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WEDNESDAY, MARCH 18, 2015
Big picture shows a healthier view of audio ad business. It’s radio’s “shadow” revenue and as it approaches nearly $1 billion it also shows advertisers are actually increasing their investment in the audio marketplace. That is, if the figures include more than just traditional FM/AM radio. It’s the proof, some executives say, that ad-supported audio remains a growing media sector. Although the Radio Advertising Bureau’s year-end report showed total industry revenue slipped 1% to $17.5 billion last year, a look at the broader audio market shows marketers increased their ad spending by more than 1%. That’s a 2% difference that some argue better reflects how the world is changing. “Audio is a thriving medium and we should be looking at it in that positive sense,” AdLarge Media co-CEO Cathy Csukas says. “There’s an evolution happening — it’s not shrinking, it’s just changing.” Consider Del Frisco’s Restaurant Group, which recently boosted advertising spending for its chain of restaurants in 20 states. COO Jeff Carcara said it’s designed to “increase awareness through media channels such as online display ads, digital and traditional radio, limited print and social media.” By lumping together digital and traditional radio, Carcara joins a growing number of marketers who, in effect, unite audio together. Not to mention on Madison Avenue, where radio departments have become audio departments. Although most digital firms don’t publicly disclose their revenue, two of the biggest new audio options do. Sirius XM Radio’s advertising revenue totaled $100 million last year, while Pandora’s ad billings totaled $732 million. Spotify hasn’t released its 2014 revenue yet, but audio sales are said to have doubled last year for the streaming company. Inside Radio’s tally shows it adds up to an audio marketplace that topped $18.3 billion last year, with grow of 1.3% compared to a year earlier. “It’s not a shrinking industry, it’s a growing industry.” Several streaming companies have pushed the Interactive Advertising Bureau to track streaming audio revenue, but so far the IAB has said the segment is too small to accurately monitor. Spotify VP of North America advertising Brian Benedik says his company is open to reporting revenue as part of a broader tally of audio ad spending. “You have other audio sources that are growing double digits, in some cases triple digits, and it’s not a true picture if you don’t include those,” he says. The former rep firm executive says not including all forms of audio ad spending cloaks a hidden positive story for the industry. In the past all audio ads came from radio budgets, but over the last five years the boundaries of what’s inside a digital budget have expanded to include audio spending that doesn’t pass through what agencies once called the radio department. “The terrestrial broadcasters are going to have to look at this more holistically. There is no way you can just look at it myopically and say this is a ‘radio channel’,” Benedik says. “It is an ‘audio channel’ now with multiple players involved with revenue coming from multiple sources, not just radio budgets, and to me, it presents a healthier case for audio — which is good for everybody.” AdLarge Media, which sells inventory for broadcast and digital companies, believes evolving away from legacy goalposts will show a growing industry, and may even help sell some new types of inventory. “It creates a positive story and an opportunity to talk about the different options that are available to advertisers,” co-CEO Cathy Csukas says. “It’s not a shrinking industry, it’s a growing industry.” Is it an idea whose time has not yet come? While the issue may not matter to advertisers, the broader audio advertising market can’t be entirely divorced from the ongoing industry debate over just what should be defined as radio. Radio Advertising Bureau president Erica Farber says whether the RAB includes services like Pandora in its quarterly revenue
[email protected] | 800.275.2840 PG 1 NEWS insideradio.com WEDNESDAY, MARCH 18, 2015 reports is something that would ultimately need to be decided by members. “We definitely know that audio consumption is at an all-time high and the theory that more is being spent in audio than we’re showing I would agree with,” Farber says. Her predecessor, Jeff Haley, has a new vantage point on digital advertising since becoming chief executive of Marketron three years ago. By his calculations, 96% of all sponsored audio content in the U.S. can still trace its lineage back to FM and AM radio. “There are huge digital growth stories at almost every broadcaster in the U.S.,” Haley says. “Spot revenue is down but other pieces of their business are up dramatically so it wouldn’t be hard for almost any radio broadcaster to come into a sales meeting with a growth story.” Some broadcasters say that while a pitch from a medium with a positive story can’t hurt, they wonder whether the characteristics of other audio platforms translate to what’s happening