800.275.2840 MORE NEWS» insideradio.com THE MOST TRUSTED NEWS IN RADIO THURSDAY, OCTOBER 22, 2015 Competitive QSRs Add More Radio To 2015 Ad Menu. Brands always battle for greater market share, and radio often plays a key role for companies in highly competitive industries working to get their message out. And for the first nine months of the year, that axiom went double for top quick service restaurants. Other categories that increased their radio advertising, according to spot counts on stations tracked by Media Monitors, include automotive manufacturers and dealers, wireless carriers, insurance companies and auto parts retailers. But QSRs accounted for four of the 12 largest volume increases in ad time, with fast food chain Wendy’s, currently the no. 7 radio advertiser, leading the charge. Wendy’s increased radio ads 62% compared to the same period last year, resulting in the largest growth in its segment and among all radio advertisers. Burger King, the no. 37 heaviest radio advertiser, increased its radio commercial volume 102.4%, while Dunkin Donuts (no. 96) upped ad time 71%, and Taco Bell (no. 23) increased volume 29%. Other fast food chains, including Jack in the Box, Sonic and Jimmy John’s, have similarly boosted radio buys, while heavyweight McDonald’s (no. 4) pulled back slightly, measuring a 2.4% decrease. Meanwhile, automotive, radio’s largest advertising category, is on the upswing as well, with several dealer associations upping radio frequency. Nissan Dealer Association is making an aggressive push, increasing radio ads 257% and rising to no. 44 on the list, while the volume of radio spots from the Honda Dealer Association (no. 32) rose 43%, Toyota Dealer Association (no. 52) climbed 34% and Lexus Dealer Association (no. 111) rose 93%. Among the domestic car companies, Chrysler-Dodge-Jeep (no. 31) increased radio ads 19% and Ford Lincoln Mercury (no. 25) inched up 4%. Telcos Hit Radio To Help in-Category Growth. It’s hard to find a much more competitive brand category nowadays than telcos, and new radio ad totals, according to spot counts on stations tracked by Media Monitors in the first nine months of 2015, more than support the claim. Several wireless carriers are making a big push in a bid for greater overall numbers, led by the no. 12 radio advertiser Boost Mobile, which increased spot volume 26% over the same period last year. Also rising to meet the challenge through radio—no. 34 radio advertiser Sprint, which is up 39%; and T-Mobile (no. 21), up 24%. However, two wireless giants have actually pulled back on their radio advertising. Radio spots from Verizon Wireless (no. 30) are down 26%, while AT&T Wireless (no. 27) reduced radio ad volume by 25%. Two Comcast divisions are also putting more heft into radio, with the company’s media services arm Xfinity (no. 48) increasing radio spots 53%, compared to last year, and the NBC broadcast network (no. 73) increasing volume by 97%. Several other brands in myriad categories also punched up radio numbers. They include no. 20 overall advertiser Staples, which increased radio spot volume 101%, accounting service provider Optima Tax Relief (no. 35 radio advertiser), up 135%, and credit service solutions firm CreditRepair.com (no. 54), rising 161%. [email protected] | 800.275.2840 PG 1 NEWS insideradio.com THURSDAY, OCTOBER 22, 2015 Holiday Spend To Hit Ho-Ho-Whole New Level. As retailers gear up for holiday shopping season, new data shows consumers are ready to shell out more money on gifts than they have in 14 years—and they’ll be buying less online. The National Retail Federation says holiday spending per person will reach $805.65 this year, with $462.95 allocated for gifts. That’s the highest gift-giving allowance in the time the group has tracked spending. Overall holiday spending is up slightly from last year’s average $802.45 per person, the NRF said. While 46% of consumers say online will factor into their purchases, 52.9% say they’ll purchase from online retailers, down from 56% last year. That marks the first annual decrease in the portion of consumers shopping online, the NRF notes. Mobile shopping, however, is gaining popularity, with 21.4% of smartphone owners saying they’ll buy items on their device, the highest level since the group began asking about mobile shopping in 2011. No doubt, many retailers will likely increase radio advertising outlays in the fourth quarter. In preparation, some retailers, including department stores, discount stores and jewelers, have already upped radio ad frequency. Leading the way, according to tracking of radio spots by Media Monitors, is department giant Macy’s, the no. 10 overall radio advertiser, which increased spot volume 14% from January to September 2015 compared to the same period