My Promise For 2008
A Message From Radio Ink Publisher Eric Rhoads Regarding Radio in 2008

I'm trying hard not to be one of those old salts who is living in the
past, wishing the "good old days of radio" would return. Yes, there
are elements of the past that radio can learn from, but if radio
returned to the old ways of doing business, we could not succeed in
this fast-paced world of digital media. The keys to our success will
be reinvention and reinvigoration, which are relevant to today's
society and to advertisers. Radio remains strong in many ways, but
seven years of negative growth on Wall Street have not helped, nor has
the recent news of the 6 percent drop in radio advertising in
November. Of course, not all radio is about Wall Street and what one
reader of ours calls "the radio elite."

In this industry that I love passionately, I am seeing trends that I
do not like: Some of radio's best managers and sales managers are
resigning over proposed 2008 budgets that cut down to the bone and
that they simply want no part of, and some of radio's best are being
pushed out by executives who think non-radio people can do better.
These group executives are not bad people; they are simply under
enormous pressure from investors to solve their problems.

Who Broke A Mirror?
Radio's seven years of bad luck seem to be continuing. We should be
investing in our product, yet it's the worst possible time to do so.
With economic indicators signaling bigger problems, advertising -- at
the end of the food chain -- is usually the first cut made. Although
radio sometimes benefits in a recession from advertisers that cannot
afford television and move their budgets to lower-cost radio, sadly,
many of those advertisers have been seduced by new media and are
moving away from traditional media altogether.

I Refuse To Accept Failure
What about you? During the last major economic downturn, Mel Karmazin
told his staff at CBS that "recession is not an option" and continued
to lead his company with the mindset that failure was unacceptable. It
worked -- and while others stumbled, CBS held its own. I believe that
each of us must make a personal commitment that, no matter what it
takes, we will not allow our medium to decline. We will work harder,
smarter, and more passionately than ever.

Human Decency
A decent human being would not abandon a spouse if he or she
contracted cancer. Just as your care and attention are needed for a
sick family member during a challenging time, your devotion to radio
is needed now -- no matter how great your frustration level with your
employer. You are not alone. If you got into radio because you love
it, find the devotion to fix it. Mounting pressure has detracted from
radio's fun atmosphere, but solving our industrywide sales problem
will relieve that pressure. You are valuable and you are needed now.

The Power Of One
Change always starts with one person who is bold enough to try one
idea. Your one idea may be the catalyst that will change the radio
industry. Ed McLaughlin's vision for Rush Limbaugh was that one idea
that saved the dying AM radio band. One idea. Commit to trying new
initiatives, even in the face of bold disagreement. Radio needs your
innovation now.


Eight Promises To Radio
Don't assume that you cannot change the industry. Each of us can make
a huge difference, including you. We each need to own the problem, to
take on the problem at our personal level, and to experiment boldly.
Here is what I am doing personally:

1. I have directed my editorial staff to publish your bold ideas in
Radio Ink. I encourage any industry professional, in any size market,
to share your vision with the entire industry in hopes that they, too,
will try your initiatives. Submit your ideas to Editor-in-Chief Joe
Howard ) or to me ). We want to
follow your progress as well, so please keep us posted as ideas
develop.

2. I've asked our editors to gather station success stories in all
areas -- sales, promotions, marketing, etc. -- to disseminate
practical and profitable ideas from around the country (and the
world). This industry has a bad habit of not sharing successful ideas.
This must change. We're all in this boat, and this is not a time to be
focused on self. We will publish these success stories as you share
them.

3. I'm sick and tired of radio stations selling against one another.
It's one thing to compete; it's another to try to destroy the
reputations of others. If it is happening in your market, I want you
to phone me and give me specifics. I will personally call the
individuals conducting themselves this way to tell them why they are
hurting themselves and radio. Furthermore, I will phone their boss,
their regional manager, and their group head. This must stop. And, if
my lawyers tell me I can do it without litigation, I will publicly
embarrass those who commit this cardinal sin. I need your commitment
that 2008 is the year where we will build radio together as an
industry and not tear one another down.

