Mobile Radio Simplified. Accessible. Relevant.

When we started CelleCast in 2007 we knew right from the beginning that there were two essentials to making mobile phone radio work for the industry. Not that these two stood alone, but we felt, and have been thoroughly vindicated, that without these there isn’t a rats chance in a beauty contest of success in bringing a significant radio audience over to new mobile devices. Once I cover these two self-evident points for reference sake, I’ll get into how the train got derailed for all of us by those who ignored them.

Behold:

1. Universal Simplicity

Radio works because it is easy, and will remain ubiquitous until it gets complicated (hence, the unintended consequences with satellite and HD). You turn it on, you scan through stations, you find what you want to listen to, and make presets of your favorites so you can avoid commercials, etc. Not only is it second nature for you, you also expect it to be easy for everyone else around you. The universality of people who are comfortable with it makes the simplicity means something. Even complex things are made simple on an individual basis with acclimation and repetition, but the list of things in media life that everyone ‘gets’ is still limited to the things that have been around a while. Without this, the media is not sharable. There is no community without sharing. Hearing radio over a mobile phone is sharable only to a very small niche community when an iPhone app is required. Hearing it only when an sms text message is received also creates limitations that violates the Universal Simplicity standard. This is something radio people get that cloistered new media geeks tend to dismiss.

2. On Demand, Personalized Delivery

This is an essential because frankly there is no reason for anyone (producers and listeners alike) to break from the status quo unless, in addition to the simplicity standard above, other compelling benefits cannot be ignored. What new media brings to the table for radio going mobile is portability and personalization. These are the same qualities mobile breakthroughs also bring to apps and the mobile web, BTW. When listeners can truly just push a button and hear a personalized playlist of programs auto-queued to play only the most recent unheard episodes, then the listener is in control in a similar manner that they are also getting accustomed to with DVR’s for TV.

Falling Short

Now, hopefully you are aware of the essential value of each of the above as pre-requisites toward a wonderful revolution in mobile radio. So why are we not much closer to seeing this transformation toward personalized radio come to pass? If you think it is the technology, you would be incorrect. I submit to you that it is actually the misstep of technology misapplied. Other ‘features’ (aka shiny objects) were regarded more highly than the core essentials of simplicity and personalization. Because too few have sought to hold to these as standards, what has suffered unfairly is the perceived viability of mobile radio personalization itself. Now, I am tired of that. Not just as a believer/innovator seeking to equip the industry for positive change, but also personally after seeing inferior tools dressed up with confusing rhetoric misguide people. Because of this, the promise of radio personalization has been broken, and the reality of it, postponed.

Cases in point: Foneshow.com and lexy.com. I am not in the habit of calling out competitors like this, and I have been able to resist the temptation up to this point. What breaks my silence now is the dread that the ideas behind what all three of us and others have been promising would be passed by due to poor representation. To see these venture funded companies, who have clearly undermined both the simplicity and on-demand standards they falsely claimed to champion, fade in listenership while claiming to represent mobile radio on-demand, is a tragedy to me. To be funded and not to have transformed the industry is an abject failure. I’ll give them credit for getting funded while we have yet to be in that club, but from my perspective today, I’m glad the failed examples are clearing out to make space. As long as the credibility of personalized radio can avoid too much damage now, we’ll be able to make our case while waiting for the right investor to emerge.

How have they violated the core essentials? To put it simply, they claim too much control over the experience, destroying simplicity. (I’ll give lexy more credit for putting their call-in number back on their pages, but for a while it was gone.) The approach they and others have taken is that the user would be enamored with text messaging to the point of accepting it as a gateway to access the audio. When we saw that as the core of Foneshow’s model in 2007, we didn’t even want to list them as a competitor on a product level. If you are making demands of the listener where they don’t get the audio without waiting for a text, then how is that on-demand? Who is making the demands? Imagine if your AM radio was similarly anal. You turn on the power and before any sound comes out, you have to enter your mobile phone number and wait for a screen to come up where you have to tap on a blue 10 digit number. Would you consider that consumer friendly or even good engineering?

