Katz Marketing Solutions, the national marketing arm of the Katz Media Group, today (Feb. 25) announced its findings of a new study that quantified the importance of audio elements in successful television commercials. The results show that audio, or radio, can efficiently and cost-effectively enhance a brand’s identification and messaging. The study examined television commercials from 14 major brands including Allstate, Apple, Capital One, CoverGirl, Diet Pepsi, DirectTV, Dos Equis, Duracell, GEICO, Old Spice, Outback Steakhouse, Snickers, Taco Bell, and Warner Brothers. All audio and visual brand references were removed, and 300 respondents were served either the de-branded television clip or an audio-only version of the same clip. The respondents were asked to identify the brand, pinpoint their "aha" moment of recognition, and describe their emotional response to the audio and video segments. Overall, the audio clips generated 93% of the brand identification metrics that the television commercial clips generated. Even with the absence of visual stimuli, consumers were able to correctly identify the brands being featured in the ads. The results also indicated that in certain instances audio triggered brand identification at a much greater rate than visual cues. For example, 25% of the respondents exposed to the Taco Bell television clip referenced visual cues as the brand trigger, while 55% mentioned the sound of the iconic Taco Bell “bong” as the “aha” branding moment. In Duracell’s television clip, 50% more viewers referenced its distinctive three-note audio signature as the brand trigger than any visual stimuli. And for Outback Steakhouse, four times as many respondents cited the announcer’s distinguishing voice as the brand trigger than any visual element of the commercial. The audio clips alone also prompted emotional responses in respondents. For the Warner Brothers' movie, "The Hobbit," as many respondents to the audio clip expressed excitement and desire to see the movie as those exposed to the television clip. In Taco Bell’s case, the audio clip generated mentions of hunger almost as often as those exposed to the television clip. For CoverGirl, the audio clip was just as likely to invoke feelings of happiness as the television clip.
Todd Schnitt Hires New Attorney As He Seeks New Bubba Trial 
Todd Schnitt has hired a new attorney as he seeks a new trial in his defamation case against Bubba the Love Sponge Clem. Schnitt has hired lawyer Wil Florin to replace Phillip Campbell and Jonathan Ellis who handled the first trial. Campbell's DUI arrest during that trial became both a news story of its own and a part of the civil suit's proceedings. The announcement that Schnitt has hired Florin follows reports that the radio personality had fired Campbell and Ellis. The Tampa Bay Times reports that Schnitt's "decision comes in the midst of a flurry of legal activity in the wake of the first trial, a loss for Schnitt that ended with accusations that Clem's attorneys hatched a DUI setup plot involving a young female paralegal." A managing partner at Campbell's law firm released a statement that says: "We continue to believe in the Schnitts' causes of action and hope that they are ultimately able to bring an end to the attacks on them personally and their personal reputations in this community." On January 30, as we reported at the time, jurors found that Clem did not defame Schnitt and his wife with comments he had made about them when the two radio personalities were direct morning show competitors in the Tampa market. Fitch Has Concerns About Clear Channel's Financial Future 
Fitch Ratings has assigned a "CCC/RR4" rating to Clear Channel's "$575 million senior secured priority guarantee note (PGN) due 2021. The notes will rank pari passu with the existing secured credit facilities and the existing secured PGN. Fitch currently has a 'CCC' Issuer Default Rating (IDR) on Clear Channel." This follows last week's announcement that Clear Channel plans to offer $500 million in notes, due in 2021, in a private offering. Fitch notes that the "CCC/RR4" rating refelects the expectation "that the enterprise value of the company will be maximized in a restructuring scenario (going concern), rather than a liquidation." Fitch adds that its ratings concerns also "center on the company's highly leveraged capital structure, with significant maturities in 2016 (approximately $10 billion); the considerable and growing interest burden that pressures FCF; technological threats and secular pressures in radio broadcasting; and the company's exposure to cyclical advertising revenue. The ratings are supported by the company's leading position in both the outdoor and radio industries, as well as the positive fundamentals and digital opportunities in the outdoor advertising space."
Arbitron Reports Q4 Net Income Down, 
Arbitron reports fourth quarter net income was down, to $13.4 million, or $0.50 per share (diluted), compared with $14.1 million, or $0.51 per share (diluted) for Q4 2011. The company says, "Net income in the fourth quarter 2012 was reduced by $5.2 million pre-tax—which is $0.18 per share (diluted)—due to consulting, legal, and other expenses related to the pending acquisition of Arbitron by Nielsen Holdings." Net income for the full year 2012 increased 6.8 percent to $56.9 million compared with $53.3 million for 2011. GAAP earnings per share (diluted) for the full year 2012 were $2.11 compared with $1.93 per share (diluted) in the prior year. "Excluding expenses directly related to the pending acquisition, earnings per share (diluted) for the fourth quarter and full year 2012 would have been $0.68 and $2.29 respectively. Compared to 2011 earnings per share (diluted) excluding a $3.5 million non-operating impairment charge (or $0.07 per diluted share) taken in the fourth quarter of last year, pro-forma earnings per share (diluted) in 2012 increased 17.2 percent for the quarter and 14.5 percent for the year." The company reported revenue of $124.7 million during the fourth quarter of 2012, an increase of $4.6 million or 3.8 percent, compared to revenue of $120.1 million during the fourth quarter of 2011. Costs and expenses for the fourth quarter 2012 were $106.6 million, an increase of $7.1 million or 7.1 percent over costs and expenses of $99.5 million in the fourth quarter 2011. This increase was primarily due to expenses related to the pending acquisition by Nielsen, additional cost of revenue for the PPM service, and additional Scarborough royalties due to increased sales of those services. Earnings before interest and income tax expense (EBIT) was $24.7 million in the fourth quarter of 2012, as compared to $23.8 million in the fourth quarter 2011. Excluding both the costs for the pending Nielsen transaction recorded in the fourth quarter 2012 and a non-operating impairment charge taken in the fourth quarter 2011, EBIT in the fourth quarter 2012 would have been $29.9 million, and EBIT in fourth quarter 2011 would have been $27.3 million. For the full year, says Arbitron, revenue was $449.9 million, an increase of 6.5 percent or $27.5 million, as compared to revenue of $422.3 million in 2011. Revenue in 2012 increased primarily due to growth in revenue for PPM-based ratings service, in part due to the nearly completed phase-in of contracted PPM price increases. Revenue in 2012 also grew due to an increase in Scarborough qualitative service revenue, an increase in Diary-based ratings service revenue, and an increase in revenue for the Arbitron Mobile service. The 2012 revenue growth was partially offset by a decrease in international equipment sales.
