August 2007 Volume 24, Issue 8 [ contents ] SMARTMEDIA Publisher & Editor..........................Jim Carnegie One on One Managing Director .................................Carl Marcucci RBR/TVBR/MBR Staff 8 The king of Executive Editor .........................................Jack Messmer Managing Editor ...........................................Dave Seyler Senior Editor ...............................................Carl Marcucci Production Manager.........................................Michael Whalen Hispanic media VP Administration ...................................Cathy Carnegie Univision CEO Joe Uva was recently on the Administrative Assistant ...............................April McLynn Marketing/Sales Director ..........................June Barnes other side of the desk, running OMD in the Americas. Now he’s in charge of Univision— Corporate Office Radio & Television Business Report making some changes and driving the busi- 2050 Old Bridge Rd., Suite B-01 ness forward. He shares some great insights Lake Ridge, VA 22192 on how buyers and sellers can better collabo- Main Phone: ............................703/492-8191 rate for more effective campaigns. Editorial Fax: ............................703/997-8601 Subscription Phone: ..................703/492-8191 Subscription Fax: ....................703/997-2677 Cover art (top to bottom): Joe Uva, Univision CEO; Amador Email Addresses Bustos, Bustos Media CEO; Halim Trujillo, Director of Publisher:[email protected] Multicultural Planning for MindShare North America and Tim Editorial:[email protected] Spengler: Chief Activation Officer, Initiative North America. [email protected] Sales:[email protected] Bradenton, FL Office Jack Messmer Phone: ........................................941/792-1631 DEPARTMENTS Fax: ............................................253/541-0070 Email: [email protected] Media Mix Columbia, SC Sales Office 4 Supreme Court loosens restrictions on radio, TV ads June Barnes Phone: .....................................803/731-5951 Personalities Fax: .........................................803/731-5982 6 The history of Hispanic Radio personalities’ musical chairs Email: [email protected] Branding ©2007 Radio Business Report, Inc. All content may not be reproduced, photocopied and/or 12 Dieste Harmel & Partners, on branded content in Hispanic media transmitted without written prior consent. Any violations will be dealt with legally. Printed in Adbiz USA. SMART MEDIA is published monthly by Initiative’s Tim Spengler on the recent television upfront Radio Business Report, Inc. Publishers of RBR/ 14 TVBR Daily Morning Epapers, MBR Daily Technology Afternoon Epaper, rbr.com and tvbr.tv. 16 Hip Cricket’s Ivan Braiker on monetizing text messaging Annual Memberships Newstalk SMART MEDIA ............................$89 18 Dial Global’s Cooper Lawrence RBR Epaper ........................................$108 TVBR Epaper ......................................$108 Planning MBR Epaper .................................$89 20 Mindshare’s Halim Trujillo on acculturation Cover Art Credit: Programming Chick Alcorn 22 Lino Garcia and Oscar Ramos of ESPN Deportes 9630 Mistletoe Rd. Tujunga, CA 91042 Media Markets & Money 818-951-5908 28 For Bustos Media founder Amador Bustos, the second time is the charm [email protected] SMARTMEDIA AUGUSTi2007 / 3 MEDIA MIX Supreme Court loosens restrictions Wild political season shaping up The Supreme Court’s decision that rolls out the red carpet on radio and television ads for down-to-the-wire issue advertising adding pressure to By Larry Norton and Jim Kahl a jam-packed and front-loaded primary election season, with the potential to put enormous pressure on inventory, On June 25, 2007, the U.S. Supreme Court removed barriers on ads possibly squeezing out traditional advertisers and sending financed by corporations and labor groups that mention a federal candi- rates sky-high. And that’s before we learn about Michael date and are run in the days before an election. (Federal Election Com- Bloomberg’s plans. The New York Post mentioned the oft- mission v. Wisconsin Right to Life). In sweeping aside the rules of the cited figure of $500M. That’s how much of his personal road that it approved just three-and-a-half years ago, the decision is ex- fortune which the newly-minted political independent (af- pected to unleash millions of dollars in corporate- and labor- sponsored ter stints in both major parties) is willing to spend out of advertisements in the run-up to federal elections. his own pocket on a run for the White House. It further The Wisconsin Right to Life case involved a challenge to a key part of speculates that as much as $300M of that