One deal-breaking major fallout from this approach is that the content they are aggregating and delivering comes from radio shows that have no decent way to easily promote their content via the call-in based medium. We give each program partner a unique direct dial access number and program page. They can link to us from their site and get more SEO value. They can promote their cellecast number on the air and get direct call ins to THEIR show with ZERO barriers. Now, this is not a competitive pitch here although it sounds like it. To me, it is just bottom line common sense to make it easy for your partners to promote themselves in the context of universal simplicity in personalized mobile radio.

The bottom line problem here is that the biggest barrier for mobile phone radio is already the mainstream perception that it is too complicated to bother with. It doesn’t help that many of the companies trying to solve the perception problem are actually contributing to it. They just make it harder for those of us trying to help.

In the next installment, I will deal with some of the many promising possibilities for on-demand, personalized mobile radio. The standards above are not constraining, but in the long run, the key to radio liberalization and audio-based social media.

Something surprising is about to occur, but I say it is right on schedule. Apple’s iPhone is going down a few pegs in the intrigue market and the app craze will quickly wash into a memory similar to playing pogs and listening to Sugar Ray.

Why will the app craze dissipate? Because the same thing has happened on your desktop already. Installed apps, for a variety of obvious practical reasons, have given way to web apps. Web apps are accessible from any computer. They don’t care what version your OS is. The installation step gives way to a much easier registration step. The configuration and data status information is 100% portable. Think of your email. Where would you be if you could not access it from the web? That’s right, stuck to one PC. How 2004 is that?

Now, with the recent emergence of Android and Palm Pre as competing smartphones to the iPhone, what do all touch smartphone users have in common? The webkit safari browser.. that’s what. iPhone web apps already have had a few advantages over their native app counterparts, but now that the safari browser will be the common denominator among all phones, the scales are going to tip dramatically. Web apps as a sub project will give way to the mobile web app being the core business model. Look how this new real estate application is built around this concept.

Also, in case you are skeptical about all this, Verizon, who has been the odd carrier out in the non-blackberry smartphone world is about to enter in with bang. Droid phones are due out before Christmas with the new Android 2.0 OS. They are also slated to carry the Palm Pre by January. You would not believe the amount of iPhone users who are ready to switch to a new phone only because of how much they hate AT&T.

What this means for radio, is new opportunity that maybe, just maybe, they might not pass by this time. Radio’s long-held media advantage of wider and simpler accessibility is being challenged again and again, but this time and through 2010, the shift will be felt more dramatically. We have been telling radio leaders to partner with us to head off the challenge and bring in new tools to lead in opportunity. Start adapting now, without abandoning your core. We share your ‘accessibility first’ principle, so let’s get moving. The future still marches on.

We are ready to help now by developing your mobile website assets simply by repurposing what you have now on your current website. We can work with your webmasters and engineers in a seamless manner to get a winning strategy working. There are lots of new possibilities for audio as well with a combination of web based, telephony based and mobile streaming tools for mobile phones.

We leave you with a quick video about how the fast and versatile Safari browser works at different speeds for the iPhone, Palm Pre and T-Mobile G1.

Life is full of surprises.

There are times when we think the business relationships we have set up years ago will remain intact and that everyone is comfortable in their role. Then the phone rings. “Although we have been glad to have you provide that service for us, in light of the recession and all, we decided to handle that in house from this point forward.” No matter how wrong headed these kinds of decisions might be, they are made anyway, and more and more specialists are forced to diversify. What should surprise us is that anyone is surprised anymore when things normally regarded as necessities are re-evaluated at every level.

For a minute, let us consider the vital services provided by the radio program director. First of all, rest assured that I love PD’s and my appreciation for what they contribute to radio has increased over the last 2 years. Nonetheless, the core of what they do for listeners is gradually being replaced by an increasing consumer awareness of a whole new set of media choice. Not just content choice, but delivery method choice and personalization.

