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Advertising
Radio’s Coming Renaissance
Discover why local ownership may be radio's next big opportunity.
The Internet rose to its full height in 2005 and cast a bright shadow across the land. It became our newspaper, our telephone book, our encyclopedia and our primary mailbox.
Whole categories of advertising where swept away by that tsunami.
Radio suffered the least damage of all the major media. She has proven to be far more durable than I had suspected.
In their recent study of annual trends, Audience Insights reported some interesting findings. President Jeff Vidler summarized,
We see absolutely no change in broadcast radio’s share of in-car tuning in the past 5 years. AM/FM radio is still dominant in-car, representing 66.2 percent of in-car listening. The growth of alternatives such as satellite radio and streaming audio appear to be coming at the expense of personal music (iPods, CDs and other libraries,) not broadcast radio.”
Prior to that report I had no data beyond my own observation, but I knew that radio is continuing to reward its regular advertisers with a robust and hearty return-on-investment.
And now I will tell you a story.
Once upon a time, no one could own shares in more than 12 TV stations, 12 FM radio stations and 12 AM radio stations. We called this “the 12/12/12 rule.”
We didn’t want anyone to be able to control the news.
But this good law went “poof” in 1996 and consolidators immediately began gathering up radio stations by the armful. Big-business efficiencies were brought in to what had previously been a Mom’n’Pop category. Profits soared and Wall Street said, “Let’s do this thing. She looks doable, doesn’t she?”
Corporate Radio was born with a full set of teeth but it had no reflection in the mirror.
Investors have their own way of looking at the world. I’m not saying it’s wrong, but you can always be certain you’re talking to The Money when they do something that hurts like hell and then tell you, “It’s just business.”
But Radio has never been “just business.” Radio is music and laughter and opinions and news and discussions and interviews with interesting people. Only a few minutes per hour are “just business,” and when a radio station is run correctly, even those few minutes can be entertaining and valuable and informative.
Investors are a funny breed. They work themselves into a frenzy and then suddenly lose all interest.
CBS announced in March that they plan to sell or spin off their radio assets this year. The goal, according to Les Moonves, is to “unlock value for our shareholders.” He indicated that radio has become “slow-growth” and “a drain on resources” that can be better directed to content production and digital endeavors.
Cumulus pushed out founder Lew Dickey as CEO last autumn but that management shakeup didn’t stop the stock slide. Cumulus shares lost 80 percent of their value in 2015. The Washington Post recently quoted one debt-holder as saying, “The most logical thing is to break it up and sell it.”
And now investors in iHeart (previously known as Clear Channel) are saying the same thing. Add it up and you’ll see that we’re talking about more than 1,400 radio stations possibly hitting the market all at once.
Radio stations have lost their appeal to investors.
But they haven’t lost their effectiveness for advertisers.
In 2001, America Online was worth $226 billion. In 2015, Verizon bought AOL for just $4.4 billion. Somewhere along the way, it lost 98 percent of its value.
In July of 2005, News Corporation, the parent company of FOX Broadcasting, bought Myspace for $580 million. In 2011 they sold it for $35 million, recovering just 6 cents on the dollar. It lost 94 percent of its value in just 6 years.
I have no idea how much money these 1,400 radio stations will bring or even if all of them will be sold. I’m not pretending to be able to predict those numbers. But I definitely smell an opportunity for innovative local ownership of radio stations again.
To learn more about how we can help you, book a call with Ryan Chute of Wizard of Ads® today.
Storytelling
Your Own Personal Reality
Most of us enjoy being pulled into a story. But some people have no taste for fiction or whimsy or wit.
A developer is someone who wants to build a house in the woods. An environmentalist is someone who already has a house in the woods.”
– Dennis Miller
We think everyone else sees what we see. How could they not?
And we think everyone would believe what we believe if only we could explain it clearly.
But this is almost never true.
Two people stand shoulder-to-shoulder observing a scene.
One person sees pain and injustice and despair.
The other sees opportunity and purpose and adventure.
The first person sees the second as an impractical dreamer.
The second sees the first as a complaining pessimist.
Every person has a schema, a belief system about how the world works. Your schema is the lens through which you see and feel the world around you. It dictates your perceptual reality. Don’t misunderstand me. I’m not saying your schema changes the facts. It just changes how you interpret them.
