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In Smaller Markets, Still Lots of Volume. While radio’s largest markets grab most of the attention (and many of the ad dollars), new research from Nielsen shows radio reaches out and touches a large and qualified audience in medium and small markets as well. According to an edition of Nielsen’s Audio Today Report series focused on listeners in the 215 diary-measured markets, 65 million Americans aged 12+ use radio every week, accounting for more than a quarter of all listeners nationwide. The report shows the majority of consumers in these markets are connecting to radio and spending a lot of time listening. More than 86% of consumers in small and medium markets tune in during the week and spend more than 15 hours of their media time with radio. The Nielsen data also shows radio reaches across genders (with an even male-to-female split) and generations—86.8% of baby boomers (aged 50-74), 86.5% of millennials (12-34) and 89.9% of genXers (35-49) are reached by radio in medium and small cities each week. More than 60% of diary market listeners are in the advertiser-friendly 18-54 demographic. No cell has a larger concentration of listeners in these markets than persons 45- 54, accounting for 19% of the radio audience, followed by persons 55-64 and persons 65+ (17% apiece), persons 35-64 (16%) and persons 25-34 (15%). Persons 18-24 (11%) and teens (5%) represent the smallest slices of radio’s demographic pie in small and medium markets.
Tapping Small-Market Audience Poised To Buy. New numbers that quantify and describe radio listeners in America’s small towns and midsize cities arm broadcasters with a flattering picture of their audience to show clients and prospects. The new report indicates radio in the 215 markets measured by ratings diaries reaches qualified consumers close to the point of purchase. Radio listening peaks during the hours when most consumers shop and buy, according to the new study. Its highest Average Quarter Hour ratings occur during the hours of 7am-3pm on weekdays and from 9am until around 3pm on weekends. With almost two-thirds of listening (63%) occurring out-of-home, the study reinforces that radio reaches on-the-go audiences when they’re poised to buy. Three-fourths of radio listeners in these markets are in the work force (59% work full-time) and six in ten attended college. “The power of radio in small and medium markets should not be overlooked,” says Jon Miller, Nielsen VP of research. “In fact, a majority of radio usage in these markets comes from employed consumers who are out of their home and one step closer to the point of purchase. That’s a solid foundation for both programmers and marketers to build on.”
Nielsen Defines Smaller-Market Listeners. Radio reaches across generations, from tech-savvy millennials to aging baby boomers, new Nielsen data shows. But there are subtle nuances in how the generations use the medium in small and medium markets. In sheer size, millennials (age 12-34) make up the largest generation of radio users in the 215 diary-measured markets, numbering 24.3 million. They spend 12 hours and 30 minutes per week with radio, their top format is country, their top daypart is afternoon drive (3pm- 7pm) and they’re more likely than any other generation to be listening in the car. In fact, 44% of their radio listening is done behind the wheel, tops among listening locations, while 32% occurs at home and 21% at work. Numbering 22.5 million, Nielsen calls baby boomers (age 50-74) radio’s “most engaged generation,” spending more time with the medium in small and midsize cities than any other—16 hours and 30 minutes. News/talk is their top format and middays (10am-3pm) their most-listened-to daypart. In between the two is genX (persons 35-49). Numbering 14.8 million, Nielsen tags them as “radio’s workforce” since 68% work full-time, higher than any other generation. Also, genXers tune in to radio 16 hours per week. Country is their format of choice and morning drive
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(6am-10am) their No. 1 daypart. Radio’s penetration is slightly higher among multicultural listeners with 88.4% of all Hispanics tuning in, spending over 16 hours, 30 minutes of time listening each week. Working Hispanic adults spend over 18 hours with the radio—the largest amount of time of any full-time- employed age group or demographic. And more than 87% of African-American consumers in these markets are reached weekly by the radio—listening for 17 hours, 30 minutes.
