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Insideradio.Com 800.275.2840 MORE NEWS» insideradio.com THE MOST TRUSTED NEWS IN RADIO THURSDAY, SEPTEMBER 10, 2015 iHeart—Digital Is Key To Radio’s Potential. One year after rebranding itself as iHeartMedia, radio’s largest company envisions a future where it can offer the targetability and attribution of digital advertising at the scale of a large traditional media company. Speaking at Wednesday’s Bank of America Merrill Lynch Media, Communications & Entertainment Conference in Beverly Hills, CEO Bob Pittman said about one-third of listeners to any broadcast station the company owns also listen to it on iHeartRadio. That provides behavioral targeting info that can be projected to the remaining two-thirds. The company is pouring that info, along with third-party data, into a data platform that will fuel its foray into programmatic ad sales. “In 18 months I’d like us to look like a digital company if you’re an advertiser doing business with us,” Pittman said, “with all the sophisticated stuff” that attracts advertisers to digital at the scale of a broadcast medium. Pittman and COO Rich Bressler talked up radio’s strengths to the conference’s investor crowd—among other strong factors, ROI of 6-to-1 and CPMs about one-third of TV’s; and 90% audience reach at a time when consumers are spending 30% more time in their cars than they did 10 years ago. To close the gap between radio’s share of ad spend and its usage requires a shift in how the medium is sold, they contended. “The name of the game is to get the money to our sector,” Pittman said. That requires going beyond radio buyers at agencies and having conversations with the CEOs and CMOs of major advertisers. “We’re not pitching to buy some spots, we’re pitching marketing solutions,” Pittman said. That syncs up with what he described as a fundamental shift in the advertising industry from media buying based on ratings and negotiation to one rooted in attribution and ROI. Movies Make Sweet Music For iHeart. As an adverting category, the movie industry has gone from bomb to blockbuster in a few short years. So said iHeartMedia COO Rich Bressler at Wednesday’s Media, Communications & Entertainment Conference. Film studios have gone from “nonexistent” to a top-five ad category during that past 3-4 years for the company. The rap on radio among movie marketers used to be that consumers needed to see their commercials, not hear them. But things turned around, Bressler said, after iHeart convinced studios to give it a shot and Hollywood liked what it saw. Nowadays the company sells integrated campaigns that go beyond just a frequency spot campaign to drive awareness for opening weekend. Morning show hosts talk about a project, CEO Bob Pittman said, “to create the conversation about the movie” and recommend it like a friend would. Campaigns sometimes include an on-air appearance by one of the film’s stars. Bressler said the formula has led to “one success after another,” which has helped the company book business with clients in other categories. Live events, meanwhile, have become the radio industry’s fastest- growing revenue sector and are helping bring new advertisers on board. But the payoff for next weekend’s two-day iHeartRadio Music Festival in Las Vegas isn’t in ticket sales revenue, Bressler said. Rather, it’s luring new advertisers, solidifying relationships with recording artists, creating unique content to feed across platforms and social media and licensing it to other media outlets. The massive event’s greatest value, according to Pittman, is giving iHeartRadio “a unique brand identity” against other digital competitors such as Spotify and Pandora. SoCal Broadcasters Forecast Big Ad Gains. The Southern California Broadcasters Association is forecasting fourth-quarter growth in 11 ad categories, including double-digit increases in financial services, insurance, professional services, restaurants and other key radio spenders. And automotive dealers and manufacturers are expected to increase radio spending in Southern California by 5.4% in Q4, according to a new report from the radio trade group. The expected growth in auto ad sales mirrors national trends—a record [email protected] | 800.275.2840 PG 1 NEWS insideradio.com THURSDAY, SEPTEMBER 10, 2015 34 new models are being introduced in 2015, while gas prices and interest rates for financing remain low. After an enormous 50.3% year-to-date increase in July, the hot financial services category is on track for a 25% increase in Q4. Communications/cellular, another core radio advertiser, rebounded 7.2% in July. With the release of the new iPhone 6S, the SoCal forecast calls for a 10% bump in the category as part of a heightened competitive battle for new customers among the big cellular carriers. One of the