Week of February 16, 2009

I am hearing the lament of many general managers about how "the station across the street" is "giving so much free inventory," we are having to drop our rates even further. This is crazy! Yet typical of desperate companies trying for business. What can I say! Please stop it!

I know we speculated last week about the stimulus package and how it may affect the station revenues. Already companies are sprouting up offering stimulus package search services. (www.grantwritingespress.com) and (www.governmentgrantfunds.com). Perhaps there is a whole new business available for radio? Search "stimulus plan" and check it out.

Although the downturn is affecting all media, consider the changes that will come about once the economy turns. Remember the days of stations running 7, 8, 9 spots in a row? Trust me, that tactic is never coming back. Do you have the right mix of formats, talent, and resources to address the changing technologies in the coming years? Consider that online listening increased 38% in 2008. Mobile applications are changing the way America views portable entertainment. Are you prepared for it? Cut all you want, but until there is a strategy for the future, running in place will get you ... not so far.

Perhaps it's time to decide whether you are operating the station (or company) to survive the downturn ... or just survive? Survival assumes changes far beyond strategic. Managers will need every dollar to stay above water, but if you are just trying to tighten up the balance sheet to take care of short-term cash flow issues, be careful not to sacrifice the overall strategy of the station. Getting rid of solid but young sales people, marketing/promotion people, and the borderline morning show that needs just one more year to develop may place the company in a precarious position. You must not only survive the recession, but also the changes coming to our industry. (Hint: It's never coming back to the way it was five years ago.) More tomorrow.

HOLIDAY!!!