Mobile Radio Simplified. Accessible. Relevant.

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.

As a happy Broadvoice customer, I like to tell friends about the merits of the service and what not.
However, they just launched a new video phone service that I have to LOL at. Here is their pitch:

BroadVoice has announced an amazing offer that will provide each account a FREE** Ojo 900 video phone that can be used to make video calls or regular telephone calls. If you call another BroadVoice customer that has the video service the call will be in full motion video. If you call a regular telephone line it will be the normal high quality telephone call.

Ok, so in order to enjoy it, I have to find to:

1. Mount the phone somewhere it will point to my face
2. Figure out who else has the service or promote it
3. Pay additional monthly fees

I can use my webcam now and it will work with a bunch of different IM clients and services (based on who has what) the same way for free.

Admittedly, our bias here is that phones are for audio anyway, but nonetheless, I can’t see this making business sense apart from Broadvoice wanting to stake a claim on establishing a standard that will help them with PR and marketing. The service itself has a tiny addressable market.

Fierce VoIP reports how voodoovox secured $8.1M in financing. They are now rising on our list of potential ad partners to contact next.

By Jodie Gilmore | for the Vancouver Business Journal

Radio is about to marry with the ubiquitous cell phone – creating a TiVo-like personal subscription service for radio listeners, called CelleCast.

“You’ll never again have to say ‘I missed that’,” said Andrew Deal, founder and CEO of the Vancouver-based new company.

The concept’s kernel is “audio on demand,” where radio listeners create a personal profile, choose what radio programs they want to listen to, and when they want to listen to them. Basically, users will become their own program directors.

Following the trends

Deal said that in 2004, several converging trends set him on the path to developing CelleCast, due to launch in June:

• People want to control their media, such as through podcasting, TiVo, YouTube, and Comcast On-Demand.

• Consumers want an interactive experience, such as blogs and call-in talk shows.

• Mobility of entertainment is growing, as exemplified by MP3 players and iPods.

• The telecommunications industry is maturing.

• Market analysts are predicting this advertiser market will be worth $5 billion by 2012.

• The radio industry is interested in reaching new markets.

CelleCast merges technology and culture, backed by a well-thought-out business plan. Deal said he and private investors have spent about $200,000 on developing the business, and he is currently shopping the business plan to local and California-based venture capitalists. He is also negotiating partnerships with major radio networks and cell phone companies.

“We have a strong revenue model for radio content providers,” said Deal. “They are incentivized to promote the technology.”

In addition, Deal has studded his board of directors with leaders from the radio industry, to ensure his company moves in the right direction, and has filed for a patent on his call-processing methodology.

Phased roll-out

Deal plans to roll out CelleCast in two phases. Phase one includes basic features, such as trademarked TalkBack, which enables users to text-message radio talk show hosts and station directors, conference calling and interactive advertising.

Phase two includes more types of on-demand programming, such as music and traffic and weather reports, as well as new target audience groups. Deal envisions corporations and city governments using CelleCast to connect with their employees and constituents. For example, a company could buy a subscription to CelleCast and use it to send voice-based updates and announcements. Government entities could use it to alert people to public meetings, reducing their exposure to lawsuits surrounding “insufficient notice.”

Deal said the average CelleCast user will be college-educated, 35-plus with an income over $70,000. Most will be white-collar executives or decision-makers and, of course, avid cell phone users. Deal said CelleCast will implement an easy-to-use, voice-based interface.

First to market

Deal said he has little “head-to-head” competition, although a few companies offer podcasts over the phone, and Clear Channel Communications (partnering with Cingular Wireless) is offering a text-messaging capability to a few selected New York radio stations.

Satellite radio, too, is not really a direct competitor. With satellite radio, said Deal, you have to “buy before you try,” while with CelleCast, there is little initial outlay. CelleCast offers an ad-based free model, where programs are interspersed with mobile advertising, and a $9.95 per month ad-free package. With both, users pay for minute-usage on their cell phones. Deal said he hoped next year to be able to offer a $19.95-per-month plan that allowed users unlimited minutes.

The real Deal

Andrew Deal is no stranger to the entrepreneurial world. In 2000, he launched CGI Productions, a local web application development firm, and he’s been involved with the Internet industry since 1995. In 2001, Deal founded a missionary organization to reach the nation of India through leadership development, and lived there with his family for two years. While in India, he opened a branch office for CGI Productions; the branch office and the organization are both growing at 20 percent per year.

Until the fall of 2006, Deal served as Technology Director for AdsForFree Inc./Coracle Inc. and for Flyer Plus Inc.

Read full article online.