may go straight the 2002 McCain-Feingold law — the “electioneering communications” to television. The pressure may be so great, and so many provision — which banned corporations and unions from using general states may be put into play by the pressure of his candi- treasury funds to pay for ads on television, radio, or satellite that men- dacy on both parties, that what was once a battleground- tion a federal candidate and that are run shortly before an election (30 oriented national spot advertising approach may spill more days before a primary; 60 days before a general election). Under McCain- and more into the national network category. As for the Feingold, such ads can be financed only through a political action com- issue ads part of the equation, both the advertisers and mittee (PAC) funded by the voluntary donations of corporate officers, the regulators are in the early stages of digesting just what directors, and shareholders. the Supreme ruling means. Corporations and unions both In a 5-4 ruling, the Supreme Court effectively ended the 30 and 60 day have issue axes to grind in the media. They’re trying to blackout periods. Chief Justice Roberts, writing for the majority, said, figure out just what they’ll be able to do and what may still “we give the benefit of the doubt to speech, not censorship.” The be prohibited. If it’s any consolation, over at the FEC, majority of the Court concluded that so long as an ad may be reasonably they’re going through the same process from the oppo- interpreted as something other than an appeal to vote for or against a site side - just how are they supposed to enforce what- specific candidate, it is constitutionally protected from regulation. ever it is that the Supreme Court just unleashed? For corporations, trade associations, and unions, the focus now shifts away from blackout periods and the mode of communication to whether a proposed ad contains, in the words of the Court, “express advocacy” or its “functional equivalent.” Inevitably, there will be questions over The outlook darkens…again whether specific ads can only be interpreted as an appeal to vote for or 2007 has never looked like a great revenue year for either against a specific candidate. The Court’s decision will also revive a radio or TV—and it’s not getting any better. Wachovia analyst longstanding debate at the FEC and in the courts over the limits of “ex- Marci Ryvicker has lowered her ad revenue estimates for press advocacy.” broadcasting, both radio and television. With that caution in mind, however, the Supreme Court decision leaves As Q2 reports come in, she now expects radio revenues ample room for well-crafted ads aimed at influencing legislative and ex- to be flat with a year ago, down from her previous forecast ecutive action. Advocacy groups, trade associations, and other busi- of up 1%, citing weakness in May and June. However, she is nesses and labor organizations can be expected to flood radio and tele- sticking with her call for all of 2007—flat. vision during the former blackout periods – exactly those times when As for TV, Ryvicker sees continuing softness in auto ne- the public is paying greater attention and officials are most susceptible gating the stronger than expected upfront and early political to persuasion. Notable for broadcasters, these ads would not be sub- spending. She looks for 2007 to finish down 2%, rather than ject to Section 315 of the Communications Act and its provisions for her previous estimate of down 1.5%, and she lowered esti- Unit Charge. mates for most of the TV companies she covers for Q2. In Larry Norton and Jim Kahl are attorneys in the Political Law Practice calculating her overall TV figure for the year, Ryvicker said of Womble Carlyle Sandridge & Rice, PLLC, in Washington, D.C. Norton expects local spot to be down 3%, national spot 6%, and and Kahl served as General Counsel and Deputy General Counsel, re- syndication 2%. On the up side, she expects network TV spectively, of the Federal Election Commission, spanning the period from revenues to gain 3% and for Internet revenues at TV compa- September 2001 to March 2007. nies to jump 55%. 4 / AUGUSTi2007 SMARTMEDIA PERSONALITIES JULIO RUMBAUT Spanish Radio musical chairs Call it a high-stakes game of musical chairs among major market Spanish and South American descent. language radio personalities as the past few years have been marked with Good radio must reflect its listener’s tastes, preferences and the pecu- highly-rated radio hosts switching stations at a rapid pace and adding to liarities. A number of cases in point: their on-air market lists. The start was clear – Renan Coello Almendares, a • Renan Coello Almendares and