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TUESDAY, JUNE 9, 2015
Online radio is sitting on a $4.7 billion revenue opportunity. How big is the revenue opportunity for online radio? According to one expert, there’s $4.7 billion in additional money waiting to be plucked – if only the medium can make its share of ad spend roughly equivalent to its share of time spent with media. Internet audio currently commands 12.7% of time spent online but only gets 4.7% of digital ad spend, Xappmedia CEO Pat Higbie said at Mark Ramsey Media’s Hivio conference last week in Los Angeles. “There’s an enormous opportunity in internet audio because there’s a fantastic content consumption experience that’s better than anything else in mobile,” Higbie said. He believes online radio ad dollars under-index their usage because the content consumption experience is misaligned with the content interaction experience. Streaming audio relies on hearing for consumption and touch for interaction. “That’s broken,” Higbie said, because most mobile phones display a blank screen when playing internet audio. When advertising or content plays that the user wants to interact with, they have to fumble for their phone, swipe, and unlock the screen to get to it. “There’s significant friction involved in engaging users by touch because when we’re listening, we’re typically doing other things,” Higbie said. Higbie’s company, of course, is marketing a product that gets around that: voice- activated calls-to-action for streaming audio ads. But it’s just one of several solutions on the market designed to make audio ads more interactive. Improving engagement would only add to the nearly $3 billion that eMarketer forecasts the industry will collect from advertisers this year.
A live, global online station is centerpiece of new Apple Radio. Unfurling its freshly launched streaming music service yesterday, Apple’s Eddy Cue articulated a thought that many in radio would agree with. “Internet radio isn’t really radio; it’s just a playlist of songs,” the head of software and internet services said at the company’s Worldwide Developers Conference. To stand out from the expanding online radio pack, Apple intends to use what’s long been broadcast radio’s bread and butter: live personalities. The tech giant has recruited a trio of high profile hosts to staff a live, 24/7 online radio station. Julie Adenuga will broadcast live from London, “Hot 97” WQHT morning man Ebro Darden from New York and former BBC Radio 1 host Zane Lowe from Los Angeles. Dubbed Beats1, the global stream will beam simultaneously to 100 countries around the globe starting June 30. Exclusive interviews, and guest hosts are part of the formula. Beats co-founder Jimmy Iovine said the idea for a global station came from Nine Inch Nails frontman and Beats chief creative officer Trent Reznor, who envisioned a station that plays music “not based on research, genres or drum beats” but has “only has one master, music itself.” Iovine said the station would be a “music lover’s dream” that programs “great music without any restrictions.” It’s the centerpiece of a rebranded Apple Music Radio that will include other stations curated by DJs across multiple genres. “We have great music DJs and artists building real radio shows right now,” Lowe said. Apple says human curation, not algorithms, will take the lead as it looks to “redesign” radio. NEWS INSIDE >>
Apple revamps its entire streaming music ecosystem. Radio is only one piece of a Big wins for urban AC, digital music ecosystem that Apple has rebuilt from the ground up, as it plays catch up classic hip-hop struggles in the fast-growing streaming industry. Calling today’s music marketplace “a fragmented
[email protected] | 800.275.2840 PG 1 NEWS insideradio.com TUESDAY, JUNE 9, 2015 mess,” Beats co-founder Jimmy Iovine said Apple Music aims to create “one complete thought around music.” The new service offers three points of entry. My Music, which accesses all the music a user has purchased through iTunes or included in playlists, as well as the entire iTiunes library. For You, which asks users what genres and artists they like and combines the answers with their music listening history to create personalized playlists. For You also recommends playlists curated by artists and experts. And New, which showcases new artists and singles. For artists, there’s a Connect feature that lets them upload and share new songs they’re working on, backstage photos and other behind-the-scenes content. Siri is in on the act, too. The voice activated personal assistant will respond to commands like, “Play ‘Born To Run’” or “Play the top 10 songs in alternative” or even “Play the top songs from May 1982.” The subscription-based service, which launches June 30, costs $9.99 a month or $14.99 for a family package of up to six people. To encourage sampling, Apple will offer the first three months for free.
