The Endangered Digital World of the Local Television Station

Branch Rickey was a visionary long before introducing America to Jackie Robinson.  Prior to taking over the Brooklyn Dodgers, he ran the St. Louis Cardinals, where he wanted to find new ways to cultivate young talent without spending much money.  

So he decided to create a series of teams that would play each other in smaller markets.  They’d play for peanuts (sometimes literally).  The best performers on those teams, already under contract, could play their way onto the Cardinals.  

It was the beginning of baseball’s farm system.  Throughout the country, young players and those hoping to resurrect lost careers played in small towns and rickety old ballparks, often taking 8 – hour bus rides to the next day’s doubleheader. 

Local television stations have largely served the same purpose.  The chick flick “Up Close and Personal” (starring Robert Redford and Michelle Pfeiffer) describes how a young, gum snapping female reporter in Miami finds her way to the anchor desk at a fictitious television network. 

Historically, local television stations have given their viewers much more.  Before Fox, the CW and UPN, any station that wasn’t a network affiliate was considered “independent”.  Indies, as they were known, ran reruns of anything and everything.  You could find “The Odd Couple”, followed by “The Honeymooners” and “The Three Stooges”.  No news, either.  Often, they carried the local baseball team, whether major or minor league, all sorts of local events and parades and advertising for those who couldn’t afford more.

Local network affiliates had news people that were on the air for years, decades sometimes, with enormous credibility.  They produced a variety of local programs, from talk and variety shows to public affairs.  

“American Bandstand”, for example, started on Philadelphia television station WFIL-TV in 1952 and ran for 5 years before finding its way to ABC.  Dick Clark and his teenagers were regular weekend guests on the network until 1989.  

There are a host of other examples.  Now, however, the local television station is showing its age.  

Outside of the top markets, local stations now exist simply to run the programs of their parent networks.  The only substantial investment local station owners make is in their local 6 and 11pm newscasts.  Even there, the desire to do less is more evident.  In many markets, joint partnership agreements between competing stations make one smaller news staff out of two larger ones.  

A number of years ago, General Motors’ Oldsmobile division sought to attract new buyers to its redesigned cars.  Knowing that Olds was perceived as “stodgy”, “old” and “uncool” buy the younger customers they targeted, the ad campaign said “It’s not your Father’s Oldsmobile”.  Olds went as far as using the sons and daughters of famous actors to act as spokespeople.  Here’s a sample:

Television stations have the exact same problem, except far worse.  The call letters for local stations – W-this, K-that, Channel Whatever have no meaning to a generation that’s grown up getting their television from a cable box.  To those weaned on dvr’s and laptops, television channels are red numbers on a gizmo connected with a wire.  The concept of a signal coming through a transmitter directly into their home is as foreign to them as an egg cream to a Texan.

Like their radio executive counterparts, owners and executives of local television stations are doing their best to work against the tidal wave of change in media consumption habits.  

Some local stations have adapted newscasts to a digital age, incorporating Twitter comments and social network or blog posts into the 6 and 11.  But there’s little new programming. 

There’s no attempt at rebranding, either.  Stations need to create an identity for themselves with consumers that could care less about their dial position.  In a time where digital and/or Internet television networks are proliferating, stations need to create a need and position for themselves with increasingly mobile consumers.

If not, they will truly become just another farm team.  Playing for peanuts.

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Is Technology Bigger than Government?

If the most important part of your life is surfing the Internet and you’re concerned about your privacy, move to Europe.

When it comes to monitoring your Internet privacy, America is relatively tame.  Spain has an “Agency of Data Protection”, which takes complaints from citizens.  Grouping them, Spain creates what can be termed “mini class action suits” and takes action against the company responsible. 

Right now, they’re chasing Google.

Spain’s private citizens are following suit.  A Madrid plastic surgeon tried to take his name off the search engine, but Google wouldn’t do it.  The doctor’s suit is now backed by the government.

In 2011, Google will spend more time in court than Perry Mason or Jack McCoy.  South Korea believes that Google’s Street View violates local laws.  Germany feels the same way about Google Analytics.

Google’s response to the Spanish suit is telling.  They claim that Spain doesn’t have the power to regulate them.

Who does?

Last week the U.S. House of Representatives passed a bill that would outlaw Net Neutrality, making it possible for mobile and Internet service providers to charge you based on your digital consumption.  Their argument was simply that, according to Rep. Eric Cantor, “the Federal Communications Commission doesn’t have the right to regulate the Internet?

Does anyone?

Today, the only resistance to the onslaught of technology rests in the courts.  In March, a federal  court judge threw out a deal that Google had made with lawyers for publishers and authors that would have given Google the exclusive right to millions of books without consulting the authors involved.

Before the judge’s ruling, Google had already scanned in over 15 million books.

The Federal government is investigating Pandora, Apple and a few others for violating our digital privacy by giving app developers access to our phones.  Unfortunately, it’s after the fact, similar in results to the teacher leaving an elementary school classroom and telling the students to study.  Remember what happened then?

