How Howard Gets Sirius!
While we're using search marketing to bring the advertiser to
the interested query at ICMediaDirect.com our iconic locale, the
Empire State Building, brings the outlandish to our doorstep. It
wasn't a man in an ape suit that startled me at lunchtime two
Fridays ago, but a handful of "wack pack" wannabes milling
through the lobby screaming "Baba Booey!" instead. It had been
Howard Stern's final broadcast on "terrestrial" radio and there
was a nearby parade, of sorts, to celebrate. The King Of All
Media was calling it a day and marching off into an
embarrassingly rich sunset. This KOAM is being compensated for
his past "terrestrial" excellence in a new medium that doesn't
need him - well, not at half a billion dollars, anyway.
Howard Stern, a champion, a king even, of traditional radio, has
fully inserted his show into a stratified channel of new media
by signing with Sirius Satellite Radio. He's left the old ways
behind. Sirius, the lesser of two players in the satellite radio
arena, sells their own proprietary hardware and charges a
monthly fee for its service. This new format offers an extensive
selection of ad-free programming with nationwide reception. Like
any other form of new media, satellite radio ultimately owes its
existence to recent advances in computer science.
We're fully immersed in new media at ICMediaDirect.com, a full
service online advertising agency, and we're keenly aware of the
benefits and limits of our chosen milieu. Take, for instance,
our search division - it enables advertisers to reach users
who've indicated some relevant interest in a product or service.
As a provider of search we'd certainly want more volume, but we
are aware that the value of search is in the quality and not
quantity of the business we conduct. ICMediaDirect.com will
ensure that the purveyor of hand knit cardigans for pets will
reach his eclectic customer base instead of trying to foist dog
sweaters on the Internet at large. Thanks to advances in search,
only those looking to dress their darling Fifi for the cold
winter months will be shown these ads. New media allows added
depth and subtlety in reaching customers.
Howard Stern, on the other hand, can sell Snapple or Vermont
Teddy Bears to the nation, not an unimpressive skill by any
means. Advertisers love his show. He's done such a good job, in
fact, that he's been awarded a half-billion dollar contract to
sell the Sirius brand. His value to Sirius is his name only, not
the performance of his show. (His show, too, will supposedly
continue to pitch products. And they said cable TV would be the
end of television commercials, right? Either way, those ads will
not begin to recoup $500 million.) The only ones who will hear
him are the ones already sold. Say what you will about the
merits of satellite radio, but putting Stern behind closed doors
for paid admission only isn't a long-term growth scenario. On
Tuesday, December 27, 2005 Sirius announced three million
subscribers. This is great news for Sirius, they've made real
headway and their stock popped a bit. The King Of All Media
should take his bow now because he's played a large role in the
ramp-up. But Stern's punch is a finite one that cannot snowball
- his broadcasting genius will be hidden from everyone who isn't
already a Sirius subscriber. So how will he reach everyone else,
outrageous stunts? Yahoo video streams? Headlines? How does
Sirius know that second hand reports of Stern's impending
shenanigans won't annoy more than attract? Talk about your dicey
propositions.
Consider this adage of marketing: "Never let the public know
that they can live without your product." Millions of less
dedicated Stern fans and the uninitiated and those who don't
care for him to begin with will learn to live without Howard
Stern - and it will not be difficult. I know from personal
experience. I used to listen to him all the time, but missed a
long spell for work reasons and never regained interest in his
show again. Sirius is not an opportunity for Stern to gain new
listeners, but a guarantee of a smaller listener base instead.
Want Stern? Pay up. But is he popular enough to single-handedly
make Sirius a success?
Howard Stern will be an enormous name broadcasting from a
tightly sealed echo chamber, one that sets you back hundreds to
crack. The privilege of listening to Stern will cost about
$100-600 for the platform and around $13 per month thereafter.
There's no getting around the fact that he's left many of his
proven strengths behind in the mass audience, free
advertiser-based paradigm. His universe of potential listeners,
which used to consist of anyone with FM radio access in an
American major market, now consists solely of 3 million Sirius
subscribers. That's 3 million total with even the ability to
turn on his show for a guy who's bragged of 13 million regular
listeners.
Some ramifications of a decimated listener base:
* If a tree falls in the forest, does it make a sound? Far less
people will be talking about his morning show in the workplace.
His impact will be neutralized. * He has no direct competition
and bashing the other guy has always been a staple for Stern.
All Sirius listeners have paid their admission. Good luck
shaming satisfied (or even aloof) XM Satellite Radio customers
into Sirius subscriptions, Howard. Like those without satellite
radio, they'll never hear you. * This smaller pool of listeners
means less reason for big names to appear on the show for
interviews. The star system is reliant on a traditional formula
- exposure to as many people as possible in order to promote
their books, movies, album, etc. He's got friends in the
business, but no major star will feel any pressure to be a guest
on a show with so little public penetration. * He can be as
profane as he wants. This will not win him a single fan who
doesn't already like him - but it might turn some people off. I
don't know how this relationship will end up. Sirius may weather
the huge contract and overtake XM; Stern might feud with his
bosses and blame listener disinterest on lack of support from
Sirius; I imagine he'll use connections to keep his show in the
press; maybe he'll start satellite war with Opie & Anthony; I
don't know, but I will guarantee you one thing: there will be no
more contracts of gargantuan size for Howard Stern or anyone
else in the new media as a reward for accomplishment in
traditional formats. The rules are simply different here. If
nothing else, I've learned in the trenches of ICMediaDirect.com
that the rules of engagement within the new media require that
we cater to the individual, not the crowds. Soon enough, The
King will know this, too.