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Monday, February 11, 2013
THE MOST TRUSTED NEWS IN RADIO
The diagnosis is for a health care ad boom. When AdMall asked local sales managers what
the hottest ad category would be in 2013, seven-in-ten picked health care. There’s good reason
to make such a prediction. It’s estimated $500 million or more could be spent by health insurance
companies as the Affordable Health Care Act — or “Obamacare” — is implemented later this year.
Some broadcasters already see activity bubbling under. “The triggers haven’t been pulled yet but
we’re in the planning process in some markets,” says State Nets president Tom Dobrez, whose
company buys time in 31 states. A study by ad giant WPP’s KBM Group: Health Services found
80% of consumers have no idea what changes to the law will mean to their health insurance.
“Between the government and these health plans, they have to do a lot of education,” KBM chief
marketing officer Lindsay Resnick says. Based on discussions with clients, he estimates most
are boosting ad budgets 10%-20%. “Radio will be used in the mix because of the broad nature
of people they need to talk to,” Resnick says. The bulk of the spending is expected to come in
the fall, when the national enrollment period begins. But Resnick says their clients’ objective —
apart from winning new customers — is keeping the ones they have. He expects that will push
insurers to the airwaves starting in April or May. “On radio that could mean driving people to
town hall meetings,” he says.
Some states expected to see more insurer spending. The federal government last week
awarded a $185.8 million grant to New York, money the state says it will use to launch a “marketing
and educational outreach campaign” promoting a state-run health care exchange. It will be a
similar story in more than a dozen other states which have set up their own programs. “It should
be a boost in 2013 to those states that are prepared,” says State Nets president Tom Dobrez,
who predicts it will look a lot like the hit-or-miss of political dollars during a presidential election
year. “Certain states will have respectable ad budgets to promote it and some states aren’t even going to do it,” he says.
In states where the default federal health insurance pool is used, experts say national media outlets will carry much of the
weight of educating the public. KBM Group CMO Lindsay Resnick says health insurance companies are focusing on digital
and mobile strategies for Millennials, but will use traditional media for older demos. “As they look at pre-retirees, you’ll see
more of an uptick in channels like radio and maybe even direct mail,” Resnick says. WPP’s ads are placed through media
buying shop GroupM. He sees a parallel to the 2004-2005 expansion of Medicare prescription drug plans, although on a
much larger scale. “You’re going to see a much greater mix of media this time,” Resnick says.
Entravision redeploys political ad team to health care. The 2012 presidential election brought record political dollars to
Entravision. But with the campaign over, a team of salespeople that has been selling political ad time has turned its attention
to health care. “We’re not necessary hiring more people, but we are staffing up our specific teams to charge up the hill with
this industry,” CFO Chris Young explained at an investor conference last month. Young said
it’s difficult to peg just how much the company will bank, but the $16 million Entravision sold
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in political ads last year could be repeated. “It could be comparable to a political cycle,” he
said. KBM Group CMO Lindsay Resnick says more of their health insurance clients are paying
>>U.S. Army retreats
attention to Hispanics after last year’s election, but their clients aren’t putting greater emphasis
from radio ad buy
on Latinos. “There’s no question multicultural is a big part of this and obviously you’ll see a
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Monday, Feburary 11, 2013
push in Hispanic,” he adds. Health care providers see issues of price, size of doctor networks and an insurer’s reputation as
the biggest selling points. Young thinks this potential boom category won’t be a flash in the pan either. He pointed out that
each year as people reassess the pros and cons of having private insurance, there’s an opportunity to sell ad time. “We’re
going to have several years of an industry transformation that we feel is going to require some heavy messaging,” he said.
“Given the stats of the Latino demographic, that has us feeling really good for the next couple of years.”
How’s business? Despite sluggish start, Entercom’s Field is upbeat about 2013. The looming
threat of government spending cuts is affecting more than just federal employees and programs. It’s
also taking its toll on radio. The U.S. Army recently pulled the plug on an ad schedule on Entercom
stations. CEO David Field blamed sequestration and fiscal cliff worries for a sluggish start to first
quarter business. With 80% of business for the quarter already on Entercom’s books, pacings are
down by low single digits, Field said Friday during the company’s quarterly results call. But pacings are
“notoriously difficult to gauge this early in the year,” he pointed out, noting they’re stronger in March
and the second quarter — up by low single digits. Field remains optimistic about 2013. The company
is coming off a rock solid fourth quarter, where $4.7 million in political ads helped drive a 7% revenue
bump. Even factoring out political dollars and the impact of the acquisition of urban AC KBLX, San
Francisco (102.9), revenue was still up by 2%. “A lot of good things happened during the quarter,” Field
David Field
told investors and analysts. The company gained revenue share, margins continued to expand, local
revenue perked up by low single digits and political surged. The only downer was national business.