Smaller/Midsize Markets Love Their Country. Unlike PPM markets, where news/talk is typically ranked No. 1, country reigns supreme as radio’s top format in small and medium markets. With an enormous 15.9 share of total listening, nothing else even comes close. News/talk is second with an 11.1 share, followed by CHR (8.6), AC (7.2), classic rock (5.4), classic hits (5.4), contemporary Christian (4.2), hot AC (3.9), urban AC (3.9), rhythmic CHR (3.7) and urban contemporary (3.7). Classic rock, classic hits and contemporary Christian rank appreciably higher in small and medium markets, while hot AC performs better in PPM-measured markets. Nielsen’s new drill-down into small and medium cities also uncovers daypart differences. While middays (10am- 3pm) is radio’s top daypart among listeners in all markets, morning drive scores the highest AQH rating in every demo in diary-measured markets. Middays are second among persons 18-49 and persons 25-54, while afternoon drive ranked second among persons 18-34, followed closely by middays.
HD Radio’s Big Increase In Auto Traction. Among the roughly 250 million registered vehicles driving along America’s highways, approximately 25.1 million—10%—are equipped with HD Radio, according to iBiquity Digital estimates. But with more new vehicles offering HD Radio as a standard feature, along with the continued rollout of after-market product offered by audio manufacturers, iBiquity sees its Q3 road paved with good extension. Joe D’Angelo, senior VP of iBiquity Digital, quoting that 10% figure, tells Inside Radio, “We are currently installed in approximately 40% of all new cars sold in America. We expect that trend to continue and increase in the coming years, increasing the percentage of HD Radio equipped vehicles on the road.” D’Angelo declines to get specific about how much and how soon that percentage will be amped up. (“We don’t provide forward-looking estimates or forecasts,” he says.) But he is at least willing to tally some other numbers, namely, that HD Radio Technology is available in 208 different vehicle models from every major auto manufacturer. And most impressive, HD is standard in 110 of those models. The remaining 98 offer it as part of upgrade packages. And 2016 models added to the lineup include Honda HR-V, Honda Pilot, Hyundai Veloster, Mercedes GLA and Nissan Maxima. HD Radio is also continuing to roll out features that are perhaps more valuable—or at least more apparent— than the promise of digital-quality sound. Its Artist Experience uses HD Radio’s available data stream to align artist photos or album art with the song or audio being played. It would also allow for commercial images such as sponsor logos and/or advertising related to a marketing campaign.
For HD Radio, After-Market Needed a Pioneer. Pioneer’s just-announced series of after-market receivers are loaded with all the bells and whistles one can imagine packing into the car dashboard—including HD Radio. And this inclusion of HD Radio in the company’s 2015 line is an important marker for HD developer iBiquity, as it continues to work toward critical mass in vehicles. Pioneer’s six new CD receivers and one digital media receiver (notice—no CD player), announced Tuesday, are all “designed to complement the consumer’s connected lifestyle,” according to the manufacturer. A new survey conducted by Harris Poll on behalf of Pioneer in May says that three in five vehicle owners are behind the wheel of a car that is at least 6 years old, while 34% say their jalopies are between 6-10 years old. That means that after-market HD Radio
[email protected] | 800.275.2840 PG 2 NEWS insideradio.com THURSDAY, AUGUST 20, 2015 options remain paramount to iBiquity’s efforts. “Things are moving very well with HD Radio,” says Joe D’Angelo, senior VP of iBiquity Digital. “Based on lifetime sales to date, we estimate that over 25.1 million HD Radio technology-equipped vehicles are on the road today, with either a factory-installed or after-market HD Radio receiver.” Primarily working to align smartphone functionality within the vehicle, Pioneer’s new line offers features such as Bluetooth pairing; USB connectivity for an iPhone or iPod and portable USB drives for Android devices; Siri “Eyes Free”; a simpler Pandora station creation mechanism; and direct connectivity for SiriusXM Radio subscribers. Its DEH-X5800HD model features built-in HD Radio and is priced at $110. Other new models are priced from $95 to $120. Most hit retail this month.
