Weathing The Economy Feature

Helping Listeners Weather The

ECONOMIC $TORM Stations rethink promotions, prizes and charity efforts, while mounting campaigns to lift listener spirits and boost local businesses By Mike Stern

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Greater Media VP of program development Buzz Knight knows it’s bad out there. But the dire straits that people are in because of the recession truly hit home while he observed focus groups that the company held in such markets as Detroit, Boston and Charlotte. Imagine the surprise in the room when a respondent that was recruited from a station’s database revealed that he was unemployed and homeless, shifting among friends’ homes while looking for a new job because he can’t pay rent.

For Knight, delving into how the economic downturn is affecting listeners has been eyeopening. “You hear some stories that practically bring you to tears,” he says. No city has gone unscathed.“Yes, there is a big difference from Detroit to Boston to Charlotte,” Knight says. “But there has not been a [focus] group yet where there weren’t at least one or two people who have been severely affected.” The U.S. Department of Labor’s Bureau of Labor Statistics reports the national unemployment rate in April rose to 8.9% A Gallup poll says one-third of Americans are cutting back their spending while the U.S. Department of Commerce reports retail sales dropped more than 1% in March. But, as Knight’s experience shows, the numbers only tell part of the story. Jacobs Media president Fred Jacobs, who moderated many of the focus groups Knight watched, says, “Not only are stations doing less research, we’re doing the wrong research. Just asking about songs and personalities, you miss the human experiential side of what’s going on.” One factor that makes the economic crisis chal-

lenging is the wide scope of the problem.“We’re so used to responding to floods and tornados; quick-hitter disasters,” Jacobs says.“We know what to do: Change the home page, link to the Red Cross, etc. This is different. It isn’t a one-day or one-week event. It’s a long, sprawling disaster.” The good news is, as with natural catastrophes, radio has a unique ability to help the audience through the tough times.“Radio is really a tremendous form of entertainment for people at a time when they need to be lifted up,” Knight says. “This is what you can’t get from [customizable Internet radio service] Pandora,” Jacobs adds.“It’s really only local radio that can do this.”

Speak The Common Language

‘Radio is really a tremendous form of entertainme nt for people at a time when they need to be lifted up.’ —Buzz Knight

After hearing listeners discuss their financial difficulties, the first thing Jacobs suggests is that stations adjust the on-air language that they use. “Instead of ‘Be the ninth caller to win,’ say, ‘We know how expensive it is to see a concert, so we’re giving you a night out,’ ” he says. He also suggests phrases like “We’re hooking you up,”“We’re helping you out” and “We’re getting you through it.” That doesn’t mean music stations should become depressing, especially since listeners tune in for escape.“Our goal is entertainment,” says Joe Calgaro, PD for Woodward Communications’ rock WAPL (the Rocking Apple) and active rock WZOR (Razor 94.7)/Green Bay-Appleton,Wis. “Our morning hosts take the Jon Stewart/Bill Maher approach.They make light of the situation to keep people’s spirits up.” At Emmis rhythmic KPWR (Power 106)/Los Angles, senior director of marketing Diana Jason has noticed a change in language throughout the format. During good times hip-hop artists, air tal-

ent and others associated with the genre talk about cars, diamonds and champagne. “In this economic environment it’s a disconnect,” she says. “The average person can’t relate.” Instead, she sees more focus on diversions, like hanging out with friends, going to the club and just having fun.“I don’t think anyone agrees with the sentiment “Mo’ money, mo’ problems” right now,” she says, referencing the Notorious B.I.G.’s 1997 hit.

