Monday, November 17, 2008

Radio: High Deception


I was reading Ad Week on line the other day and caught this headline: Promotional Swag More Effective Than Ads, Study Says.

It eluded that promotional items – swag – serve as the best means to reach consumers over radio and TV.

In an ambiguous statement, the researcher claimed the results of their surveys – plural – came from questions asked of 600 participants, mostly businesspeople over the age of 21. They were conducted both on-line and in-person in major cities “such as New York and Los Angeles” to "recall promotional items they received and recalled over the past twelve months.”

Swag, the study said, yield a higher ROI, for a “very low cost-per-impression, compared to other advertising media” and that “items received this year still generated a high recall rate among recipients, leading to greater purchase intent.”

P.T. Barnum lives. Would one expect anything less from a “study” conducted by the Advertising Specialty Institute, whose job it is to promote its members’ promotional items?

Doesn't it remind you of iBiquity, the HD Radio Digital Radio Alliance, and the steady stream of misleading propaganda they attempt to flood the radio industry with?
*
That brings us to iLounge, a gossipy news and rumor site that caters to iPod and iPhone users.

Back in January, I mentioned that iLounge had carried a news item on December 28, 2007, which claimed that Apple would be introducing an iTunes-tagging-capable HD Radio boom box at the 2008 Macworld Conference & Expo in San Francisco later that month.

On-line radio trades, like Radio Ink, picked it up as the first news story of 2008.

Just so you can follow the ruse. The 2008 International Consumer Electronics Show was opening in Las Vegas on January 10 followed by MacWorld in San Francisco on January 15.

The HD Digital Radio Alliance capo Peter “Sgt. Bilk-o” Ferrara proclaimed his planted tale to be a sign that Steve Jobs was essentially endorsing HD Radio. In reality, he wanted his latest fabrication to spread to the mainstream press.

It didn’t.

Considering the Alliance’s track record, you have to wonder if everyone associated with the HD Radio scam feels like the Snidely Whiplash cartoon character. Curses, foiled again!

(For the record – and to make it easier to spot the first HD Digital Radio Alliance ploy of this coming new year– the 2009 MacWorld Conference & Expo will run from January 5 to 9 and the 2009 International Consumer Electronics Show from January 8 to 11. )

This past Friday the same iLounge site was pitching for comments in its latest reader’s poll, “Which of the following next-gen add-on features most interests you?

Harmless enough – until you read the following line: “Currently, HD Radio is leading the poll with 29% of the vote.”

So we are to accept as fact that more iPhone/iPod users want HD Radio than, let’s say, a larger screen? Or, more likely, are we to believe that HD Radio proponents are manipulating the iLounge poll?

How about that press release the HD Radio Alliance rushed out on June 3o, which read: Unprecedented Traffic to HDRadio.com. It read: "In addition to the raw increase in traffic to HDRadio.com, the percentage of new visitors to the site continues to exceed 80%. The site currently sees some 2700 unique visitors per day and those visitors currently spend an aggregate of 5600 hours per month on the site. Since January 1st, 2008, there have been over two million page views, with tens of thousands more coming from widgets embedded in radio-station Web sites, said Jamie Allen, Chief Operating Officer at Texas Creative, the company that built and maintains the site. All of the stats are for organic traffic, not aided by any search-engine optimization."

But Google Trends, which measures site traffic, showed the HD Radio Alliance’s claims to be false. Did the Alliance believe that no one would probe their implausible claims?

The best one comes at the expense of consultant and paid iBiquity HD Radio shill Fred Jacobs.

This isn’t a new story, as such, but it makes one wonder what the ulterior motive was.

Here’s a tale of two research studies, one of which was supposed to vanish into thin air – but didn't.
*
Damn, you know that’s the problem with the Internet.
*
To paraphrase that classic rock song by the Eagles, you can delete it, but it can never leave.

You see, it started when a new (click here) 41-question survey about HD Radio from Jacobs for iBiquity was mentioned in a Radio-info.com forum on October 31.

Almost immediately, the original survey vanished and was replaced by this sanitized 16-question version. (click here)

We have soooo many questions to ask of this ethical titan.

So who pulled your original HD Radio survey – and why?

Was the original survey a plot to kick Bilk-o replacement Lyin’ Diane Warren to the curb?

One would think that any research expert – even a self-proclaimed one – would never put a survey into into the field unless it was a finished product.

Or was it a finished product that iBiquity CEO Bob “Booble” Struble and the HD Digital Radio Alliance had to unfinish at your expense?

Here’s the facts, Fred. The economy’s so bad even Dollar Stores are being robbed.

Come 2009, fewer radio groups will be able to justify and afford to renew licensing deals with iBiquity and more than a few HD Radio stations could go dark.

The radio industry has to concentrate on the main product – the stations that can be listened to – not the ones that can’t.

Yes, Fred. It's dead.

And here’s some free advice for iBiquity. Do what you know best. The only way you’ll ever make real money is to invent a pay-per-lie service.
----

34 comments:

Sony ICF-S10MK2 said...

