunately means that he has more revenue posted on his site than the majority of radio stations.

 

That’s just one example of the “barrier to entry” for people interested in joining entertainment media being eliminated. Now, people interested in joining the exciting field of communication and entertainment need only a computer. You are only ten clicks away from your own free, globally distributed podcast. If you’re creative and you have something to say, you’ll attract the audience. Needless to say, landing an air shift somewhere is more difficult than using your home computer to express your creativity.

 

Keith:

What initially called to you about radio?

 

Daniel:

I grew up in Cleveland listening to personalities like Danny Wright (WGAR), John Lanigan (WMJI), and Trapper Jack (WDOK). It always sounded like they were having fun, and I wanted to be a part of the action.

 

When I was nine years old, I got into the business by relentlessly calling local radio stations and asking for jobs. The “radio bug” bit me when I started at WELW-AM in Cleveland. Around the same time, I started a “low power” radio station out of my parents’ basement, which was on 91.9FM. Unfortunately, I built the transmitter without a harmonics-filter, and my station was interfering with TV audio in Cleveland. Needless to say, my pirate radio career was cut short. I began working at John Carroll University’s radio station when I was 12.

 

Thank you for the opportunity to share some thoughts on the radio business.

As Albert Einstein said, “In the middle of difficulty, lies opportunity.”

Our best opportunities are right now!