PG 1

800.275.2840

THE MOST TRUSTED NEWS IN RADIO

MORE NEWS»

insideradio.com

NEWS@INSIDERADIO.COM | 800.275.2840

THURSDAY, OCTOBER 15, 2015

Nielsen—Radio Linked To Huge Plus-Side ROI. Few advertiser goals are more vital than plus-side return on investment, and radio appears to be a blockbuster conduit, providing a sizable payoff for brands in four retail categories, according to a new sales effect study from Nielsen. Depending on the category, radio exposure led to increased sales, foot traffic and dollars spent per shopper. For mass merchandise retailers included in the study, the medium delivered a staggering 16-1 return on investment. Radio also begat a plus-side ROI for each of the categories, including home improvement stores (10-1) and quick service restaurants (3-1), in addition to a 17-1 return for department stores, a number that was first previewed Sept. 30 at the Radio Show in Atlanta. Hispanic consumers, a segment that over-indexes for radio usage, led all categories measured in total spend and drove increased sales ranging from 9% to 49%. The new study comes as agencies and advertisers increasingly expect ROI validation from their media partners. In each category, the study found radio exposure positively affected bottom line sales and drove new, valuable shoppers. Pierre Bouvard, chief marketing officer of Westwood One and Cumulus, said as much in response. “In the past two years, Nielsen has looked at 22 brands advertising on the radio across multiple categories and the results are consistent—radio resoundingly drives consumer spending,” he said. “In fact, across all of the examined categories, radio delivers an average $8 incremental sales for every $1 spent. As marketers look for measurable ROI, Nielsen’s studies demonstrate the true value of radio to not only provide massive reach, but directly impact consumer spending.” The Necessity of Radio—Nielsen analytics exec weighs in on the medium’s value at InsideRadio.com.

Breaking Down Nielsen’s Radio Ad-Vantage Study. A new study by Nielsen found that among categories of radio advertisers, department stores have been buying themselves the biggest bang for their buck. Four department store brands that used radio campaigns experienced a 10% increase in sales, a 3% increase in total number of buyers and a 6% increase in dollars spent per customer. All told, radio delivered a whopping return of $17 for every $1 spent. A pair of radio-using home improvement store brands saw a 4% increase in sales, an 8% increase in total number of buyers and a 2% increase in transactions. Radio’s ROI for the home improvement stores was $10 for every $1 spent. Two mass merchandiser retailers that bought radio ads experienced a 1% increase in overall sales, 2% increase in total number of shoppers and 2% lift in dollars spent per transaction. That added up to a $16 return for every $1 spent. Finally, three quick-service restaurant brands that implemented radio campaigns saw a 6% increase in sales, a 6% increase in consumers and a 1% increase in dollars spent per purchaser. The new research is the latest in a series of ROI studies from Nielsen, showing radio produced a plus-side ROI range from 1.38 for soft drinks to 23.21 for retail. The study cross-referenced time-stamped PPM listening data with Media Monitors spot tracking data to determine which listeners were exposed to the ads. Nielsen tapped its credit and debit card expenditure data to track the participants’ department store purchases and calculated the brands’ radio ad spend with SQAD data. Study participants were separated into two groups and weighted to be identical on key characteristics including age, gender, race, education, employment status, household size, children and buying history. The main difference between the test and controlled groups was radio exposure.

Report: Labels Get $90M In Pre-’72 Money From Pandora. Pandora is reportedly ready to follow in the footsteps of SiriusXM Radio and settle with the major record labels over its use of pre-1972 recordings. The pureplay webcaster is expected to cough up $90 million to the music rights-holders, according to a story in the New York Post. In June, SiriusXM paid $210 million to a

insideradio.com

PG 2 NEWS@INSIDERADIO.COM | 800.275.2840

THURSDAY, OCTOBER 15, 2015NEWS

group of labels to settle similar litigation. According to the Post’s sources, Pandora would shell out $60 million for the use of the older recordings through 2015 and another $30 million for next year. Pandora’s board of directors is expected to approve the payout at an Oct. 20 meeting. “We don’t comment on rumor or speculation,” a Pandora spokeswoman told the Post. Filed last year in New York State Supreme Court in Manhattan, the suit alleged that Pandora violated state copyright protections by streaming pre-’72 recordings without permission. Both Pandora and SiriusXM have argued they don’t owe performance royalties for the older recordings since there is no federal copyright protection for master recordings made before Feb. 15, 1972. Despite the absence of a national law that gives pre-‘72 sound recording owners a performance right, the record labels and ‘60s pop band the Turtles have so far prevailed in suits in the states of California and New York, based on the courts’ interpretation of what rights the ownership of a sound recording affords the rights-holder.