The convenience of pre-packaged media with a carefully balanced mix of news, info and music is certainly here to stay, but the obvious fact that this is no longer the only option means the radio industry must decide whether to participate in a widening demographic, or a shrinking one. Sound familiar? This is what we have been saying since 2006, and others have been saying as well.

I am slated to write an industry article specifically on the radio personalization topic next week, so you will have to stay tuned for the helpful details. I still think we can all progress better together as an industry if we test new radio ideas out in an intelligent way. That should seem like an obvious point, but you might be surprised how many still need this hammered home.

Despite an ongoing unprecedented time crunch of late, I need to write about my stubbornly persistent visions of radio personalization — specifically as it relates to talk radio. It is funny that stubborn persistence is required in larger doses in the journey, as people in radio should already be aware that every other form of media is already going that direction. So stay tuned.

As a quick update on what we are doing around here in lately, I have been dividing my blogging time more widely by adding some new posts about our iPhone web apps and the new advent of the local web on our CGI Productions Development blog.

Stay tuned, and look for our iPhone web app for CelleCast in 2010, with all the mad skills we are building up here in the shop.

Andrew

I am inspired to throw in a quick note today after watching this video on Mark Ramsey’s blog about what agencies think about radio today.

A couple of the points I especially liked were the references to windshield brands and the effective opportunities ahead as radio goes interactive. We have been looking at developing local advertising at this stage and proving this concept as valuable. National initiatives for large scale deployment have been a tough road, but we think we can get more marketing interest thrrough local tests like this.

More information to come. Contact me to discuss what we can do now for your brand in a local market.

With the recession running in full gear at this point, we are settling into a season where re-evaluating value in media options is now commonplace. As I’ve been rethinking my methods of articulating our own value proposition to radio partners, I have decided that the discussion of podcasting should come into a new focus with all of its merits and liabilities carefully charted and weighed, and that, what the heck, we should consider throwing it into our service offerings as well.

I have been somewhat dismissive of podcasting discussions when talking to partners to this point, and am keenly aware of the diminishing attention the topic has commanded in conferences since 2006. (Heck, I just realized I don’t even have a blog category for it until this post!)

Podcasting web portals are becoming, as I felt they would, more and more ghetto-ish with 2nd and 3rd tier content dominating the home pages, with broken links and super stale programs. Smart radio properties are carefully avoiding being found in these places, making their podcasting strategies critical in regards to the possible effect it has on brand.

Anyway, what I have in mind for podcasting and audio archive delivery as a service will fit well into helping us help our partners reach their audiences in more ways over a clean, interactive interface.

We’ll announce more about this soon, but would love to get your thoughts on it while the idea is fresh. I have only shared about 15% of my thinking here on this post, so that should make for a good open door for discussion about opportunities for creating a better comprehensive audio mousetrap.

Like my run-on sentences today? There is more where that came from. It is a by-product after a full day of brainstorming and research.

Smart strategies for how to not only survive in this controversial recession but thrive are the focus of more and more people these days. When things are going relatively well in an industry, there is a natural resistance to trying anything new. This is self-evident. Why do things differently when we are profitable? When things get tougher, especially ahead of the curve in an economic downturn like they have for radio in 2008, the pressure grows. In radio’s case, against the advice of just about every radio consultant I have talked to, the industry got even more resistant to innovation as profit margins shrank and radio stocks lost 85% of their value. The reasoning was that all remaining resources had to be spent on core operations.

Now that the recession is fully upon us, and there is no bailout in sight for radio, it is coming down to a simple choice: Innovate or Die. This blog has been focused on the premise that radio must innovate by going mobile since its inception (of course CelleCast has a stake in this). Our message has been respectful, and will remain so, but now that the heat of circumstance is turned up so high, it is not enough for radio executives to simply act like they are listening, and it is not enough to just engage in a few initiatives that repackage the exact same product. The gauntlet to innovate WELL lies before us, and there is no excuse for having delegated this burden to the ‘digital guy’ or following the path of least resistance.