John,

Actually, Google Trends measures the frequency of search terms, while Compete Site Analytics measures the actual traffic to particular sites. Either way, there is very little interest in HD Radio, versus competing technologies:

http://tinyurl.com/58fdbe
http://tinyurl.com/5tcz6s

Looking at the comments, iLounge sure loaded the survey - they must be connected with HD Radio, where the tittle-tattle about the bogus Apple HD Radio/iPod boom-boxes was first leaked.

As far as the Jacobs/iBiquity survey, I sure would have let the Coot have it! Looks like iBiquity is setting up the HD Alliance for the blame-game. Too bad, Jacobs, you couldn't delete the cache from surveymonkey.com's website, where you created the survey - smart, you did clear out the cache from Jacobs Media Online, though.

Sony ICF-S10MK2 said...

Sorry, John - I forgot that Google Trrends also has an option for site traffic...

Anonymous said...

John, could you name one time the HD radio alliance or iBiquity ever told the truth?

Anonymous said...

Jacobs fancies himself as a research expert and a brilliant salesman. He may be right about one but dead wrong about the other.

Anonymous said...

Fred Jacobs is the epitome of the definition of a consultant. A man who claims he knows a million ways to make love but doesn't know any women.

Ask Fred why his Edge format was such a failure. When Tom Calderone left Fred was fried.

Anonymous said...

The biggest problem I have with HD radio is I don't like the idea of sending people to a service that competes with our own on-air product, as it only reduces our revenue. And we're paying money for that?

I'd much rather send people to our internet online listening location where our own product is so we'll benefit revenue-wise, as will our sponsors. The last thing we need right now is to reduce our revenue even more by fragmenting our audience even further.

Anonymous said...

Gorman, I am surprised you did not mention the Coot (you should continue to call him that) and his recent folly in Washington DC with Globe 94.7. He ripped off the AAA playlist of The River in Detroit and the station went nowhere. Then they moved to classic rock and still can't do anything so who gets fired? The program director.
The Coot is so frigging predictable.

COOT PATROL said...

What makes Fred Jacobs any different from other guns for hire. He is paid a fee to push a product and serves as a lobbyist of sorts to the radio industry. The man has a right to make a living and if there are suckers out there willing to spend money on outfitting their stations for a useless frequency so be it. I am not defending Jacobs. I do not even like the guy. If he wants to be a shill let him be one.

Anonymous said...

The Coot Jacobs actually does a double whammy. He convinces you to go HD then he ruins your radio station by consulting it.

former Jacobs Media client said...

I disagree with the poster defending Jacobs pushing HD radio. It was a mistake right from the beginning. A technology that was both flawed and unneeded. Jacobs is supposed to represent and help radio station is he not? As a consultant he should have instructed his stations not to take up HD radio. Instead he took anybody's money to promote anything. Shame on you Fred.

Anonymous said...

There was that red wine study a few years back that equated it with a healthy heart. When all was said and done it was learned that the study was done by a wine group.

Research is too easily manipulated and the HD radio alliance made a career of doing it and radio groups that do not know one thing about effective research fall for whatever was shown them last. HD radio was a scam everyone including broadcasters that should have known better bought into.

It is also true that when you have consultants like Jacobs and research companies like Paragon spreading manipulated research to further their that they will actually get clients to believe them while stealing their money for nothing.

Anonymous said...

Fred knows HD radio is dead but that did not stop him from being on Ibiquity's payroll.

BTW. Is Jake still consulting WLUP and Q101 in Chicago?

Fox said...

I think your point about radio groups looking at the budgets is a valid one. By now they have to see there is little to no opportunity for ROI with HD radio. Their best action plan is to concentrate on programming the stations that can be heard, you are right.

Goodbye, HD radio. We never even heard ye.

radio, a friends ipod with commercials said...

Looks the little red radio bus is running down the road without a driver, meanwhile, from the back, it’s passengers are screaming directions for the wandering little bus.

HD is dead in the water. And if terrestrial radio isn’t careful they’ll be the next ones asking taxpayers for a bailout.

Actually a few comparisons between US auto manufactures and radio are very scary.

Piss poor management practices
Lack of innovation

I’m sure the NAB is already asking for a industry wide bailout..

Anonymous said...

Christmas will be the killer for HD radio. How many excuses can a company and industry have for not selling product? Any other product would have been pulled from the shelves and discontinued. Sure a lot of stations invested in HD. It was a foolish move influenced by Clear Channel and iBiquity. A terrible, terrible uneeded investment. At least AM stereo made it to cars to have its brief visibility. There was no need for that with HD radio plus its lmited signal range made it impossible to listen to in-car. To the radio industry-your future is on line. Invest there.

Anonymous said...

Christmas will be the killer for HD radio. How many excuses can a company and industry have for not selling product? Any other product would have been pulled from the shelves and discontinued. Sure a lot of stations invested in HD. It was a foolish move influenced by Clear Channel and iBiquity. A terrible, terrible uneeded investment. At least AM stereo made it to cars to have its brief visibility. There was no need for that with HD radio plus its lmited signal range made it impossible to listen to in-car. To the radio industry-your future is on line. Invest there.

Anonymous said...

