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THE MOST TRUSTED NEWS IN RADIO

WEDNESDAY, OCTOBER 21, 2015

Home Depot Still Says ‘Let’s Do This’ To Radio. Home Depot continued its reign in 2015 as radio’s biggest advertiser, a distinction it has held for the last three years. For the first nine months of 2015, Home Depot ran 1.728 million radio ads on stations tracked by Media Monitors. During an Advertiser Breakfast discussion at the Radio Show in Atlanta, Michael Hibbison, Home Depot’s VP of integrated media, said, “Radio is a major part of the reason that Home Depot has 99% brand awareness.” The home improvement retailer is clearly putting its money where its mouth is, according to the new data. The company’s “Let’s Do This” slogan isn’t a new strategy when it comes to radio. It also ranked first during the same period in 2014, airing a total of 1.759 million spots, and in 2013 as well. “We wouldn’t continue to be so invested with radio if not for the success in reaching our customers,” Hibbison said. Insurance heavyweight GEICO, a division of Berkshire Hathaway Inc., is currently the no. 2 radio advertiser, airing 1.586 million spots so far this year, rising one spot from its no. 3 finish at this point in 2014. The third heaviest radio advertiser currently is iHeartMedia, with 1.123 million spots for its iHeartRadio streaming service from January to September. iHeartRadio ranked no. 2 during the first nine months of 2014. Mirroring last year’s results, fast food chain McDonald’s is currently the no. 4 radio advertiser and drug store chain Walgreens is no. 5. Rounding out 2015’s current top 10: AutoZone (no. 6); Wendy’s (no. 7); O’Reilly’s Auto Parts (no. 8); the U.S. Department of Health and Human Services (no. 9); and department store Macy’s (no. 10).

Wendy’s Leads List Of Brands Serving More Ads. Sitting at no. 7 on Media Monitors’ list of the top advertisers so far in the first nine months of 2015 in Wendy’s, and the distinction is meaningful—the fast food restaurant is making a renewed push in radio. Wendy’s climbs into the top 10 year-to-date with 714,192 spots, compared to its no. 19 rank during the same period in 2014, when it aired 440,721 radio ads, a 62% increase. By contrast, auto info website True Car has been pulling back, slipping from the no. 10 advertiser in 2014 to no. 24 through the first three quarters of 2015. Several other big brands are increasing their radio commercial load this year and cracking the top 20. Among them—the U.S. Department of Transportation, currently the no. 18 radio advertiser; online loan company Quicken Loans; and office supply chain Staples, currently no. 20. Dropping out of the top 20 are Walmart, Verizon Wireless and AT&T Wireless. With the holiday shopping season approaching, the list of the top 20 advertisers will likely shift once again, as retailers increase their media budgets and make a heavy push for their share of holiday spending. Brands that retained their spots in the top 20 so far this year compared to 2014 include Boost Mobile, Subway, NAPA Auto Parts, JCPenney and MetroPCS.

Nielsen Data Will Help Katz Play Politics. As radio aims for the $1 billion in political dollars expected to be spent on the medium in the 2015-16 election cycle, Katz Radio Group has signed a pact with Nielsen to license its Voter Ratings service in all 48 PPM-measured markets. The alliance will help Katz better understand how radio reaches voters with specific political views, while strengthening its commercial inventory for campaigns, the companies say. By combining Nielsen Audio’s PPM data with key voter categories, audiences can be segmented by 10 specific profiles, from “Super Democrat” on the left to “Ultraconservative” on the right, and include “Unconnected and Unregistered” and “Informed and Unregistered” as well. In a press release, the companies say the partnership will help Katz “sell stations’ ability to deliver

[email protected] | 800.275.2840 PG 1 NEWS insideradio.com WEDNESDAY, OCTOBER 21, 2015 voters to political campaigns more effectively, gaining more political ad dollars.” Nielsen provides political ratings in the 48 PPM radio metros and the top 56 TV designated market areas, with reporting at the station and daypart levels. “Radio’s ability to meaningfully connect with the American electorate has been under-leveraged in the political advertising sector,” said Katz Media Group executive VP of strategy and analytics Stacey Lynn Schulman. “Layering our listeners’ passions with Nielsen’s advanced political targeting provides candidates with a new opportunity to engage voters in 2016.” Pierre Bouvard, chief marketing officer at Cumulus-Westwood One added, “These 10 political segments, based on actual voter behavior, are far more precise than broad age and sex demographics. Campaigns can now find their voter targets on the right radio format, station and dayparts.” All About That Data—iHeart’s Subramanyam on using Nielsen’s tools for ad benefit, at InsideRadio.com.

