Thursday, April 4, 2013

Thursday's Radio & Media News - April 4 2013

BIA/Kelsey: Mobile Local Ad Revenues to Reach $9.1B in 2017


BIA/Kelsey forecasts U.S. mobile local advertising revenues will grow from $1.2 billion in 2012 to $9.1 billion in 2017, representing a compound annual growth rate (CAGR) of 49.3 percent. This corresponds to a 0.9 percent share of local media ad revenues in 2012, growing to a 6.1 percent share in 2017, according to the firm's recently released U.S. Local Media Forecast (2012-2017). BIA/Kelsey's projected mobile local ad revenues represent a subset of total U.S. mobile ad spending, which the firm forecasts to grow from $3.2 billion in 2012 to $16.8 billion in 2017. This puts locally targeted mobile ads at 38 percent of overall U.S. mobile ad spending in 2012, growing to 54 percent in 2017. Several factors will drive the "localized" share of U.S. mobile ad revenues. Large brand advertisers will increasingly adapt their campaign objectives to the capabilities of the mobile device due to effective, abundant, and currently undervalued mobile local ad inventory. Mobile advertising will move down market to the SMB segment through a combination of self-serve tools and local media direct sales channels. Premiums that develop for location-targeted ads will compound ad volume growth. Innovation will increase among ad networks and ad tech providers (i.e., Enhanced Campaigns).

"Though inventory growth currently outpaces advertiser demand, we believe the latter will begin to accelerate," says Michael Boland, BIA/Kelsey Senior Analyst and Director of Content. "This will not only increase overall mobile ad spend, but mobile ad rates such as CPMs and CPCs, which are currently lower than desktop equivalents, due to inventory oversupply." BIA/Kelsey's new forecast comprises advertising placed in mobile search, display, video and commercial SMS. Search advertising currently holds the largest share, followed by display and SMS. Search's dominant share indexes higher within this localized segment than within the broader of U.S. mobile ad revenue total, due to the high correlation between mobile search and local user intent. There is conversely a lower percentage of localization within the display category, due to the branding (as opposed to direct response) and reach-driven objectives inherent in display campaigns (i.e., in-app ads). The forecast includes a breakdown of mobile local ad spending by format. Display (display advertising applied to app and mobile Web inventory) will grow from $379 million in 2012 to $2.7 billion in 2017. Search (text advertising applied to search queries on mobile devices) will grow from $704 million in 2012 to $5.7 billion in 2017. SMS (commercial SMS messaging) will grow from $101 million in 2012 to $162 million in 2017. Video (rich media ad units distributed within app and mobile web inventory) will grow from $38 million in 2012 to $515 million in 2017

The PTC is F**kin' Pissed Off About FCC Indecency Changes


Media watchdog group the Parents Television Council is launching a fight against the FCC's perceived proposal to soften its policy against indecent radio and television content. Earlier this week we reported that the Commission, thwarted in the recent past by court rulings that its indecency rules are too vague, is now seeking public comment on whether its indecency rules are consistent with the First Amendment. A "Public Notice" also tells us that the FCC has reduced a backlog of broadcast indecency complaints by 70%, discarding more than one million that are too old. While the FCC doesn't specifically say it will ease indecency rules, some perceive the Public Notice as indicating that. The PTC does -- and calls the announcement "deeply vexing." The watchdog group says in a statement, "It unnecessarily weakens a decency law that withstood a ferocious, 10-year constitutional attack waged by the broadcast industry. It invites yet another wave of special interest pressure to obviate the intent of Congress and the will of the American people." Says PTC President Tim Winter, "The FCC is supposed to represent the interests of the American public, not the interests of the entertainment industry," he adds.

The PTC, among others both inside and outside the broadcasting industry, see the FCC notice as a proposal that would focus on penalizing only "egregious" indecency cases -- a shift away from the FCC's recent policy. Those rules were adopted during the Bush administration, calling for penalizing even "fleeting expletives," says The Hill. The "fleeting expletives" standard resulted in years of legal battles over curse words uttered during live awards shows and sporting events. "Either material is legally indecent or it is not," says Winter. "It is unnecessary for indecent content to be repeated many times in order to be actionable, and it is unwise for the FCC to pursue a new course which will guarantee nothing but a new rash of new litigation." The Hill notes that outgoing FCC Chairman Julius Genachowski "did not issue any indecency fines during his four-year tenure. He had noted that the agency's authority was in legal limbo due to lawsuits claiming the policy violated constitutional free speech rights." The Supreme Court upheld the FCC's indecency power in a decision last year. The NAB's chief spokesman, Dennis Wharton, says the broadcasters association only hopes that the FCC gives clear guidance to broadcast stations. "What broadcasters are seeking more than anything else from the FCC is certainty," Wharton told The Hill in an interview. "The last thing a broadcaster wants to do is risk losing its license or a $325,000 fine over programming that may or may not be defined as indecent."