Twice a week for the past several weeks, Ray Bard has been sending out clusters of about 20 quotes to more than 1,000 quote judges so that we might help him score their impact. Last week, Ray told us something every ad writer knows.
There’s always some surprises about which quotes score the highest. But there’s one thing that doesn’t surprise me anymore. It’s the range of opinions. For example, in the last Collection someone said: ‘Seems like you’re scraping the bottom of the barrel for quotes,’ and the very next person commenting said: ‘So many great quotes. All winners for me.’”
If your message has the power to move people, you can be certain that it won’t move everyone in the hoped-for direction. If you’re not prepared to smile your way through negative backlash from well-meaning friends, employees and associates, you’re never going to craft a message that will pierce the clutter of this over-communicated world.
Ninety percent of all the books published each year are non-fiction. But the fiction books – the 10 percent – comprise 90 percent of all book sales. In the words of Tom Robbins, “People write memoirs because they lack the imagination to make things up.”
Fictional characters in movies, novels and TV shows seem real even when we know they are not. We know fiction to be untrue, yet we treat it for a time as if it were true. We are simultaneously naïve, believing what we are told, and savvy, aware of the deception.
Seven weeks ago I told you about a persuasion researcher, Maria Konnikova, whose work is being funded by two universities, Harvard and Columbia. Maria says the more a story transports us into its world, the more likely we are to believe it. The sweep of a story overcomes the facts of logic. When we are entertained by a story, we are likely to agree with the beliefs the story implies.
In short: a story can reshape your schema.
It is no accident that Jesus taught in parables.
Most of us enjoy being pulled into a story. But some people have no taste for fiction or whimsy or wit.
What you’re about to read is real and it happens all the time. My friend Jerry received this voicemail just last week:
I am embarrassed for you because of your turning your business over to such a young person that has such a voice that I have to turn off the commercial. I have to go to my radio and turn it off. It hurts my ears. And the commercials are just childish. They are not professional. No, they are not professional. I would not use your company for anything. I am regretful I have used you forever. I told the world to use you. I’ve gotten you a million customers. I’m embarrassed and ashamed. And I’m sorry I have to make this phone call.”
Would you like to know what triggered such heartfelt concern?
[SFX – crickets, trucks driving past]
ANNCR: Two people wait for the telephone to ring in an Allbritten Heating and Air Conditioning truck.
JERRY: Uhhhh, Andrea?
ANDREA: Yes Dad?
JERRY: I know I’ve been encouraging you to start making bigger, owner-type decisions for Allbritten….
ANDREA: Yep, and I’m rockin’ it, Dad.
JERRY: [doubtful] Yes… well this new company slogan…
ANDREA: Isn’t it great! “Our customers come first!”
JERRY: Well, yes, but it’s a little bit misleading.
ANDREA: What!
JERRY: You’ve got to have happy employees before you can have happy customers.
ANDREA: I know. But it doesn’t make a very good slogan to say, “Allbritten, where customers come second,” or “Allbritten, where customers are number Two.”
JERRY: Keep thinking. You’re a smart girl.
ANDREA: Care to give me some hints?
JERRY: Nope.
ANDREA: Pleeease?
JERRY: Nope.
ANDREA: [SFX – telephone ring and answer]
Thanks for calling Allbritten, where happy employees make happy customers.
JERRY: By golly, I think she’s got it.
DEVIN: Allbritten Heating and Air Conditioning.
ANDREA: Two nine two
JERRY: Forty-nine nineteen
This successful and light-hearted campaign lets you get to know the owners of the company through a series of comic, coming-of-age conversations. At a recent Home and Garden Show, Jerry and Andrea were the accidental main attraction as word spread throughout the convention center that they were personally in attendance. Countless people came by, quoted their ads and asked if they could have a photo made with them. “Is Andrea really your daughter?” “Yes.” “And she’s really taking over the company?” “Yes.”
The conversations in the ads are fictional but the people are real.
And they had an extremely, very good year.
At Wizard of Ads®, we house the psychological marketing strategies you need to stop the scroll. If you're looking for nostalgic ads that will break through the noise, book a call with Ryan Chute today.