Cumulus Realignment Starts With Jeffries Departure. Tuesday’s sudden departure of senior VP of corporate programming Jan Jeffries after an 18-year stretch at Cumulus Media came as a surprise to programmers at the company, who had been told earlier that he would focus exclusively on AC stations. His exit is part of a larger ongoing realignment of stations under the company’s national programming team. Cumulus is expected to divvy up the CHR and country stations overseen by Jeffries among existing corporate program directors (CPDs). Some CPDs will significantly expand the number of stations they supervise, according to Cumulus insiders. Senior VP of content & programming Mike McVay is expected to unveil his programming leadership team within the next week or so. And it is considered unlikely that Cumulus will hire a new senior VP to replace Jeffries, a 40-year broadcaster who relocated to Washington, DC in July to add programming duties at CHR “DC’s 107.3” WRQX. Meanwhile, CEO Mary Berner is due at the Cumulus- New York cluster today as part of a road trip that has taken her to Kansas City, Minneapolis and Chicago in recent days. Berner is hosting town halls for employees and meeting individually with market managers, programmers and top personalities. All indications are her message of turning around the company’s performance and changing its corporate culture is being well received. Berner’s town hall entrance in Nashville was greeted by applause.

Format Handicapping Begins For New Nielsen Encoders. Based on Nielsen field tests, stations adopting the ratings company’s new enhanced PPM encoders are likely to experience an average 15% increase in raw AQH persons 6+ once the new CBET algorithms are implemented in their market. Which formats stand to gain the most from the additional audio watermark detections? The handicapping has already begun. “Since shares are a zero sum game, it seems very likely that the next few months in PPM markets in North America are going to experience changes unseen since the move from diaries to PPM and, prior to that, way back to 1986 when COLRAM’s diary was adopted,” country radio consultant Jaye Albright writes in a blog post. The 1986 diary change is credited with helping AC stations while PPM’s introduction benefitted CHR and classic hits formats. Country has been on a ratings roll lately but Albright wonders whether the new encoders, which detect more than twice as many codes per minute as Nielsen’s legacy encoders, will hurt the format. “I wish Nielsen was doing more to

[email protected] | 800.275.2840 PG 2 NEWS insideradio.com WEDNESDAY, OCTOBER 21, 2015 allay these fears and could give us more insight into their rationale, beyond declaring that they have a right to do what they want,” she writes. Nielsen has said its legacy encoders credited as few as 69% of quarter hours in challenging acoustic conditions for some spoken word programming compared to 100% for the enhanced encoder. Beyond that it hasn’t publicly stated how the new technology may impact some formats differently than others, even though it field-tested the new CBET on 19 radio stations in various formats in Washington, DC and Baltimore. Which dayparts and demos are likely to benefit from CBET – Go to InsideRadio.com.

Total Audience Measurement is Coming – To TV. Nielsen’s long awaited Total Audience Measurement service for TV will launch late in the first quarter of 2016. A sneak peek of the new ratings tool given to Adweek may provide some hints of what Nielsen has in store for measuring audio consumption across platforms. Two years in the making, the video tool promises to measure “every view on every screen,” adding binge-watchers, cord-cutters and on-the-go multitaskers to the linear broadcast TV audience. The service will measure unique audience, reach, gross average minute audience (both in viewers and gross ratings point), minutes viewed and frequency. Users can search across a variety of demos, date ranges and platforms, according to Adweek. Subscribers will be able to “de-duplicate” a program’s total numbers, removing duplicate views by the same person on different platforms, thus revealing their total unduplicated audience. Moving beyond just live viewers, it will track video consumption across linear TV, DVR, video on demand, connected TV devices, mobile, PC and tablets. The service will track “digital first” providers like YouTube and AOL that haven’t previously been included. Nielsen EVP Megan Clarken, who is leading the project, tells Adweek clients will be able to “add that together so they can get a real sense of their audiences, and not just be restricted to reporting out or talking about their live audiences.” As with its delayed digital audio service, the video product involves media owners installing Nielsen’s software development kit (SDK) on their apps and players to supplement traditional panel-based measurement. Measuring a show’s total audience requires “apples-to-apples comparisons,” Clarken said. “They have to follow the same underlying rules. They have to be on a single-sourced platform, because otherwise you’re cobbling numbers together and creating Frankenmetrics.” How one show’s total audience expanded with the new tool – find out at InsideRadio.com.

ESPN Racks Up Digital Points. When a spoken word station scores a big get with a hot quarterback or a controversial politician, the interview can rack up more total listens over time through on-demand online listening than during the original live broadcast. That’s especially true at sports radio stations, which are placing a premium on mobile apps and other digital platforms. Consider that two months in, Red Zebra Broadcasting’s Washington, D.C.-focused “ESPN 980” WTEM-AM app for iPhone and Android devices has been downloaded more than 23,000 times. According to the station, “fans are using the app to get closer to D.C. sports” with local programming from its personalities Tony Kornheiser, Chris Cooley, Steve Czaban and Doc Walker. It also allows users to access on-demand podcasts and interviews with guests, while following the station’s and its hosts’ social media feeds and blog content. “The way people are consuming radio is changing,” said Red Zebra Broadcasting president & CEO Rick Carmean. “In the near future, the primary method of reaching listeners will most likely be through their mobile device. The mobile app should give sports talk formats a big advantage going forward if the radio station provides good content and strong talent.” In addition to WTEM’s 50,000-watt daytime signal (5,000 watts night), “ESPN 980” simulcasts on a pair of class A FMs: Prince Frederick, MD-licensed WWXT (92.7) and Buckland, VA-licensed WWXX (94.3). The flagship for Washington Redskins play-by-play, it has trended 0.9-1.2-1.8 from July to September among listeners age 6+, according to Nielsen.