The good news is that the recession and even a good portion of the supplemental uncertainty that accompanies President Obama’s redefinition of the economy opens the door for innovation that didn’t even make sense a year ago. I wouldn’t say this if there was no historical precedent. When we look back at the great depression, we find that a host of enduring innovations emerged. Of course many also failed. What I want to do in this article is point out a few characteristics where we see a sweet intersection of opportunity between the recession, radio and new mobile media trends. Draw your own conclusions, and reach out to those that can help you adopt recession friendly innovations.

First of all, during a recession, you have to position yourself as the ‘value leader’. We see many companies already doing this. A recent frozen pizza commercial compares their product to delivered pizza as equivalent in quality for a fraction of the cost. It is not just a pricing war tactic, it is an appeal to the consumer to rethink the value equation in their pizza habits in a world where everyone is re-examining their overall buying habits. Brands that succeed during this time have to become part of this re-evaluation process today’s consumer is undertaking. Radio, since it already free, has to create value for its audience in terms other than cost. For talk radio specifically, value is found in helping people find new ways for their voice to be heard politically, socially, etc. Having them take turns calling in for a chance to get past a call screener to be on the air is not a good value proposition. Of course there are other ways to establish the value position for radio, the key is that in this space you need to stand out as a value leader, not just be one of many responding to the need. Look at what Ed Shultz is doing is doing in this space for new advertisers as an example.

Secondly, you have to stand out as a relevant voice who understands current trends, how to set trends, and how the recession is forcing people to re-evaluate their adoption of new trends. This recession in particular intersects a particular set of new media trends relevant to radio, namely: Portability; Personalization; User generated content (UGC); Shareable content; Social Media; 3G Mobile Services; Advanced interaction; On-demand time-shifting; and Free telephony. I believe the recession is already starting to affect the trend equation here in two key ways:

1. Watch for gadget hype to sharply decline. People will prefer to find ways for their existing gadgets to do the job. (yes, their cell phones and VoIP lines, and web browsers)
2. The value of time. Frivolity is already becoming less a result of happenstance, and more a product of deliberate choice. It would be easier of course to just say that people have less time to waste, but that isn’t exactly true. It is more polarized. Some people have less, some people have more (like while unemployed), but everyone has less time tolerance for waste in being pitched to. I think the new radio winners will be ones that position themselves as the best in content and ad targeting, giving the consumer higher control in what is heard.
3. Commonality of Access. Recessions, as evidenced by the reports in online relationship sites registration spikes, have an effect on our value of connectedness. Families generally pull together, and social circles of higher trust are the ones we shift back into. I believe this will cause people who can’t convince their high trust friends and family to get on Facebook to connect in new ways that are more accessible. This applies to direct social media tools as well as to broadcast, etc.

Thridly, you have to be agile. Even on a company cultural level, statements like, “We’ll take that under advisement in our next meeting”, and then not getting back to the person will become less of a forgivable act. Or saying, “I am about 150 emails behind right now”, like I heard from a prominent digital radio executive, is not going to produce a pass from the shareholders. The opportunities in innovation are indeed going to be exploited with or without your participation and investment. New entrepreneurs ready to meet the needs of the public can go directly to them with podcasting, webcasting and cellecasting, but how much better will it be for radio if the industry is in the lead instead of remaining branded as innovation-resistant?

Finally, and this is a very specific value intersection of talk radio during a recession, you have to find ways to lead in rallying people politically. Whatever your politics are, there is no denying the fact that people on all sides feel less informed about the substance of today’s debated topics, and more caught up in personality wars in the media environment. In one sense people are empowered to opine in written form all over the web, and now they can post video on YouTube and elsewhere. But what is radio doing to collect contemporaneous audio commentary from the people? What is radio doing to give people access to raw audio (like Rush’s CPAC speech) that is at the center of today’s dramatic news cycle? What is radio doing to provide audio content elements for the Twitter timeline? It is not that radio shows need to polarize people into partisan entrenchments. The rallying can actually be around letting ideas be shared and aired out so we can come into a place of real national unity, government transparency, scientific debate, and long awaited accountability. There is a new market for this that radio can meet, and we look forward to partnering with it.

