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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.”

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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.

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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. “We made solid progress in building out our AIRE Radio Network platform and expanding our digital assets during the third quarter,” Raúl Alarcón, Jr., chairman and CEO, said in a statement. “We are leveraging our strong station brands and multimedia assets to attract a growing mix of advertising partners who wish to connect with the rapidly growing Latino population.” Looking ahead, Alarcón says the company will remain focused on its stations in the top ten markets, while continuing to invest in its network and mobile distribution channels.

Data, Targeting, Programmatic Set For Big 2016. The New Year will usher in major shifts in media buying, according to predictions by Forrester Research. Advances in data-informed buying and audience targeting, as well as programmatic ad buying will begin to take hold next year, Forrester executives told MediaPost. Rather than traditional ad buying based on broad reach and demographics, media buyers will shift to buying specific audience profiles. Data can inform very detailed audiences for brands to target with their advertising. For instance, in a recent appearance at the NAB Radio Show, Starcom’s executive VP, Local Markets director Kevin Gallagher said he has a client that specifically wants to target advertising to reach moms who make homemade meals and download recipes. Media buyers have said that programmatic will become a significant part of radio advertising in 2016, and Forrester’s research also emphasizes that rise. “Easier access to insights and improved tech will change media buying,” the report said. Programmatic, media buyers have said, involves automated, computer-based transactions, as well as buys based on data and information on audiences. Forrester’s VP and research director Luca Paderni told MediaPost that marketers are becoming more focused on collecting “smart data” rather than “big data.” “Less is more is a new mantra, and that’s counter to marketing in the last 50 years,” Paderni said. The Forrester report also predicts a shift in marketing, with brands focusing more on , Vine and their own branded channels, rather than , to increase personal connections.

Advertising Spend Remains Key Driver for National Sales. Advertising spending in the U.S. is a key driver for national sales activity, with nearly $300 billion in ad expenditures across media accounting for 16% of national sales, amounting to about $5.8 trillion. This comes according to a new report from the research firm IHS Economics & Country Risk, and the Association of National Advertisers and The Advertising Coalition. “From billboards to Internet ads, these expenditures are designed to stimulate demand, inform customers and help consumers differentiate products and services in the marketplace,” the report says. The research is supporting evidence for the advertising industry as it fights proposed changes to tax laws that would change how businesses can write off advertising expenses. The report contends ad spending drives consumer spending and, therefore, contributes significantly to the overall health of the U.S. economy. According to the IHS, advertising spending directly influenced roughly $2.4 trillion in sales last year and also resulted in an additional $1.4 trillion in indirect sales. Indirect sales, the report said, come as money trickles down through the economy. “The economic stimulation does not end there; companies and their suppliers hire and pay employees, who, in turn, spend some of their income in the economy on consumer goods and services,” the report said. Advertising spending will increase steadily at an average 3.3% from 2014- 2019, with total ad expenditures reaching close to $350 billion, the report said. Advertising supported 20 million, or 14% of the 142 million jobs in the U.S. in 2014. Since 1986, the ANA and Advertising Coalition say there have been numerous legislative attempts to end or reduce tax deductions for advertising expenses, which the groups say they have effectively defeated.

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Ad Insider: Walmart Gains Among Dept. Stores. While most of the traditional department stores that have issued recent reports have been generally negative, Walmart gave an upbeat sales report and forecast. In its fifth-straight quarter of improved sales and traffic, comp numbers were up 1.5% and traffic rose by 1.4%. The recovery in the housing market was credited for an excellent quarter for Home Depot, with domestic same- store sales up 7.3%. The company said it saw strong business across its entire geographical territory and product categories….Dick’s reported a 0.7% same-store increase at its namesake chain, but a 2.9% decline at Golf Galaxy pulled down corporate results. It opened 27 new Dick’s outlet during the quarter to reach 645 and seven new Field & Stream locations….TJX was another retail winner. The parent of T.J. Maxx, Marshall’s and HomeGoods had a blended 5% same-store increase…. Walgreens has reached the halfway point among states for its MDLive telehealth program, which started last December in California and Michigan, but is now available in 25 states. Customers can choose a live consultation with a doctor or a digital chat with a pharmacist, or they can visit a Walgreens Healthcare Clinic….In a related note, Accenture projects there will be over 2,800 retail clinics operating by the end of 2017, up from 2,150 this year. The consultancy expects 350 more to open next year.

