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Kevin Garrity
September 10, 2019
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It's challenge for an independent radio sales and marketing company to succeed these days when you're going up against some well-established corporate powers. Yet Gen Media Partners brought together the operations of McGavren Guild Media, Local Focus Radio, HRN Media Network, MG Malls and more to create the largest independent radio representation firm in the country, offering a platform of more than 1,000 exclusive radio stations in 330 markets - with a special emphasis on Hispanic radio. Here, CEO Kevin Garrity discusses how Gen Media succeeds, the current radio sales terrain and how he sends radio and its advertisers the right, positive message.
You've been doing radio sales for 30 years. How has the business or challenge of selling radio spots changed over the years ... is it easier or harder?
The basic tenets of selling radio have remained the same in terms of its reach, usefulness, relationship with the listener, and ability to build brands and business. What's changed is you have more competition from digital, cable, etc. It's not about easier or harder; it's that the consumer has more choices, and we need to be more strategic and more creative in how we use our audio assets to market advertisers' products.
What prompted your decision to segue from Cumulus to McGavren Guild Media and Local Focus Radio?
One of the driving forces that drew me back into national was Genesis Capital Partners and their commitment to build a media company here in the U.S. Secondly, and equally important, after having been a Dir./National Sales at Cumulus, I knew there was a need for a strong second voice in national representation -- one that focused on the needs of the independent broadcaster without the encumbrances of a corporate parent that actually is competing with many of them in their own markets. And I was really excited about the opportunity to build a company.
What led you to restructure and bring in HRN Media Network and MG Malls to form Gen Media?
When I first got here, it was just McGavren Guild Media. As we began acquiring companies like Local Focus, Commercial Media Sales and the HRN Network, we realized the need to create a structure to oversee the direction of all of our companies. As we continued to expand, with acquisitions like GLR, Regional Reps, The Tacher Company and Sun Broadcast Group, that decision proved to be wise. Additionally, creating the Gen Media Partners structure allowed us the flexibility to add complementary businesses to our portfolio. We are aligned with MG Malls, a sister company that operates separately but collaboratively, giving us another platform to combine the strength of audio with out-of-home experiential to bring more and new advertisers to radio.
What are the biggest differences between selling Hispanic radio and indie general market radio?
Selling radio is selling radio. The power of radio is its ability to connect with listeners. There are nuanced differences to Hispanic radio, but we're still selling the ability of radio to connect with a target audience. At Gen Media Partners, we have an experienced sales team that understands the power of the Hispanic radio audience in its own right, as well as the overall marketplace. Having that knowledge and ability, along with a strong client list, places us in a very unique and powerful position in Hispanic.
Radio spokespeople have long been preaching "93% reach" to attract advertising, but for whatever reason, that doesn't seem to be resonating vs. the new digital platform "toy." Do you agree? What radio advantage do you think best resonates with advertisers - and do you feel radio is optimizing that message?
Radio needs to continue to beat the drum on its unique ability to capitalize on the relationship that exists with its listeners. Radio has survived every so-called "threat" that everyone said would destroy it ... TV, cable, satellite, and the Internet. The fact is, radio remains strong because of its target-ability, its reach, its efficiencies, its creativity, and its ability to build business and brands. It's why you see a major company like P&G coming back into radio. In addition, the new digital platform 'toy' has some tarnish on it because the metrics and placement issues are of concern to advertisers, and that's also bringing advertisers back to radio. It's important to position radio as part of the marketing mix and how it can help drive engagements when used strategically with other advertising platforms.
In the past, you've talked about the importance of data in terms of marketing. Are you satisfied with the status quo? What new data would you like to be able to compile?
Advertisers are always looking for new data and metrics to measure their success. We're seeing a number of tools emerging that will address those concerns. I'm also never satisfied with anything that is the status quo.
What's your view of digital platforms? How fertile a field are podcasts and radio's other online products?
Podcasting is a new lease on audio. It's provided an opportunity for great content and to talk to advertisers about how audio content can lift and separate their product in the marketplace.
There have been persistent rumors of some radio groups low-balling rates to get the buy. What's your view of such a practice?
The landscape has become more competitive and agencies are doing what they need to do to win business and that includes cost-efficiencies. This is overly simplistic, but that pressure on the agencies to win or keep business (outside of creative) gets pushed down to the buying parameters. The same can be said about larger broadcasters that have scale but need to report to Wall Street at the end of each quarter. Those large groups need to make the deals they do and that impacts rates and overall budgets. For independent broadcasters, like the groups we represent, the commitment is to the listener and local marketplace that they serve. That's why Gen Media Partners is looking to create new opportunities to bring to our independent broadcasting partners.
What's your outlook for radio ad revenue for the future? Bullish? Cautious?
I am excited about the future of radio. Podcasting is creating a whole new level of excitement for audio and the development of compelling content. With great content comes an increase in user interaction, which speaks well for our future. Couple that with large advertisers' concern about protecting their brand as it relates to sites their ads end up on, along with the increasing amount of doubt on digital metrics, and I am very excited about our future. Moreover, radio's message on its efficiencies and reach is getting more traction at the agencies and advertisers. Radio's ability to connect brands with listeners through personality endorsements and product integrations is also attractive to agencies and bodes well for radio.
How closely tied are radio's ad fortunes to the overall state of the economy?
When the economy is doing well and advertisers are doing well, it bodes well for radio and companies looking for new opportunities. When the economy takes a downturn, one of the first areas that is cut is advertising, and that's a shame because that's the most opportune time to build your market share.
How much energy do you devote to finding new stations and groups to rep? Describe that competitive terrain.
We are always looking for broadcasters that fit our criteria for representing them. We have a specific growth plan and target those broadcasters that complement that plan. I look to grow our business every single day, and I spend every day looking for the right stations for our company. Further, we spend a great deal of time making sure we are super-serving our existing client base. It's no secret that it's a challenge, given that the national representation landscape. However, I came back into the rep business because there is opportunity to grow a rep firm that represents independent broadcasters.
How do you measure success for Gen Media? Is it solely on the revenue generated by your stations? Or is it the size of Gen Media vs. other companies?
It's important to understand that Gen Media Partners has a number of different platforms - the repped stations, network radio, technology, and recently we launched Next Gen News, a video platform targeted to middle and high school students. And when our clients and content producers are successful, we, by extension, are successful. We can't be successful unless our radio clients are successful. Gen Media Partners' platforms are aligned to drive revenue for our radio partners, which in turn drives revenue for us.
Finally, what of the future? Where do you see yourself and Gen Media five or maybe even 10 years from now?
I see Gen Media Partners continuing on its path of growth and incorporating businesses that complement each other and provides the right solutions for broadcasters, content producers, agencies and advertisers.
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