800.275.2840 MORE NEWS» insideradio.com THE MOST TRUSTED NEWS IN RADIO THURSDAY, NOVEMBER 5, 2015 Cruz Radio Buys—Sign of Campaign Things To Come. Political advertising data from Kantar Media/CMAG indicates presidential candidate Ted Cruz and his PACs have allocated virtually all of their fourth-quarter broadcast dollars to radio, a move that is being seen as an encouraging sign that the industry may cash in on 2016 campaign spending sooner than in past elections. “I think they see an opportunity,” says Elizabeth Wilner, senior VP/political for Kantar Media Intelligence, leader of Kantar’s hugely influential Campaign Media Analysis (CMAG) and contributing editor to the influential Cook Political Report. “Cruz is hitting very hard at the party’s conservative base and has more than doubled down on radio to reach them. It’s a smart strategy because it’s kind of under the radar. He’s skating that conservative radio lane pretty much to himself these days.” Calling conservative talk radio “a no-brainer in a Republican primary,” Wilner says she’s surprised that more candidates aren’t using it. Westwood One president Steve Shaw sees the influx of money into radio from Cruz backers as a positive sign this far out in the 2016 election cycle. “It’s a really good sign to be a year away from the election and have candidates engaging in radio,” he says. Radio has been viewed by campaigns as “a reminder medium,” Wilner says, often resulting in time-buys being placed much closer to when voters flock to the polls. One challenge Wilner and Shaw see is convincing campaigns and PACs to buy radio earlier. That’s a top priority for radio’s largest groups, which have hired political sales specialists who have been seen around DC, meeting with campaign managers and political consultants. Mega Earnings Report Day—What To Know. In what is sure to be the earnings report equivalent of a firestorm, seven of the most prominent publicly traded radio companies will present third-quarter results throughout the day today, which will offer the surest current barometer reading of industry. Providing more than just a glimpse into general market conditions and specific ad categories, industry chiefs will update investors on important company and industry initiatives. Here’s what to expect: Cumulus—All ears will be on Mary Berner as she leads her first earnings call as Cumulus Media CEO. The seasoned publishing exec won over employees with her turnaround message during a recent webcast. Gaining the confidence of investors rattled by the company’s crumbling stock price will be a taller order. Saga Communications— Expect CEO Ed Christian to point to yesterday’s $13 million acquisition of classic rock WLVQ, Columbus as evidence of the company’s disciplined acquisition strategy focused on mid-sized markets. iHeartMedia—President Rich Bressler may talk up the unique nature of the company’s sprawling platform, the growing role events play in its sales strategy and how the company is bringing broadcast radio into programmatic buying at scale. Radio One—CEO Alfred Liggins is expected to talk about how uniting the company’s local and syndicated radio businesses together under David Kantor enables it to offer a “total package” partnership strategy to clients targeting African-American consumers. Townsquare Media—The company is expected to tout the success of its Townsquare everywhere diversification strategy. Entravision and Entercom—Keep up on what they’ll be talking about at InsideRadio.com. iHeartMedia Up 2% In Third Quarter. Revenues for iHeartMedia increased $16 million, or 2%, to $846.8 million in the third quarter compared to the same period last year. Excluding political revenue, billings grew $22 million, or 3%. The company attributes most of the growth to sponsorship revenue related to the iHeartRadio Music Festival, barter and trade revenue [email protected] | 800.275.2840 PG 1 NEWS insideradio.com THURSDAY, NOVEMBER 5, 2015 and digital revenue. The increases were partially offset by a decrease in political ad dollars, lower core broadcast radio revenue and prior year revenue from radio towers the company sold during the second quarter of 2015. Consolidated revenue for parent company iHeartMedia, Inc., which includes its outdoor and international businesses, decreased 3% to $1.6 billion. Excluding the unfavorable impact from movements in foreign exchange rates, consolidated revenues increased slightly. “We continue to leverage our entire company’s expansive portfolio of products, media platforms, content and personalities to enable advertisers and partners to engage seamlessly with consumers around the world,” chairman & CEO Bob Pittman said in a news release. “At iHeartMedia, we are building on the power of sound, social and mobile to redefine the future of consumer media and entertainment.” Said Rich Bressler, president, COO & CFO, “We continue to strengthen our capabilities across technology and sales, all through a lens of strong financial discipline. Additionally, our