Don Imus : His Costly Communication Mistake

Some in the U.S. may be tired of hearing about Don Imus, a popular radio talk show host who lost his job last week. However, his situation makes for a sobering object lesson.

It’s sometimes a challenge to demonstrate in monetary terms the negative costs of poor communication and ignorance of a business culture. The Imus event provides a rare glimpse at the financial impact resulting from communication mistakes:1

• Don Imus was so adept at marketing books on his show that the U.S. book publishing industry estimates the loss of his show will impact their industry in the hundreds of millions (US$100,000,000.00) if not billions of dollars.

• CBS received ad revenues of $20 million a year from the Imus show not to mention several millions in syndication fees from affiliated stations.

• MSNBC got hours of cheap programming daily with a huge audience.

• NBC News personalities and others including U.S. Presidential candidates were regular guests on the show where they presented their books to a national audience.

• Preferred politicians received hours of free airtime worth millions of dollars.

• This event will impact Don Imus’ other ventures; his cookbook, his company, Imus Ranch Foods, and a line of environmentally friendly household-cleaning products.

Five seconds and one irresponsible phrase will cost CBS, MSNBC, NBC News staff, book writers, politicians, the publishing industry and Don Imus himself at least US$250 million dollars. His may have been the most expensive five seconds in the history of radio.

This situation demonstrates how poor and improper communication can have devastating financial repercussions. Companies should consider how the lack of expertise about Mexico’s business culture and communication may be adversely affecting their sales and profits.

Richard Villasana
The Mexico Guru

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1. Special acknowledgement to Terry Keenan and his article End of Imus Inc. Will Be a Shock to Publishing.