Who’s in charge of the Internet in America? 

Right now, nobody.  It’s a free-for-all, with investigation and action that follows media exposes and citizen complaints.  Republicans in both houses of Congress don’t believe in or want any government regulation of the Internet.  Or anything else, either.  They’re doing their best to advance that goal.

We think it could get much worse before it gets better.

Google is working hard to implement Radio Frequency Identification (RFID) into its Android operating system for mobile phones and tablet computers.  That would turn your phone into your wallet, giving you the ease of being able to scan your phone’s credit card over the counter’s reader to pay for merchandise.

It’s called “m commerce”, another description of taking e-commerce mobile.

Given the state of technology’s art today, if a third party developer gets access to your  phone the worst they can do is target you with ads.  We believe that as RFID becomes as commonplace as your cell phone, our government needs to have an oversight role with teeth. 

Systems need to be established to ensure that your phone’s credit cards are “un-hackable”, especially since there’s a growing sense in the tech world that RFID isn’t foolproof.

Targeted ads are one thing.  Hacking your credit card numbers is another. 

Want everybody to know what’s in your wallet? 

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Appalling Application Appropriation

How many apps do you have on your Smart Phone or iPad?

Chances are, if you use your phone for more than just making calls, your home screen is full. of ‘em.

Downloading an app to your phone takes just moments.  Ensuring that the app doesn’t relay your information to non-authorized others is far more difficult.

It’s like having someone pull the curtains back when you’re trying to get dressed.

We’re increasingly dependent on our mobile devices.  SmartPhones, iPhones, iPads and other tablet computers make our lives portable, easier and faster.

They also make it extremely difficult to keep your personal privacy private.

Whether you have a phone with an Android operating system or an iPhone, if you’re downloading an app, you may be uploading your personal information.

Last week we learned that the Justice Department is investigating Pandora, with good reason.  An examination of its mobile app code revealed that it allows five different mobile ad networks access to your current location via GPS.  As if that’s not enough of a violation, the app appears to transmit your birthday, gender and zip code. 

Last fall, a Bucknell University report showed the iPhone doing the same thing.

Your mobile device comes with its own fingerprints or DNA.  It’s called the Unique Device Identifier, or UDID, and it’s as individual to your device as those forensics are to the police.  Apple used this method to allow third party app developers to identify which phone is storing which app.  We can’t recall anyone from Apple ever explaining why developers need access to your phone.

Internet privacy will always be an oxymoron, unenforceable at best and nonexistent at worse.  Still, consensus is slowly building in Washington around the concept that Internet privacy should remain in the hands of the user. 

Opt-out technology is available for Internet Explorer and several other Internet browsers.  Google has “In Private” browsing.  (There’s no truth to the rumor that they initially wanted to call it “Previewing Porn Privately”.) You can choose to set your browser to delete your cookies when you end an Internet session, if you want.

That’s much harder to do on a mobile device, especially those with smaller screens than the iPad.  Unless your mobile phone makes it easy to move between several screens at once, reading mobile privacy policies requires you visit the privacy site and then find your way back to your intended site.

These two companies are likely just the tip of the iceberg.

Since our phones are constantly transmitting our location via GPS while many of us are downloading dozens of apps, we expect to see many more revelations of privacy violations.

To its credit, the Federal Trade Commission is becoming aggressive it its oversight of individual companies’ privacy policies.  Facebook and a host of others enjoy changing their privacy policy after you’ve registered and now the government is doing something about it. 

That’s an area of enforcement that can be, as they say in the online marketing world, optimized.

All this leads us to ask one chilling question.  If any, some, most or all of the apps you download give someone access to your personal information, what’s going to happen when we start using our SmartPhones as credit cards?

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They Googled Before They Giggled

We owe it all to Tom Brokaw.

When he published “The Greatest Generation”, detailing the lives and experiences of World War II veterans, America began to take notice of how each succeeding generation has viewed life differently than their predecessors.

Marketing and advertising quickly followed suit and spoke to us from our personal experiences.  Unless you’re in a May – December romance, chances are your significant other was born in the same era.  Friendships usually originate that way, too.  Music and movies are tailored as much for our entertainment tastes as the times in which we grew up. 

Ask a sports fanatic about how he or she came to root for their favorite team and they’ll likely tell you the passion has been passed down from a parent.  For example, historian Doris Kearns Goodwin frequently waxes wistfully about listening to Brooklyn Dodger games at night so she could discuss the outcome with her father the next day.  That’s generational marketing that becomes hereditary.

Out of all mass media, radio understood this first.  Formats evolved for all backgrounds and eras.  From rock to talk to country – and virtually everything in between – music was tailored for every generation’s taste.

Since every generation’s tastes morph into something new, keeping up can difficult.

After WWII, along came the Baby Boomers.  Actually more an explosion, the name was bestowed because fighting overseas made baby-making more difficult.  When Germany and Japan fell, it was the one of the largest population spurts (no pun intended) in history.