We leave you with a CNBC video link on innovation that features Mel Karmizan. The people in this video series have much greater wisdom to offer than I can provide here, but I hope you gained from my specific ideas on how radio can emerge as a winner during these challenging times.

This is a topic that is dear to our hearts and I am glad to say that despite the justified concern in the Talk radio industry, this issue likely won’t be on the table in the short term. Take a gander at what Tom Taylor wrote on this today:

Obama’s win won’t immediately change the [FCC] Commission.
Chairman Kevin Martin now shows signs of wanting to hang around longer than expected, and it could be a while before the new Democratic Administration gets its ducks in a row to nominate a new Chairman and new Commissioners (both Dem and GOP). Would Martin accept a demotion to just-plain-Commissioner, since his term’s not up yet? That’s almost never happened, historians tell me. And if Martin really does want to rev up a political run back in North Carolina (for Sue Myrick’s House seat in 2010?), he’d want to get going pretty soon. An Obama presidency might be interested in elevating Commissioner Jonathan Adelstein to Chairman, and he’d be a good consensus builder. If that happens, expect fellow Democrat Michael Copps to turn a deep shade of green - for jealousy. But Obama could well look for a fresh face to run the FCC, and if that’s his wish, Martin could be around the 8th floor for quite a while.

For our part as advocates for the Fourth Speaker, I say that no one segment of media should be complacent about what the Fairness Doctrine would mean if implemented. Just because Talk Radio is the target of it, it doesn’t mean you are immune. You have to think of the precedent it would create. Your blog could arguably be next. Not next year or next term, but 20 years from now a president could seek new ways to silence dissent as well.

As the jewel of his keynote in the RAB Radio conference yesterday, Jeff Haley said that if radio was available on every mobile phone, and if half the subscribers listened to it for half an hour a day, then that would create $3 billion annual increase in radio advertising revenue. Then he said we need to commit to seeing this happen. Here it for yourself.

We are with you Jeff, and dare I say, already a few steps down the road. We have enabled any talk format radio to be delivered to all 243 million cell phones as well as the 181 million landlines anywhere, anytime on CelleCast. It is not dependent on FM tuners being put into handsets and the instant on-demand capabilities create the kind of passion re-ignition value needed to reach todays consumer.

Having developed the technical network to make this happen and as we prepare to launch the Dr. Laura Program as our marquis program cellecast, we are now ready to engage the advertising community squarely to accelerate the achievement of the 2020 goals.

To give you the three points of what the Radio 2020 initiative is, here it is from Jeff’s speech:

1) Address perceived concerns about the health of Radio head on.
2) Engage the industry head on to connect stations, producers to “build an entire radio ecosystem”.
3) engage consumers to reignite their passion for radio.

BTW, this initiative was first presented by NAB’s David Rehr at the 07 NAB Radio show in Charlotte. He had 4 points. I remember then that we were poised to deliver 3 of the 4. When I speak at the Radio Convergence Conference in San Jose next month, I’ll be sure to bring this up.

Also of interest from Jeff’s state of the industry address:
Katz and Interep and RAB are creating a new hub for advertising communication. What will these mean for media buyers?

We are about to launch a new program at CelleCast.com that is focussed on creating an audio forum regarding the news of the day on the presidential primaries and beyond. It has 2-3 news roundups of the day from various public podcasts (fully attributed) and relies on UGC feedback from our users to make everyones voice be heard.

We could really use your feedback now on this as a beta user of the updated features of our talkback tool. Please visit the Presidential Cellect 08 page now and call in to the number and post a talkback. Make sure you are registered first so your profile page link will work.

We are building the final touches now to make the users public profile live to tie it all together into this. We realize that in order to have user generated content, you also have to have at least the right basics of a social networking site as well. That is no problem for us, but will be added gradually into CelleCast. Custom fields will be added over the weekend to make this profile page work nicely.

Please post your ideas here on the blog for ways to improve the user experience.

Thanks.