Apple playing catch up with established streamers. Apple is touting its overhauled music service as a “revolutionary,” one that will deliver “all the ways you love music all in one place.” CEO Tim Cook went as far as declaring it “will change the way you experience music forever.” The grandiose proclamations come as the tech titan plays catch up with on-demand services like Spotify and Pandora and reclaim its place as a digital market leader. Since launching its iTunes service in 2003, Apple has been the dominant force in digital downloads. But music download revenue from Apple’s music store has steadily declined over the past three years while streaming has become a bright spot as subscriptions and revenues grow. So far, though, many subscription services have been regarded as niche products with limited appeal. Apple’s service could position streaming for the masses, analysts say, making digital streaming available to a much wider audiences. iTunes counts 800 million users, a vast trove of potential customers. But Apple will have to entice customers with something differentiated, says analyst Russ Crupnick of research firm MusicWatch. “The question is, what is Apple going to say to the mainstream music fans that shifts the way they’re listening now to paying a subscription?” Crupnick told the Los Angeles Times.
Big wins for urban AC in major markets. May came in like a lion for urban AC in radio’s largest markets. The format finished first in Chicago and Atlanta, placed second in Houston and showed up in third place in New York. In Chicago, iHeartMedia’s “V- 103” WVAZ is enjoying a second consecutive month in a row at the top of the heap, trending 6.5-6.9-6.8. In Atlanta, long an urban radio stronghold, urban AC captured both the No. 1 and No. 3 positions CBS Radio’s “V-103” WVEE sprinted 7.8-8.5-9.0 to top the market. Cox Media Group competitor “Kiss 104-1 FM” WALR is also on a multi-book upswing, tracking 5.4-6.4-6.6 to rank third. In Houston, Radio One’s “Majic 102” KMJQ dipped slightly (6.3-6.8-6.5) but remained firmly entrenched in second place. And in New York, Emmis’s WBLS (107.5) added a more than a full share in one month, cruising 5.7-4.9-6.0 to rank third.
Classic hip-hop struggles to maintain initial ratings burst. When classic hip-hop exploded on the scene last fall, it brought a fast ratings rush to a handful of stations. But programmers quietly questioned how long the sugar rush would last. “The launch is the easy part,” said Adrian Scott, the programmer credited with introducing the first classic hip-hop station in 2009 on Meruelo Media’s KDAY, Los Angeles (93.5). “What a lot of these stations have to understand is what happens when old gets old,” Scott said. “The hardest part is to maintain it.” Programmers are experiencing that firsthand in three top 10 markets. Radio One’s “Boom 92” KROI, Houston – which started the trend – ranked 24th in Nielsen’s May survey with a 1.6 share. It debuted with a 3.2 last November and has been slowly declining since. Dallas sister “Boom 94.5” KSOC got as high as a 3.4 last December. It has trended 2.8-2.6-2.4 in the last three monthlies, tied for 15th place. “Boom 107.9” WPHI- FM, Philadelphia, which peaked at a 3.9 in the Holiday survey, fell 3.0-2.5 in May. “If it’s going to be successful in the long haul, it will need to evolve,” consultant Tony Gray says of the format.
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L.A.’s KTWV catches a ratings ‘Wave.’ One of the few surviving “smooth” spots on the FM dial marked the month of May by gliding to its best ratings since at least December 2010. CBS Radio’s “94.7 The Wave” KTWV, Los Angeles rolled 3.5- 3.9-4.4 in Nielsen’s latest ratings survey, up almost two shares from one year ago. It’s a fourth consecutive up book for the station that launched the smooth jazz format in 1987 but has more recently stumbled to find its footing. Ranked fifth in radio’s richest market, the station’s ratings ascension comes less than a year after it promoted assistant program director Ralph Stewart to program director. Nielsen’s May survey results cover the period from April 23 to May 20. Head over to StationRatings.com for more May results.