CBS Radio Counters Pre-’72 Claims In Court. CBS Radio has denied all the allegations in a pre-1972 music copyright suit brought against it by ABS Entertainment. About the only things CBS attorneys admit in their response is that the company owns radio stations, streams on the Internet and is based in New York. All told, the response denies claims made in some 60 different paragraphs of the complaint, including those that accuse the broadcaster of violating California Civil Code, misappropriation and unfair business practices. In August, ABS separately sued CBS, Cumulus Media and iHeartMedia in United States District Court for the Central District of California. ABS claimed their radio stations and online streams haven’t obtained performance rights licenses or paid performance royalties for older recordings it owns by Al Green, Ann Peebles, Otis Clay and other artists. ABS filed similar suits against the three broadcasters in New York. Recordings made before 1972 are not protected by federal copyright law. Filed Tuesday, the CBS response shoots holes in ABS’ claims, based on a variety of legal doctrines, that bar a claim based on the plaintiff’s previous conduct or for having voluntarily given up a right. CBS says each of the ABS claims should be barred because ABS “otherwise licensed, authorized or consented to CBS’ alleged conduct.” It further argues that ABS has “suffered no provable injury” and that ABS “failed to mitigate any damages” it supposedly suffered. And it says ABS is seeking “mutually inconsistent remedies” in the case. In summation, CBS asks the court to rule in its favor, dismiss the complaint and award it attorney’s fees and costs.

Analyst: ‘Ad Market Has Improved.’ “Steady” – that’s how Wells Fargo senior analyst Marci Ryvicker characterizes the local ad environment in the second half of 2015. In a report to investors, she notes that small-market broadcasters “continue to outperform” due to less reliance on national business and thus less competition from other media. “Digging into the quarter, it sounds like July and August were apparently soft, while Sept. ended strong and Q4 is relatively healthy,” Ryvicker says. That parallels an assessment from Emmis CEO Jeff Smulyan who said “things look much improved” in November during the company’s earnings call last week. When it comes to radio companies, Wells Fargo only covers Entercom, for which Ryvicker forecasts core revenue growth of 2% in the third quarter and 2.5% in the fourth quarter. In a report earlier this week, Ryvicker said she saw improving conditions in the overall media ad market during the third quarter. “At the end of the day, it just doesn’t feel as bad,” Ryvicker said. “The ad market has improved, albeit slightly.” How some individual radio companies performed in the third quarter will become clearer in early November when CBS, Saga, Entercom and other publicly-traded broadcasters begin reporting third quarter financial results.

Pai Hears From Minority Owners on Road Trip. FCC Commissioner Ajit Pai heard about the opportunities and challenges facing minority broadcasters on Tuesday, not in a sterile hearing room, but through first-person accounts from broadcasters on their home turf. His Mississippi road-trip started at WLOO, a television station owned by Tougaloo College, a historically African-American college in Jackson. From there it was off to “B Day 99.1” WFQY-AM, a classic hip-hop station in Jackson that simulcasts on an FM translator. During a meeting, owner Gerold Smith “told me how critical WFQY’s FM translator was to the station’s survival,” Pai said Wednesday in a statement about promoting broadcast ownership diversity. “He said that most people now listen to the station on the FM dial.” The importance of the translator was brought home when it recently went off the air due

