When is new radio too much radio?

Enough already! Over the last month or so, the Canadian Radio-Television and Telecommunications Commission (CRTC) has been madly granting new radio station licences. And most of them are in communities that are already extremely well-serviced by an overdose of radio choices.

Just because it sounds like a good idea to put a radio station in "wee tiny town Canada" doesn't mean it actually makes sense. The logic seems to be, according to one radio station owner in "wee tiny town", that it's important to have local news and information. Yep, okay, sure. But unless you are an independently wealthy radio station owner doing it from the goodness of your heart, you are simply watering down the audience market for your advertisers.

As it is, I hear from innumerable small business owners that radio doesn't work. I always beg to differ with this opinion because radio does work, when you do it right. And part of doing it right is choosing a radio station that matches your audience definition. If the audience is spread over five radio stations instead of three - well, you can see that this becomes a nightmare of planning and budgeting. All these additional radio stations are just going to make it harder for a small business to make a reasonable buy that gets results.

As a marketing coach, I get to meet a lot of small business owners. In one local community, a number of the small business owners that attended a coaching session were quite frank in their dislike of buying their local radio station. They felt the music choices were erratic and didn't sit well with their potential customer.

As a result, I had a rather long conversation with radio station owner from "wee tiny town Canada". The biggest surprise to me during this conversation was the emphatic statement, "People don't listen to the radio for the music. They listen for the information." Well, yes that might be true if you are a talk or news station, but if you're going to play music you might want it to have some logical association with the audience you are trying to sell the local businesses.

And in reality if radio can't deliver results, then people will stop buying it. And when they stop buying it, people lose their jobs and the radio stations cease to exist. How does it make sense to saturate the market with loads of radio stations - either for the radio stations or the small businesses?

The economics of marketing - shrink it at your peril

There's loads of research saying if you cut your marketing budget during tough economic times you won't survive with the strength you could if you just towed the line. And yet, there's more businesses cutting their marketing budgets than there are businesses getting smarter about how they spend their money.

I've had the pleasure of dashing about presenting Marketing Bootcamp for Small Business - Your recession survival toolkit to a number of organizations over the last month. The session discusses the importance of not cutting your marketing budget and shares important information about how to get the most bang for your buck. I've met some pretty terrific small business people who are suffering cutbacks and, in most cases, they've felt they have no choice but to cut their marketing budget.

The key thing to remember: If you cut your marketing budget, you are effectively lowering the amount you talk to your customer. At the very least, you are lessening the quality of the conversation. And if you aren't talking to them, someone else is.

This is why companies with their marketing budget intact, even during recessionary times, grow larger and stronger while other businesses close or panic. It's all about continuing the conversation.

Small businesses waste an extraordinary amount of money in their marketing. And they don't understand that marketing is actually a revenue stream - not an expense line (accountants will argue this, but it's simply true that marketing is the top of your sales funnel - without it there's no support for your sales force and no mechanism for relationship development with prospective customers). For many small businesses, marketing is simply a necessary evil that is the first thing to go when money is short.

In my book, Muddled, meager and messy - Marketing performance repair manual for small business there's information about how to make better use of the money you have. In cases where you get smarter, you can actually pare back your spend because you're getting more results.

The media has done a bang-up job of putting recession fear into every business person's heart. Take that fear and turn it into smarter business. Every marketing tactic should be able to be defined by the relationship it builds with your customers. If there's no relationship definition, you should reconsider the tactic.

Bottom line: If you have to cut your marketing budget you'd better get smarter about using the money you have. Heck, even if you don't have to cut your marketing budget, you should get smarter because customers are going to become more discriminating in their purchases.