Prizes That Really Pay Another way stations can show they understand the challenges that listeners face is rewarding them with appropriate prizes. Jacobs says he’s been critical of stations for not thinking big when it comes to contesting. Now he hears listeners saying they need help with simple things like dinner out or baseball tickets.“They say,‘I can’t afford to do those things anymore.’ ” The number of people picking up prizes at KPWR put the current reality in perspective for Jason. Traditionally, winners haven’t always retrieved smaller qualifying prizes. Now, almost everything, especially concert tickets, is collected. “There’s real demand,” she says. “We are seeing 100% pickup in many cases.” Conversely, there is less listener desire for nonessential items and more need for prizes with practical value. “When times are really good listeners want bigger-ticket items like [Nintendo Wii consoles], iPhones and designer handbags,” Jason says. “Now cash giveaways are more important than ever.” To Calgaro,it’s a numbers game.“Giveaways aren’t necessarily about being larger than life anymore. Now it’s about giving as many people as possible the chance to benefit.” An example of this is the free

Digital Couponing One reaction to the current recession has been an increase in the number of people using coupons. Since 2007, the percentage of Americans clipping coupons grew from 87% to 94%, according to the Promotion Marketing Assn. Coupon Council. Fred Jacobs, president of radio consulting firm Jacobs Media, sees this frugality as an opportunity for radio. He suggests that since some local newspapers are disappearing or downsizing, radio sales staffs should leverage station databases to deliver digital coupons to listeners. Emmis rhythmic KPWR (Power 106)/Los Angeles is ahead of the game: It already has formal and informal digital coupon programs. Some come from advertisers, like promoters that throw in free parking with the purchase of four tick-

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ets. Even the Los Angeles Dodgers offered a recent package special that included tickets, parking and an all-you-could-eat meal, senior marketing director Diana Jason says. Less formally, jocks and other staffers seek out incentives to pass on. “If somebody’s got a great deal or clearance sale, we’ll send a link out on MySpace, Facebook and Twitter,” Jason says. “Our listeners aren’t reading the newspaper, but if we send them a coupon, they’ll use it.” In keeping with the idea that charity starts in the home, KPWR’s co-workers share the wealth by posting coupons for local food establishments on a bulletin board at the station. “That way people going to lunch can save some money,” Jason says.—MS

MAY 15, 2009

Wednesday shows WAPL and the local comedy club have teamed up to provide for the unemployed. Even a radio giveaway staple—the trip—needs to be rethought. Knight says people can’t afford the taxes, meals or incidental costs of a stationsupplied getaway. Jacobs believes the biggest hurdle may be asking the boss for time off: “Right now, that’s the last thing anybody wants to do,” in a climate of fear triggered by massive layoffs. Instead, listeners have suggested in focus groups that stations offer getaways that aren’t far from home. A weekend trip in the area doesn’t require vacation time and supports the local economy. In Los Angeles, Jason says the demand for tickets to local theme-park getaways is huge.“As people tighten up their monthly family budgets it can be difficult to pull together the money to make that trip.”

Supporting Charities The economy is also affecting how radio rallies listener support for charities. Some stations are reassessing the ways that they involve listeners in supporting worthy causes.“People are making difficult decisions about what they can and cannot afford,” Jacobs says. “Just like people who usually go to 10 concerts a year are picking just two or three, people are being forced to choose between charities.” As they do in business, donors want to see return on their investments. Calgaro says he sees more interest from contributors as to where the money is going—“It’s more important now to see a tangible result.” Calgaro, a longtime supporter of the Leukemia and Lymphoma Society, recently moved WAPL’s annual radiothon for the organization to WZOR and teamed the higher-rated WAPL with the Children’s Miracle Network to raise money for the local children’s hospital. “The Leukemia and Lymphoma Society is a great cause. Unfortunately, right now, researching cures for a blood-related cancer doesn’t translate the same as asking for money to buy a new wheelchair for little Emily who is onstage at the event.” When possible, KPWR puts the focus on motivating audience participation instead of asking for money. Such an event as the Revlon Walka-Thon for Breast Cancer Research is ideal since it challenges listeners to participate instead of merely opening their wallets. For KPWR, community involvement trumps actual fund-raising.“We really try to make a difference with things people know about in this community,” Jason says. Frequently contacted by football teams or cheerleading squads that can’t afford uniforms, the station launched a series of MAY 15, 2009

all-star basketball games. A team of station personalities, hip-hop artists and other stars play exhibitions against local schools.The school sells the tickets and keeps the profits.