insideradio.com

PG 3 NEWS@INSIDERADIO.COM | 800.275.2840

THURSDAY, OCTOBER 15, 2015NEWS

to technical difficulties, Pai said, prompting calls from concerned listeners and advertisers. The last stop in the Magnolia State was URBan Radio Broadcasting’s three-station cluster in Starkville, where Pai met with president & CEO Kevin Wagner, who told him that some of the FCC’s media ownership regulations made it more difficult for him to get financing to buy new stations. On Wednesday, Pai was set to hear more about the importance of FM translators during visits to Summitmedia’s gospel WAGG (610) and Rivera Communications regional Mexican WAYE (1220) in Birmingham, AL. Pai says he came away from the Mississippi trip with “a renewed appreciation for the challenges minority broadcasters face and a renewed determination to fight for policies that help them thrive.” That includes the FCC enabling AM broadcasters to acquire FM translators, he said, and establishing an incubator program to make it easier for minority entrepreneurs to enter the broadcast business.

‘Mr. Speaker?’ No Thanks Says Mark Levin. While the Republican Party struggles to find a candidate willing to be the next Speaker of the House, a presidential hopeful suggests looking for an answer beyond the House—to talk radio—for John Boehner’s successor. “I think the next speaker should be Mark Levin,” Senator Ted Cruz (R-TX) said, singling out the Westwood One-syndicated conservative host. Levin earlier worked for the Reagan White House and was chief of staff for former Attorney General Edwin Meese. Cruz, who made the suggestion while campaigning in Sioux City on Monday, isn’t expected to go all out on drafting Levin into the Speaker’s chair—“It was just an off-the-cuff remark at a campaign event,” a campaign aide told National Review. Instead, his remark is seen as a way to curry favor with Levin, who is heard on hundreds of stations and has a sizable following among conservatives. Levin hasn’t endorsed any presidential candidate, although he has spoken positively about frontrunner Donald Trump. One unaligned GOP strategist tells National Review that Cruz’s comment about Levin makes perfect sense. “No surprise here—Levin has a huge following, he’s been boosting Trump for months and Cruz has not exactly been subtle in his desire to get Trump’s supporters when and if Trump collapses,” the strategist said. For his part, Levin said he doesn’t want the job. “Thank you, Ted, but I’ll have to pass,” he tweeted Tuesday morning.

Millennials Like Radio’s High Ad-Trust Factor. Younger Americans may be attached to their mobile devices, but they still consider traditional media outlets—including radio—as trusted sources for advertising. Among Millennials—adults 21-34—55% said they completely or somewhat trust radio as a credible source for advertising information. That figure is higher than for several digital sources, including mobile ads (48%), ads on social media (41%), online video ads (53%) and search engine ads (52%), according to a recent Nielsen study. Other traditional media categories, including TV (67%) and newspaper (62%), also ranked higher among Millennials than those digital categories. However, Millennials are most likely to trust recommendations from their peers or online reviews when consuming advertising, with personal recommendations scoring 85% trustworthiness and online comments and reviews from consumers notching 70%. “Millennials consume media differently than their older counterparts, exercising greater control over when and where they watch, listen and read content—and on which device,” Randall Beard, president of Nielsen Expanded Verticals, said in the report. “But even if they rely less heavily on traditional channels, their trust and willingness to act on these formats remains high. While an integrated, multichannel approach is best across all generations, it carries even more importance when reaching Millennials.” Among other demographics, radio performed similarly when respondents ranked their choices for credible sources. Among adults 35-49 (Generation X), 57% of respondents said radio was completely or somewhat trustworthy, compared to 51% of adults 15-20 (Generation Z) and 49% of adults 50-64 (Baby Boomers). The findings reinforce radio’s ability to connect with listeners through both traditional spots and native advertising, such as live-reads, DJ endorsements and social media integration.

