Mark Ramsey Media LLC - sync radio and digital media

Mark, thanks for helping to bring this story to the attention of broadcasters on a very slow holiday week. As always, you have hit on the key issues here. I also applaud Peter’s response, because dialogue is welcome and overdue. Great holidays to you and your readers.

Mark,
I have been reading your posts about HD radio. I get the chicken and egg problem, but I still don’t understand what the obstacle is to achieving liftoff and market acceptance? It seems like HD radio is the best way to save radio?
To an outsider such as myself, HD Radio seems like a no-brainer. If you score the competitive listening options – iPods, Internet radio, traditional terrestrial radio and satellite radio in a competitive matrix with price, convenience and listening-options as the weighted decision-making criteria – it seems like HD Radio is a logical winner; that is if HD radio = 40 new listening options in every market. iPods are a hassle, satellite radio is expensive (relatively speaking), Internet radio is not transportable, old-radio lacks choice, but HD radio seems to cover all of the bases for a big chunk of the market?
What’s a listener worth to a radio station? It seems like cost / benefit of HD Radio justifies the investment? If you are old-radio, you have to compete in the matrix loosely described above, and the only way to compete in that matrix is to massively expand choice. Am I missing something obvious?

Bruce, start here:
http://www.hear2.com/2005/05/the_premature_d.html
And you might also pick up my book (pimped in the left margin).
Fred, back at you! Happy holidays!

Bruce,
Try the offerings at http://www.clearchannelmusic.com/hdradio and http://www.clearchannelmusic.com/formatlab and tell us, if the offerings are anything more than just clever re-works of the main analog channels. Terrestrial radio needs to figure out first, what compelling programming to put on their main analog channels, although I personally don’t have a problem, because I AM-DX every night. Besides, do you know anyone who recently bought a radio?

Mark,
Disagree with you that the spots don’t matter. This will be the first flight in a 2008 campaign valued at $230 million. Certainly you would agree radio is an effective messaging media. My thought is any inventory is a terrible thing to waste. You well know the nitty gritty of the spots, of any messaging does matter. Your suggestion, correct me if I’m not reading it right, is there is simply no correct messaging for HD Radio. Let’s agree to disagree on that point.
My understanding is the fundamental purpose of the initiative is greater than getting the attention of the auto makers. My issue with the way some amount greater than $400 million has been spent is we have little to show for it (my opinion). Further, because we have not established measurable objectives we do not know the definition of success. Nice work if you can get it.
Sorry to hear you have not enjoyed a good experience with agency folks. Again, my read of your comment. In my experience there are, in fact, many very gifted and talented people working in the ad agency business. Sure there are hacks, you can probably name a few working in the research dodge, good and bad folks work in every trade.
Agree almost totally with your comment on branding. My thought is advertising is a part of branding because it is one voice of the brand. Do agree with you the complete brand experience most importantly includes the product or service itself.
Kudos on an interesting post. Happy New Year.

I’ve got a Cambridge Soundworks table radio on order and am throwing out my HD radio that currently occupies my nightstand. The problem is content and reception. I’m looking forward to plugging my iPod or my Slacker portable or my PDA or even my laptop into it. No hassle at all.

First, the “brand” is confusing. Any visit to a retailer where you ask for HD or digital radio gets you sent to the HDTV department.
The promotion is touted as $630 million in ad money. Ain’t no money. It’s distressed radio inventory. How many stations are giving up valuable drive time inventory (cash spots) to run the equivalent of trade spots?
Advertising 101 says you use a mix of media (once you have a brand) to roll it out.
The technology is flawed. I have two digital radios and have been lent a Kenwood by Kenwood. The digital signal on the Kenwood with a roof-mounted antenna falls short ofthe analog by about 10 miles. My JVC with the car’s stock antenna falls about 15 miles short. Secondary channels that don’t fall back to anything simply disappear.
In my market, the digital signals can be silent for days at a time. Stations often get irritated when I call to tell them there’s nothing there.
The secondary channels vary only slightly from the main analog. There’s no unique programming. This from members of the digital alliance. Understandably very, very few stations have real “radio stations” on their secondaries. Just sterile voicetracked jukeboxes. Why hire a staff for 11 listeners?
The press releases are pure, unadulturated hype. Even the writers can’t believe what they release.
I make monthly tours of New England retailers to see how receivers are selling. They’re not.
Remember that SIRIUS and XM had 100+ channels up and running before the first receiver was sold.
They call it a “revolution.” The original estimate of 450,000 receivers was downgraded to 400,000 not too long ago.
The real upside to this is that radio stations (particularly Public Radio), are upgrading old facilities. Commercial ones are, too. The 800 million existing receivers and their owners will benefit from better analog signals even though they’ll still be smashed and mashed by aggressive processing.
The technical deficiencies of the system have caused me to force my JVC to analog to avoid the audio artifacts and constant switching between analog and digital with the out of sync audio that goes with it.
Retailers tell me most of the receivers they’ve sold have been returned as defective. They aren’t. They’re simply deaf. How many people will install a rooftop antenna for a table radio? Too much work for too little benefit.
Unless a very serious marketing/branding effort is launched and some of that $630 million is spent on SIRIUS/XM-type kiosks and a mix of media advertising HD Radio will be dead on arrival.
At this point, it needs resuscitation. That assumes consumers who have been disappointed with their first exposure to the “revolution” will come back for more. I don’t think they will.