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MONDAY, MARCH 30, 2015 FCC turns to electronic ears as option for closing field offices. One worry for broadcasters assessing plans under consideration by the Federal Communications Commission to close two- thirds of its field offices is the potential inference problems that would go undetected. While few specifics have been released so far on how the agency will move forward, Office of Engineering and Technology chief Julius Knapp offered a clue during his testimony before Congress last week. “We would be looking at alternative ways that we could more efficiently locate and diagnose the interference cases,” he said, explaining, “There are tools that are available now to actually have sensors in place and do the outreach.” Those electronic monitors would help the FCC diagnose a problem in a market, with “strike teams” ready to be deployed into a city to help resolve an issue. Chairman Tom Wheeler defended the proposal during several appearances on Capitol Hill during the past two weeks, insisting that the agency would still be able to address interference complaints within 24 hours through a combination of technology and fast-response teams. “We believe we can do this without a diminution in quality,” he told a House hearing. The tentative outline is to shut all but eight of the FCC’s current 24 field offices, however Wheeler has not said how much money that move would save. The National Association of Broadcasters has called the idea a “potentially troubling development” that would undercut the FCC’s ability to police interference problems. Wheeler has said he has little choice. “Do I want to close these offices? I don’t,” he told lawmakers. “But I’ve got a fixed amount of dollars to work with so the question becomes how we can become more efficient — and that’s what we’re trying to do.”

FM chips in phones won’t get any help from FCC’s wireless chief. The FCC’s top wireless regulator says if consumers want FM on their smartphones, market forces should get the job done, not the government. Wireless Telecommunications Bureau chief Roger Sherman told the House Communications and Technology Subcommittee that he’s on the same page as FCC chair Tom Wheeler. “He thinks the market seems to be working and if consumers want their FM chips, they can let the carriers know, and the market should solve that problem,” Sherman said during a hearing last week. His comments followed testimony Wheeler gave lawmakers earlier in the week, backing the hands-off approach. “FM chips are a good idea and they are in an increasing number of phones,” Wheeler said. The National Association of Broadcasters has stopped short of seeking a mandate but it’s been urging the FCC to use its position to help push wireless carriers along. Stations have also begun airing the NextRadio-produced commercials educating the public that most carriers are going out of their way to turn off the feature. The campaign is also suggesting they contact Congress and the FCC, a move that didn’t go unnoticed by Wheeler. “I think this is something that is being resolved in the marketplace and we ought to monitor that and watch what happens,” he told Congress.

Waiting period rules remain tight, so Townsquare Media can’t keep three Iowa FMs. Working with Nielsen, Townsquare Media revived the previously dissolved Waterloo-Cedar Falls, IA market with the Spring 2014 survey. It created a distinction from the Cedar Rapids market 50 miles down Interstate 380. It was also designed to allow the company to keep three FMs carved out from an over-sized Cedar Rapids cluster. But the FCC has thrown up a road block saying Townsquare didn’t comply with the required two-year waiting period. According to the rulebook, the purpose of the waiting period is to reflect actual market conditions and to keep companies from trying to circumvent the cap on radio ownership. Townsquare had sought a waiver, arguing it didn’t manipulate the Nielsen boundaries. Instead it said it simply restored a market that had

[email protected] | 800.275.2840 PG 1 NEWS insideradio.com MONDAY, MARCH 30, 2015 existed from 1970 to 2012 — and only disappeared when rival Bahakel Communications dropped the ratings service. But Audio Division chief Peter Doyle concludes that although the Waterloo metro existed for decades, it would be impossible for the FCC to apply a “clear, predictable waiver standard” if regulators began trying to get inside the head of what motivates a company to buy or cancel the ratings. “We do not believe Townsquare has presented a compelling case for a waiver,” he concludes. And Doyle says considering Townsquare actively sought out the resurrection of the Waterloo market, it’s the exact type of situation the FCC had it mind when it adopted the two-year waiting period. The FCC gave Townsquare two years to find buyers for CHR “Q-92.3” KKHQ-FM, classic rock KCRR (97.7) and country “K-98.5” KOEL-FM as part of its 2012 multimarket deal with Cumulus Media. So unless an extension is granted, Townsquare will have no choice but to sell.