Ad Insider—Big Brew-haha In Huge Beer Merger. Although there will certainly be some spinoffs required when Anheuser-Busch InBev and SABMiller merge, it’s estimated that the joint company would control 29% of the global beer market with close to 100 different brands, including Budweiser, Beck’s, Stella Artois, Michelob, Busch, Miller, Milwaukee’s Best and dozens of smaller and regional brands, including some craft beers recently purchased. In the U.S., of course, the major question

insideradio.com

PG 4 NEWS@INSIDERADIO.COM | 800.275.2840

will be the fate of the existing MillerCoors joint venture. While it’s hard to believe, none of the major beer brands were among the top 100 advertisers on radio last year…While it irritates most franchisees, discounting is creeping back into the strategy of several major fast-food chains as customers look for “value” despite an improving economy. In the past, some offers imposed by the parent company caused franchisees to complain they were losing money because of the low prices in those offers. Nation’s Restaurant News notes that Wendy’s started a new discount offer this week with a 4 for $4 Meal (burger, chicken nuggets, fries and a drink), targeting lunch customers with what the company calls “a game-changer.” The move by Wendy’s follows McDonald’s recent offer of a double cheeseburger and fries priced at $2.50 and Burger King’s 10-piece chicken nugget deal priced at $1.49. NRN comments, “The offers reveal a stark reality….Many consumers view [QSRs] as low-cost options and will gravitate toward concepts with the strongest value offerings. While higher prices and fewer deals of course provide better margins for operators, in an industry that’s constantly seeing lower traffic counts, getting the customer in the door now appears to be the big priority.”

Pepsi, McDonald’s Channel Radio In TV Spots. Pepsi is rejuvenating its classic 1999 “Joy of Pepsi” advertising campaign—which prominently features a good old-fashioned radio DJ in the story line. The remade spot debuted in a rarefied spot—during Fox’s smash TV series “Empire” last week. It opens with former homeless man-turned-voiceover aficionado Ted Williams in front of a studio mic announcing, “All right everybody, if this doesn’t get your toes tapping, check your pulse…coming to you in living Cola.” The one-minute ad also features singer Tori Kelly (singing to the original ad’s iconic “Ba Ba Ba Ba Ba” hook), NASCAR driver Jeff Gordon and NBA athlete Kyrie Irving, who are regular Pepsi endorsers—with frequent flashes of Williams in the radio studio, as the world at large finds joy in the catchy Pepsi slogan. Pepsi’s original “Joy of Cola” campaign launched during the 1999 Academy Awards, featuring a voiceover from Marlon Brando. Other ads in the series featured Aretha Franklin and Isaac Hayes. Advertising Age reports that the new ad was created in-house and directed by Joe Pytka, who also helmed the original “Joy” campaign. Meanwhile, McDonald’s is utilizing radio talent to promote its “New All Day Breakfast Menu,” with a just-released TV spot featuring the syndicated “Tom Joyner Morning Show” crew and “The D.L. Hughley Show” cast. The staffers are shown enjoying breakfast in between their respective radio shows, with a joke about “dead air.” The ad includes Joyner and his crew, Sybil Wilkes, and J. Anthony Brown, with Hughley and his cohosts, Jasmine Sanders and Steve Wilson.

For Wolves, Vols, Radio Traditions Continue. Radio stations in Minneapolis and Knoxville have scored new multi-year alliances as flagship outlets for local sports teams in their markets. First, CBS Radio’s “News Radio 830” WCCO-AM continues its partnership with the NBA’s Minnesota Timberwolves, beginning with its upcoming 2015-16 season on Oct. 28. The station will broadcast the team’s 82 regular season games, with announcer Alan Horton returning for his ninth year as play-by-play man. WCCO will also host 30-minute pre- and postgame shows featured on-air and streamed online. In addition, the agreement includes unspecified programming and promotional add-ons throughout the year. “We truly value our partnership with the Wolves and are excited to continue our relationship,” said Mick Anselmo, senior VP/market manager of CBS Radio Minneapolis. “This is an NBA franchise on the upswing, and a perfect marriage with 830 WCCO-AM.” Timberwolves President Chris Wright added in a release, “The station has a great history and knowledge of Minnesota basketball, with one of the largest coverage areas in the country.” The station and team first partnered for the 2011-12 NBA season. In Knoxville, Cumulus Media re-ups its 40-year partnership with the IMG Vol Network as the flagship stations for University of Tennessee athletics via country “107.7” WIVK-FM and “Sports Radio 99.1 FM & AM 990” WNML. IMG is a 65-station network that blankets the state of Tennessee with sports coverage. WIVK/WNML continue as the exclusive stations for the Knoxville metro for University of Tennessee games, along with shows “Vol Calls,” “Big Orange Hotline,” “Vol Network Notebook” and “The Nation.” Bruce Gilbert, senior VP of Sports for Cumulus and Westwood One, said, “We’re incredibly proud to continue this legendary partnership with the IMG Vol Network. All of us at Cumulus and Westwood One consider it an honor to document these [University of Tennessee] performances for many years to come.”