Bolster The Local Economy Stations can also make a difference by supporting neighborhood businesses. Setting this example reaps the double benefits of helping sustain the regional economy and building good will for a station. In Omaha, GM Rhonda Gerrard and the seven-station NRG Media cluster set out to remind its audience that, all things considered, the city is doing quite well. Unemployment is below the national average and the area is experiencing growth in industries such as health care, concerts and events, restaurants and wireless. Yahoo has announced plans to build a data center in the Omaha area and Interpublic has plans to relocate its IT department there. “The sky isn’t falling here,” Gerrard says.“Christmas isn’t canceled.” Gerrard felt the national media’s gloom and doom message was affecting people when she saw the market start to soften. She teamed with the Chamber of Commerce to launch an on-air cam-

‘When times are really good listeners want biggerticket items like Nintendo Wii consoles, iPhones and designer handbags. Now cash giveaways are more important than ever.’ —Diana Jason

A Pizza For Your Thoughts Jacobs Media president Fred Jacobs stresses the importance of having a feel for what listeners are thinking—especially in today’s economic environment. He suggests hosting regular Listener Advisory Boards—informal focus groups recruited from the station’s database— to solicit feedback. Jacobs offers five tips for any station that wants to conduct LABs:

Jacobs

1. PDs shouldn’t moderate sessions for their own station. They lack the objectivity, and respondents likely won’t feel that they can be completely honest. Use a consultant, researcher or even another programmer in the building. 2. Give the listeners a tour of the station. That’s a big factor in their decision to participate. 3. Let them know that even though they’re in the station’s conference room eating pizza the station bought for them, the company wants to hear the unvarnished truth. 4. Have an outline of topics to cover, but be flexible. While there are things you need to discuss with them, they also have opinions off-topic that they want to share. 5. Don’t conduct only one LAB. A couple should be held to get an idea of what the audience is thinking. And no matter what, don’t overreact to what is seen and heard.—MS

paign across her stations promoting “the health and vitality of Omaha.” Next came a campaign in conjunction with the Nebraska Banker’s Assn. to inform listeners that loans were available to credit-worthy borrowers and a partnership with local auto dealers to promote their current deals. Advertisers and listeners alike have reacted positively. Gerrard says listeners write her e-mails saying,“Your message made me feel better today,” and advertisers thank her “for reminding people the sky isn’t falling.”The response has been gratifying.“We don’t give ourselves enough credit for how positively we can impact an economy,” Gerrard says. Much like Omaha, the economy in Greenville, S.C., isn’t necessarily as bad as it is in other parts of the country. In response, Cox Radio, Entercom and Clear Channel united to launch “Good News Upstate,” an on-air and online campaign valued at $1 million across their 11 stations that focuses on telling listeners that the local area, known as the Upstate, is a great place to work, play, shop and do business. “We believe that if we can improve consumer confidence in the Upstate, it will benefit the businesses, it will result in more listening to our products,and that will encourage more advertising from our clients,” says Cox Radio/Greenville VP/GM Steve Sinicropi, who spearheaded the program. The partnership, which includes 15 area Chambers of Commerce and has its own Web site, GoodNewsUpstate.com, formed April 1. To introduce the campaign, the stations invited the public to a free party with live music at Fluor Field, the new stadium of the local minor-league baseball team, the Greenville Drive. All 11 outlets brought their vehicles, station tents and promo staffs sporting station gear.“It was a really powerful sight,” Sinicropi says.“It demonstrates that part of what radio has is powerful brands.” Less than a month after the launch, Sinicropi says numerous business leaders have thanked him for the effort. Many shared their surprise at the stations’ collaboration.“Show me another medium that’s out there doing this,” he says. Sinicropi says he’s willing to share details with broadcasters in other markets about how they put together and marketed the campaign and involved the Chambers of Commerce. He also wishes radio was acknowledged more often for such efforts. “These are the things radio is great at, but that we don’t get enough credit for.These are the kinds of things legislators should know R our industry is out here doing.”

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