Emmis' Smulyan Calls Tagging Radio's 'Killer App'

In the next few years, digital song tagging will prove to be radio's "killer app," according to Jeff Smulyan, CEO of Emmis Communications, speaking before some of the nation's top radio groups. His prediction came as he and other panelists grappled with the possibilities and pitfalls of the digital age for radio.

Song tagging shows the potential of digital technology to reinforce radio's appeal, Smulyan said. The technology allows listeners to note songs they may want to buy later. It has been applied to online streaming audio, as well as new HD digital radio sets. In the latter case, sets from Polk and JBL include a feature that tags songs from radio for purchase at the iTunes store.

In a similar vein, Smulyan noted that "one of the hottest selling features for the iPod is an FM tuner." He concluded with a bold vision: "We want to have a radio tuner in every mobile phone, every PDA sold in the U.S. That's 400 million devices in the next five years. The industry is pulling together, and we're going to do it."

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Similarly, Clear Channel Radio CEO John Hogan touted the rollout of HD digital radio, pointing to his company's aggressive efforts to reach listeners through online streaming and mobile devices. He said online services allow stations to offer listeners literally hundreds of specialized channels in different genres.

These new distribution platforms, in turn, will also attract advertisers, once they understand the full potential of digital interactivity. But Hogan also warned that radio has a "perception problem"--it is often viewed as old and out-of-date, a perception that the industry as a whole must combat.

The theme of misperception was common: CBS CEO Dan Mason observed that many people believe radio's audience has declined substantially over the last decade. In fact, it has remained relatively stable. In 1996, 95.3% of the American population listened to radio once a week, compared to 94.4% in 2006.

Mason said one of the keys to change this perception is electronic measurement by Arbitron's Portable People Meter, replacing the current paper diary system: "PPM is going to revolutionize this industry. It's time that radio be measured like television and online --electronically."

This can only benefit radio, Mason added, noting that according to recent Arbitron stats, "the top 5 stations in New York alone have an audience of 12 million people"--fully twice what they had according to the paper diaries. He added that Arbitron will soon offer measurement of streaming Internet radio alongside regular radio airplay, giving broadcasters and advertisers a picture of complex listening habits.

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