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800.275.2840 MORE NEWS» insideradio.com THE MOST TRUSTED NEWS IN RADIO WEDNESDAY, NOVEMBER 18, 2015 Radio Tops For Reach In Grocery, Fast Food Buys. As advertisers move from media buying based on demographics to targeting specific consumer profiles, new audience data shows the effectiveness of radio within key ad categories. According to cross-media measurement service USA Touchpoints, 72.6% of adults aged 18-64 who visited a grocery store during the Thursday- Sunday period tuned to AM/FM radio programming during the survey week. That makes radio the top reach medium in the grocery category, ahead of broadcast TV (67.5%) and cable TV (66.9%). Just as significant, radio captured 30.6% of the daily media usage of grocery store visitors, outperforming all other media channels. Making a convincing case for radio in another big category, USA Touchpoints data shows radio is the most used medium from 6am-noon among adults aged 18-64 who have visited a fast food restaurant during the survey week. During fast food’s primetime consideration hours, 29% of media time among its customer base was spent with radio. “Most advertising is meant to remind, not teach,” says Bob McCurdy, president of sales consultancy Upping the Volume, which uses the data to help clients better position radio to prospects. “You’re going to remind somebody about fast food, not teach them. That’s why the timing of the messaging is so important.” McCurdy says the data “opens up the conversation” about creative ways to use radio during the peak fast food consumption hours. The Touchpoints data can be sliced and diced to show how various media stack up with different consumer groups—at the times they’re most likely to consume. For instance, from noon-6pm radio captured 30% of daily media usage among 18-64-year-olds that visited a restaurant or bar during the survey week. Study: When Most Receptive To Ads, Radio Delivers. In addition to capturing raw usage numbers for its reports, cross- media measurement service USA Touchpoints also studies the attitudes, moods and mindsets of panelists—a.k.a. “media context”—that let buyers see how a specific media performs with consumers when they are most receptive to an advertising message. By that scale, the radio ad diet’s a healthy one. McDonald’s likely wants to reach consumers when they’re hungry, Coke when they’re thirsty. To provide such granular data, USA Touchpoints uses an e-diary in which survey panelists enter not only media usage, but also how they’re feeling. The average participant makes 16 entries per day. “This allows us to look at radio’s usage in likely moments of receptivity compared to just reach and time spent,” says Upping the Volume president Bob McCurdy. “It’s the moment of truth—delivering a message when people are most receptive takes us from blind and intuitive to informed and enlightened.” With 19.2% of daily media usage among adults 18-64, radio is second only to network TV (22.2%) and cable TV (20.5%), according to USA Touchpoints data. Yet radio captures a measly 7% of ad spend. Showing the context of radio usage, in tandem with Nielsen’s series of ROI studies, could start to tip the scales more in radio’s favor. “You complement that with the context of use and the receptivity of the messaging and it adds another level of sophistication,” McCurdy says. “It just makes the case for the medium.” Presenting the data to potential advertisers can be eye opening. “Most people just read the headlines, which are all about mobile and social,” McCurdy says. “But what’s abundantly clear is that traditional mediums, like radio and television, continue to dominate media time.” [email protected] | 800.275.2840 PG 1 NEWS insideradio.com WEDNESDAY, NOVEMBER 18, 2015 Ryvicker Forecasts $6B 2016 Political Spend. Making her first stab at assessing the 2016 political landscape, Wells Fargo Securities senior analyst Marci Ryvicker has taken a deep dive into the data and comes up with a big, fat round number. Her forecast: there will be $6.0 billion of total political spend in the 2016 elections, up 16% from the 2012 races. Ryvicker’s forecast calls for television to get the lion’s share (66%), at just under $4 billion, an 18% increase over 2012. Radio and outdoor will maintain their market share and print will decline, she predicts. While she expects digital to gain share, she disagrees with those calling for that figure to reach over 20% of the pie. “Going from 4% share in ‘08 to 6% share in ‘12 to 20%-plus share in ‘16 seems unlikely,” Ryvicker writes in the report. Instead, her outlook calls for digital political revenue to reach $650 million, representing an 11% share and a 100%-plus increase over 2012. A