Looking To Increase Radio HD Traffic By Covering It On the Road. Of 2,200 AM and FM stations currently broadcasting with HD Radio, 700 nationwide support the Artist Experience service, according to Joe D’Angelo, senior VP of iBiquity Digital. Artist Experience, which uses HD Radio’s available data stream to provide artist info and art, is only one big plus as HD Radio’s reach increases. Traffic is also on the horizon. Among the additional 1,600+ digital-only FM HD2/HD3 multicast channels, about 450 HD2 and HD3 channels are utilizing Artist Experience to synchronize images with a station’s playlist. D’Angelo adds that within the top 20 radio markets, “more than 70% of HD Radio music-formatted stations and most major groups are now actively deploying this feature across their HD Radio stations.” Among other burgeoning features, iBiquity is continuing to increase the presence of its subscription- free lifetime traffic and data information, which is sent directly to a vehicle’s radio or navigation system through an HD Radio back channel. D’Angelo says that to-date, broadcast traffic services are available in more than 100 markets, and have been implemented in vehicles manufactured by Toyota, Lexus, Honda, Mitsubishi and Mazda. Two traffic service providers are working with iBiquity to use HD Radio bandwidth to deliver real-time traffic info in vehicles: iHeartMedia and the BroadcasterTraffic Consortium.
Fresh Aire Good For SBS’ Q2 Health. Two and a half years after it launched Aire Radio Network, Spanish Broadcasting System has come to rely on network ad sales as a top revenue driver. And it’s working—Aire ad sales surged 59% in the second quarter, compared to one year ago, the company reported this week. The Hispanic media company has leveraged its network affiliate group of 108 stations in 54 markets to bolster billings of its 20 owned and operated stations. The Aire footprint now has 89% Latino DMA coverage, SBS said this week, with a presence in all of the top 10 and 24 of the top 25 markets. “We’re still in the early stages of the Aire rollout,” chief operating officer Albert Rodriguez told investors. “As the network revenue gains ground we believe it will become an increasingly influential component of our overall company revenue stream in line with our long-term plan.” According to Rodriguez, Aire reaches 13.1 million weekly listeners, including such advertiser-coveted groups as Hispanic millennials, young adults and families. In combination with the Miami-based company’s own stations, SBS claims a weekly reach of 21 million listeners. The company doesn’t break out network sales separately, but the 59% increase in Aire billings helped offset decreases in special events revenue, local sales and barter sales. All told, SBS radio revenues decreased $1.5 million to $34.49 million or 4% during the quarter. Special events revenue decreased in Los Angeles and Miami due to a drop in scheduled events. Local sales declined in Puerto Rico, L.A. and San Francisco while barter sales decreased in all its markets. So what’s in store for SBS in Q3? “National is very healthy, up double-digits, local as well and our Aire Radio Network is exploding,” Rodriguez said. “It’s incredible; we’re very, very pleased with what we’re seeing in the third quarter.”
The Download For SBS—Apps Good For Revenue. The Spanish Broadcasting System strategy of using radio station events to fuel original content for its La Musica app and radio station websites paid off in the second quarter. The mobile app, which aggregates the online streams of the company’s 20 radio stations along with digital-only content, was downloaded 30,000 times during Q2 to reach 680,000 total app downloads. The downloads helped pump up interactive revenues by 33% for the Hispanic broadcaster, compared to the second quarter of last year. Along with redesigned radio station websites, SBS is among a growing number of broadcasters to offer client-branded online radio streams for big marketers, such as Toyota, that are integrated with radio, display and social components. Latching on to a trend being embraced by both media and marketers, chief operating officer Albert Rodriguez said SBS is working with social media influencers to make custom videos and extend them to client-branded campaigns via social
[email protected] | 800.275.2840 PG 3 NEWS insideradio.com THURSDAY, AUGUST 20, 2015 and digital media, typically to target U.S. Hispanic millennials. The SBS digital platform currently has 5.4 million monthly unique users who stream an average of 7.7 million audio sessions, the company said this week. That delivered 53 million ad impressions per month and 10.5 million monthly page views during the second quarter. The company counts some 16 million cumulative followers across all of its social media pages. SBS owns radio stations in New York, Los Angeles, Miami, Chicago, San Francisco and Puerto Rico.