FCC weighs whether to put a stop to market definition changes for ownership caps. Much of the attention in the proposed 2014 media ownership review has been on cross-ownership regulations. But one bit of potential rule tightening under consideration would make station repatriations such as the one proposed by Townsquare Media a thing of the past. The FCC is looking at whether it should require a station to change its city of license or undergo other facility changes in order to qualify. “This clarification safeguards the local radio ownership limits from manipulation based on [Nielsen] market definition,” the FCC says in its proposal. Current rules are built off what the ratings company says is or isn’t in a metro, limited only by a two-year waiting period that regulators have said in the past was enough to weed out anyone trying to rig the system. Some radio groups have other problems with the Nielsen-based rules, such as treating a big Class C signal the same as a Class A which has a smaller footprint.

Midwest department store shifts dollars to radio. The Middle America department store chain Gordmans Stores is the latest retailer to say it is shifting dollars out of print as it weans itself from Sunday circular inserts. CEO Andy Hall told investors last week the retailer has just hired a new advertising agency and, as a result, won’t spend as much on newspaper space. Instead, he said it will shift dollars to radio and television. Print will still be on the buy, but to a lesser degree. “We probably won’t kickoff a new campaign until midyear, but I think that’s an exciting opportunity for us,” he said on a conference call. Gordmans has 99 locations in 22 states, with plans to open six more this year while exiting the market. Hall said the new ad agency has begun doing research and interviewing customers as it fine-tunes the marketing strategy. One decision that has already been made is to put more focus on what Hall said are “specific natural shopping periods” for a department store, such as Mother’s Day, Father’s Day, and back-to-school. But at the same time it will continue marketing through the year. “Our everyday value price is the cornerstone of our business model,” Hall said. “And I think we got a little astray from that model in the past and I think we will get back on board this year.”

The Power of Radio: ‘souper’ results for fast casual restaurant chain. The parent company of the Souplantation and Sweet Tomatoes restaurant chains is on the air with a fresh ad campaign and a new voice. Patrick Warburton, former star of “Seinfeld” and “Rules of Engagement,” is voicing the spots that are now airing in the , Orange County, Inland Empire and San Diego markets. In a spot entitled “Once Upon a Tomato,” he tells a tale of the brief life and “sacrificial death” of a fresh tomato. In his signature distinctive deep voice, the ad ends, “If a chopped up, pureed and simmered Tomato could smile — he would.” Up next: broccoli is the star. The root (pun intended) of the ads are the longtime friendship of Garden Fresh Restaurant Corp.’s new CEO John Morberg and Warburton, who were classmates in elementary school. So far, Souplantation/Sweet Tomatoes says in the markets where the spots have run, sales have risen nearly 5%. San Diego- based Garden Fresh operates 128 restaurants in 15 states.

Bressler: iHeartMedia may not be done selling. A recent deal to sell 411 broadcast towers for as much as $400 million is the biggest-ticket sale by iHeartMedia to date, bringing its sale of company holdings to nearly $800 million during the past few years. COO Rich Bressler told analysts recently that they shouldn’t be surprised if the company does some more

[email protected] | 800.275.2840 PG 2 NEWS insideradio.com MONDAY, MARCH 30, 2015 trimming. “We are continuing to evaluate our business and asset portfolios to look for ways to optimize our assets,” he said during a conference call. The tower sale to Vertical Bridge — which is expected to close in the coming days — joins a list of sales that includes iHeart’s San Antonio offices, a minority stake in Sirius XM Radio, stakes in Australian and New Zealand radio networks, and some Hong Kong outdoor holdings. There have been reports in the press that the company may also be looking to spin-off its European billboard business. But Bressler said he wouldn’t comment on the rumors. But he did say the cash will help iHeartMedia cut its debt. Most recently, a newly-created company called Orbital Media Networks bought Clear Channel Satellite Services after the division told customers it would no longer serve users outside iHeartMedia. Orbital continues to operate from the division’s existing Englewood, CO facility.

