Broadcast vet Mike McVay has watched radio go through its share of incarnations during his two-plus decades in the consultancy world. As radio embarks on its next decade, Mike shares his views on some very essential topics such as the keys to programming and succeeding in these tough economic times, the effects of PPM on air talent and the future role of consultants.
Mike McVay
By Mark LaSpina
Today’s radio operators are certainly in the throws of some interesting times. They must forge a balance between the music, creativity, resourcefulness, economic issues and pure passion for the business. For some insight, we turn to McVay Media President Mike McVay. McVay has enjoyed a successful twenty-plus years as a consultant, and has witnessed radio’s many ebbs and flows over the years. The well-respected McVay shares his thoughts on where the industry currently stands and offers his viewpoints on some burning issues and how they could help you improve moving forward.
Where is radio heading these days?
Radio is going to good places. We’re still a strong medium because we have content and distribution. We have a reach that niche media (which includes digital and on-line media) needs mass media to drive them. Looking for a favorite digital entertainment platform is like looking through a haystack for a needle. The big (and most successful) platforms have used TV and radio to market, as well as their own marketing vehicle. They need us and they will continue to need us until the best-of-the-best rise to the top. They will rise and there will be huge networks that come from niche media. Radio has to grasp that it’s becoming an accoutrements versus a main course. There’s nothing wrong with doing that, but as a result, we’ll have to become better operators without diminishing the product. Currently the product has taken the brunt of the beating as owners have trimmed expenses.
If radio’s role in society is changing somewhat, who are the optimal players to lead the charge of change (programmers, group heads, owners, etc.)?
Radio’s role is changing, and while everyone believes that the marriage between digital and terrestrial will be the salvation of radio, it could be mobile that becomes our biggest ally, mainly because of its portability. That’s always been one of radio’s strengths. As far as who will lead the charge, Bob Pittman at Clear Channel has always been on the forefront of change, as has Stephen Pricewith TownSquare, Peter Smyth at Greater Media is impressive, and Dan Mason at CBS has been pretty clear as to his commitment to growing their business. Don’t rule out those broadcasters in smaller markets like Connoisseur or Cromwell. They’re investing in both media and digital strategies.
What has changed the most in “these changing times” regarding programming, how best can today’s programmers adapt?
That’s a difficult question to answer given that just about everything has changed in the last few years. Radio operators have become better at managing costs, but sometimes to the detriment of the product. Air talent has been forced to become better and more efficient entertainers and communicators because of new rating methodology, more voice-tracking and because of multi-tasking. Program Directors need to be better educated in regard to marketing, research, ratings, management of expenses and interfacing with the non-radio executives that are responsible for their market clusters. The day of the guy (or gal) wearing a T-Shirt and jeans has been replaced by responsible women and men who understand their responsibility to the stockholders and to their community of listeners. I was a Program Director in Los Angeles at age 24. I don’t think that would happen today. There’s too much pressure on senior management for them to be daring enough to try something new.
The bottom-line is that radio has become a business. For better or worse …it’s become a business. It’s a highly successful business. We seem to judge the business by our cash-flow. The days of 50% cash flow are mostly gone. We grumble about 20% and 25% operating profit. Talk to someone who operates a retail outlet. They project to do 5% cash flow and they’re thrilled when they do it.
What are the most important qualities programmers must posses to succeed today?
A keen understanding of what their target audience desires. They must be entertainers, researchers, marketers and technologically savvy. They have to be excellent managers in regard to hiring, motivation, operating and being budget and cost conscious.
Programmers have become jacks of all trades in just about every company. Are there enough mentoring and teaching going on in the business today to help programmers upgrade their skills?