Competitive Info: Cable Sees Summer Fall. The Wall Street Journal says cable has the summertime blues, with ratings down by double-digits at many of the best-known networks. Of the top 30 cable networks, 21 saw significant declines in primetime ratings in Nielsen’s July counts, with top-rated TNT down 22% from July 2014. Other losers included non-commercial Disney Channel (down 19%), Comcast’s Bravo (down 23%) and Viacom’s MTV (down 24%). And the demos were impacted equally in the household ratings. Noting that “summer used to be cable’s time to shine,” the Journal pointed out that not only has increased new programming from broadcast networks cut into cable’s best season, “the growing popularity of streaming services such as Netflix and Hulu have cut into [cable’s] audiences.” But ABC, Fox and The CW all posted some audience increases in July this year, while CBS and NBC were only down 4% and 5% respectively, establishing that broadcast TV’s summer programming has proved to be a problem for the cable networks.
Podcast Partners Set To Create Content. A digital audio rep firm and a big talent agency believe spoken-word digital audio is ready for a traditional Hollywood studio model. Audio HQ is partnering with the Paradigm Talent Agency to create new on-demand audio programming, including podcasting. Their goal: offer full-service content creation and distribution. The companies say their venture will be modeled after Hollywood movie studios, where content is developed, distributed and sold to programmers. As audio providers look to expand long-form spoken word offerings, the new venture could offer a fresh source of content. Recently, several radio station owners, including E.W. Scripps and Hubbard Broadcasting, have made significant investments in podcasting producers. And across the radio industry, executives are vocal about on-demand audio opportunities. With the new joint venture, Paradigm brings its roster of clients, as well as future prospects, to the table, while Audio HQ is positioned to handle sales and distribution. So far, no specific programs have been announced. AudioHQ CEO Matt Cutair, a former Westwood One executive, said he sees opportunities for spoken-word podcast content. “We believe that the marketplace for spoken word digital audio is poised to grow significantly over the coming years and we are excited to bring new and differentiated content to that market,” Cutair said. “As the space expands, we believe that there will be large-scale interest from both consumers and advertisers, in compelling, highly produced content.” AudioHQ is the exclusive ad rep for several streaming outlets, including TuneIn, Slacker and Yahoo Sports Radio. It also has a content distribution and sales partnership with John Tesh’s TeshMedia Group.
Free Radio For First-Serve U.S. Open Fans. Radio is getting some sweet props at the upcoming 135th U.S. Open Tennis Championships, thanks to American Express and an annual radio promotion. The longtime sponsor of the competition—which plays out in New York City Aug. 31 through Sept. 13—offers up the 20,000-square-foot U.S. Open American Express Fan Experience, featuring dozens of interactive events and giveaways for attendees. Among them, AmEx will hand out 12,000 radios to attendees as they enter the gates on Monday, Sept. 7, on a first-come, first-serve basis. The promotion, “American Express Radio Live at the Open,” which provides radio earpieces so that fans can listen to live play-by-play commentary and match updates from ESPN, has become an annual tradition at the tournament.
Alpha Expands Into Palm Springs. Larry Wilson is at it again. After inking the year’s biggest radio deal of 2015, a $264 million purchase of Digity Media, Wilson’s Alpha Media has struck a deal to buy a pair of Palm Springs FMs: hot AC “Mix 100.5” KPSI-FM and classic hits KDES-FM (98.5) from Ric and Rozene Supple’s R & R Radio. The acquisition enables Alpha, which has a growing Northern California presence, to expand into the Southland. Alpha will operate the stations under a local marketing agreement until closing. R&R will still own “News Talk 920” KPSI, “Progressive Talk 1450” KPTR and adult standards “Legend 107.3” KWXY (1340, 107.3) in the market. — Get more news, people moves and insider extras @ www.insideradio.com. —
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S A L E S Phoenix – The Walt Disney Company reaches a $1.4 million deal to sell Radio Disney station KMIK (1580) to Jacob Barker’s Gabrielle Broadcasting. Barker is currently general manager and minority owner of religious teaching station “1280 The Trumpet” KXEG in Phoenix. Broker: Bill Schutz
Wichita – Daniel Smith’s Bad Gas Broadcasting files to reclaim AC “99.7 Lite FM” KHLT-FM from Shane and Kianne Prill’s Air Capitol Media Group in exchange for forgiveness of $1,363,112 in outstanding debt. Air Capitol Media also agrees to pay $1,600 per month to Smith during the next three years. Smith sold the station to Air Capitol Media in 2013 for $2 million. It was a deal that included a $1.6 million promissory note.