Storytelling
Soliloquy
If you want to understand today’s crazy American politics, you need only to look at the pendulum.
If the pendulum of the West continues as it has for 3,000 years, our current “We” generation will zenith in 2023.
Frankly, I’m looking forward to getting past that zenith and heading back the other way. The early part of a “Me” generation is a beautiful thing. But then again, so is the early part of a “We.”
It’s as we approach a zenith that everything goes out of control.
If you want to understand today’s crazy American politics, you need only to look at the pendulum.
A generation – for the purposes of today’s discussion – is not a group of birth cohorts, but life cohorts, everyone who is alive at a particular moment. We’re not talking about Millennials, Gen-Xers and Baby Boomers. We’re talking about the personality-shaping values that enchanted each of these groups during their adolescence. Those same ideas and values then altered the worldview of their mothers and fathers, the birth cohorts that preceded them.
I was 5 years old in 1963, the year the most recent “Me” generation began its upswing toward the zenith of 1983, when Ronald Reagan stood at the Berlin Wall and shouted, “Mr. Gorbachev, tear down this wall.” The president at the zenith of the previous “Me” (1903) was Teddy “San Juan Hill” Roosevelt and during the “Me” prior to him (1823) it was James Monroe, the president who notified European powers that America would no longer tolerate colonial expansion in our hemisphere. The Monroe Doctrine effectively said to all the powers of Europe, “Step back or we’ll kick your ass.”
A “Me” Generation is about individuality and self-expression, marching to the beat of a different drummer. It’s when one-of-a-kind is king, so do your own thing. A “Me” is the time of heroes.
“Me” the individual, possessing unlimited potential,
1. …demands freedom of expression.
2. …applauds personal liberty.
3. …believes one man is wiser than a million men,
“A camel is a racehorse designed by a committee.”
4. …wants to create a better life.
5. …is about big dreams.
6. …desires to be Number One. “I came, I saw, I conquered.”
7. …admires confidence and is attracted to decisive persons.
8. …leadership is, “Look at me. Admire me. Emulate me if you can.”
9. …strengthens a society’s sense of identity as it elevates attractive heroes.
10. …produces individuality and differentiation, one-of-a-kind heroes.
Both “We” and “Me” are built on beautiful ideas, but we always take a good thing too far and then crave what we left behind. So we turn and face the opposite direction and do it all over again.
And we’ve been doing it for 3,000 years.
I was 45 at the beginning of the upswing of our current “We” generation (2003.)
The driving force behind a “We” is “working together for the common good.”
“We,” the group, the team, the tribe:
1. …demands conformity for the common good.
2. …applauds personal responsibility.
3. …believes a million men are wiser than one man,
“Two heads are better than one.”
4. …wants to create a better world.
5. …is about small actions.
6. …desires to be a team member. “I came, I saw, I concurred.”
7. …admires humility and is attracted to thoughtful persons.
8. …leadership is, “Here’s the problem. Let’s work together to solve it.”
9. …strengthens a society’s sense of purpose as it considers all its problems.
10. produces efficiency, compliance, mass-production and consolidation, “best practices” and peer groups.
As I said, the first half of a “We” upswing is a beautiful thing (2003 – 2013.) But we always take a good thing too far. What begins as an inclusive “we,” ends as an exclusive “we.”
Inclusive: “We are all in this together.”
Exclusive: “We, unlike you, are good and wise and right and true.”
During the 10 years approaching the zenith (2013-2023,) a “We” is shaped by the group that controls the definition of “the common good.” This is why every “We” ends in a witch-hunt. The president at the zenith of our previous “We” (1943) was FDR, who pulled the nation together following the Great Depression. At the zenith before him (1863,) it was Abraham Lincoln, who held the nation together during the Civil War.
But you should remember that FDR was also the president that put 127,000 Japanese-Americans into prison camps during World War II. And 62 percent of those were American citizens. Not our proudest moment. During this same “We” zenith Senator Joseph McCarthy ruined other American lives by pointing his finger and falsely shouting, “Communist! He’s a Communist!” and the infamous blacklists began. Adolph Hitler was defining “the common good” in Germany. Likewise, Joseph Stalin’s idea of “the common good” in Russia included pogroms and purges that murdered millions of his own people. Everyone was on a witch-hunt.
