There has been huge craziness in the San Diego radio industry lately, and I continue to be asked by our advertising clients and others exactly what this means in the marketing landscape. To each I answer, “I wish I knew.” But in reality, I can make a few predictions.

First of all, what the hell happened?

• It began in August, when San Diego beloved radio icons Jeff & Jer were suddenly off the air due to contract disputes with Clear Channel Radio, their station’s owner.  Clear Channel had been on a hell-bent buying frenzy, snapping up radio stations across the country and many in the San Diego market – all with investment capital they had over-leveraged.  (You know, those silly banks were lending tons of money to just about anybody with a business plan a few short years ago.)  When markets started tightening, so did Clear Channel, and they no longer wanted to pay for higher salary morning teams – regardless of their success or following.  Jeff & Jer were out, and Clear Channel shifted a less expensive, less experienced morning team to their former station and time slot. Thus, AJ in the Morning is the winner of that game of musical chairs.

• Around the same time, Monique & The Man on Jack FM was cut down to just the lovely and talented Monique Marvez. Evidently having The Man involved was too expensive for ownership at KFMB.  Then in a very odd move, station management decided to reduce Monique’s live on-air time slot to just 5 – 5:30 am, playing music the rest of the time.  And just recently, she is off the air altogether and her contract is not being renewed.  Ratings at Jack FM continue to plummet in her absence.

• In another Clear Channel debacle, radio icons Dave, Shelly & Chainsaw on KGB suddenly got the ax as well.  Again, those pesky contract negotiations were listed as the culprit, and once again it was really because Clear Channel could not swallow the show’s high salaries. DSC fans staged protests they were so upset and angered.

• Then The Mikey Show on Rock 105.3 was suddenly absent (again Clear Channel  – seeing a pattern?) and fans lamented yet another loss of morning show talent.  Mikey is the only one to have cut a new deal, showing up for mornings now at FM 94.9.

This whole mess has left audiences reeling, radio dials spinning, and listeners not clear on where to listen – or why.  What’s more, it’s left the advertising industry in a bit of a quandry.  Rating points that were already a bit sketchy (see my previous blog spot on Arbitron ratings) are now completely unproven and unreliable.  Advertisers that have been buying radio based purely on ratings points can no longer trust that process.  Long time advertisers that were buying ad libs from proven on-air talent – these are spots recorded or spoken live by the deejay to endorse a particular product – can no longer have access to those familiar voices.  These were enormously popular – when Monique Marvez spoke about her personal experience in buying a Sleep Train mattress, her listeners would take that endorsement to heart.

Advertisers are left trying to figure out how to spend their radio budgets, or if they even should. So then, what now?

Truth is, radio has been – and will continue to be – an important part of the advertising mix.  Its immediacy and frequency allow an advertiser to reach their audiences with a message aimed at getting consumers to take action – right now.  With most radio listening taking place in the car, the assumption is that people are captive audiences.  And in the case of morning shows, audiences are accustomed to being entertained by personalities beyond just playing music.

Sure, the face of radio advertising has changed. It’s not as lucrative as it once was, and there is competition from digital radio like Pandora, iTunes, satellite radio like Sirius and many other sources.  Yet, none of those provide the familiarity, the down-home comfort and the city-centric knowledge and access that local radio can provide.

This too shall pass.  These radio personalities will find new homes where they can broadcast their morning shticks.  Radio stations will find new owners that will invest what they can in perhaps a new model for radio that is both profitable AND entertaining.  And consumers will play spin the dial until they land on a few new choices, perhaps hearing some familiar old friends.

There will always be a need for the Jeff & Jers of the world, because we want to be entertained.  Even more important than that, these iconic morning teams have provided a common thread for our greater community that few other outlets can even come close to.  The familiarity of their voices, their jokes and their laser-sharp knowledge of San Diego represent a shared touchpoint for our city.

And that is worth money.  The question is, how much?