South Carolina – Alpha Media files a $900,000 deal to buy WSCZ, Winnsboro, SC (93.9) from Miller Communications. Alpha uses WSCZ to simulcast Columbia, SC market urban “Hot 103.9” WHXT. It has been operating WSCZ under a local marketing agreement since September 2014.
Salisbury-Ocean City, MD – Draper Holdings files to buy religious “Joy 102.5” WOLC from Maranatha for $650,000. Draper already owns WBOC-TV (channel 16) in the market. It hasn’t announced its intentions for the Class B FM, and while Draper works with a consultant to select new programming WOLC will go silent until closing.
Kentucky – Connier Crabtree’s River Country Communications files a $450,000 deal to buy “River Country” WKYR-FM, Burkesville, KY (107.9) from Cumberland Broadcasting. Crabtree doesn’t own any other stations.
Ohio – Donald and Venita Bowles’ Dreamcatcher Communications files a $340,000 deal to purchase hot AC “99.5 The Edge” WAOL, Ripley, OH from Queen Cities Broadcasting. Dreamcatcher has operated the Cincinnati-area station under a local marketing agreement since July 2011 and under the terms of the agreement those monthly payments will apply toward the purchase price. Dreamcatcher already owns “C-103 Country” WRAC in the area.
Phoenix – Riviera Broadcasting files to buy the Phoenix-licensed translator K270BZ at 101.9 FM from Mary Guthrie for $175,000. Riviera plans to relocate the translator to its tower farm on South Mountain. It will simulcast hot AC “Hot 103.9 Trending Radio” KEXX or an HD subchannel.
Connecticut – Univision Communications files a $75,000 deal to sell the Stamford, CT-licensed translator W276AV at 103.1 FM to Dennis Jackson. The three-watt translator has been simulcasting Univision’s Spanish tropical “X-96.3” WXNY-FM, New York into the Connecticut suburbs. Jackson is an attorney and public radio supporter. He already owns WQQQ, Sharon, CT (103.3) which simulcasts public radio outlet WSHU, Westport, CT (1260). It is expected the new translator will be used to extend the news-talk station into the Stamford-Norwalk, CT market.
Atlantic City – Miguel Amador’s Ritmo Broadcasting files a $31,500 deal to buy the Millville, NJ-licensed translator W289BY at 105.7 FM from Marantha Ministries/ Joy Communications. The signal currently simulcast Marantha’s gospel “Praise FM” WJPH (89.9).
Georgia – John Smith files a $29,000 deal to buy the construction permit for a new Class A licensed to Waynesboro, GA at 92.9 FM. The signal has been under control of trustee Rodney Tow since the 2013 bankruptcy of Ace Radio. A bankruptcy judge has already given her approval to the transfer. Smith doesn’t own any other stations.
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Oklahoma – John Jason Bennett’s Screen Door Broadcasting files to buy KPOP, Hartshorne, OK (94.3) from Southeastern Oklahoma Radio for $25,000. KPOP is a construction permit for a Class A FM. Bennett already owns seven translators and two full-power stations: KEUC, Ringwood, OK (104.9) and KLJC, Coalgate, OK (96.3) – although neither overlaps with KPOP.
Kansas – Rich Wartell’s Manhattan Broadcasting agrees to buy the Manhattan, KS-licensed K229CW at 93.7 FM from the University of Kansas for $7,500. The translator will simulcast Wartell’s Salina-Manhattan market “News Talk 1350” KMAN.
Arizona & California – John Fiori files to buy two translators from Horizon Christian Fellowship for $7,500. The deal includes the Quartzsite, AZ-licensed K296GR at 107.1 FM and the Blythe, CA-licensed translator K227CV at 93.3 FM. Fiori will simulcast KCNL, Quartzsite (105.9) – a Class C2 FM which his FMI Media is currently in the process of building.
Ohio – Clyde Educational Broadcasting Foundation files to buy the Coshocton, OH-licensed translator W221AR at 92.1 FM from Raven Ridge Ministries for $5,000. The Foundation will simulcast its religious full-power “Clean Air FM” WHVY, Coshocton, OH (89.5) on the translator.