top-down analysis went into what Ryvicker calls the “Political Landslide of 2016,” starting with fundraising expectations. Fundraising in the last several elections ranged from $5.3 million-$6.5 billion, she says. “Our gut tells us that the current election will surpass these figures,” mostly due to the rising significance of Political Action Committees. After consulting with friends in D.C. and myriad broadcasters, Ryvicker pegs total funds raised this cycle to reach $7.5 billion with $6.0 billion (or 80%) spent on advertising. Among Republican candidates, PACs supporting Senator Ted Cruz continue to favor radio in their media mix. Courageous Conservatives PAC will launch a talk radio campaign in Iowa on Wednesday hammering competing candidate Sen. Marco Rubio over immigration, according to The New York Times. The ad will run solely on radio. A More-Than-7% Solution For Campaign Pie Share. Although TV has traditionally attracted the lion’s share of political ad dollars, the rise of time-shifted viewing means many TV viewers are bypassing commercials. Research suggests that’s not the case with radio. A Coleman/Arbitron study found that 93% of radio listeners remain tuned in to a favorite radio station for breaks up to 3 minutes. “There are many differences between TV and radio. Radio is intimate, it has a local feel and a different connection with its listeners than TV with its viewers,” says Research Director’s Sales and Marketing associate Tyler Plahanski. “You can establish an emotional connection with your audience.” Plahanski pointed out that both radio and newspapers are projected to earn 7% of the political ad spend. “This irks me a bit, because radio is a much better fit for political ad spending,” he says, citing data that 19% of all voters have heavy exposure to radio, while the total is 15% for newspapers. More striking—55% of all voters nationwide have no exposure to newspapers in an average day. As for digital advertising, Research Director maintains that radio has an opportunity to capture a slice of the 10% of political spending devoted to the Internet. “We can build that 7% by taking a piece of digital,” Plahanski said. He noted that among active voters, 19% visited a radio station website over the past month. “These are P1 super engaged listeners, who have a unique connection with their radio station. That’s a strong story for digital combined with radio.” Plahanski’s conclusion: “Radio outperforms other mediums, often at a fraction of the cost. We deserve 12% at the very least, as an industry, in your local markets.” Handset Maker Locks and Loads NextRadio App. Continuing to push toward making FM radio a part of the smartphone experience, handset maker BLU Products will start installing the NextRadio app as the stock FM tuner for all its new Android devices beginning in 2016. The U.S. company, which specializes in unlocked phones that aren’t tied to any single carrier, has sold over 30 million mobile devices in more than 40 countries. “BLU not only turned on the FM Chip for their current customers but will make it preloaded on all new phone releases, which makes this a big opportunity for listener and advertiser growth for the entire radio industry,” Paul Brenner, president of NextRadio, said in a news release. Mariana Ferreira, senior director of business development, BLU Products called the partnership “a great win for all BLU customers who will now enjoy a new, free entertainment option, as well as a benefit for us to be able to offer unique features that set our products apart from the rest.” As of Nov. 12, NextRadio said there have been 4.8 million downloads of its smartphone app. Even before AT&T and T-Mobile begins to activate the chip on their smartphones, the platform is adding 400,000 activations per month, based largely on phones offered by Sprint. [email protected] | 800.275.2840 PG 2 NEWS insideradio.com WEDNESDAY, NOVEMBER 18, 2015 Spanish Broadcasting System Pumped By Q3. Increases in national, network, Internet and barter sales pumped third- quarter net radio revenues 2% to $33.476 million at Spanish Broadcasting System. The Hispanic broadcaster says the gains were partially offset by a decrease in events revenue due to fewer scheduled events in its New York, San Francisco and Puerto Rico markets. National sales at SBS were up in New York, Chicago, Los Angeles and San Francisco, the company says. The network sales gains came from the AIRE Radio Network ad platform SBS launched in early 2014. Television net revenues decreased 19% to $2.905 million, due to decreases in paid-programming, local and barter sales and events revenue. But gains at the company’s much larger radio segment helped keep total company revenue flat at $36.381 million.