Monday, January 10, 2011

History of Learfield: Dick McHargue Network



We were a thorn in the side of the Missouri Farm Bureau for two reasons.  First the MFB had its own market reporting service that provided any radio stations with market reports via telephone–free.  The simple credit "reporting from the Missouri Farm Bureau" was the only tag line they wanted.  They liked the promotional benefit.  Now radio stations were carrying Derry Brownfield’s network and they were out.  Second, they couldn’t control Derry; he’d say what he thought.  That attitude caused bad blood between the two.


So when they learned they couldn’t buy us, they’d compete. They hired Dick McHargue of KHMO, Hannibal, and started "The Dick McHargue Network."  Also delivered by land lines, the difference was the way they did business:  They were a "representative/programming network"  It was a smart move on their part.  Recall, we were a full-network in that we kept every dollar we sold.  The station got a local availability, but no money on the sale of spots carried from us on their station. Further, the advertisers had to buy the full network–all or nothing.  McHargue’s Network was different in that it sold advertisers only the stations they wanted and then rebated to the station a portion of the money.  That way the station made money and the advertisers only had to buy the stations they wanted–no waste. I stood to lose all my strong affiliates. McHargue was going in to each of my best affiliates telling them they’d get paid for spots if they’d go with him.  I stood to lose my business entirely.  Drastic action was called for.



I successfully blunted the effort.  But it took creativity.  First, I knew they’d only go after the really strong stations in the best farm areas such as KMMO in Marshall; one of the top-producing counties in Missouri. I knew they didn’t want those radio stations serving marginal ag counties.  Second, I knew advertisers were willing to pay hefty prices for only the best-located radio stations.  So, I started by ranking affiliates according to quality to my advertisers and then paying those affiliates on a sliding scale.  It was a complicated scheme.  And, I admitted to station managers why I was doing this.  They liked me and went along.  While it eroded profits on the short run, it both saved the business and it allowed me to increase my card to advertisers.  Soon McHargue and the Farm Bureau went away. 



What did I learn?  (1) Being in the marketplace first is critical; (2) You’ve got to be nimble and quick in business; (3) Don’t be so prideful you won’t change; (4) strong relationships built over time serve you well in hard situations; (5) Marketplace knowledge will carry the day, and (6) you may need to sacrifice today to eat tomorrow.


—clyde








History of Learfield: Our First Audience Research





Doanebrochure


You’ll recall Derry and I had attended the NAFB convention at Kansas City in November, 1972; he was working for KLIK and I was simply along as an observer–handing out brochures about this new farm network we were going to start (someday). And the fallout from that meeting at the old Muhlbach Hotel was what forced us to start this business. It was my first introduction to the NAFB. 


The National Association of Farm Broadcasters was powerful. Its members got most of the ag dollars spent by companies wanting to reach farmers across America–well, all the broadcast dollars. Most of the money went to farm publications: Farm Journal, Successful Farming and the like. 


Early in my career, George Logan of WIBW, Ray Senate of WIBW-TV and a few others decided to meet and see what we could do to more successfully sell against those powerful magazines. The result of that meeting was the NAFB Sales Marketing effort, still in existence today as the marketing arm of the NAFB. Our first heavy gun was the Doane Media Study — the first-ever survey of the listening habits of farmers. Doane Agriculture was a respected survey firm that producers used to better understand farmers’ ideas, buying patterns, needs and wants. It served the NAFB very well.


But it also served Brownfield well. We published the results in an expensive, color, full-size brochure. Take a look at this!


Doanenumbers



Brownfield has almost 30 percent of the audience overall; soundly trouncing its nearest competition. Like all audience research, the numbers helped, but still the "sell" was paramount. I had to hustle faster to see more people to tell the story.


–clyde







Priddy Replies






Priddy_blog

A few days ago I wrote about Bob Priddy joining the Missourinet. In today’s post, Bob adds some perspective:


"I’ve read your note about the creation of the Missourinet. For whatever historical value this might have in the Learfield archives, here’s some background on how all of this came about.