Throughout the 3,000-year history of western civilization, any time we have burned people at the stake or guillotined them, we’ve been at, or near, the zenith of a “We.”
Our next zenith occurs in less than 7 years (2023.) The political climate is starting to make a little more sense, isn’t it?
But the pendulum isn’t really about politics. It’s about values and core beliefs, the kinds of things that make ads produce results or not.
Advertising copy that works during a “Me” will falter and fail during a “We.”
I began teaching advertising professionals about the “We” generation in 2004. That first session was in Stockholm, Sweden and it was attended by most of the advertising agencies of Europe. Then it was off to Melbourne and Sydney and Townsville, Australia. Then Canada. Then the United States.
When I was asked to put all that information into a book, I said, “Now’s not the right time. What’s ahead of us isn’t pretty.” But finally I relented and Pendulum was released.
I was talking with Michael Drew, my co-author the other day. He said, “It’s time for a Pendulum update focused on Advertising and Marketing.” The idea struck me like a thunderbolt.
I said, “And we need to recruit Ryan Deiss to be the lead author.”
Ryan is a Cognoscenti of Wizard Academy and a close friend. He and I meet regularly with Eric Rhoads to talk about art and trade insights about the future.
Book a call with Ryan Chute of Wizard of Ads®, and let's create those mind-blowing ads.
Marketing
What My Mentor Taught Me
Does content marketing still work? Of course it does. The problem is that everyone is working it.
Loren L. Lewis always said,
Never play another man’s game.
Always have a game of your own.”
In the advertising business, RFP means “Request For Proposal.” In other words, some big company wants you to dance for them. They want you to sit up and beg like a dog at the dinner table.
I’ve never responded to an RFP.
I believe in the FPS.
In my little homemade world, FPS stands for Free Public Seminar. I did my first one in 1988. By 1992 I was doing at least one a month. In 1994 I launched the little missive you’re reading now. For the first several years of its life, this Monday Morning Memo was delivered by FAX. Can you believe it?
Don’t bother to Google FPS. No one uses that term but me. Today people call it “content marketing.”
It didn’t have a name in 1895 when John Deere launched a magazine for farmers about how to become more profitable. That magazine, The Furrow, is still in circulation. Today it reaches 1.5 million farmers in 40 countries who speak 12 different languages.
In 1904 a weird new food company sent its workforce door-to-door across America giving away free cookbooks. That company became a huge national brand within 24 months. Ever heard of Jell-O?
Ninety -five years later (1999,) author Jeff Cannon wrote,
In content marketing, content is created to provide consumers with the information they seek.”
Bingo. One hundred and four years after John Deere proved it would work, someone gave it a name.
But content marketing probably isn’t for you. I believe that ship has sailed.
Does content marketing still work? Of course it does. The problem is that everyone is working it.
If every manufacturer in 1895 had been publishing their own magazine… if mailboxes everywhere were overflowing with them… would John Deere have seen success with The Furrow? Possibly. But they would have been playing another man’s game.
You need to have a game of your own.
Content marketing is a competition for the customer’s time. But it’s not the only way to win the customer’s time.
There is a way, I promise, for you to give away a sample of your product.
There is a way for you to demonstrate what you do in a dramatic and convincing way.
Both of these have been done before.
But not lately.
When everyone else is competing to win the customer’s time through the publication of online content, perhaps it’s time for you to start a game of your own.
For me, FPS meant Free Public Seminar.
For you, it can mean Free Product Sample.
Or maybe you just need to put on a show.
Demonstrate what you do.
Open some eyes.
Get some attention.
Unless you work with seasoned marketers with rich experience writing irresistible advertising, like Ryan Chute’s teams at Wizard of Ads®.
Book a call.
Marketing
Who Has Time for Shopping?
Depending on your birthday can determine if you have time for shopping.
The cognoscenti will remember two big statements glittering on the screen behind me during the opening moments of the Magical Worlds Communications Workshop:
“The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth.”
– Niels Bohr, physicist
“The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function.”
– F. Scott Fitzgerald, writer
What I’m about to say may prove to be just such a test.