Michigan – Todd Mohr’s Mitten Media files a $1,000 deal to buy the currently-silent WMTE-FM, Manistee, MI (101.5) from Del Reynolds. Mitten Media has a local marketing agreement to operate the Class A FM prior to closing the deal. It already owns hot AC “Hits 106” WKLA-FM in the area and Mohr is a minority investor in Synergy Media, which owns several other stations in the region. Sports Radio 1410” WELM, and adult standards “1600 Favorites” WEHH Pennsylvania – Educational Media Foundation files to buy the Jonestown, PA- from Pembrook Pines. The deal also includes four translators. Pembrook licensed translator W296CD at 107.1 from Vic Michael’s Mountain Community Pines has been operated by receiver Dick Foreman and Tower Broadcasting Translators for $10. EMF already owns two full-power stations airing its has been operating the stations under a local marketing agreement since contemporary Christian “K-Love” format in the area including WLKJ, Portage August 2014. Tower has a separate, still-pending $300,000 deal with (105.7) and WLKA, Tafton (88.3). Pembrook Pines to buy hot AC “V-98.3” WVIN-FM and “NBC Sports Radio 1380” WABH in the Elmira-Corning, NY market. Broker: Dick Foreman Wyoming – Educational Media Foundation files to buy two Wyoming translators from Vic Michael’s Cedar Cove Broadcasting for $10. The signals include the Massachusetts — John Morrison’s K-Zone Media Group closes a Green River, WY-licensed K232CU at 94.3 FM and the Rock Springs, WY-licensed $700,000 deal to buy talk/sports WPKZ, Fitchburg (1280) from Central translator K299AG at 107.7 FM. EMF says the translators will relay contemporary Broadcasting Company. The deal includes the Fitchburg-licensed translator Christian “K-Love” KRKM, Ft. Washakie, WY (91.7). W287BT at 105.3 FM.
Lubbock – Brad Moran’s Ramar Communications files to swap sports “Double Knoxville — Hodges Media files to buy the currently-silent WKGN (1340) T-104.3” to Manuela Barton’s Barton Broadcasting Company in exchange for from Espinosa Radio for $225,000. The station had been operated as Tejano “Power 106” KEJS (106.5). Both are Class C2 FMs. The formats will remain regional Mexican “La Raza 1340” by the Norsan Group under a local with each station. The filling says no cash is changing hands as part of this deal marketing agreement. however in July Barton Broadcasting signed a $40,000 promissory note agreeing to pay Ramar $44,780 by March 2019 to cover outstanding tower and transmitter Maine — The Presence Radio Network closes to buy the currently-silent building lease payments. Ramar also owns hot AC “97.3 Yes FM” KLZK, classic WEGP, Presque Isle, ME (1390) from Decelles/Smith Media for $67,500. hits “107.7 The Eagle” KLBB-FM, Tejano “Magic 93.7” KXTQ-FM, and news-talk The station was sold in 2010 for $220,000 but Decelles-Smith had to KJTV (950, 100.7), in addition to local Fox TV affiliate KJTV-TV and local CW foreclose last year after Northern Maine Broadcasting failed to keep up with Network affiliate KLCW-TV. payments on a promissory note. WEGP is now the fifth Maine station for the Presence Radio Network which will convert the station to noncommercial C L O S I N G S and will air its religious “The Presence” format. Broker: Harold Bausemer Richmond, VA — Educational Media Foundation closes a $1.25 million deal to buy contemporary Christian WAUQ (89.7) from American Family Association. WAUQ Oklahoma — Robert Sullins’ Keystone Broadcasting closes its $174,600 will begin airing the “K-Love” network. EMF has requested the new call letters WLRJ deal to buy AC “Mix 96.1” KZRC, Bennington, OK. It had already been for the station. EMF already owns “K-Love” station WKYV in the Richmond market. operating the station under a local marketing agreement with seller North Texas Radio. Keystone owns three other stations in the region but none Elmira-Corning, NY – Gordon Ichikawa’s Tower Broadcasting closes on its $1.13 overlaps with KZRC. million purchase of CHR “94 Rock” WLVY (94.3), country WOKN (99.5), sports “NBC
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