I would not be here if Robert Hyland, the longtime god of KMOX Radio in St. Louis, had not lied to me."


Read more







History of Learfield: Verni Brownfield





Verna100

We hadn’t been in business very long when it became apparent Derry and I couldn’t hold down the fort ourselves.  So, we hired Derry’s wife, Verni, to help us.  This was early 1973 and she helped us during our first decade. 


Verni was charming, beautiful, and a whiz at keeping financial records.  She’d been administrative assistant to Missouri’s motor vehicle director.  She took shorthand.  In fact, I remember dictating letters to her in those early years.  Then technology brought forth the little dictating machines which we later used.  She also prepared all the invoices, typed the affiliate logs, wrote all the company checks and prepared the end-of-month stuff for the accountants.  She was a gem.  And, looking back on it, probably shook her head at this crazy kid and his stupid ideas.  Of course she also had four children (six, if you count Derry and me).  So, she had her hands full!  It was helpful our office was just down the road from their home, so oftentimes Joy, Jay, Jon, or Jim would drop in to do their homework or hang out. 



It was a comfort knowing someone was running the office while we were on the road.


–clyde







History of Learfield: Bob Priddy and his News Network






The farm network we called "The Missourinet" was up and running–and even running some ads.  We’d started the "Delta/Net" on January 2, 1974.  But my dream was to start an honest-to-goodness news network out of Missouri’s Capitol.  So, in the summer of 1975 I began calling on many of the radio stations that made up our ag networks and pitched the idea of a state news network.  The objections were the same:  "you’re taking way too much of our inventory".  Further, many didn’t see the importance of "state" news.  They wanted national news and, of course, covered the local stuff themselves.  Our job was to sell them on the importance of state/regional news to their listeners.  Advertising dollars were harder to come by as well for two reasons:  there were fewer advertisers with state-wide interests only and we competed with major metro stations for regional dollars.  I plowed ahead.



We needed a news director and I knew just the guy: Bob Priddy.  Derry and I had both worked with him at KLIK.  He was fun, bright and good.  Here is my initial draft of a letter I’d eventually sent him outlining duties (Download PDF).  He made the decision to come with us and started in the fall of 1974 hiring two reporters to help him.  More on that later.  We changed the ag network’s name to Brownfield and took the Missourinet name for Priddy’s news network covering Missouri.


–clyde








History of Learfield: First Account






The new network (called The Missourinet) was on the air.  Broadcast-wise Derry had to do everything.  He was talent.  He was producer.  He recorded commercials (PDF of our first commercial log). And, after some instruction, he ran his own console.  We used to joke: “Don’t get sick”. But that was more serious than funny. In my last History Blog I showed a picture of that first studio; Derry had to drive the 20-minutes from his farm home to town to do the programs, the first at 6:05 am, M-S.   



The first advertising on the new Network came from Biozyme Enterprises of St. Joseph, Missouri.  I didn’t sell it; Derry did.  Larry Ehlert, the president of Biozyme, was a friend of Derry’s.  The product was a feed additive for cow-calf operators called Vitaferm.  In the initial post on this series, the program contains one of their commercials.  I got busy, though, and began making calls on advertising prospects; more on that later.


–clyde








History of Learfield: Affiliates





I’d committed several months to work on starting this new business. Derry was out of a job. I had two children; Derry had four! If we were to put food on our tables, we had to get to work. There was much to do.


First we needed affiliates; and a programming schedule. We needed contracts new affiliates could sign.  Eventually we’d need a broadcast studio, and equipment and sales collateral material. We only had six weeks to put it all together! Now we needed to sign stations onto the network.


The pitch to potential radio station affiliates was simple:


“Mr. Douglass, what is KMMO doing now in the way of farm programming; you know, markets and farm news?”


Well, we use the Associated Press.


“I’m sure they do a great job, but let me ask you this:  do you have a farm broadcaster on your staff?”