at broadcast radio. Or whether it helps legitimize Pandora as an option. Others say the revenue data warrants keeping tabs on, but it’s still too soon to bring companies like Pandora or Spotify into the fold, at least officially. One radio executive notes some digital pureplays are losing money, so it could be dangerous to include them in the official numbers, only to see them go belly-up and then become a drag on the industry. For WBZ, ratings to match February’s record snowfall. “Newsradio 1030” WBZ had something to celebrate yesterday other than just St. Patrick’s Day. Driven by the snowiest February in Boston history, the CBS Radio all-newser notched its strongest overall ratings since January 2009, when the market converted to electronic measurement. From the holiday period through February, the station rose 5.2-6.4-7.6 among listeners aged 6+. It was first in 12+ (tied with Greater Media classic hits WROR-FM), fourth in 25-54 with a 5.8 and second in 25-64 with a 6.3 (tied with Greater Media AC “Magic 106.7” WMJX). In morning drive WBZ entered the rarified double-digit air of a 10.1 share among listeners 12+ and finished first in afternoon drive with a 7.6 share. The February survey covers January 29-February 25, during which a seemingly endless series of snow events pummeled Boston. The big January 26 blizzard occurred before the February survey began but the region was still digging out from it when the book started. “The impact doesn’t go away when the accumulation stops,” WBZ director of news & programming Peter Casey says. “People are trying to clear things out, utilities are affected and all those other things.” The January 26 blizzard was followed by three weeks of high impact storms that crippled the city’s public transit system. That had people tuning into WBZ in record numbers. Year-over-year cume among persons 25-54 exploded from 220,000 to 324,000. And average Daily Time Spent Listening shot up to 103 minutes after averaging 53 to 59 minutes for the previous 12 months. ‘Speed-bump’ events drove news radio listening in February. News radio programmers call them speed-bump events because they turn daily routines upside down, like the ability to get to work or school. Speed-bump events can drive all- news radio ratings through the stratosphere. They were common across the Northeast in February, even if they were most severe in Boston. The combination of the coldest February in 81 years and several snowstorms helped CBS Radio news WINS, New York (1010) charge 3.7-4.8-5.1 in Nielsen’s February survey. It was the station’s highest 6+ showing since at least September 2010 and a 13% improvement over February 2014. News sister WCBS (880) also made ratings hay out of the winter weather (3.0-3.6-4.0), though not to the degree it did in February 2014, when it had a 5.3 share. Philadelphia was subjected to frigid temperatures and a series of snow events that shut schools and strangled traffic. That brought CBS Radio news KYW (1060) a 6.8 share, its highest since, well, last February when it had an 8.4 share. Last month brought Chicago its coldest February on record. WBBM (780, 105.9) finished first among 6+ listeners in the total week, (5.7-7.2-7.4) as well as in mornings, middays, afternoons and nights. “Newsradio 950” WWJ, Detroit also finished first, climbing 5.0-7.3- 8.0. The snow, wind and cold didn’t just make life difficult for listeners. Reporters, producers and anchors felt the pain, too. “It’s a huge impact all the way around. All of our staff worked extra days and longer hours because that what’s we do,” WBZ, Boston director of news & programming Peter Casey says. “The February ratings are a huge result of the extra coverage we did, the extra staffing that we brought in and the extraordinary number of storms and events.”
Rock radio scores ratings trifecta in Denver. When was the last time rock radio commanded the top three ratings positions in a market? You may have to go back to the format’s ‘70s and ‘80s heyday to find an occurrence like Denver experienced in
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Nielsen’s February survey. Modern rock “Channel 93.3” KTCL finished first, advancing 4.5-5.0-6.1 from the holiday survey through February. Adult alternative KBCO (97.3) was second, zipping 4.9-5.0-5.7. And classic rock “103.5 The Fox” KRFX placed third, ripping 4.0-4.2-5.5. The three iHeartMedia stations are each bellwethers in their format. KTCL evolved to modern rock in the mid-‘80s, in time for the ‘90s alterna-boom. Signal upgrades and strong programming tuned it into a powerhouse. KBCO pretty much invented the adult alternative format and has long been one of its most influential outlets. KRFX is frequently cited as a quintessential personality-driven classic rock station. Collectively the three stations grabbed a 17.3 share in a market that has a rich rock radio history. Add in Denver’s other rock stations and the format category had a whopping 26.2 share. Rdio-Cumulus cross-selling helps grow digital sales. The streaming service Rdio is using the South by Southwest Music