Categories that ramped up spending in the fourth quarter for Entercom included financial services, health and medical,
home furnishings and improvements, telecom, travel and automotive.
Nielsen-Arbitron marriage has Entercom’s support. Arbitron is integrating PPM listening data into the media mix models
used by agencies to measure how advertising influences sales. And that’s showing “much higher” effectiveness for radio ad
campaigns, Entercom CEO David Field said Friday. As advertisers get a clearer picture of radio’s effectiveness, “the opportunity
for significant growth in radio’s share of ad buys is dramatic,” Field said. He sees Nielsen’s $1.26 billion proposed acquisition
of Arbitron “reaffirming radio’s importance in today’s media landscape.” Field also had kind words for a competitor. He
said Clear Channel taking a bigger role in evangelizing radio on Madison Avenue “potentially changes the game in terms of
how advertisers view radio as a category,” Field said. “There are now more potential ad catalysts in play than we’ve seen in
quite some time,” he says. That could put radio’s share of ad dollars more in line with its share of consumers’ media time.
Radio helps Northeast ride the storm out. It was a busy, snow-filled weekend for Northeast broadcasters covering what
was in some cities a record-breaking blizzard. In Boston, Greater Media lined up hotel rooms and brought in food for on-air
talent, engineers and personnel who worked throughout the weekend. On Long Island, where dozens of cars were stuck on
snow-covered highways, several drivers told the New York Daily News it was radio that got them through the night. “It is yet
another example of the importance of local radio and the vital role it plays in our communities during these challenging events,”
Greater Media CEO Peter Smyth says. Media consultant and journalism professor Donna Halper notes the media world
has changed radically over the past several years. “But even in today’s social media world, TV and radio do an invaluable
job,” she said (via Twitter of course). Her advice to radio — from a suburban Boston neighborhood without electricity — is
to avoid referring listeners to station websites for more information since many don’t have power in emergency situations.
Univision launches first Hispanic auto buying program. Broadcasters arguably are already in the car-selling business
considering automotive is the top ad category on both radio and television. But Univision is taking it a step further and
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Monday, Feburary 11, 2013
partnering with AutoAmigo to launch an online bilingual car buying program. Univision
will use all its media properties, including Univision radio stations, to promote AutoAmigo.
com, where users can research and shop for cars. They can then dial a Spanish-language
call center for more information and be directed to a participating local dealer. Univision
says this “turn-key solution to reach Hispanic consumers” will lead to increased sales
and help local dealers increase their market share among Hispanics, something that
could drive them to spend more to reach Latinos. “Most successful dealers realize that they must have an effective strategy
to attract, sell and retain their share of this fast-growing sector of the population,” AutoAmigo chairman Sean Wolfington says.
Kia’s Forte joins growing list of cars offering HD Radio. Add the 2014 Forte to the list of Kia cars offering HD Radio
technology. The red-hot 5-door joins the Cadenza, Forte Sedan, Optima, Sorento, Soul, and Sportage which already offer
HD Radio. Both the Forte’s EX and SX trim levels offer an optional navigation system with HD Radio built in. The car made
its debut last week at the Chicago Auto Show and is expected to arrive at dealers later this year. HD Radio technology is or
will be available as a factory-installed feature from 31 auto brands, including Acura, BMW, Buick, Chevrolet, Ford, Hyundai,
Infiniti, Lexus, Ram, Scion, SRT (Chrysler), Subaru, Toyota, Volkswagen and Volvo.
Inside Radio News Ticker…FCC jettisons translator filings…The Media Bureau is dismissing roughly 3,000 applications
that have been filed in the upcoming Auction 83 for FM translators. The FCC says some of the applications were missing
required information while others exceeded the national cap of 70 applications per company. It’s likely the first step in clearing
a backlog at the agency as it begins moving forward with the process of licensing new low-power FMs…FCC fines Florida
pirate…The FCC has upheld a $25,000 fine against Fort Lauderdale pirate Whisler Fleurinor. Agents say his illegal station at
99.5 wasn’t the first pirate station he put on the air. Fleurinor was previously cited by the FCC for operating an illegal station
in 2008. That repeat offender status earned him an extra $15,000 penalty...Read the lastest People Moves HERE.