Tim Richards Named KMLE-FM/Phoenix Program Director

Tim Richards

CBS Radio Country KMLE-FM, Phoenix, names veteran programmer Tim Richards as Program Director, replacing Jeff Garrison, who is now at Cox Media Group San Antonio programming Country "Y100" KCYY-FM. Richards recently exited Clear Channel where he was PD at crosstown CHR-Top40 "104.7 Kiss FM" KZZP-FM, Phoenix. "Tim was the perfect choice to lead our programming efforts at KMLE," says CBS Radio Phoenix SVP and Market Manager Tim Pohlman. "His leadership, prior success and positive attitude will add so much to an already great team." Richards tells us, "I couldn’t be more excited to work with CBS Radio Management and the KMLE team. KMLE is a legendary station and it’s an honor to be chosen as the next leader of this incredible brand." We reported last month that Richards exited the CCME Phoenix cluster, where he was "Kiss" PD and Director of the "Johnjay and Rich Morning Show" on KZZP-FM. Richards' resume also includes stops in Chicago, Detroit, and Boston.

JT Bosch Named PD for Austin's KASE-FM/KVET-FM

JT Bosch

Clear Channel Media and Entertainment Austin appoints JT Bosch as Program Director for Country KASE-FM and Country KVET-FM, the market's heritage Country stations, beginning April 22. Bosch joins the Austin cluster from CCME Harrisburg, where he most recently was Operations Manager and Regional Program Manager. "JT has shown incredible leadership in Harrisburg, managing that cluster along with his regional oversight in Allentown, Reading, Lancaster and Williamsport," says CCME SVP of Programming Brad Hardin. "JT has proven his programming skills with an exceptional track record of winning. We're excited to add JT to our Austin Team." Bosch began his radio career in 1988 at WUPE/Pittsfield, MA, supporting the Boston Red Sox game broadcasts for the station. He took on his first role as Program Director at WRHT/Greenville, NC. He then became Assistant PD and Music Director for WLAN/Lancaster, PA, and was later named Program Director. From there Bosch became PD for WHKF/Harrisburg and in 2008 was named Program Director for WRBT. "My first gig as a Program Director was at WRHT -- several years before I had started there as the overnight guy, but it was one of the most amazing experiences a young Program Director could have. Fast forward to my time in Harrisburg, which was one of the most challenging and rewarding jobs," says Bosch. "I'm looking forward to starting this next chapter in my radio career and am excited to take KASE and KVET to the next level."

'Chio in the Morning' Moves to San Diego


Former Philadelphia "Chio in the Morning" host Chio moves to San Diego to take the morning show to Clear Channel's "95.7 Kiss FM" KSSX-FM. The station announces that its new waker-upper will be "Chio in the Morning" starting next week. Most recently, the veteran radio host was at Beasley's "Wired 96.5" WRDW-FM, Philadelphia, the same market where the same show previously aired on "Q102" WIOQ-FM. He's also worked in New York at "Z100" WHTZ-FM, and at stations in Phoenix, San Diego, and Savannah. Chio exited "Wired 96.5" at the end of 2012. Actually this is a return to San Diego for the veteran radio host. He had briefly relocated to San Diego between his "Q102" and "Wired 96.5" stints. "Perfect weather, beautiful beaches, the largest media company in America, the city that gave me my first major break in my career, the first jock on 95.7 Kiss FM, this is an incredible opportunity," says Chio. "I can't wait to entertain and get to know San Diego's listeners." CCME San Diego VP of Programming John Peake tells us, "We are excited to launch Kiss FM's on-air programming with someone of Chio's caliber. Not only will he bring tremendous experience to San Diego's newest radio station, Chio also will bring a great level of enthusiasm for the rhythmic AC format and radio in general."