There’s always room for more mentoring and education of our teams, but we need more mentoring for our PD’s. What’s more concerning to me is that the same companies that used to tell me that we couldn’t handle twenty stations per/consultant are the same groups that have stretched their corporate programmers to a breaking point. They’re handling a hundred stations each, and as such, something’s going to slip through the cracks. Mentoring and teaching programmers is one of those things. We’re trying to pick-up the slack in that area. We have several broadcasters who’ve hired us to teach their PD’s and talent and how to offer them mentoring and guidance. Dan O’Day, the personality consultant, and I recently created an alliance to offer six days of program training that will be spread across three weeks. Companies should have their own internal educational curriculum, but it’s one of the things that have been eliminated during this recession.
What has been the most significant impact of PPM on radio talent?
I’d say paranoia, fear and loathing. Because too few PD’s understand this measurement tool, despite the fact that Arbitron is spending a fortune to educate them, they confuse their talent. They tell their talent what they cannot do rather than encourage them in what they can do. Anytime you define the parameters with negatives, it becomes easier to do nothing than risk doing something and getting into trouble. Some programmers, like many of those we work with, are focused on learning from Arbitron (or BBM) and then applying that education. Examine what the commonality is of the highest rated stations and then apply those principles to your own radio station. Yes, every market is different, but we generally find that what’s good …is good!
How have money issues plagued our industry during this recession?
That’s another whole issue. If you were manufacturing cars, would you put cheap tires on an expensive vehicle, and expect that the buyer would be happy? That’s what radio has been doing. We’ve “cheapened” the product to where it’s obviously inferior to what it once was and what it can/could become. I’m a believer in our business, but we have to work in tandem with other media platforms if we’re to be successful. We can’t do it alone.
Stations are now working with tighter budgets, but still need to maintain and create quality promotions and events. What are the keys to making it work, with less to work with?
We need to be smarter marketers. What is it that you’re trying to accomplish? Don’t get swept up in what I call “The Marketing” or “Contest Habit.” That is where one believes that they MUST have television or billboards or direct marketing or cash contests…or “whatever.” These are all valid marketing tools, but if you want to be most effective, then you should determine what it is you want to accomplish with your marketing. Do you want to build cume? Do you need to attract a younger or older audience? Are you trying to change an image that exists or create a new image?
What are the best ways to marry social media to your radio station?
The first thing is stations need to accept that the means of communication in our world have changed. The telephone still works for News/Talk stations, but it’s not the primary form of communication for many Americans. It’s all about “the thumbs.” Texting, tweeting, using social media sites and sending emails is replacing telephone conversations for many in the business world. Department stores are eliminating physical catalogs. Long distance calls are being made around the world using platforms like Skype. Secondly, radio should harness all of these tools by using their station website as the primary depot, but not as the only destination for the audience, in their communications journey. Thirdly, the more connectivity you have with your audience, the more they’ll use your radio station, and you then become a part of their “village.” We have the ability to be a “Village Builder.”
As companies have streamlined and reduced their employee bases, do consultants conceivably play more vital roles in the mix of decision making and course charting?
One would hope so, but the jury is still o-u-t as to what commitment broadcast owners and operators will put toward the product. Right now, there seems to be a disconnection between revenue and ratings. Because the economy is starting to turn around, and radio is feeling it, we expect to see a greater need for bigger ratings to generate greater revenue. The many that have committed programming genocide are suddenly realizing that their sales teams are unable to garner their fair share of the market. When they see that the “big dogs” are making more than their fair share of the market’s revenue, they’ll start to invest in their product. We, as an industry, need that investment. I’m not saying things should go back to the way they used to be. I don’t believe they should. I do believe that to compete with Pandora, the iPod and satellite and Internet radio, we have to be entertaining, informative and much more than a juke box.
What is the best piece of advice you would offer someone getting into the business today?
Learn as much as you can about our business. Start by learning the history of broadcasting. Understand what has worked and what hasn’t worked (and why) in our history. Study the marketing of the experts. Learn research from those that have excelled at it. Read every people management book that you can. Listen more than you talk. Pay attention. Practice the golden rule. That’s it. Do that…oh, and have fun! Don’t take yourself too seriously. Come on, you’re getting paid to entertain. How hard can THAT be?
[eQB Content by Mark LaSpina]