$1 Billion And Counting For NFL’s TV Ad Partners. Football season is just six weeks in and the National Football League is already generating massive revenue for its TV partners — nearly $1 billion and counting. Since the Sept. 10 season opener, the five TV networks that air NFL games, CBS, NBC, Fox, ESPN and NFL Network, have already taken in $942.5 million in ad revenue for in-game spots, up from $936 million in the same period last season, according to

[email protected] | 800.275.2840 PG 3 NEWS insideradio.com WEDNESDAY, OCTOBER 21, 2015 iSpot.tv estimates reported by Ad Age. The windfall reinforces pro football’s prized status for its media partners, and radio stations that own local broadcast rights for NFL teams can attest to that value. “The NFL is a giant marketing machine for radio stations from programming to promotions to sales,” David Pearlman, a media and sports consultant with Pearlman Advisors, told Inside Radio recently. Radio stations attract huge audiences for their NFL play-by-play broadcasts, and also for related shoulder programming. “It is all about brand association,” CBS Radio’s Chris Oliviero said. “If [clients] can rub their brand against team brand and station brand, that has great value.” The NFL’s wild popularity helps radio partners charge a premium for advertising, sell integrated sponsorships and entitlements, and even gives stations an entree to new clients. On the TV side, the top three advertisers for NFL games so far this season are Fan Duel ($44.1 million); Verizon ($33 million) and DraftKings ($31.2 million) as online fantasy sports websites show no signs of pulling back their ad blitz despite federal scrutiny. Among carmakers, Toyota is the top advertiser, with $24.3 million in NFL ads so far, followed by Chevrolet ($21.5 million) and Ford ($20.5 million). Beer is another huge category for NFL broadcasts led by Corona, Bud Light and Michelob.

Bouvard’s Top Takeaways From ANA Conference. Radio took its reach and ROI message to advertisers at the Association of National Advertisers Masters of Marketing Conference in Orlando last week for what’s been called the “Super Bowl of marketing.” “All over the massive event, radio people were talking to senior marketing executives,” Cumulus Media CMO Pierre Bouvard says. Westwood One partnered with Meredith to present performances by Leona Lewis and Jessie Mueller, while iHeartMedia sponsored a dinner and performance by Seal. Of course, Tim Castelli, iHeart’s president of national sales, marketing and partnerships, used the occasion to show a Nielsen chart depicting radio as America’s number one reach medium. “Learning is repetition,” Bouvard says. “Radio needs to get in front of marketers and state its case often.” Here are other top ANA takeways noted by Bouvard in a new blog post: Marketing Disruption - In his keynote address, ANA CEO Bob Liodice cited its second annual study about marketing disruption as further proof that the “legacy marketing model is being disrupted.” The study found marketers are more focused on the customer journey. More risk-taking for small advertisers – Said Arby’s chief marketing officer Rob Lynch, “You have to be smart, you have to be nimble, and you have to be willing to take risks. And I emphasize that last one.” Case in point: Arby’s bought an ad on “The Daily Show” and sent the cast lunch, despite Stewart’s constant berating of Arby’s on his show. “Memory Lane Marketing” – Progressive CMO Jeff Charney explained how the insurer uses nostalgic hits from the ’90s in its marketing to stand out and tap into powerful memories. Says Bouvard, “Radio advertisers can tap into nostalgia by using older hits to capture listener emotions and memories.” “Old people are a growth market.” – Get more ANA takeaways for radio at InsideRadio.com.

Hollander Among Quartet Of Sales Promotions at Spotify. Former CBS Radio and Clear Channel exec Les Hollander has been promoted to global head of audio monetization at Spotify as part of a realigned sales team at the streaming audio service. Most recently senior director of audio sales for Spotify U.S., Hollander will lead the company’s audio-specific efforts across regions. Before joining Spotify in 2013, Hollander was VP of digital sales at Gannett and VP of sales/director, eastern region radio sales, at Pandora. From 2004-2008, he was SVP/regional manager at CBS Radio after seven years in sales positions at Clear Channel. He reports to Spotify global head of sales Brian Benedik, another former broadcast radio sales executive. Hollander’s promotion is one of four in Spotify’s sales team. Alex Underwood is promoted to global head of agencies & accounts. Lisa Tran joins as regional vice president, east region U.S. from Rubicon Project. Jason Tosney joins as director of sales, east region U.S.; he previously held positions at TimeOut, AOL/Patch, Centro and Federated Media.

Inside Radio is written by Paul Heine, Chuck Taylor and Allison Romano, and is edited by Rob Edelstein. If you have comments on a story, a news release, or a news tip, send it to [email protected], or call 800-275-2840. To advertise in Inside Radio, contact Karen Bak [email protected], and for anything else, contact Gene McKay, [email protected] — Get more news, people moves and insider extras @ www.insideradio.com. —

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