— Get more news, people moves and insider extras @ www.insideradio.com. —

THURSDAY, OCTOBER 15, 2015NEWS

insideradio.com

PG 5 NEWS@INSIDERADIO.COM | 800.275.2840

THURSDAY, OCTOBER 15, 2015DEAL DIGEST

MORE DEALS @ INSIDERADIO.COM DEAL DIGEST ARCHIVE | ADVERTISE: CALL 800-248-4242 X 711 | EMAIL

S A L E S

Illinois – Connoisseur Media spins-off three Bloomington-Normal, IL stations to Neuhoff Media for $2 million. The cluster includes CHR “Hits 100.7” WWHX, adult hits “Bob FM 97.7” WBBE, and “96.7 I-Rock” WIHN. Neuhoff owns a dozen other stations in the Illinois markets of Decatur, Springfield and Danville.

Pennsylvania – The University of Pennsylvania has struck a $1.25 million deal to buy adult alternative WNTI (91.9) from Centenary College. Under the terms of the deal Centenary will also receive an additional $500,000 in underwriting value during the next decade. It’s a deal that will allow Penn to extend the coverage of Philadelphia adult alternative WXPN (88.5) into the Allentown-Bethlehem, PA market. Penn will operate WNTI under a public service operating agreement until closing. Centenary will continue to operate WNTI as a student-run internet-only station. Brokers: Greg Guy and Jason James, Patrick Communications

Colorado – Tom Dobrez’s Cool Radio Partners files to convert its time brokerage agreement of classic hits “104.7 The Mile” KKVM, Vail into a $250,000 purchase of the station from Vail Radio Partners. Cool Radio has been operating KKVM since October 2015. It already owns adult alternative “The Zephyr” KZYR (97.7) and adult alternative “The Mammoth” KSNO (103.9) in the area. Broker: Jody McCoy, Media Services Group

Colorado Springs – Richard Gillenwaters’ Mountain Radio Group files a $200,000 deal to buy the currently-silent KKHI (1530) from Vic Michael. KKHI has 15,000-watts day and 15-watts night. It has been off the air since March. As part of the deal Gillenwaters also gets the Divide, CO-licensed translator K294CH at 106.7 FM to rebroadcast KKHI. Gillenwaters will become the fifth owner of KKHI in the past decade.

C L O S I N G S

San Francisco – Radio Mirchi closes a $600,000 deal to buy “Radio Disney” station KMKY (1210) from the Walt Disney Company. Radio Mirchi is closely related to Spice Radio and New Media Broadcasting. All three entities specialize in south Asian programming and own or have pending deals for several “Radio Punjab” stations in northern California.

Texas – Terry Slaven’s For The Love Of the Game Broadcasting closes a $450,000 deal to buy classic rock “Cowboy Radio” KWBY-FM, Ranger, TX (98.5) from High Plains Radio Network. The format also airs on the Stephenville, TX-licensed translator at K300BD at 107.9 FM under a lease deal with Dick Witkovski’s North Texas Radio Group. KWBY-FM becomes a sister to classic hits KATX (97.7) in the area which Slaven bought from High Plains for $450,000 earlier this year.

Oregon – Randolph and Debra McKone’s Elkhorn Media Group closes a $405,000 deal to buy the country simulcast of KJDY-FM, Canyon City, OR (94.5) and KJDY, John Day, OR (1400) from Blue Mountain Broadcasting. The deal includes the John Day-licensed translator K229AX at 93.7 FM.