4. I will personally offer my time to assist any company that feels it
is at a loss over what to do. I will take a proactive approach to meet
with the heads of radio companies to offer a fresh perspective on
their businesses. Frankly, these people are eminently more qualified
than I am when it comes to running radio companies, but a fresh
perspective might prompt an idea or two.

5. I will be your messenger. If you feel your company is conducting
itself badly, if you see clear mistakes being made, if you have a
better way that you are convinced will help your company or your
stations, if you are not being heard or fear that you might lose your
job for offering suggestions, I will send the message on your behalf.
You can e-mail me anonymously and tell me to whom you want your
message directed, or you can e-mail me with your name, which I will
keep confidential if you ask me to. I will make sure the group heads
see your responsible suggestions.

6. The GM of our conference division has been instructed to pack the
content of our conferences with even more practical, usable ideas. No
fluff! I've instructed her to make sure that each speaker, moderator,
and panelist is focused on solid, usable, moneymaking action items
that are relevant to your needs, no matter what your market size or
conditions. You'll leave with a list of action items you can implement
at home the next day. Our upcoming conferences include:
March 10-11: CONVERGENCE: Radio's Digital Media Conference, San Jose
May 19-20: Radio Ink Hispanic Radio Conference, Miami
December 2: Radio Ink FORECAST, New York

7. At our Forecast Conference last month in New York, every group head
emphasized the critical need for innovative ideas on how stations can
make money in digital media. We've been told by countless market
managers that they have been given high interactive budgets and they
have no clue how they will meet them. With this specific goal in mind,
I have designed our upcoming Convergence conference to do two things:
1) show you what is working and how it's being done (for example, one
small-market station generates $600,000 in local interactive revenues,
which exceeds its on-air billing) and 2) stretch your brain and make
you uncomfortable by exposing you to things happening in Silicon
Valley that you need to understand to build your station's interactive
strategy to a new level. This conference is critical for managers,
sales managers, and PDs -- not your interactive people. As a manager,
you must not delegate this until you understand it fully. I've asked
that every session have strong, income-generating action items.

8. I've asked Roy Williams to come out of hiding and conduct just one
more conference for us. He has agreed to conduct a full-day,
invitation-only conference at his private compound in Austin. I've
asked Roy to create a special emphasis on building radio in
recessionary times and a radio survival strategy. This conference will
focus on solving radio's problems at a local level. If you wish to be
invited, let me know. I think we can only accommodate 125 or so
people.

THE FIGHT OF RADIO'S LIFE
"Small plans do not inflame the hearts of men." -- Napoleon

Radio is surrounded by companies and technologies that want to steal
our audiences and our advertisers. Will you let your competitors take
them away, knowing they may never return? This is the fight of our
lives. This is not just about a dip in business, this is about a
change in society, driven by technology. It's the perfect storm, as
technology meets over leveraged companies with pressure to reduce
expenses while the economy is suffering.

Radio is not only a viable medium, it is critical to the people in our
towns across America. Perhaps our listeners are flirting with iPhones,
digital media devices, and satellite radios, but every ear will be
glued to your station when disaster strikes. But we need people glued
to us every day. Radio needs to be relevant to communities and
individuals at every level, at every station, no matter the format.
Your station needs to be compelling now, because compelling radio
cannot be touched by any competition. Listeners will only leave if we
drive them away by not understanding and meeting their needs. Some in
our industry are meeting those needs and reaping the rewards. Others
need to become relevant and compelling again.

With your bold thinking, 2008 will be the year we reclaim radio.

It's time for big ideas, bold moves, and true revolution in our
industry. It's up to you, not someone else. Are you in?

Eric Rhoads
Radio Ink

925-372-9090
561-655-8778

Eduardo!