last year. Jeweler Jared (no. 53) boosted its radio weight 48%; and JCPenney (no. 15) is up 13%. But two notable retailers may be holding their fire until the fourth quarter. While still a major investor in radio, Walmart (no. 55) pulled back considerably on its volume in the first nine months, with total spots down 68%, while Target (no. 297) decreased radio spots by 27%. John Eck To Head Univision Stations. For a second time in as many months, an upper management shakeup has hit the division that controls Univision Communications’ 67 radio stations. The company has promoted John Eck to chief local media officer with oversight of the Hispanic media company’s television and radio stations. Most recently executive VP of technology, operations and engineering, Eck replaces president of local media Kevin Cuddihy, who has stepped down after 15 months in the position. Eck joined Univision in 2011 with responsibility for its technology, engineering, on-air operations, production and project management functions. Before that he worked at NBCUniversal for 18 years, most recently serving as president of Media Works. In his new position Eck will remain based in New York and continue to report to Univision president & CEO Randy Falco. Eck’s appointment follows the late- September exit of Jaime Jiménez, who oversaw the company’s radio division for three months as executive VP for Univision Local Media. When Jiménez left, an internal company email obtained by Media Moves from Cuddihy said that Univision would be “hiring a VP of radio content in the near future.” In a news release, Falco credited Eck with transforming the company’s operations and technology and “making us a world-class organization.” Calling the company’s 128 TV and radio stations “the ties that bind Univision to Hispanic America,” Falco said Univision has “both a tremendous responsibility and opportunity to do even more to inform and empower our audience on a local level¬—especially leading up to the 2016 election season.” Web Ad Dollars Hit Historic Heights. Driven by explosive mobile growth, Internet ad revenues in the U.S. rocketed 19% to a landmark high of $27.5 billion in the first half of 2015 compared to one year earlier, according to a report issued Wednesday by the Interactive Advertising Bureau (IAB). [email protected] | 800.275.2840 PG 2 NEWS insideradio.com THURSDAY, OCTOBER 22, 2015 Mobile revenues shot up 54% to $8.2 billion in what IAB senior VP of industry services Sherrill Mane called a “still explosive growth rate.” Mobile apps and websites that offer access to audio streams and on-demand content have become a priority for many radio stations and the new IAB numbers show that to be a smart strategy. Mobile now represents 30% of the revenues generated by the entire Internet advertising marketplace, up from 23% one year ago. Digital video, another priority for a growing number of radio broadcasters, hit $2 billion in the first half, a 35% year-over-year jump. “Digital video is one of our key drivers,” Mane said, more than tripling since 2010. Social media revenues reached $4.4 billion in the first half, a 51% hike over the same period in 2014. “Social media is maintaining astoundingly strong growth rates,” Mane said, with an annual growth rate greater than 50% every half-year. Display-related advertising revenues in the first half totaled $6.8 billion, a 5% uptick, accounting for 25% of overall digital ad revenue. And after declining in 2014, online CPMs (cost per thousand) grew to an average $11.67. The same top three ad categories continued to account for nearly half of online ad revenue—retail (22%), financial services (13%) and automotive (13%). New Encoders Lead to Lift, New Sales Strategies. New enhanced encoders being rolled out in all PPM markets this quarter are expected to cause an average 15% lift in Average Quarter Hour Persons. That may mean higher ratings and a potential revenue rise for some stations, according to a pair of veteran researchers. “This higher reported listening should have an immediate positive impact on revenue,” Charlie Sislen and Marc Greenspan, partners in The Research Director, write in a blog post. “Stations should realize higher AUR [average unite rate] and it will take fewer spots to meet an advertiser’s GRP level.” An AQH Rating increase from 0.3 to 0.4 would allow a station’s average unit rate to increase 33% without a change in cost per point, they contend. To prepare for the change, the researchers suggest broadcasters in PPM markets take three steps: Keep a close eye on how enhanced CBET impacts your ratings. Higher ratings are likely in many dayparts and demos. “An extra keen eye on your pricing strategy and inventory control will allow you to maximize your new ratings,” they say.