Sacramento – Punjabi American Media closes a $390,000 deal to buy ethnic “Punjabi Radio 1450” KOBO, Yuba City, CA from Huth Broadcasting. The station will cover the area north of Sacramento where it also recently paid $800,000 to buy from the Walt Disney Company what is now “Punjabi Radio 1470” KIID.

Florida – Fiorini Broadcasting has closed a $325,000 deal to buy talk “News Radio 1480” WFLN, Arcadia from Integrity Broadcasting. WFLN was Integrity’s only radio station. Broker: Hadden & Associates

insideradio.com

PG 6 NEWS@INSIDERADIO.COM | 800.275.2840

THURSDAY, OCTOBER 15, 2015CLASSIFIEDS

INSIDE RADIO, Copyright 2015. www.insideradio.com. All rights reserved. No part of this publication may be copied, reproduced, or retransmitted in any form. This publication cannot be distributed beyond the physical address of the named subscriber. Address: P.O. Box 567925, Atlanta, GA 31156. Subscribe to INSIDE RADIO monthly subscription $39.95 recurring payment. For information, visit www.insideradio.com. To advertise, call 1-800-248-4242 x711. Email: ads@insideradio.com.

MORE OPPORTUNITIES @ INSIDERADIO.COM >>

SALES MANAGER

Tired of the Mega company rat race?

Want to work for a company where your efforts are appreciated? Santamaria Broadcasting seeks a Sales Manager for our Minneapolis Stations. Successful candidates should have a minimum of 5 years radio sales experience and a proven track-record of sales success and leadership.

If you are ready to take on a new challenge where the rewards will match your efforts,send resume to:

interestedinthejob@yahoo.com

An equal opportunity employer.

SALES — NEW YORK CITY

Salem Radio has an unusual opportunity for a

dynamic sales executive to join the New York Cluster.

Salem is one of the great dependable media companies in America.

Come join us!

Email:Laura Sheaffer,

laura@nycradio.com Or, 212-857-9639 to

schedule an interview. APPLY HERE

EOE

qual ACCOUNT EXECUTIVE - AUSTIN, TXYou are the best of the best. You are self-motivated, creative, a pro-active problem solver, tenacious, detail-oriented, money-motivated and approach this job as if you are your own CEO. You are a self-starter, organized, detail-oriented and have the ability to work without much direct supervision. Entercom is seeking AE’s for 94.7 MIX FM, Magic 95.5 FM and Talk Radio 1270 AM/96.3 FM. Entercom has the latest tools and technology, the most knowledgeable management and is known as offering the best work environment for selling radio advertising in the industry. Nobody in the Austin market can offer more to their clients than Entercom Austin.

Successful candidates are experts in: Strategic targeting of clients; Prospecting and relationship building; and setting face to face appointments. Find more qualifications and requirements HERE.

In keeping with the other members of the Entercom Teams, the #1 trait we hire for is “WINNING ATTITUDE”. We are looking for driven individuals who refuse to lose or compromise their level of success. If this describes YOU, please forward your resume and career success stories today: scallihan@entercom.com. Equal Opportunity Employer

qual NEWS-TALK GENERAL SALES MANAGERLooking for your dream job as a market-leading news/talk/sports GSM? News / Talk 95.3 MNC is looking for YOU! We are a family-owned, innovative, and legacy media company based in Northern Indiana in the heart of Notre Dame Country. You’re 90-minutes away from Chicago and less than an hour from the beach. This market is a great place to raise a family and has some of the most affordable housing in the nation. We have all the top radio brands (Rush Limbaugh, Glenn Beck, Fox News, etc.), plus a local all-news morning show, a great local PM-drive talk host and one of the best interactive teams in America. The station already has ratings success. Now all we need is the right leader to take us to the next level. You will have demonstrated experience leading a spoken-word radio sales team and a proven track-record of success. See a full list of requirements in our full ad HERE. Interested? For confidential interview, send resume & cover letter:

Stephanie Michel,Director of Sales

smichel@federatedmedia.com

Federated Media provides extensive marketing and sales training through The Radio Advertising Bureau and The Center for Sales Strategy. Digital Training and Digital Services are provided through Federated Digital Solutions. Equal Opportunity Employer.