Boomers were the first generation ever to listen to radically different music than their parents.  Fashions changed, from maxi to mini.  Modesty took a tumble.  An American President chose not to run for reelection because of intense pressure from Baby Boomers to end Vietnam.  Media covered it daily.  Another President was forced out of the office because a relentless media exposed his crimes.

Boomer Parents created Generation X, named for a book written by Douglas Coupland.  Born in the late 60’s and 70’s, Michael Douglas’s “Wall Street” movie motto that “greed is good….greed cuts through and clarifies” was aimed right at them. 

GenX, however, became the first generation deeply impacted by electronics.  Atari and personal computers (remember the mighty 286?) changed the game.  Manual typewriters were replaced by keyboards and CRT’s where you could actually move copy from one end of a paper to another.

Today you can find 286’s in museums as technology races forward.

Bring on GenY.   Demographically, they’re 12-29, the same people that once listened to Elvis and the Beatles.   Technologically, they’re savvy when it comes to media and want everything digitally. GenY’s came to a world without rabbit ears, records or cassette music. 

GenY’s comfort with new technology is changing our lives right before our eyes.  At the same time, their BS detectors are finely tuned, explaining why MySpace didn’t last long. 

GenY are demanding the ability to pay for goods and services with your telephone.  They don’t want to carry books.  Why should they?  They’ll force television networks, whether anyone likes it or not, to make content available on demand and on any device.  Apps designed to do everything from buy your groceries (and have them delivered) to finding term papers on remote topics will become available at nominal costs.  And that’s just the beginning.

The Generational Marketing Alphabet may be almost out of letters, but doesn’t make you wonder what kind of world GenZ will create?

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Location, Location, Location

Thomas O’Neill got your attention in a hurry.  Tall, affable and blessed with a stentorian voice James Earl Jones would envy, all eyes turned to him when he entered a room.

His parents nicknamed him after James O’Neill, a Canadian baseball player they admired – “Tip”.

For three and a half decades Tip O’Neill represented Massachusetts in Congress.  He served a full 10 years as Speaker of the House, the second longest such tenure in American history.

The Speaker was famously liberal, passionately opposed to the Vietnam War and renowned as a dealmaker.  He often swapped Scotch with President Reagan, hammering out budget and legislative deals since, in Reagan’s words, “we were friends after 6pm.”

But it’s his unintentional marketing genius that remains with us today.

“All politics is local,” he said.

Today, everything is local.  It’s either in the neighborhood or much closer – on the computer.  Digital media has embraced the famous real-estate mantra. 

It’s a trend moving at warp speed and accelerating.  Borell Associates, in a recent study, predicts that in a few years, Internet marketing will take the highest share of all local advertising.  Where once the newspaper’s classifieds had everything you could ever want (and lots of stuff you didn’t), the Internet’s infinite volume makes it easy to let your fingers do the walking.

Go search for pizza on your SmartPhone.  Chances are you’ll get a list of pizza joints within a couple of miles of where you are right now, since your phone is transmitting your location to the search engine.  Movies, too.

GroupOn – which recently turned down a $6 Billion acquisition offer from Google – has become a national phenomenon, downloading coupons one small business at a time. 

Newspapers have long owned the “local content” space.  Their on-line audiences are largely robust.  But they embrace change like Eskimos embrace suntan oil and it’s taken them years to understand local digital marketing.  Now McClatchy, which publishes 28 newspapers including the Sacramento Bee and the Miami Herald, is creating its own electronic classified in partnership with GroupOn for all its markets. 

The New York Times chose not to partner with GroupOn.  The Grey Lady is building its own local market “deal” platform, called “TimesLimited”.  It’s essentially an electronic mall targeted to Times readers, which it perceives as upscale – educated and wealthy.

The e-local-strip-mall isn’t limited to newspapers, either.  Television is joining the party.  Getting married?  The Wedding Channel has great deals for you on everything you need – dresses, jewelry, honeymoons, lawyers (kidding) and a great deal more.  CBS has amped up local content and advertising on its sites.  Comcast has been active in this arena for awhile.

Then there’s radio. 

In an era when everything is local, radio seems determined to take the path of greatest resistance.  Its value proposition – the reason listeners listen and advertisers buy – is local.  Music, promotions, weather, traffic, sports and entertainment put radios in every home. 

Local radio is disappearing daily.  Nationally syndicated content – from Rush to Ryan Seacrest are more the norm than the exception.  Sales staffs have been cut until they’re unrecognizable.  Social marketing is often viewed with suspicion.

It’s a medium slowly driving itself into irrelevance. 

As digital becomes local, national advertising is slowly becoming an endangered species.  Our personal tastes are as local as our politics.  If you live in Seattle, you probably like your latte differently than your Texan brethren.  Music preferences are different.  Entertainment, news, even home construction and decorating styles all have regional or local flavor.

Tip O’Neill – who listened to his beloved Red Sox on WHDH-AM for many years – would have expected it.  Then poured himself another Scotch and picked up his iPad.

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