CMO of iHeartMedia. Nielsen reports that 93% of adults listen to radio weekly, yet marketers surveyed thought the number
Weekly News Recap May 7-11, 2018
TV And Digital Woes Have Advertisers Rediscovering Radio. The tide is turning. After combatting a stagnant ad market and losing dollars to newer, data-rich digital channels, the radio industry is getting revived interest and increased activity from advertisers. Some brands, including major national players, are reinvesting, while others are making their first buys. Why all the sudden attention? In recent years, it’s not that brands have doubted radio, but rather they may have been distracted, industry executives say. “Radio just sort of fell out of their consciousness. So now we’re reintroducing it to them. And they’re engaging, they’re very open to it,” Nielsen’s Head of Audio Brad Kelly recently told Inside Radio.
Others offer a more direct explanation. Pierre Bouvard, chief insight officer for Westwood One and Cumulus Media, contends, “The renewed interest in radio is a direct result of the collapse of TV viewing and the dawning horror over digital ad fraud.” There’s also urgency in the advertising market. At a time when marketers are demanding accountability, radio can back up its pitch with data and studies—and more transparency than ever. In a widely circulated report, Nielsen recently noted that blue chip brands are committing tens of millions of dollars to radio across music and spoken word formats. “Billion dollar advertisers are
re-discovering the power of radio and how it can augment, supplement and amplify their media mix,” Kelly wrote in the report. Such positive news is helping radio sellers reframe their message, but the challenge isn’t attracting audiences to radio, but rather swaying the ad community to follow them, top radio executives say. With nine out of 10 Americans listening to radio, “We definitely don’t have a consumer challenge. As an industry though, we often face a marketer perception challenge,” says Gayle Troberman, CMO of iHeartMedia. Nielsen reports that 93% of adults listen to radio weekly, yet marketers surveyed thought the number was closer to 52%, she points out. “This is our biggest challenge: helping the advertising community understand the new consumer journey with audio begins with mass reach on broadcast radio and then extends to new and emerging audio platforms, including streaming, podcasts, smart speakers and more,” she says.
Nielsen Media Impact planning tool, expected in coming months. Radio is likely benefitting from troubles in other media sectors. The TV market is increasingly fragmented and digital media is suffering repeated missteps. After marketers plowed money into digital, the medium’s patina is tarnished amid concerns about fraudulent delivery and unsavory environments. That has resulted in some major brands pulling back on spending. CPG giant Proctor & Gamble is one of the biggest leading the way, having shifted millions away from digital and invested more in radio. Also, new direct-to-consumer brands like Dollar Shave Club, Casper Mattress and Blue Apron are making radio a centerpiece of their strategy. In its tracking, the RAB sees CPG, health, legal and financial services up in local markets. It isn’t all rosy for radio, though. Indeed, in both local and national sales, “It’s trench warfare out there,” says Beasley’s McCurdy. Some marketers haven’t changed their radio spend — for better or worse. In Charlotte, agency chief Nancy Haynes says her clients “never lost faith in radio” and have maintained radio budgets, in some cases for decades. To prove radio’s effectiveness, her agency closely tracks clients’ calls, foot traffic and web activity by date and time. Adds the principal at Collins, Haynes & Lully, “During radio flights, all of these increase.”
Radio Back In CPG Back Media Mix At Beasley Broadcasting, several consumer packaged goods (CPG) brands have increased their radio spend in the last year. Grabbing a larger share is just the beginning, says VP of sales Bob McCurdy. “For these advertisers to continue to invest, it is critical that their media mix modeling corroborate radio’s positive impact on their ROI,” he Read more on page 3 says. For instance, McCurdy says it will help when Nielsen adds radio to its
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Weekly News Recap May 7-11, 2018
Field Tells Entercom Investors Hold On For ‘Solid Growth.’ A perfect storm of factors caused Entercom to turn in what David Field called a “weak” financial performance in its first full quarter of financial results since closing its historic merger with CBS Radio. However, the CEO told investors to expect “meaningful, sustainable growth” in the second half, once organizational, structural and programming changes have time to take root. The company took a $12 million revenue hit from its ongoing problems with United States Traffic Network, which buys and resells Entercom ad inventory. Overall soft ad market conditions were another factor. Meanwhile, a half dozen post-merger format changes reduced company billings by 1%. Entercom is also is in the midst of getting rid of so-called cash infusion deals, in which third parties resell inventory at a deep discount. That slimmed billings by another 1%. These factors, coupled with higher merger integration costs, “masked the underlying progress” the company is making, Field said. “We still have lots of work to do,” he added, “as these temporary factors abate and our growth initiatives take hold.” On a same-station basis, revenues for the quarter declined 7.5% to $300.6 million. Same station revenue was down 4% when the USTN impact is backed out of the numbers. See more HERE