Festival to unveil several new product updates that it says will help users discover more new music. It’s been a year and a half since Cumulus Media took a 15% stake in Rdio, and CEO Lew Dickey says it’s helping grow his company’s digital business as Westwood One packages in the pureplay’s inventory. “By leveraging the demand for streaming audio, we have been able to meaningfully increase monetization across all digital products in the national marketplace,” Dickey told analysts this month. As for Rdio product upgrades, it has pushed out new features such as integration with Songkick that will show tour information on artist profile pages that allow users to click through directly from Rdio to buy tickets. And it will feature a variety of web streams that have been curated by 20 record labels, including Def Jam, Mute, SubPop, Domino and Warner Nashville. Another move is designed to help raise its profile in the music community. Whenever an Rdio user shares a song or album on Twitter, the artist’s Twitter handle will automatically populate so that the artist sees the message. “These new features help bridge that gap and allow for even better music discovery across Rdio,” CEO Anthony Bay says. Alpha buys Wilks’ Lubbock stations. Alpha Media’s latest expansion move comes in Texas where it has struck a deal to buy Wilks Broadcasting’s four stations. The cluster includes classic rock “Rock 101” KONE, rhythmic CHR “104.9 The Beat” KBTE, country “96.3 K-Triple-L” KLLL-FM, and hot AC “Mix 100” KMMX. Alpha chairman Larry Wilson calls them the “the four best radio properties in Lubbock.” Financial terms of the sale weren’t immediately released. The deal will bring Alpha Media’s portfolio to 92 stations. For Wilks, it is the latest in a string of spin-offs. It earlier sold clusters in Kansas City and Fresno. But it’s not an exit from the business. “We believe in the power and future of radio and continue to look for opportunities to create value in our business, whether we are considering buying or selling assets,” CEO Jeff Wilks says in a statement. Wilks still owns stations in Denver; Columbus, OH; and Reno, NV. World Trade Center readies a radio comeback. Two trial antennas for radio and television are to be installed in the coming weeks atop One World Trade Center, a move that will eventually return some New York market facilities to lower Manhattan 13 years after the terror attacks of September 11. The antennas will allow engineers to test and fine-tune the facility’s potential, and perhaps convince some owners to return to the World Trade Center. Tower site lease holder The Durst Organization hasn’t yet said if any stations have signed deals for the site, but it’s been working with broadcast engineers for more than a year on the project. “We believe that One World Trade Center will become the premier transmission site for over-the-air TV and FM radio broadcasting,” Durst director of broadcast communications John Lyons says in a statement. The tower was built by Connecticut-based Radio Frequency Systems (RFS), which itself has played an integral role in facility. “Following 9/11 and the decimation of broadcast infrastructure and the ruin of the Twin Towers, RFS supplied a standby antenna to help get Lower Manhattan television broadcasts back on air,” VP Jay Martin says. “We recognized the tremendous importance of this project at the time and, with One World Trade now rising as the new icon of New York City’s cityscape, we are proud to once again be involved.” Topping out at 1,776 feet, One World Trade has been designated the tallest building in the Western Hemisphere. Durst hopes that will help attract some previous tenants. In addition to most New York television stations, the former World Trade Center was home to the transmitters for Spanish Broadcasting System’s “Amor 93.1” WPAT- FM; New York Public Radio’s WNYC-FM (93.9) and Columbia University’s adult alternative WKCR-FM (90.9). RFS is no
[email protected] | 800.275.2840 PG 3 NEWS insideradio.com WEDNESDAY, MARCH 18, 2015 stranger to working amid the clouds, having earlier installed towers atop Chicago’s Sears Tower and John Hancock Center, and on the Pearl Tower in Shanghai, China.
Walden wants a fixed allowance for the FCC. House Telecommunications Subcommittee chair Greg Walden (R-OR) is proposing to freeze the FCC’s budget at its current level for the next four years. That would be one outcome of a bill he’s circulating that would formally reauthorize the agency for the first time in nearly 25 years. Holding the line, Walden says, will address the FCC’s “disproportionate” budget request for fiscal 2016 which at $530 million set a new record. While the agency wouldn’t get any additional money from Congress until fiscal 2022 at the earliest, Walden’s bill would allow the FCC to hike the fees it charges industries it regulates. “With this reauthorization, we are charting the course to make the necessary reforms to an agency that is ill equipped for the innovation era,” Walden says. The five FCC commissioners will testify before his subcommittee tomorrow.