past proactive steps in addressing our capital structure needs and upcoming maturities enable us to focus on running the company as efficiently as possible.” Tuning, Not Switching, Drives Listening—Study. The Arbitron Client Conference was known for sometimes-groundbreaking studies that challenged traditional thinking about radio programming strategies and tactics. As Nielsen Audio reboots the annual confab for programmers, researchers and consultants Dec. 3-4 near Washington DC, a new study will examine how, and why, people tune into radio and what that means for a station’s strategy. “The Components of Tuning Behavior: Switching vs Turning,” to be presented by Coleman Insights and Media Monitors, has already produced a surprising finding—70% or more of all listening occasions begin in the moment when a listener first turns on the radio, not after switching from another station. “They’re coming to your station from something that is not radio,” Nielsen VP of audience insights Jon Miller tells Inside Radio. The study is expected to provoke thought on “how and why people tune in,” he says, and cause programmers to rethink traditional strategies of getting listeners to punch over from the competition or to lure them back after a spot break. “What we’re finding is there is probably a lot more tuning happening than we ever realized that is from people coming from somewhere else and not another radio station,” he says. Nielsen Conference Explores ‘Total Audio.’ Next month’s Nielsen Audio client conference will be the first one entirely produced by the measurement giant. Its goal, organizers say, is to keep one foot rooted in the Arbitron tradition of past conferences and the other in the broader media landscape, covering both deep-in-the-weeds methodology issues and the larger challenge of brand-building in an expanding audio world. The theme is total audio, giving the company latitude to update plans to measure radio across multiple platforms while also looking at the universal measurement challenge of keeping up with the myriad ways Americans consume media content nowadays. A product update session featuring top company brass will dive into product and methodology initiatives, including the new CBET encoders rolling out now, and the SDK technology that will measure digital audio. “We’re bringing in speakers and sessions that cover the broad audio landscape and not just radio,” Nielsen VP of audience insights Jon Miller says. “We’re going to talk about mobile, digital, streaming, podcasting, talent, branding and marketing.” Presenters such as Paul Werdel, product director, The New York Times, and Jim Elliott, global creative officer, Arnold Worldwide, will offer an outside perspective. A longitudinal study Nielsen co-funded [email protected] | 800.275.2840 PG 2 NEWS insideradio.com THURSDAY, NOVEMBER 5, 2015 with the University of Florida follows the next generation of radio listeners during their four years on campus, observing their media and entertainment behavior. Broadcasters will get a glimpse of how Nielsen measures audiences beyond radio, such as the connected car and how it uses brainwave analysis to judge reactions to advertising. The conference gets underway with an old Arbitron staple—a multi-session Urban PD Clinic. Auto Sales Surge To October Records. The automotive industry—radio’s no. 1 advertising category—is enjoying surging sales, with several auto manufacturers posting record October numbers. General Motors, Ford, Chrysler, Toyota and Nissan all recorded double-digit increases, buoyed by strong demand for small SUVs and pickup trucks. A number of smaller carmakers, including Hyundai and KIA, Mazda, Subaru and Mitsubishi, also showed positive gains. Overall, U.S. auto sales rose 14% to nearly 1.5 million, according to Autodata Corp., making this the best October since 2000. Among the largest domestic brands, GM’s Chevrolet saw sales rise 16%, its best October since 2004, while Ford recorded 13% gains and Fiat Chrysler was up 15%. Among imports, Toyota reported a 13% increase in sales, while Nissan climbed 12% and Hyundai jumped 20%. Embattled Volkswagen, struggling with a corporate crisis over emissions cheating, recorded small gains. The strong October sales numbers come as radio looks to increase its share of auto dollars heading into the home stretch of 2015. Through the first nine months of the year, many dealer associations have been advertising aggressively, largely increasing radio spot volume over 2014. From January-September, the Nissan Dealer Association increased radio spot volume 257%, airing 255,861 radio spots, compared to the same period in 2014, according to tracking by Media Monitors. The Toyota Dealer Association upped radio advertising 34% with 236,992 total spots. Among Tier One manufacturers, Ford was radio’s most active auto advertiser, with 384,654 total spots, up 4%, while Chrysler-Dodge-Jeep (no. 31) increased its radio volume 19% to 329,225 spots. Saga Adds To Big 2015 Haul With OH Station.