Entering Boston’s Sports Market Paid Off For Beasley. Owning sports stations in both of the markets that sent teams to Super Bowl LII paid off for Beasley in Q1. The company received a revenue boost after picking up New England Patriots’ flagship radio station “The Sports Hub” WBZ-FM (98.5) Boston from Entercom/CBS Radio, just as Tom Brady and company made a run for another NFL Championship. And while Beasley doesn’t own the broadcast rights to the Philadelphia Eagles, the buzz around the Super Bowl Champion Birds in sportscrazed Philly helped increase revenue at “97.5 The Fanatic” WPEN, too. CEO Caroline Beasley said the first full quarter operating WBZ-FM fueled the majority of the company’s 2.6% revenue growth to $55.2 million in the first quarter. Beasley didn’t report proforma results for Q1. The company also experienced some ad slowdown in the first quarter in the Northeast due to four back-to-back Nor’easters, which closed business and schools and kept many people at home. National business remained “challenged” in several Beasley markets but the company was able to offset that with local revenue gains in some cases. See more HERE
Saga’s Ed Christian On Q1: ‘It’s Better Than Anticipated.’ Saga Communications had a 7.1% net revenue lift to $28 million as ever colorful CEO Ed Christian called the first quarter “better than I anticipated; I was skeptical about Q1,” he said. Same station revenue increased 0.3% to $26.2 million, and operating income was up 17.5% to $2.3 million. Christian pointed to challenges for the company, including “an awful winter,” which had a direct impact on over-the-air advertising. Add to that “longer ramp-up conditions than we expected” with the company’s Charleston stations, part of a $23.0 million deal with Apex Media in May 2017 that included four FMs, one AM and two translators in Charleston, and three FMs and two translators in Hilton Head and Beaufort, SC. Looking at categories in Q1, the CEO explained that two in particular saw losses. “Automotive is either hot or it is not,” he said. As well, medical & hospitals experienced a dip. Looking ahead, Christian told shareholders that there are potential underlying quandaries with the nation’s political turf that could come into play. “Like it or not, our country could well be facing some depressing economics,” he noted. “Internally at Saga, we refer to the environment in which we operate as a jitter buggy economy. We’re really dependent on the economy and the feeling of well being in this country.” See more HERE FCC Proposes Eliminating Posting Requirement At Transmitter Sites. As part of the ongoing Modernization of Media Regulation Initiative, the FCC has proposed eliminating a 1930 rule that has required stations to physically display their broadcast licenses and authorizations. The FCC said the old requirements were intended to ensure that info regarding station ownership and contact info is readily available and easily accessible to the public. But now that stations’ local public inspection files are posted online, it has tentatively concluded the posting requirements are “redundant and obsolete.” The FCC has opened a comment period asking for feedback. Among the issues it’s considering is whether there are any public safety implications that could hamper emergency responders’ onscene assessment during an accident or disaster when online databases may not be accessible. MORE Townsquare Puts Priority On Its Core Radio Business. In reporting Q1 2018 earnings, Townsquare Media touted its Local Marketing Solutions division – which encompasses local radio and digital – as the force behind its growth. The segment saw its 17th consecutive quarter of positive organic revenue growth in Q1 with a 5.9% gain, or 5.6% excluding political revenue. The increase helped the company’s overall billings increase $5.8 million, or 6.6%, to $94.2 million. “National revenue, which has experienced a fairly significant headwind over the past several years, was flat inQ1 and our local revenue, once again, drove the growth in this segment,” co-CEO Bill Wilson said. Year-over-year political billings grew from $450,000 to $700,000. While noting that the company made difficult decisions to reset their local live events and national digital businesses, Prasad said he was “pleased to report that both of these businesses had outstanding quarters.” The exception to that was the company’s North American Midway Entertainment (NAME) sector, which continues to be a drag on the company. Townsquare said last month they are open to selling NAME. Q1 Entertainment revenue increased 11% to $13.7 million. See more HERE