Survey: 4 in ten use music apps on their smartphone while driving. The introduction of digital services in the dashboard is quickly expanding, and for many drivers digital music is already along for the ride. More than four-in-ten (44%) of people surveyed by the IT services company Lochbridge report already using music apps on their smartphone while driving. That trails navigation apps by 10 points, but it easily tops behind-the-wheel texting and social messaging. A majority of drivers say they want even more options in their car, especially younger demos. Speaking at a recent telematics conference, Spotify senior manager Jonathan Tarlton said carmakers are pushing drivers to use their phone rather than built-in dashboard entertainment systems. “They expect it to be seamless and easy to use,” he said. “Unfortunately the delivery isn’t in most cases as easy to use as sources such as FM radio that have been in the car for a very long time.” The Lochbridge survey shows among those 44 and under, three-quarter said they’d like new in-car entertainment options. Yet there’s a noticeable generational divide with people age 55 and older less interested in mucking up the dashboard they know and love. Tarlton says older drivers are used to FM/AM radio’s “lean back” experience. “It’s a behavioral change,” Tarlton says, “and a lot of that has to be done by the way it is integrated — instead of being buried multiple levels deep, it has to be something as simple as a button.” A similar split was seen when survey takers asked whether people felt automaker understood their preferences — most Millennials (80%) said car companies don’t understand what they’re after in a vehicle. Lochbridge’s findings are based on a survey of 1,490 respondents between the ages of 18 and 65.

Inside Radio News Ticker…Spotify may join pocast rush...Podcasting, once an audio afterthought, is quickly gaining attention. The latest entrant may be Spotfiy. The streaming service has reportedly been in discussions with possible content partners to begin ramping-up podcasting effort as it expands beyond music-based progarmming. Bloomberg says one way Spotify would look to differentiate its podcasts may be giving users the option of consuming the programming on either audio or video. Spotify currently has 60 million active users worldwide…College radio teaches tough lesson…Three Pennsylvania college students are getting a tough lesson courtesy of radio. The Bucknell University trio allegedly made racially insensitive remarks inciting what the school has called “racially-motivated violence” during a slur-laced 15-second on- air discussion on modern rock WVBU-FM, Lewisburg, PA (90.5) two weeks ago. The Sunbury Daily Item says the students have been temporarily suspended and may face permanent suspension pending the outcome of a University investigation… Brandmeier show launches…The exit of from created an opening for Jonathon Brandmeier and the WLS, Chicago (890)-based personality will go national today. says it has lined-up 100 affiliates for his “Talk Radio Unhinged” program, many owned by parent Cumulus Media. Brandmeier most recently worked at Tribune’s news-talk “Radio 720” WGN, Chicago…People Moves…Bonneville International has promoted news/talk KSL-FM&AM (102.7, 1160) and KSL-TV station manager Tanya Vea to vice president and general manager of the radio-TV combo. Entravision tropical “Salsa 98.1” WNUE-FM, Orlando announces Arnaldo Olieveri and Mariela Chópite will host morning drive. And New York personalities Pat St. John and Vin Scelsa, both with more than 40 years on the air in the market, are leaving their stations. And former WJR, Detroit general manager Mike Fezzey has died. Read the latest People Moves at InsideRadio.com.

[email protected] | 800.275.2840 PG 3 MUST READ MONDAY insideradio.com MONDAY, MARCH 30, 2015 LeadG2’s Matt Sunshine releases a new book to help wth lead generation.

Matt Sunshine, Managing Partner of LeadG2 and The Center for Sales Strategy, has written a new book about lead generation and the shifting sales landscape. In “LeadG2: Getting Prospects to Raise Their Hands”, he breaks down inbound marketing into simple, easy-to-digest pieces, and shows how anybody can start an inbound marketing program of their own. By the end of the book, the reader will understand why the sales landscape has changed permanently, and how to adapt.