Radio’s new pitch line may be how its ads fit with everything else. Like a restaurant goer overwhelmed by too many items on the salad bar to make a well-balanced plate of ingredients that go well together, marketers are facing the same problem when it comes to their media diet. The third annual Cross-Channel Marketing Report, published by Econsultancy in association with Oracle Marketing Cloud, finds just two-in-five (43%) feel they understand their customers’ journey throughout their media day and that they’re putting campaign components together in the right way to reach them. That’s despite the fact that two-thirds say it’s a priority for all marketing to be integrated into a cohesive plan. The most common reason for missing that target is advertisers and ad agencies just don’t have the resources to achieve that goal. “Clearly, marketers can and should be doing more to drive precise orchestration of their marketing strategies,” Oracle’s Simon Robinson says. For radio, the survey suggests there’s a sizable opening for sales reps in their pitch to show how radio advertising will fit with other marketing activities. “Keeping the customer ‘switched on’ to your brand message is more challenging than ever before,” Robinson says. “Almost a quarter of companies (21%) surveyed believe that the customer journey is the singular most important factor for a successful campaign.” To that end, a majority (51%) of companies now say they “focus on the customer, not the campaign.” The survey of 956 marketers also shows what other reports have found: interest in digital ads is only growing. iHeart changes channels on awards telecast. After two years on NBC, the iHeartRadio Music Awards show is changing TV venues. Next year’s awards will be televised on three Turner Broadcasting System networks: TBS, TNT and truTV. The multi-year deal between iHeartMedia and TBS calls for TBS, TNT and truTV to carry a live simulcast of the annual event and for the show to broadcast live on iHeart radio stations nationwide and across TBS, TNT, truTV and iHeartRadio’s digital platforms. The third annual three-hour show, which features live performances, storytelling, surprise guests and first-time collaborations, will be sandwiched between two major events on the TBS schedule. It will broadcast Sunday, April 3, 2016, airing between TBS’s exclusive coverage of the NCAA Division I Men’s Basketball Championship Final Four on April 2 and the network’s first-ever telecast of the National Championship game on April 4. “This multi-platform celebration will complement a spring packed with big live event music, entertainment and sports programming across our networks,” Kevin Reilly, president of TBS and TNT, and chief creative officer for Turner Entertainment said in a statement. In its first two years, the show’s lineup has included live performances and appearances by a who’s who of pop music, including Rihanna, Iggy Azalea, Sam Smith, Lady Gaga, Snoop Dogg, Taylor Swift, Madonna, Meghan Trainor, Katy Perry, Pitbull and others. “Now that we have an established track record of success with the awards show, partnering with Turner Broadcasting allows us to extend our reach to their tens of millions of viewers on TNT, TBS and truTV, making this a massive multi-platform event,” iHeartMedia Entertainment Enterprises John Sykes said in a statement.
Orlando morning host hit with lawsuit. In the wake of an on-air hoax, Russ Rollins, host of “Real Radio 104.1” WTKS, Orlando’s “Monster’s in the Morning,” is being sued by his estranged wife, Samantha Boomer. The lawsuit stems from a trumped-up video last February that showed a process server sent by Boomer serving Rollins with divorce papers on-air. Aided by powerful civil rights lawyer Gloria Allred, Boomer is suing Rollins and his employer iHeartMedia for defamation and invasion of privacy. At a news conference, Boomer said Rollins and iHeartMedia took something “that is painful, personal
[email protected] | 800.275.2840 PG 3 NEWS insideradio.com TUESDAY, JUNE 9, 2015 and private and used it for public entertainment, for profit and ratings,” according to the Orlando Sentinel. WTKS issued a correction on Facebook and Twitter a month later retracting the story as false, but Allred says the damage to her client was already done. The couple initiated divorce proceedings in 2014, but could not finalize an agreement. Boomer filed again in January 2015, shortly before the on-air incident. Rollins attorney Jonathan Simon says his client plans to counter-sue because they fear iHeartMedia may fire the radio host or move him to a less-favorable time slot, according to WFTV.com.
“Live 105” seeking indie crowd with HD Radio side channel. Targeting younger listeners, CBS Radio modern rock “Live 105” KITS, San Francisco, is adding an indie rock format to its digital portfolio. “Indie 105” is launching on Live 105’s HD2 channel and will offer indie music the station says appeals to Millenials and Gen Z’ers. The music will be selected by “Live 105” program director Jacent Jackson and assistant PD/music director Aaron Axelsen. The lineup of artists includes St. Vincent, Arcade Fire, Purity Ring, LCD Soundsystem, The War On Drugs, Vampire Weekend, Hot Chip and Jack White, as well as hits from streaming services and music blogs. Axelsen also hosts “Live 105”’s popular specialty shows “Soundcheck” and “Subsonic,” which helped inspire the new Indie Live format. “This is a radio station for opening bands and the fans who love them,” Jackson said. “Indie 105” will also stream on radio.com. It replaces a classic rock digital channel, “Classic Live 105.”