Retailers Get Early Holiday Gift—Shoppers. Holiday music and spots are quickly taking over the radio airwaves early this year, and the holiday shopping season is following the same pattern. American consumers are getting a head-start on their purchasing and, more than ever, shifting to online shopping. According to the latest survey from the National Retail Federation, 56.6% of consumers have already started their holiday buying, up from 54.4% at the same time last year. Online retailers are benefitting from the action, with two-thirds of shoppers saying they plan to do some of their shopping online, up 12% from last year, and they’re favoring online-only retailers, such as Amazon, over the websites run by physical retailers. Among demographics, younger buyers are already making purchases, including 65% of adults 25-44, and 62% of adults 35-44. In good news for radio and the retailers that use it, such as Macy’s, JC Penny and Walmart, shoppers named clothing as the top category, with 49% saying they plan to make clothes part of their holiday purchases. Other top categories include food/beverage, books, entertainment and smartphones. Among younger Americans, who are frequent targets for advertisers, 93% of the sought-after Millennials—adults ages 18-34—said they plan to shop on Black Friday or Cyber Monday, according to researcher Influenster. As for top categories for that age group, 70% say they’ll be shopping for clothing and sports equipment, followed by cosmetics and fragrances (66%), furniture (64%) and electronics (58%).

Audit Pending, Pacifica Seeks Remedy From Woes. Amid ongoing financial struggles, The Pacifica Foundation Radio National Board of Directors held a powwow last Thursday to strategize a means of saving its troubled network of nonprofit stations. The California attorney general is auditing Pacifica, with results expected in 2016. Overall, the Pacifica Network comprises five radio stations: KPFA Berkeley (94.1), KPFK Los Angeles (90.7), KPFT Houston (90.1), WBAI New York (99.5) and WPFW Washington D.C. (89.3). KPFA is the focus of its mounting debt, according to a story in The Daily Californian, “compromising the overall financial stability of the network.” At present, WBAI owes $1 million to the Empire State Building for tower space rent. At the meeting, the board discussed potential contingency plans in the event of short-term default. Pacifica National Board (PNB) member Jose Luis Fuentes-Roman suggested selling the net’s Berkeley office—which is also its national office—and exploring property sales or swaps as a means to raise money. Added Brian Edwards-Tiekert, PNB chair and a member of KPFA, “It would be a stretch to say [KPFA doesn’t] have problems. We just have fewer problems than other stations.” According to Margy Wilkinson, a member of the KPFA Local Station Board and the PNB, Pacifica’s financial decline comes from a decrease in radio listeners that have supported the stations and a “systematic reduction in donations” to nonprofits. She added in the Californian story that the problems facing Pacifica are exacerbated by the fact that the PNB is not functional and is drenched with too much bureaucracy because it is so large. Following years of financial and management upheaval, the company installed new executive director John Proffitt in May. — Get more news, people moves and insider extras @ www.insideradio.com. —

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ACCOUNT EXECUTIVE WITH LIST NC MIDDLE MARKET SACRAMENTO GENERAL MANAGER

Entravision Sacramento is looking for a radio seller Curtis Media Group is looking for a with an affinity and experience selling the CHR format General Manager for its Goldsboro- for Hit Music Station Hot 103.5FM. Duties also include Kinston, NC cluster. Goldsboro-Kinston selling Wolf 101.9FM, and top Spanish language stations is adjacent to the Raleigh-Durham market Jose 104.3FM and Tricolor 99.9FM. Ideal candidate is and is a great place to live and Curtis Media a strongwilled, forceful, and determined sales professional is a great place to work! who can call on local businesses to sell integrated marketing solutions that include radio, digital and event Over 225,000 people live in the Goldsboro- marketing. Candidate will manage an existing list as well Kinston Market and it has a cluster of as COLD CALL for new business development. Must have 5 FMs and 2 AMs. This market has a lot strong communication and presentation skills and develop of potential for a sales-minded General customized marketing plans that include research. Must Manager. be customer focused and able to adapt to different selling situations. Periodic client entertainment is required. Applicants must have a significant Sales background, and an interest in Event Guaranteed draw, generous commission and bonus Marketing, Social Media Marketing, Print, structure. Candidate must prospect and develop new as well as Radio. business. Knowledge of Wide Orbit, Nielsen, Salesforce as well as Microsoft Office. For more information about Curtis Media Group please visit our website at www.curtismedia.com.

Send resume with cover letter to: Please send resume (including salary [email protected] history), along with references to Christy Pruden, Director of Human Resources, Entravision Communications is an EOE. Curtis Media Group, 3012 Highwoods Blvd., Women and minorities are encouraged to apply. Entravision Suite 201, Raleigh, NC 27604; or, email: Communications Corp participates in the EVerify system to verify [email protected]. eligibility for all new employees. E.O.E.

SALES MANAGER — NEW YORK Come join the sales team at one of the finest broadcast companies in America!

Salem Media of New York is looking for a Sales Manager for our two local radio stations, AM 970 The Answer and AM 570 The Mission. Key to this position is the ability to energetically and creatively lead a sales team in local direct spot sales campaigns. This position is ideal for an individual who is experienced as a sales manager or an accomplished AE looking to take the next step in his/her career. Salem offers a competitive salary and comprehensive benefits. Please CLICK HERE to apply.

Or, Contact: Laura Sheaffer Assistant to General Manager, Jerry Crowley [email protected] Call 212-857-9639 to schedule an interview.

Salem Media Group is an equal opportunity employer.

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