SABO SEZ: Cash Comes from Ideas, Not Budgets
By Walter Sabo
a.k.a. Walter Sterling, Host
WPHT, Philadelphia, “Walter Sterling Every Damn Night”
and TMN syndicated, “Sterling on Sunday”
There are two broad categories of thought: Task. Creative. When in creative mode, a person innovates, imagines, plans, and solves problems. An idea bank is a bank! Money grows from the results of imagination: new products, new music, new formats, new sales strategies. Business growth depends on new!
Task mode is focused on the past. Accounting, legal, sorting, painting, mowing, eating, surviving. Tasks are essential activities but financially break even, at best.
Your colleagues probably suffer from thoughts of radio industry consolidation and cutbacks. Personally, there was a moment in my career that still haunts me at this writing. A moment more profound than consolidation or repeal of FCC ownership financial requirements.
The crash moment in the history of radio was when a program director uttered these words:
“It’s not in the budget.”
The words were less shocking than the source. Owners and general managers had said, we don’t have the money, but never the program director. Program directors, in my experience, lived in a charged creative fantasy. They imagined better shows, contests, DJ patter, bigger, better, fun-er radio for bigger ratings. Programmers thrived in an environment of creative challenges rather than tasks. PDs were often not even shown their budgets.
Creative-mode results in breathtaking promotions (win a house, win your rent, win a six pack of Corvettes.) Audience-daring formats such as album-oriented rock and all sports. Exciting air talent: Howard Stern, Neil Rogers, Jake Fogelnest, John Kobylt.
Programmers heard general managers say, “A good salesman is one with a good product.” Or, “If you deliver ratings, the sales department will sell it.” Intuitively, general managers and owners knew that if they kept their programmers and talent on the creative side of their brains, the station could succeed.
There were conversations between general managers and program directors when the PD would have “suggestions” about sales and the GMs would say, “That’s the sales manager’s job” and shut down the PD! Therefore, PDs were kept on the creative side of their brains, the idea bank.
Driving a new idea, a new format, promotion, or on-air technique demands a programmer’s knowledge and passion. Without passion, few new strategies are launched. Birthing a new idea in radio is way too difficult to achieve with just logic. New ideas come to exist by fighting for budgets, fighting to win acceptance from staff.
New ideas are worth the fight because they can bring audience growth and fresh cash.
As the industry puzzles over declining sales, declining youth listening, and declining buzz, don’t blame consolidation and streaming. Blame owners that have given programmers the ultimate excuse to not try new ideas, not push new promotions, not embrace fresh talent, not take risks that lead to growth. “It’s not in the budget.”
Shut the door on your way out.
Walter Sabo has been a C Suite action partner for companies such as SiriusXM, Hearst, Press Broadcasting, Gannett, RKO General and many other leading media outlets. His company HITVIEWS, in 2007, was the first to identify and monetize video influencers.. His nightly show “Walter Sterling Every Damn Night” is heard on WPHT, Philadelphia. His syndicated show, “Sterling On Sunday,” from Talk Media Network, airs 10:00 pm-1:00 am ET, and is now in its 10th year of success. He can be reached by email at sabowalter@gmail.com.
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Interestingly, marketers and media agencies massively underestimate the immense sales effect power of creative. NCSolutions says that creative drives half of sales, about two-and-a-half times what advertisers perceive. The Advertiser Perceptions February 2024 study reports brands and media agencies say creative only represents 19% of total sales effect. NCSolutions science reveals creative generates an eye-popping 49% of incremental sales. According to System1 chief customer officer Jon Evans, “Creative is the number one factor in explaining the performance of your advertising and yet most marketers still don’t realize it. That means that those who focus on getting the creative right have a huge competitive advantage. Firstly, marketers need to wake up to the importance of creative and secondly realize it isn’t some dark art but something you can measure and improve to give you an advantage over the competition who haven’t realized this yet.” 
advertising. In 2016 and 2017, direct response represented the vast majority of podcast advertising. From 2018 to 2021, the proportion of podcast ad spend was equally split between brand and direct response.” The post says there are four major implications of the shift to podcast brand advertising: 1) Targeting will become much broader: Wide campaign reach will become the priority with a goal of “being known before you’re needed”; 2) Creative will shift to become more entertaining and emotion based: The objective will be to stir passions and create positive feelings and associations with ads that people find interesting and enjoyable; 3) Brand safety and suitability measurement will become more crucial: Firms like Barometer will become powerful resources to help marketers find the right context for their campaigns with nuanced data; and 4) Measurement will focus on how well campaigns build memories to ensure brands are “easy to mind and easy to find”: Key performance indicators are brand awareness, brand consideration, and brand preference. 
represents an expanded commitment to one of iHeartMedia’s most premium products allowing advertisers to engage audiences with creative, longform native content.” iHeartMedia goes on to say, “Ruby’s branded podcasts allow advertisers and their brand partners to spend upwards of 30-45 minutes with their target audience in a unique environment, with opportunities for storytelling that are not possible anywhere else in their media mix including social video. With distribution across the iHeartRadio app and all other major platforms, native podcasts from Ruby connect brands to audiences by translating brand messaging, products and services into original and engaging stories that audiences love.”