Panera bakes up bigger ad budget for radio. Later this month the bakery-cafe chain Panera Bread will roll out a new
advertising campaign focusing on the quality of the ingredients in its food and new menu items. Panera will also serve up
bigger marketing budgets to radio. Co-CEO Ron Shaich told investors last week that they will spend 1.6% of sales on media
this year. That’s up 20% compared to the 1.4% allocated last year. “We’re also getting smarter on how we spend our money,”
Shaich said. That’s been good for radio. Media Monitors says they were the sixth-biggest volume fast-food advertiser on radio
last year, airing 187,343 commercials. That’s more than either Burger King or Little Caesars. “We are continuing to learn and
to adjust our mix of radio, TV, digital, out-of-home and social media spending both nationally and by market,” Shaich said.
That means national advertising for the 1,625 location chain will remain “modest” over the next several years, he explained.
Updated Stitcher Radio app brings search engine to spoken word radio. Searching for a
radio show on a specific topic is now as easy as using an online search engine. An app update
from online spoken word radio aggregator Stitcher adds a new Topic Search feature. The app
uses transcription technology to let listeners discover trending topics across more than 15,000
shows. In the standard search bar, listeners can enter any topic and see their mentions within
episodes and use one-click audio links to skip to specific segments of the clip. The talk radio
equivalent of Pandora, Stitcher lets users access on demand news, entertainment, sports and
talk programming from a menu of 15,000 shows and “stitch” them together into personalized stations. Its app is available
for iPhone, iPad and iPod touch and is integrated with Ford, GM and BMW vehicles. Stitcher CEO Noah Shanok says the
updated app is “part of our mission to further the evolution of radio by making it more relevant and accessible than ever.”
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Monday, Feburary 11, 2013
Public radio network uses programming changes to find self-sustenance. While many public radio stations are
dropping classical music in favor of news and talk programming, Iowa Public Radio still sees an opportunity in Brahms and
Beethoven. But IPR has promised the state board of regents it will be financially independent by 2016 and that’s meant
breaking some old traditions to get there. IPR has created a network of stations carrying a hybrid of news-talk programing
and its adult alternative “Studio One” format. Des Moines’ WOI-FM (90.1) is one station that got the makeover. IPR CEO
Mary Grace Herrington says Arbitron data has shown a 199% increase in their audience since the programming overhaul.
“That is significant given our goals of statewide expansion,” she says. IPR believes the format changes will help bring in more
dues-paying members. Herrington tells Inside Radio they’re on target to be self-sustaining. Since 2009 private funding is up
41% as state funding has declined 35%. She acknowledges the goal of financial independence has led to the need to make
some “tough decisions” on which formats get the best signals. The news/talk-Studio One combination format has shown
the greatest audience growth and has the most age-diverse listenership. But IPR isn’t abandoning traditional public radio
programming either. It signed-on KICG (91.7), returning classical music to Ames and central Iowa, which have been without
the format since WOI-FM’s changes last September. “Our listeners and members have been patient with us,” Herrington says.
Clear Channel brands a “Bull” in Wichita. There’s a herd of “Bull” branded stations suddenly forming in country radio. The
latest is in Wichita, where Clear Channel is dropping the 27-year “Kissin” brand from country KZSN and re-launching it as
“102.1 The Bull.” The station has gone live with 10 days of no air personalities or commercials, with the newly-syndicated
Bobby Bones morning show set to begin March 4th. The station will focus on “new country” to differentiate itself from Journal’s
top-rated country KFDI-FM (101.3) and Connoisseur Media’s “100.5 The Wolf” KVWF. “Wichita now has a country station
that doesn’t just try to compete playing the same stuff, but actually reflects just how hot today’s new country music really
is,” KZSN program director Brian Jennings says. KZSN has trailed in the four-way country battle in Wichita. Arbitron says
in the Fall 2012 survey, Journal’s KFDI-FM had a 10.4 share (12+) followed by Connoisseur’s KVWF with a 4.1 share, and
Journal’s “Classic Country 92.3” KFTI-FM with a 3.7 share. Following in fourth place was KZSN with a 3.4 share.
Inside Radio Deal Digest —
Virginia — American Family Association has struck a $1.1 million deal to buy gospel “Southern Light 91.3” WTRM, Winchester,
VA from Timber Ridge Ministries for $1.1 million. The deal also includes two Pennsylvania translators licensed to Harrisburg
and Millersburg.
Oklahoma — Oralia Cowan’s OMI Oilfield Investments files to buy KBIJ, Guymon (99.5) from Grace Community Church
of Amarillo for $421,000. The Class C1 signal currently simulcasts the church’s Amarillo market religious station “Radio
by Grace” KRBG (88.7). It is the first station for Cowan, who is already well known in the area for her restaurant business.
Broker: Roger Rafson, CMS Station Brokerage
Springfield, MA — Pamal Broadcasting has struck a $100,000 deal to sell off the standalone WPNI (1430) to The Love
Radio Church. WPNI has been operated by New England Public Radio under a lease agreement that’s put the folk-formatted
WUMB-FM on the signal.