biggest radio growth categories for the region next quarter will come from insurance, with a 20% increase projected, double the rate recorded in July. The acceleration is based on SoCal insurers continuing to offer new services in a wider variety of categories and target groups. Home improvement, which jumped 9% in July, is poised for 15% growth in Q4. “With SoCal’s continued tight housing inventory and affordability issues, home owners are staying put and are looking to enhance their homes rather than sell,” SCBA president Thom Callahan says. Other categories forecast to up their radio spend in Q4 includes restaurants (10%), casinos/ lotteries (25%), education (15%) and auto parts and services (25%). Much of the growth so far this year is coming from new radio clients. Radio broadcasters in the region added 433 new advertisers year-to-date in July, totaling $27 million in new business. The outlook calls for new radio business development to continue its “torrid pace” next quarter. FM Chip Promoted As Great (Re)Port In a Storm. New NextRadio listening data is helping broadcasters make the case to wireless providers that activating FM chips in smartphones offers consumers more than just an entertainment convenience. During an emergency weather situation, the number of NextRadio listeners increases an average of more than 2.5 times while the number of listening sessions quadruples, according to NextRadio developer Emmis Communications. Emmis points to three weather emergencies in the Midwest this year as Exhibit A in its case that consumers are using the smartphone app to receive essential information. On July 12, during a straight-line wind weather incident in Brainerd, MN, 12 radio stations in a 30-mile radius of the weather event experienced an average 260% increase in listeners and a 615% increase in listening sessions when compared to the day before. When tornadoes touched down in Northern Illinois on April 8, 67 radio stations in a 30-mile radius registered an average 54% increase in listeners and a 151% increase in listening sessions. Finally, the tornadoes and flash floods that tore through Oklahoma City on May 6 inspired a 146% increase in listeners and a 254% increase in listening sessions for 46 radio stations in a 30- mile radius. “The ability to broadcast lifesaving, mass-market information to the devices people use most is imperative and one we need to continue championing until all FM chips are activated,” Emmis CEO Jeff Smulyan said in a statement. Ad Insider: Stores See Serious Labor Day Shoppers. The late Labor Day weekend was a major factor in a 7.3% year-to-year decline in August physical store sales, according to the Retail Performance Pulse report from RetailNext, which also saw a nearly 10% drop in physical traffic to the stores. The good news, however, is that once people do enter stores, they buy at a higher rate, with increases in both conversions and average transaction values. It was a strong quarter for Genesco, with same-store sales up at all major store groups and corporate profit up by 60%. The Journeys group was up 4% in comps, the Lids group and Schuh each grew 8% and Johnston Murphy did even better at plus-10%...Macy’s has announced a venture with Best Buy to open 300-square-foot sections staffed by Best Buy employees that will carry items such as smartphones, tablets and headphones, beginning in ten stores that will be set up for the [email protected] | 800.275.2840 PG 2 NEWS insideradio.com THURSDAY, SEPTEMBER 10, 2015 holiday shopping season. Macy’s has similar deals in some stores with Men’s Warehouse, Sunglass Hut, Finish Line and rug retailer Kenneth Mink…Speaking of smartphones, T-Mobile is firing the next shot in the cellphone wars with a video calling service that lets subscribers place video calls without a third-party app. Right now it’s only available on a couple of devices and calls can only be made to other T-Mobile subs with special phones, but the company says it’s working on expanding available phones and dealing with rival companies for when they also offer video calls. Ballerini Gives Award Finalists Country Surprise. This year’s CMA Broadcast Awards finalists got an unexpected phone call Wednesday from singer-songwriter Kelsea Ballerini. Working with the Country Music Association, Ballerini rang up finalists for Radio Personality and Station of the Year to deliver the news during a media tour via satellite from New York City. The two-time CMA Awards finalist called under the pretense of talking about the nominations—and then happily turned the tables. “Radio has played such an important part in this amazing year that I jumped at the opportunity to call the stations to tell them they were nominated for a CMA Broadcast Award,” Ballerini said in a press release.
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