I’m counting on you to possess a first-rate intelligence:
“People love Donald Trump.”
“People hate Donald Trump.”
Those two statements about Donald Trump seem to be mutually exclusive until we realize that neither statement purports to describe ALL people. Different people feel different ways. We understand this when it comes to politics.
But let the discussion turn to advertising and you will soon hear voices begin speaking of Millennials and Gen-Xers and Baby Boomers as though every member of a birth cohort is somehow compelled to make their decisions based on a single, shared set of values determined by the year in which they were born.
It’s like listening to people who believe in astrology. “Your fate is determined by your birthday.”
The only thing weirder is listening to wholesalers and distributors speak of the men and women involved in “B to B” (Business to Business) as if they were an entirely different species. “Roy, I hear what you’re saying about using words as tools of persuasion, but my business is B to B and B to B is different. What can you tell me about selling B to B?”
Blanket statements result from a belief in stereotypes.
Stereotypes are attractive because they allow us to simplify complex realities.
Stereotypes are false categories that allow us to feel good about stupid decisions.
People are extremely different.
People are all alike.
Both of those statements are true.
Both of those statements are false.
How’s that first-rate intelligence holding up?
I’m now going to make 5 true statements. Some will confirm your suspicions and beliefs. Others will stick in your throat like a fish bone, forcing you to cough and sputter.
I apologize in advance.
- Your perfect “target customer” is probably a false category.
This is one of the two reasons why your advertising is performing poorly.
The first time I visited Procter & Gamble headquarters in Cincinnati, I was greeted warmly and shown the auditorium where I would be speaking. After all the equipment had been tested, my guide asked,
“Do you know the unofficial slogan of our company?”
I shook my head from side to side.
“In God we trust. All others bring data.”
In an August 9, 2016 story in the Wall Street Journal, Procter & Gamble Chief Marketing Officer Marc Pritchard announced, “We targeted too much and we went too narrow.”
Example: Sales stagnated when P&G aimed Febreze ads on Facebook at pet owners and households with large families. But sales rose when the same budget was spent reaching “anyone over 18.”
P&G has been spending hundreds of million of dollars on tests like that for the past two years. The jury has now returned with a verdict: reaching influencers is just as important as reaching the decision maker.
You feeling that fish bone yet?
- Millennials are easy to attract.
According to an Aug. 5th Daily Beast article by Samantha Allen, one in three young adults is still living at home.
Touchy-feely theorists say this is because “Millennials desire safe spaces.”
When carmakers realized Millennials weren’t buying cars, they appointed “youth emmissaries” who came up with new colors like “techno pink” and “denim.”
It isn’t “fear of commitment” that keeps Millennials from buying houses.
The Economist wondered aloud in June, “Why aren’t millennials buying diamonds?” and speculated it was “the taint of conflict and exploitation” that was keeping them away.
But according to Samantha Allen,
“Millennials are not some vast unsolvable mystery… basic economic math can explain much of the younger generation’s behavior… Cars cost money and millennials have less of it and diamonds are freakin’ expensive… So the next time you have a hunch about why millennials are the way they are, ask yourself if economic insecurity might be a better hypothesis.”
In truth, Millennials are easy to attract. Most of them just don’t have the buying power that most businesses assume they have.
- Growing companies are desperate to find employees.
Wait. Didn’t we just say that one in three millennials is still living at home because they’re poor? Yes. They’re drowning in college debt because we lied to them. We said a degree was the key to getting a good job. So they got an education but they have no marketable skills.
You would be startled by the number of recruitment ads my partners and I are writing each week for client companies that can’t find capable employees.
If you are a Registered Nurse, a Licensed Practical Nurse or an air conditioning technician, you can walk into any city in America today and instantly get a job making an above-average income. I know this to be true because I’ve spent the past several months scouring the nation for them.
- Store traffic is down but sales are up.
Last week I spoke with an independent rep that’s been selling upscale brands to major retailers for more than 20 years. “Everyone is terrified at the decline in traffic,” he said, “but sales haven’t really declined at all.”
His experience is similar to my own.
E-commerce is real and it has devastated a few categories, to be sure. But for most retailers it’s just an imaginary boogeyman hiding under the bed.