"Any other product would have been pulled from the shelves and discontinued."

"Exploring HD-R Availability in Philly"

"So how is HD Radio doing in Philly? Badly... How can broadcasters expect the public to get excited about HD Radio when it can't be uniformly heard everywhere? How can retailers sell the product if they don't stock it? Or if the products they do have on hand can't be demonstrated and employees are clueless? How can manufacturers justify building the product if it doesn't sell for these reasons? No wonder some automakers balked at putting HD Radio in cars when it came up tied to the satellite merger."

http://www.rwonline.com/pages/s.0049/t.16233.html

"HD Slowly Passes Into The Night"

"Radio Shack has given up on HD Radio. Their stores have two radios in stock and both are on clearance. One radio that sold for $249 is now on closeout at $82. The other was $149 and now sells for $99. If that isn’t ‘get this out of here’ pricing what is? It appears no new models are coming to replace them. No surprise really... Best Buy, Circuit City and Fry’s are the same story. They don’t have HD units except for some car units and their people don’t have a clue what it does. Just ask them."

http://tinyurl.com/5s8zfk

"More HD Fun"

"It was mentioned that retail stores such as Radio Shack are not placing these radios on the shelf. Also, distributor such as Crutchfield are liquidating stock, though I see a pretty decent selection there. How does a radio manufacturer keep up with the changes that Ibiquity keep making? It hurts. And though it is published that consumers are more aware of HD radio, are they buying into it? No."

http://www.eisenhamerengineering.com/wordpress/?p=70

"American DX Report"

"North American shortwave broadcasters have decided to conduct research into current shortwave listening patterns in North America, digital HD radio receivers are being removed from radio shop inventories in the United States, and some American AM mediumwave stations with IBOC capability are choosing to switch off due to interference problems and the lack of listeners with IBOC receivers."

http://mt-shortwave.blogspot.com/2008/09/american-dx-report.html

HD radios already are being pulled from store shelves and inventories...

Anonymous said...

Pay per lie. I thought Fred Jacobs already locked that one up! Seriously, after reading both surveys it is obvious that the first one was pure blame game and deliberately designed that way to make the HD Radio Alliance look bad. Considering how poorly some of Mr. Jacobs's consulted stations are performing maybe he is looking to get more of his scratch from Ibiquity and his seminars.
BTW, Calderone called Jacobs creepy.

jacoflog said...

i work for a jacobs consulted station. everything said about him in these comments are true. a master assassin and salesman. a miserable consultant and researcher. no wonder why he is such a perfect fit to promote hd radio. he even sold ibiquity a bill of goods claiming connections with the big three (do we still call them 'big'?)which he never had. he did have a few polite ten minute meetings with low level execs. that was about it. his claim to fame are those orange slicker kids passing out pamphlets in downtown detroit for hd radio.

Anonymous said...

John,

Today, there was another rash of press releases about Ford-owned Volvo supposedly offering standard HD Radio:

http://tinyurl.com/5c5g4y
http://tinyurl.com/5osuh3

I noticed that one of the questions in the original questionnaire asks broadcasters if they wanted to hear more announcements from automakers - this supposed Volvo announcement is one to two years too early.

Struble, I'm only 1/2 hour from Columbia, so maybe I'll stop by and vomit all over you car - you make me sick.

Bird is the word said...

John,

Good blog. It is about time someone blows the whistle on not only the HD radio scam but those like Fred Jacobs who are behind it as well.

Am I the only one or are others who viewed his "bedroom project" at the NAB feel that he is the master at presenting problems and not offering solutions to them other than to sign with his consultancy?

I have to agree with the poster about Tom Calderone. Fred found a smart kid who was also smart enough to know that his future was not with Jacobs Media. Once Calderone left the best Fred and family could do was turn the format into a young active rock format devoid of female artists. Since he had clout with the trades and labels they swayed to his definition of alternative and thusly killed the format.

With our economy in crisis I have to think that a number of chains will take a new cold hard look at what Mr. Jacobs really has to offer and I think he may know that, too. That would explain why he wanted to discredit Ferrara and Warren. He wants to be in charge of the Alliance too. There must be some good money in it. More money than being just a consultant shill for Ibiquity. Right, Fred?

Sony ICF-S10MK2 said...

"Ford Slams HD Radio Inclusion Proposal"

"In an interesting move, Ford Motor Company has come out against a proposed rule that would require all satellite receivers to include HD radio capabilities. The position Ford is taking is interesting because Ford was one of the first major auto makers to announce a deal with HD Radio for installations of HD technology their cars."

http://siriusbuzz.com/ford-slams-hd-radio-inclusion-proposal.php

"iBiquity Digital Investor Information"

"Leading Manufacturers include Ford Motor Company, Harris Corporation, Texas Instruments and Visteon Corporation. Leading financial institutions."

http://www.ibiquity.com/about_us/investor_information

LMFAO!

Anonymous said...

Clear Channel is at it again. In their presentation to the FCC regarding having HD radio mandatory with satellite radios, and in their twisted thinking, they call satellite radio a "monopoly" one minute and "competition" the next. It sounds like schizophrenia to me.

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