Pirates Would Face $2 Million Fines Under New Congressional Proposal. The cost of being a pirate radio operator could soon be significantly higher. A bipartisan group of lawmakers has introduced and cosponsored the “PIRATE” Act, which would allow the FCC to fine someone who operates an unlicensed radio station up to $100,000 for each day they’re on the air—up to a maximum $2 million per incident. The current maximum fine is $19,246 per day for each violation or each day up to a statutory maximum of $144,344. Not only would the pirates themselves be subject to stiff fines, so would landlords and any business providing “physical goods or services” to the unlicensed station. That would include not just a place to house the station but also financial assistance, an indirect deterrent aimed at advertisers buying time on some of the more sophisticated pirate stations. See more HERE Radio Comes To Salem’s Rescue As Publishing, Digital Take Hits. Salem took a double-digit hit on its publishing division in Q1 bringing total company revenue down 1.8% to $63.8 million. Its radio sector rose slightly, with a revenue increase of 0.5%. That was the media company’s Q1 bright spot, as digital media revenue also decreased 2.7%, alongside publishing’s punishing 17.6% revenue decline. Salem’s 40 Christian teaching and talk stations contributed 42% of total broadcast revenue for the quarter; its 34 news/talk posted a 6% increase in revenue, contributing 19% of total broadcast revenue, 13 Contemporary Christian music outlets represented 20% of revenue; and network revenue increased 6%, providing 10% of broadcast revenue for Q1. See more HERE Scripps Radio Division To Be Sold Piecemeal Instead Of ‘One Big Bang.’ After announcing plans to sell its 34 radio stations across eight markets in late January, E.W. Scripps offered an update during its Q1 earnings call this week. According to CEO Adam Symson, the company intends to divest the properties piecemeal in order to “maximize the value of the assets.” “The radio sale process continues. We’ve made a decision in order to maximize the value of the assets to sell the division in several pieces instead of one big bang,” he told investors. “I think that’s where we see the greatest value for the company and for shareholders. So it’s a little more complicated, I’d say, than if it were a singular transaction.” See more HERE
Weekly News Recap May 7-11, 2018
Univision Expands Live Events, Adds Advertiser Data Solutions. Univision Communications announced new initiatives to help advertisers connect directly with its audience during its Q1 earnings call. CEO Randy Falco said the company has embarked on a multi-year “accelerated transformation strategy” that includes managing costs and addressing its content, delivery platforms and selling capabilities. The plan also encompasses an expansion of its live events platform, with the launch of a new branded content studio, and an increase of its experiential offerings such as the Euphoria concert series. Univision is also expanding data-driven solutions for advertisers. New tools include precision targeting to help clients tailor campaigns, a new self-serve platform for programmatic buying, and technology that helps marketers evaluate performance and effectiveness of campaigns while also measuring brand impact. See more HERE Stacey Schulman Rises To CMO At Katz. Katz Media Group has promoted executive VP of Strategy, Analytics and Research Stacey Schulman to chief marketing officer at the rep firm. Reporting to Katz CEO Mark Gray, she will lead a team of marketing and insight professionals across both Katz Radio Group and Katz Television Group, driving marketing strategy and insights for 14 regional offices that serve 3,300 radio stations, 800 TV stations and their digital platforms. Schulman brings more than 20 years of media, consumer and marketing research experience to lead the company’s marketing strategy nationwide. She joined Katz in 2014 from television station trade group TVB, where she served as chief research officer. She earlier held executive positions at Turner Broadcasting, ad agency holding company The Interpublic Group and CBS. See more HERE
Entravision: Digital Growth Offsets Radio & TV Declines. Exponential digital growth made up for sharp decreases in Entravision’s television and radio divisions in the first quarter. Radio billings decreased 10% to $14.1 million with local down 12% and national off 6%. But second quarter is pacing ahead of first quarter and chairman & CEO Walter Ulloa told investors the company is seeing “some improvements across categories” in its radio division. To improve its balance sheet, the company has taken steps to cut $8 million in expenses effective in Q2. President/CEO Jeff Liberman said Entravision “has taken a good look at radio,” telling investors to expect the results of its expense reduction to pan out in the second, third and fourth quarters. See more HERE
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SALES – STATIONS Salt Lake City – Brigham Young University strikes an $875,000 deal to buy adult alternative “107.9 The Mountain” KUMT from Community Wireless of Park City. The deal includes FM boosters in Salt Lake City, Ogden, Randolph, and Provo, and Bountiful, UT. The move will allow the University’s “Classical 89” KBYU-FM to remain untouched as the school puts its BYUradio brand on KUMT and several booster FMs around the Wasatch Front. It airs a mix of talk and public affairs programming. BYUradio airs a mix of talk and public affairs programming. Once the sale closes Community Wireless of Park City will still own news-talk/adult alternative KPCW (91.7) in the Park City, UT area. Broker: Greg Merrill, Media Services Group Burlington, VT – Vox Radio Group files a $660,000 deal to buy classic hits WVTK (92.1) from Ken Barlow and Lori Young-Barlow. The deal effectively reverses the $550,000 sale Vox made in 2009 to the couple. Ken Barlow holds a minority 35% stake in Vox alongside majority owner Bruce Danziger (53%) and Keith Thomas (12%). Vox Radio Group already owns rhythmic CHR “Hot 96.7” WXZO, hot AC “Star 92.9” WEZF, sports “ESPN 101.3” WCPV and sports “960 The Zone” WEAV in the Burlington-Plattsburgh market. It will operate WVTK under a local market agreement until closing.