Retail traffic is declining and service business call-counts are falling because people are doing their information gathering and comparison-shopping online.
They’re not buying online nearly so often as they’re researching online. The result is that a single brick-and-mortar store gets visited instead of three or four. The traffic you’re not seeing is the traffic that went to your competitor.
You’ve got to become the company people think of immediately and feel the best about. This is how you increase traffic.
- Radio and television advertising are working better today than ever before.
Yes, I’m aware that radio listenership has declined from what it was 10 years ago and that people are using DVRs to fast-forward past the ads on TV.
I also know that entertainment is a currency that will buy you the attention of the public.
Entertainment must – by definition – employ elements that are new, surprising and different.
Private music libraries play the same songs over and over and over. This is why we’re spending less and less time listening to our own libraries of downloaded music.
Do you remember when I said that targeting your perfect customer was “one of the two reasons why your advertising is performing poorly?”
The other reason is that your ads are predictable.
The reason they’re predictable is because you’re telling your prospective customers exactly what you think they want to hear.
Big mistake.
Unless you work with seasoned marketers with rich experience writing irresistible advertising, like Ryan Chute’s teams at Wizard of Ads®. Book a call.
Entrepreneurship
The Talented-Person Blind Spot
70 percent of our population suffers from Impostor Syndrome and it is most common among high achievers, especially people with graduate degrees, college professors on track for tenure, and research scientists.
I’m betting you’re extremely good at something, perhaps at more than just one thing.
Let’s face it: you’re talented – gifted, in fact – a classic overachiever. But the odds are 7 in 10 that you find it difficult to accept and believe these compliments.
I say this because 70 percent of our population suffers from Impostor Syndrome and it is most common among high achievers, especially people with graduate degrees, college professors on track for tenure, and research scientists. 1
Isaac Newton, the man who changed the way we understand the universe, who discovered the laws of gravity and motion and invented calculus, suffered from Impostor Syndrome, saying, “If I have seen further, it is by standing on the shoulders of giants.” 2
Impostor Syndrome is the blind spot that comes with talent.
Harold Kushner describes Impostor Syndrome as “the feeling of many apparently successful people that their success is undeserved… For all the outward trappings of success, they feel hollow inside. They can never rest and enjoy their accomplishments… They need constant reassurance from the people around them to still the voice inside them that keeps saying, ‘If other people knew you the way I know you, they would know what a phony you are.'” 3
Now here’s the good news: Impostor Syndrome is perfectly normal. What you want to avoid is the opposite, the Dunning–Kruger effect, a cognitive bias in which low-ability individuals suffer from illusions of superiority, mistakenly assessing their abilities as much higher than they really are. 4
Everyone is messed-up and broken a little. (Impostor Syndrome)
But the most messed-up are those who believe they are not. (Dunning-Kruger)
Scientists Dunning and Kruger believe “the miscalibration of the incompetent stems from an error about the self, whereas the miscalibration of the highly competent stems from an error about others.” 4
In other words, those of us who have Impostor Syndrome see ourselves from the inside, where we stand naked in the shadow of old wounds, past failures and the knowledge of our limitations. But we see others from the outside, where they stand majestic, beautifully illuminated in the bright glory of their successes.
A close friend once asked me to tell him the secret of confidence. “The key isn’t to think more highly of yourself,” I said, “but to quit thinking so highly of others.”
If Dunning and Kruger’s research can be trusted, it would appear that I was right.
This is what I was hoping to give you today:
- Encouragement.
Talented people like yourself often feel they’ve just been lucky. But being in the right place at the right time doing the right thing in the right way isn’t luck, it’s talent. Most people have at least one talent. Be happy that you found yours. - Normality.
Seventy percent of successful people wrestle with Impostor Syndrome. See it for what it is and it will disappear. - Self-acceptance.
Yes, you have deficiencies, but so does everyone else. Relax. - Self-awareness.
I said that Impostor Syndrome is a blind spot among people with talent. Hopefully, now that you’ve seen your blind spot, it won’t be a blind spot anymore. - Gratitude.
Open your eyes to your talent and be glad of it. (And if you ever figure out who gave it to you, be sure to thank them for it!)
To learn more about how we can help you, book a call with Ryan Chute of Wizard of Ads® today.
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