Ah, no.  No, we don’t. Our announcers read the markets; in fact I do the noon market report myself.


“I’ll bet you do a great job, but isn’t it interesting that here you are smack-dab in the middle of one of America’s strongest farming areas, and yet KCMO over in Kansas City is getting much of the farm audience.  Does that bother you?”


It sure does!


“Let me ask you this, Mr. Douglass: would you have interest in having KMMO being a member of a farm network that has as its lead farm broadcaster the famous Derry Brownfield—a member of the NAFB—who’d exclusively do 13 live market, commodity and farm news shows each day?”


Sure I would, but what does it cost?  I’m sure I can’t afford it.


“I bet you can!  I’ll pay all the costs associated with Derry and the broadcast circuits and all the other expenses.  All you have to do is to agree to carry all the programs and the network commercial in each show.  Of course, you’ll also get one position in each show to sell locally.  Our advertisers will be those that advertise nationally—those that KCMO is now getting.”




So, that’s how it went the months of November and early December. I got into my VW bug and traveled to stations in West Central Missouri that eventually made up our network on opening day, January 2, 1973.  Nine agreed to try us out.   


On December 15th I sent a letter to those nine stations (PDF), letter to those nine advising them about ordering their "local loop." 


–clyde







Why Farm?





Providing state news was the subject of my master’s thesis. “So why farm?” is a question many asked. 


You have to understand radio in the 60s and 70s to answer this question.  Major markets all had “boomers”; usually 50,000-watt AM stations that dominated their communities: KMOX, St. Louis; WGN, Chicago;  KCMO, Kansas City; WCCO,  Minneapolis; KOA, Denver; WHO, Des Moines.  Of course they had the major sports franchises, hefty news departments but they also all had large farm departments.  All of them profited hugely from their morning and noon-time farm reports: news, commodity prices, and hog and cattle market reports.  Their advertisers were seed-corn companies, animal health and herbicide manufacturers, and implement manufacturers and dealers.  The advertisers wanted their copy read by the personality farm broadcaster—each a member of the National Association of Farm Broadcasters. 



Derry_brochure

And while certainly farmers in the rural communities could hear these metro radio stations, they also listened to their local stations for local news and weather. Why not provide farm markets, farm news and commodity reports directly to these small town stations via a network and use an NAFB personality to deliver these reports?


Derry was a strong personality; hugely gifted behind the microphone AND, a full-time farmer. In those days he was more believable and trustworthy than most of the big-city guys who weren’t farming anymore—and some never had. From day-one our affiliates knew they had something special—and sellable.  And, so did our advertisers.


So, that’s why.


–clyde


Download Derry Brownfield Brochure (PDF)







Brownfield’s First Day





It was January 2, 1973. In a memo to the nine affiliate radio stations we said:


"The essence of our existence is to provide solid, high-quality, information to the farmers of Missouri and at the same time provide an opportunity for each member station to realize a good profit because of increased listenership and added sales.  Or, in a few words: good–not fancy."



There was no opening theme or billboard. We called ourselves "The Missourinet" which reflects the smallness of our thinking. It wasn’t long before we outgrew Missouri AND we’d added news programming in an additional network using "Missourinet". 


On that January 2nd, we fed eleven programs a day to nine affiliates: Boonville, Brookfield, Cameron, Lexington, Marshall, Moberly, Sedalia, Trenton and Warrensburg. Our studios were on West Dunklin Street in Jefferson City; unfortunately we haven’t located a picture. There were just two of us: Derry and me. I operated the equipment and Derry talked. 


The air-check below –from KTTN, Trenton– runs about 10 minutes and features our 6:40 am market report on January 23, 1973. It will give you an idea of how we sounded on a local station. While the first two commercial positions are for the network, we obviously hadn’t sold them.


Today the Brownfield Network continues with the same mission articulated in 1972. And, candidly, the information today sounds very similar: "good, not fancy." Except we feed over 30 programs each day to 258 radio station affiliates across America’s farm belt. 




Download MP3

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