Wheeler says no Obama meddling in net neutrality. The finale of a stormy House Oversight Committee hearing on the FCC’s net neutrality order was worth sitting around for. Committee chair Jason Chaffetz (R-UT) revealed the FCC inspector general David Hunt has launched an investigation into how the agency made its decision to reclassify the internet as a utility. “It’s my understanding that it’s not an audit, not an inspection, but it’s an actual investigation,” Chaffetz said. The move has drawn fire from conservatives, and that was on full display yesterday during the two-hour hearing that put FCC chair Tom Wheeler in the hot seat. Republican lawmakers believe Wheeler bowed to White House pressure, pointing to 10 meetings he had with Obama administration officials before the vote. But Wheeler dismissed that connection. “There were no secret instructions from the White House,” he said. But Committee Republicans weren’t buying it. “Before you were for his position, you were against his position,” Rep. John Mica (R-FL) said. “Everything we have indicates you were headed in a different direction.” Wheeler said he pledged to go along with the Inspector General’s investigation into how the FCC navigated the rulemaking process. He defended their actions, calling it “one of the most open and transparent” rulemakings in Commission history, and labeled the four million comments filed by the public “unprecedented.” Wheeler and his fellow commissioners will appear before the Senate Commerce Committee today to answer a similar line of questioning, before heading back to the House on Thursday to appear before another committee. Inside Radio News Ticker…Pittman, Bressler to buy ‘IHRT’ stock…In a vote of confidence in their company’s prospects, iHeartMedia CEO Bob Pittman and COO/CFO Rich Bressler have entered into a trading plan with the company. Under the board-approved plan which was disclosed in a regulatory filing, both executives will each buy $250,000 worth of company shares on the open market starting March 25. Trading plans have become fairly common among public companies as investors have pushed management to have a bigger stake in the financial success…Opposition to radio royalty grows… Fifteen additional members of Congress have come out against a broadcast radio performance royalty. In the House, 13 lawmakers have signed onto a bipartisan resolution opposing the move. That brings to 133 the total number on record against a radio royalty. It takes 218 majority to block a bill. In the Senate, two more senators have also said they oppose a performance royalty, bringing the total to seven…FCC clears cross-border broadcast…The FCC International Bureau has cleared Local Media of America to continue providing programming to three 100,000-watt Tijuana, Mexico radio FMs. They include modern rock “91X” XETRA-FM, rhythmic CHR “Z-90” XHITZ, and rhythmic oldies “Magic 92.5” XHRM. The Bureau needs to approve the cross-border broadcasts each year under the 1992 USA-Mexico FM Broadcast Agreement... Microsoft-Ford alliance rekindled…Microsoft is along for the ride in the connected car once again as Ford has brought the company back into the fold as the carmaker updates the Sync 3 infotainment system. Reuters reports Ford will use Microsoft’s cloud-based Azure platform to allow for wireless updates to the dashboard software to occur automatically. Ford jumped from Microsoft to BlackBerry two years ago. Sync 3 will start showing up later this year on 2016 Ford models… People Moves…Veteran radio manager and station owner Jack Taddeo is heading for Iowa. Greater Media hires back a veteran Detroit sales manager. And Mark Starling takes mornings in Asheville. Read People Moves HERE.
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OPERATIONS MANAGER MARKET MANAGER Digity LLC continues to grow and needs the best COLORADO Operations Managers in the country! Cumulus-Colorado Springs is searching for an exceptional If you are an experienced, strategic, creative, organized brand manager Market Manager to guide our with a can-do attitude, we want to talk to you. Applicants must be 6 well positioned and impactful proficient in identifying new air talent, earns the respect of high profile stations. morning teams, is excited about social/digital/events and develops ideas that are sellable not because he/she has to, but because he/ The successful candidate will she understands a full integration with sales is the key to success. have a history of leading high The perfect candidate knows how to strategically program for ratings performance sales teams, for both PPM/diary markets and is a leader who is ready to take on coaching good to great, and corporate responsibilities as well as manage a cluster of stations. attracting sales all-stars.
Qualified candidates will have at least five years of proven success as a Here’s your opportunity to programmer, preferably in a PPM market. Candidates must be strategic join our growing company and and analytical but also must possess creativity and the instinct to win. become an integral part of OM must be proficient with RCS Selector, Adobe Audition, PPM Analysis our stellar team in Colorado Tool, Social Media platforms, Audio Vault, PD Advantage and Media Springs by contributing to their Monitors. Find a full list of qualifications and responsibilities in our ad continued success. at insideradio.com. Send resume to: [email protected]. EOE Not many better places to live qual MEDIA ADVERTISING & SPONSORSHIP SALES and work than in the beautiful landscape of Colorado. This is not a normal job-posting… because this is not a job! We have “one” incredible opportunity available, that will change your life. The only question is “Are you that person?” Ramsey Solutions has an opening for the right person who possesses as a minimum: • Proven track-record of closing million dollar deals • Ability to deliver results for your client b/c you seek the right solution • Personal integrity that allows your to rise above your Inquiries will be held in competition the strictest confidence: • Aptitude to hear the word “No” as an opportunity [email protected] • Fortitude to manage the resources of Radio, Video, Digital, Print, Equal Opportunity Employer and Event Sponsorships to create unlimited earning potential • Strong working knowledge of what we do and “Why” it works so well
This full-time position located in the Brentwood, TN provides the ability to represent all Dave Ramsey products. The opportunity to prove what you can do begins now! If you have what it takes to fill this “one” position then it’s your assignment to get our attention. When we find this person we will commit to providing an incredible work environment, un-paralleled resources with a brand that delivers results, and the ability to control your own earning potential with no corporate imposed ceiling.
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