Cola Wars Hit Full Force With Long Island, – Cantico Nuevo Ministry files a $350,000 Pepsi, Coke NY Vying On Radio.
deal to buy ethnic WLIM (1580) from Polnet Communications. Cantico Nuevo Ministry already owns Spanish-language religious “Radio Cantico Nuevo” WNYG (1440) in the NassauSuffolk market and it operates WNYH (740) under a lease agreement with Win Radio Broadcasting. It also owns the Medford, NY-licensed translator W295CK at 106.9 FM which relays WNYG. Once the deal closes Polnet will still own six stations including ethnic Polish WRKL (910) in the nearby Hudson Valley, NY market. Broker: Kozacko Media Services Monterey-Salinas-Santa Cruz, CA – Educational Media Foundation files to spin-off one of its three FMs in the Monterey-Salinas-Santa Cruz market. Natural Bridges Media files a $265,000 deal to buy Christian CHR “Air1” affiliate KSRI (90.7) from EMF. It plans to change the station’s call letters to KSQD and rebrand the FM as “K-Squid” after the deal is finalized. After the sale closes EMF will still own contemporary Christian “K-Love” affiliates KLVM (88.9) and KNVM (89.7) in the market. Indiana – Brent Lee and Matt Moore’s Spoon River Media strikes a $237,000 deal to buy country “The Eagle 96.7” WCEO and adult standards WLOI (1540) in La Porte, IN from La Porte County Broadcasting. The deal was filed in bankruptcy court where La Porte County Broadcasting sought chapter 11 protection in Jan. 2017. Spoon River Media already owns adult hits “Q-98.1” WILP in nearby Cuba, IL. Matt Lee also owns “Country 103.9” WRBI in Batesville, IN. Florida – Immaculate Heart Media files a $150,000 deal to buy religious WIGW, Eustis, FL (90.3) from On This Rock Communications. Immaculate Heart Media will program the station under an agreement with the seller pending the sale’s closing. The Class C3 FM covers an area between the Orlando and Ocala-Gainesville, FL market. Immaculate Heart Media already owns three stations in the Ft. MyersNaples, FL market.
SALES –TRANSLATORS Indiana – Sandy Biddinger and Kathy Verseman’s Two Black Cadillacs files a $60,000 deal to buy the Greensburg, INlicensed translator W282AZ at 104.3 FM and the GreensburgIN licensed W278BB at 103.5 FM from Martin Hensley’s New Beginnings Movement. The filing says both translators are valued at $30,000. Biddinger and Verseman already own “Tree Country 1330” WTRE in Greensburg, which the translator already simulcasts. San Luis Obispo, CA – Dimes Media files a $10,000 deal to buy the Baywood-Los Osos, CA-licensed translator K229AK at 93.7 FM from First Ventures Capital Partners. Dimes Media already uses the signal to create the alternative rock “Alt 93.7” brand by relaying KYNS (1340). Wyoming – Vic Michael’s Mountain Community Translators files a $10,000 deal to buy the Cheyenne, WY-licensed translator K277CP at 93.3 FM. The signal is one of the translators that had been owned by Community Translator Network before it filed for bankruptcy in 2015. The company has most recently been overseen by trustee Michael Thomson. A bankruptcy judge in Utah has already given his approval to the sale. Once the construction permit for K227CP is built, the filing says the translator will simulcast Educational Media Foundation’s contemporary Christian “K-Love” affiliate KLWV, Chugwater, WY. CLOSINGS: Honolulu – Bill Shirk closes a deal to buy a controlling 51% stake in Hochman Hawaii Three. In a transaction valued at $1,873,065 Shirk increases his 25.5% stake to a 51% position through a deal to buy out the 25.5% stake held by the estate of William Mays. George Hochman’s 49% stake in the partnership remains unchanged. Hochman Hawaii Three owns “Oldies 101.1” KORL-FM and several translator-based stations including classic hip-hop “Hot 97.1” K246BR, “101.5 K-Rock” K268BE and ethnic Korean CHR “107.5 K-Pop” K298BA. The deal includes a $150,001 cash payment and forgiveness of several outstanding promissory notes. Tampa – Nearl Ardman closes a $350,000 deal to buy “Radio Romantica 1470” WMGG from Bruce Maduri’s Genesis Communications. Ardman already owns regional Mexican “96.1 La Mexicana” WTMP-FM and classic hip-hop “Boomin 1150” WTMP in the market. Under the terms of the contract if or when Ardman sells WMGG he agrees to pay 10% of the net profits from the sale to Genesis. Ardman further agrees that if he were to sell WTMP-FM that he’ll pay 10% of the net profits to Genesis. Once the sale closes Genesis will still own two stations in the Tampa market including “AM 820 News Talk” WWBA and sports “1040 The Team” WHBO. More closings HERE
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