All broadcasters – regardless of market size – understand first-hand the tumultuous times we are living in. The economy is clearly “going through some things,” and concurrently, we continue to see a shift in the way advertisers of all sizes are allocating their dollars. Ad spend in “traditional” forms continues to decline, while investment in digital continues to grow. No one can argue this.
This was made clear as we’ve been treated to second-quarter earnings reports from the major companies. In every case, the pattern holds: Traditional revenue declined a fairly significant amount, while digital revenue continues its growth pattern.
As I travel around and meet broadcasters, I continue to be amazed at how many continue to stubbornly believe this will turn around. While I would love that to happen, there is absolutely no evidence to support that. These trends are real, and out of our control. Pining for the “good old days” won’t make them return.
So what to do? Is broadcasting doomed (their glass is half-empty) or is there a way forward (their glass if half-full)?
I am firmly in the half-full camp. We have been consulting many broadcasters on developing their digital strategies, and interest continues to grow. These companies have invested in the training and product development necessary to provide digital options to their clients. And an advantage local broadcasters have is that they’ve built trust with the local business community over the years. So many clients are wary of digital despite the fact they are allocating dollars to it, but many don’t understand what they are buying and who they should buy from. Having a trusted partner like the local broadcaster can be a gamechanger, and an obvious opportunity for radio and television stations.
Plus, I firmly believe the best, most successful broadcasters know how to pivot. They have a good grasp on their market and can quickly modify their business models to include digital solutions. Imagine if you were in the manufacturing business and what it takes to design, tool, and build a new product. Not so easy. But in broadcasting? A whole lot easier. And those who embrace new opportunities? They have a “half-full” mentality.
What is holding many broadcasters back? Honestly, they continue to believe they are solely in the radio or television business. They allow their sales teams to take a pass on digital and don’t make any investment in developing digital products to sell. They are afraid of change. Their air staff do their shows, without any expanded expectations to engage and grow audiences. In other words, they don’t have a growth mentality. They have a “half-empty” mentality.
But I believe the future is bright and I continue to be buoyed by so many of the initiatives broadcasters have undertaken. They prove every day that the historical KPI’s (Key Performance Indicators) are no longer just Nielsen and on-air revenue, but have added other metrics that are measures of success: clicks, streams, shares, and more. And their staffs have been bought into a new way of approaching the business, not with digital replacing broadcast, but augmenting it.
And in my opinion, broadcasting is perfectly positioned to blend the two successfully.
So, take stock of your business “glass.” Is it half-full, or half-empty? If it’s the former, keep leaning into it. If it’s the latter, start looking around at the broadcasters who have evolved and grown their business and take good notes.
Remember, this isn’t brain surgery. It’s broadcasting.
Paul Jacobs
Jacobs Media