Sunshine wrote the book because he noticed that the CEOs, business owners, General Managers, and Sales Directors he talks to on a daily basis were struggling with lead generation. They understood that the power dynamic shifted, and their buyers were doing a lot of research on their own before ever talking to a salesperson. Salespeople were spending less time selling, and more time doing things that didn’t impact the bottom line.

He noticed something else, too — some people were afraid of talking about inbound marketing. There was something about the new jargon that didn’t sit right. He knew then that in order to help more people get better results from their sales team, he had to explain inbound marketing in a way that didn’t turn people off. — MUST READ MONDAY SPONSORS — So that’s what he did. LeadG2: Getting Prospects to Raise Their Hands uses stories and analogies to simplify a complex process and makes inbound marketing a logical next step for the savvy CEO or General Manager. Download a sample chapter, get Matt to speak at your event, or learn more about the book at LeadG2thebook.com

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While the average year-one ad revenue from using System 21 was $624,000, many billed over $1,000,000. In addition, stations reported a renewal rate of 87%.

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[email protected] | 800.275.2840 PG 1 CLASSIFIEDS insideradio.com MONDAY, MARCH 30, 2015 qualMEDIA ADVERTISING & SPONSORSHIP SALES GENERAL MANAGER This is not a normal job-posting… because this is not a job! We have Keokuk/Burlington IA “one” incredible opportunity available, that will change your life. The and Quincy, IL. only question is “Are you that person?” Ramsey Solutions has an Need a General Manager opening for the right person who possesses as a minimum: with solid business knowledge • Proven track-record of closing million dollar deals to grow our station cluster. • Ability to deliver results for your client b/c you seek the right solution We have 3 FMs, 100kw, 50kw, • Personal integrity that allows your to rise above your competition 6kw and heritage full service • Aptitude to hear the word “No” as an opportunity AM. This position requires • Fortitude to manage the resources of Radio, Video, Digital, Print, and a community leader that Event Sponsorships to create unlimited earning potential understands the importance of • Strong working knowledge of what we do and “Why” it works so well radio. Great opportunity to build your own team. Must be a This full-time position located in the Brentwood, leader and trainer with TN provides the ability to represent all Dave involvement in the community; Ramsey products. The opportunity to prove and lead by example. Good what you can do begins now! area, great communities to live. Experienced Sales Managers If you have what it takes to fill this “one” position then it’s your are encouraged to apply. Send assignment to get our attention. When we find this person we will resume and cover letter to: commit to providing an incredible work environment, un-paralleled [email protected] resources with a brand that delivers results, and the ability to control Please place GM position in your own earning potential with no corporate imposed ceiling. the subject line. EOE. Apply online at daveramsey.com/careers. EOE.

MARKET MANAGER OPERATIONS MANAGER COLORADO Digity LLC continues to grow and needs the best Cumulus-Colorado Springs Operations Managers in the country! is searching for an exceptional Market Manager to guide our If you are an experienced, strategic, creative, organized brand 6 well positioned and impactful manager with a can-do attitude, we want to talk to you. Applicants stations. The successful candidate must be proficient in identifying new air talent, earns the respect will have a history of leading of high profile morning teams, is excited about social/digital/events high performance sales teams, and develops ideas that are sellable not because he/she has to, but coaching good to great, and because he/she understands a full integration with sales is the key to attracting sales all-stars. Here’s success. The perfect candidate knows how to strategically program your opportunity to join our for ratings for both PPM/diary markets and is a leader who is ready growing company and become an to take on corporate responsibilities as well as manage a cluster of integral part of our stellar team in stations. Colorado Springs by contributing to their continued success. Qualified candidates will have at least five years of proven success Not many better places to live as a programmer, preferably in a PPM market. Candidates must be and work than in the beautiful strategic and analytical but also must possess creativity and the landscape of Colorado. instinct to win. OM must be proficient with RCS Selector, Adobe Audition, PPM Analysis Tool, Social Media platforms, Audio Vault, Inquiries will be held in PD Advantage and Media Monitors. Find a full list of qualifications the strictest confidence: and responsibilities in our ad at insideradio.com. Send resume to: [email protected] [email protected]. EOE Equal Opportunity Employer

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