Corpus Christi, TX — York Street Partners owner Dan Duman buys CHR “Planet 102.3” KKPN, “Classic Rock 104.5” KPUS,
and adult hits “107.3 Jake FM” KAJE for $2.3 million. The cluster has been overseen by Mahone Media Services president
(and former RAB EVP) Mike Mahone since 2010, when a group of investors, including Duman, put the stations into a trust.
Duman is also an investor in Galaxy Communications, which owns stations in Syracuse and Utica, NY and Illinois television
station operator Gocom Media.
Dallas — Educational Media Foundation closes on its $6 million deal to buy Spanish CHR “Baila 101.7” KTCY from Liberman
Broadcasting. The station will air the Christian CHR “Air1” format and is expected to change its call letters to KYDA. Liberman
still owns five other Dallas market stations. Broker: Doug Ferber, DEFcom Advisors.
— Read More News, People Moves, Ratings and Job Listings at www.InsideRadio.com —
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CLASSIFIEDS
qual
WMFE-FM PRESIDENT AND GENERAL MANAGER
WMFE-FM seeks a leader who has a clear
understanding of the mission of public radio, who
is energetic, visionary, has an entrepreneurial
approach and who brings experience in creative
programming and program development.
HOW TO APPLY: Livingston Associates is assisting The Board of
Trustees of WMFE in this search. For more infomation or to apply,
please visit: www.livingstonassociates.net. Deadline: 02/22/13.
EOE&DFW.
qualSALES SUPERSTAR! SYNDICATED RADIO SHOW
We are a syndicated talk show based in Los Angeles and hosted
by popular radio and TV category experts and broadcasters. We’re
looking for a sales superstar who will grow revenue from existing
brand relationships and develop new business opportunities.
We are not pay to play, but a top rated show for our flagship station
rolling out in national syndication. We are multimedia with solid
integrated marketing case studies with major brands. Email resume
and cover letter to:
[email protected] EOE
qual
ENGINEER WANTED - NEW YORK
Clear Channel Media & Entertainment is looking for an ENGINEER! If
you:
•
•
•
•
•
•
•
•
Have excellent AM/FM RF maintenance and troubleshooting skills
Don’t mind having most of your transmitters in one place (just a subway ride away)
Are familiar with AES, analog/composite audio testing and troubleshooting methods
Are not scared of fiber, high capacity IP radios, and willing to learn
Work well in a team, and, maybe, enjoy writing articles about your current projects
Like to help and learn in areas outside of your expertise
Are a self-starter who thrives in a highly collaborative, fun work environment and doesn’t mind the occasional practical joke…
And have a valid, unrestricted drivers’ license.
Then, we have a great job for you with excellent benefits. Salary
is commensurate with experience. Some heavy lifting is required.
24/7 on call. Occasional overnight maintenance. Email resume in
confidence to: [email protected]; note “RESUME” in
the subject line. Equal Opportunity Employer.
FIND MORE JOB OPENINGS ONLINE @
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INSIDE RADIO, Copyright 2013. www.InsideRadio.com. All rights reserved. No part of this publication
may be copied, reproduced, refaxed, or retransmitted in any form. Address: P.O. Box 567925, Atlanta,
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Managing Editor, Frank Saxe [email protected] 800-275-2840 x702/Senior Editor, Paul Heine paul@
insideradio.com, 800-275-2840 x703. General Manager, Gene McKay 800-248-4242 x711.
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Monday, Feburary 11, 2013
SALES - METRO ATLANTA
North Metro Atlanta 100,000
watt South 107 is looking for
experienced reps to help take a
growing Country formatted station
to the next level. For Account
Executives with a passion for
sales, and a background in direct
selling in medium/major market
radio sales, this is an excellent
opportunity to join a company with
expanding market partnerships.
This is an ideal position for those
tired of “corporate radio” to
work in a “local decision making
environment” and to have some
fun doing it!
A detailed job description and
application can be found at
south107.com/jobs.com
Send your resume to:
[email protected]
An Equal Opportunity Employer
GENERAL SALES MANAGER
GREATER MEDIA - PHILLY
Greater
Media
seeks
a
General
Sales
Manager
for their Adult Hits radio station,
95.7
BEN-FM
(WBEN-FM).
At a minimum candidate should
have at least 2 years in radio sales
management and have knowledge
and
experience
with digital, retail
and
non-traditional
sales. All candidates
should have strong
leadership qualities,
communication
skills and a keen understanding
of marketing, advertising and
media.
Qualified candidates, send
resume confidentially to:
tpirrone@
greatermediaphiladelphia.
com.
Greater Media is an equal
opportunity employer.
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