Salem Reports Q4 Total Revenue Up 6.1% 
Salem Communications reports a fourth quarter 6.1% total revenue increase to $60.6 million from $57.1 million in the year-ago period. Net broadcast revenue was up 2.5% to $47 million from $45.8 million. Station operating income increased 0.6% to $16.5 million from $16.4 million. Salem reports net earnings of $2 million, up from $0.4 million in Q4 2011. For the full year, net broadcast revenue increased 2.5% to $183.2 million from $178.7 million. Looking ahead, for the first quarter of 2013 Salem is projecting total revenue to increase 1% to 3% over first quarter 2012 total revenue of $54.3 million. Salem is also projecting operating expenses to rise 2% to 5% as compared to prior year operating expenses of $46.5 million. NAB Crystal Radio Awards Finalists Announced 
The NAB has announced the 50 finalists for the 26th Annual Crystal Radio Awards. Since 1987, the NAB Crystal Radio Awards have recognized radio stations for their outstanding year-round commitment to community service. Winners will be announced and the finalists will be honored at the NAB Radio Luncheon to be held Tuesday, April 9 during the 2013 NAB Show in Las Vegas.
Jacobs Media Debuts 'Smart Launch' 
A recent post in Jacobs Media's "JacoBlog" about the launch of "Nash FM" and its difficulty in corralling its social media accounts has led to the debut of a new Jacobs Media service – "Smart Launch." Spearheaded by social media strategist Lori Lewis, the company will offer a 30-day program to ensure that new station debuts go off seamlessly – socially. It will be available to broadcasters launching new stations as well as to those defending against a debut from another station in the market. Says Lewis, "I am excited to be able to work with companies to make sure that everything’s in place socially on Day One. I’ll then personally work with a station’s social accounts to welcome fans, connect with new listeners, handle competitive threats, and take full advantage of the social sphere." Jacobs Media President Fred Jacobs notes, "Radio pays a lot of attention to the meat and potatoes of a launch – testing the music, production, sales support, and marketing. But too often, the all-important social assets are on a back-burner or not accounted for at all. Smart Launch will give new stations an important advantage." Broadcasters interested in Smart Launch can contact Paul Jacobs at Jacobs Media for more information. Benztown Launches Syndicated 'Round Trip Country' 
Benztown Radio Networks is launching a new syndicated Country show -- "Round Trip Country" -- a two-hour weekly program that "re-visits Country music in the 1990's" hosted by Becca, the midday host at WKDF-FM, Nashville, and the co-host of television's "The Country Vibe with Chuck and Becca." The new "Round Trip Country" debuts in five markets. Says Becca, "The engines are revving and we're excited for Round Trip Country to take off. It's a thrill to be able to take our listeners back to some of Country Music's best days, the 90's, where larger-than-life country superstars like George Strait, Reba McEntire, Clint Black and Brooks & Dunn moved Country Music and Country Radio in a new direction, creating some of Country's greatest music. It's a really fun, novel, and high-energy concept for a radio show -- and now, 20 years later, it's an idea whose time has come!" 'Laura Ingraham Show' Added by American Forces Network 
Courtside Entertainment Group tells us that "The Laura Ingraham Show" is now heard by more than one million U.S. service members and their families via American Forces Network. "It is fantastic to be back on the air -- and it feels even more special knowing that all of our friends listening on Armed Forces Network can hear us around the globe," says Ingraham. "The energy and enthusiasm from listeners, affiliates and advertisers since I returned to the airwaves has been overwhelming.
Behind the Microphone: The Ins and Outs of Radio  |
From Mark Harris Broadcast Consulting
Monday, February 25, 2013
Katz Study Confirms Audio's Power to Extend Ad Brand Presence
From Tucson to Jacksonville, from Washington DC to Seattle, Americans are energized and enthusiastic about our daily conversation about our country's past, present and future. Politics is important--but so is the culture around us. As a single parent of young children and a cancer survivor, I have a unique perspective that connects me with listeners of all political stripes. Our conversation is a fun-filled ride that moves beyond the Beltway to the real-life ups and downs we all face." Ingraham also is increasing her audience through Launchpad Digital Media, Courtside's streaming and podcast division. Her weekly podcast, as well as her daily radio show, are produced by Dream In My Head Productions, distributed and managed by Courtside, with ad representation from Dial Global.
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