More than half of all audio usage is in-home. The car and the workplace have emerged as the two listening locations most frequently targeted by radio programmers. But new research suggests a significant listening opportunity still exists in the home. When Edison Research looked at the totality of the audio space – including owned music, streamed audio, podcasts, TV music channels like Music Choice, and YouTube for music among other things – it found that more than half of all listening is done in the home. In-car accounted for a healthy 30%. The research firm says its Share of Ear study tracks all audio usage, both music and speech-based content, using a fully representative national sample reflecting the entire population.
Home Depot spruces up airwaves. Homeowners tackling landscaping, gardening and other warm weather home projects are helping spruce up radio revenue. For a tenth consecutive week, the Home Depot reigns supreme as radio’s largest volume advertiser, placing 53,519 spots on stations tracked by Media monitors last week. AutoZone came in second with 43,501 commercials, up from eighth the week before. Wendy’s (39,859), Walgreen’s (37,101) and GEICO (36,562) rounded out the top five.
Bastida captains Alpha’s Western division. After 31 years as market manager for Cumulus Media and Citadel Broadcasting in Oklahoma City, Larry Bastida has joined Alpha Media as EVP of the company’s Western region. The move reunites him with Alpha chairman Larry Wilson and president & CEO Bob Proffitt, who he worked with at Citadel. Bastida will oversee Alpha’s station clusters in Amarillo, Lubbock, Palm Springs, Peoria, Salina, San Antonio and Topeka. He has been VP/ market manager of the seven-station Cumulus cluster in OKC since 1989. Before that, Bastida worked as a regional manager for Citadel’s stations in Little Rock, Arkansas, and Bloomington, IL.
Radio shares stage with artists at classic rock awards. It’s not just classic rock artists that will be honored the Classic Rock Roll of Honour Awards taking place November 11 at the Roundhouse in London. Classic rock radio stations will also be in the limelight. Produced by KMG Networks, the 11th annual awards show and radio special will honor U.S. classic rock stations in major, medium, and small market categories. Fan voting starts August 14.
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SENIOR VICE PRESIDENT OF SALES, ALBANY NY LOCAL RADIO SALES iHeartMedia is seeking a dynamic sales and business development $100,000 PLUS leader on the East Coast to take media and entertainment markets to the next level. Are you happy with the money and commissions The SVP Sales is responsible for revenue growth for iHeartMedia you are making so far this broadcast, digital, and live entertainment products. The ideal year? If not, let me introduce candidate will drive and manage the short and long term strategy, to you to Direct Media new business development and account service efforts via aggressive Power, Inc. (DMP). account development strategies and capabilities. DMP partners with every major The successful candidate will focus on short and long term strategy, national radio network and communicating and executing the vision, forecasting trends, 1000s of local radio stations capitalizing on new and future opportunities, new nationwide to liquidate millions business and revenue growth including leading and of dollars of their unsold developing a strong sales and sales management commercial radio airtime. And team. we are currently looking for aggressive, local area Account Qualified candidates,CLICK HERE to apply. Executives who want to work iHeartMedia is an Equal Opportunity Employer. a proven inside sales system from our suburban Chicago location and make $100,000 SALES OPPORTUNITIES - FLORIDA plus. We are, however, NOT looking for sales people who Live, play and work where millions PAY to visit every year -- are content with making $60K/ the sunshine state of Florida. Are you a top performing sales year. With DMP you have professional looking to join a growing media company that offers the potential to earn a high career progression and is attracting some of the best talent in the income within 30-60 days of business? Did you make a commitment to yourself that you wouldn’t employment, with no territory spend another Winter shoveling snow? Or, do you desire to be in a boundaries (you will be selling market where the economy is thriving? Cumulus Media is currently to national clients) and no caps searching for recognized performers to drive sales in our Florida on commissions. In addition, markets…Melbourne, Fort Walton Beach/Destin, Tallahassee you will work for a growing and and Pensacola. As a sales person for Cumulus, we provide our entrepreneurial company. This teams with a great product to sell, superior training, and a “best in is a radio salespersons dream class” sales system that supports business development and rewards job! We are looking to add 4-6 performance. Please submit resume to: salespeople to our growing team in June. [email protected] All submissions will be kept in the strictest confidence. Equal Opportunity Employer.
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