WLS-FM/Chicago Afternoon Host Fred Winston Is Out

Fred Winston

Classic Hits WLS-FM, Chicago, afternoon host Fred Winston is out. Winston, a Chicago radio veteran, had been hosting afternoons on the Cumulus Media station since last October. He "was cut Wednesday from the station's lineup. He learned it was his last show at the end of his shift," reports Robert Feder at Time Out Chicago. Starting Thursday, weekend personality Danny Lake will be filling in from 2:30-6pm. Cumulus Chicago Market Manager Donna Baker says, "We’re going in a different direction. There are some really good things going on with WLS and we’re very excited about them." Feder writes that she declined to comment further, "but it's clear the move was in response to ratings, which have plummeted at WLS-FM since the station switched from oldies to classic hits and revamped its talent lineup last fall." According to the veteran Chicago media reporter, "Winston was one of a cadre of legendary Chicago radio personalities" assembled by Cumulus SVP of Programming Jan Jeffries, also the Program Director for WLS-FM. "Fred personifies WLS," Jeffries said at the time he announced the new lineup. "He is back where he belongs in the driver's seat every afternoon." Winston, 67, first joined WLS-AM in 1971 when it was a major Top 40 station.

Killer of 'DJ Megatron' Gets 21-Year Prison Sentence

Billy Williams

The admitted killer of "Hot 97" WQHT-FM, New York, and BET personality DJ Megatron was sentenced to 21 years in prison Wednesday. William "Billy" Williams pleaded guilty to first-degree manslaughter in January. He had faced a murder trial. In addition to the prison sentence, he faces five years of post-release supervision. According to Staten Island's, "Prosecutors said Williams shot radio and TV personality DJ Megatron, 32, in the chest while the victim was walking to his Stapleton home on March 27, 2011. The slaying occurred at about 2am." Investigators said Williams, a recent parolee, was accompanied by Richard Cromwell. Williams shot the victim, whose given name is Corey McGriff, because he resisted the duo's attempts to rob him. Both defendants are Clifton residents. Videotape showed the two trailing McGriff from one of the buildings in the Park Hill Apartments complex. He was headed home. "As the hip-hop DJ lay dying, authorities said Cromwell snatched his watch -- a sentimental gift from his young daughter -- and one of his cellphones. The 32-year-old disc jockey worked on BET's '106 & Park' music countdown series, mainly in a role interacting with its live audience. He also did on-camera work for the show and for BET's website." Cromwell awaits sentencing on Monday. He pleaded guilty in January of last year to felony counts of first- and third-degree robbery and misdmeanor stolen-property possession, according to online state court records.

Pennsylvania Radio Host Charged with Unemployment Fraud

Mark Thomas

Triple-A "102.3 The Mountain" WDMT-FM, Wilkes Barre, night host Mark Thomas is charged with receiving more than $25,000 in unemployment compensation while he worked two different jobs. Thomas, who also sold cars at MotorWorld Auto Group in Wilkes Barre in addition to his radio job, was charged by detectives with theft, tampering with public records and unsworn falsification to authorities when he was arrested Wedmesday. He was arraigned by District Judge Martin Kane in Wilkes Barre, and released on $10,000 unsecured bail, according to The Times-Leader. According to the criminal complaint, Thomas filed an unemployment claim via the Internet on July 9, 2010, and was awarded $226 per week. He then renewed the unemployment claim in January 2011, and received $230 per week. An unemployment compensation interviewer discovered Thomas significantly under-reported earnings from MotorWorld in July 2011. Thomas declined comment after his arraignment. A preliminary hearing is scheduled for April 11.

Clear Channel Outdoor Agrees to Settle Shareholder Suit

Clear Channel Outdoor

Clear Channel Outdoor Holdings agrees to settle a shareholder lawsuit seeking to rescind an allegedly improper loan that the billboard advertising company made to its ailing parent Clear Channel Communications, reports Reuters. "The loan 'so significantly' depleted Clear Channel Outdoor's cash reserves that the company was forced to borrow $2 billion to fund a special dividend, according to the lawsuit filed in Delaware's Chancery Court in March last year." Clear Channel Communications and its owners, private equity firms Bain Capital and Thomas H Lee Partners, were also named as defendants. As part of the agreement, Clear Channel Outdoor will demand payment of $200 million under the revolving promissory note from its parent company, and pay a special dividend of the same amount from the proceeds of the repayment. Clear Channel Holdings Inc -- the outdoor company's direct parent and a subsidiary of Clear Channel Communications -- would receive 89 percent of such a dividend, to be paid out the day the note is repaid. Clear Channel Communications owns 89 percent of Clear Channel Outdoor.

HD Radio Receivers Top 12 Million

HD Radio

HD Radio developer iBiquity Digital announces "significant growth in digital broadcast services, consumer listening and receiver sales." Says iBiquity, HD Radio receiver sales growth has accelerated, with a new radio sold every six seconds. Over 12 million HD Radio receivers have been sold, with over 10 million factory-installed in new cars or auto aftermarket units. iBiquity says this "rapidly expanding installed base will help broadcast radio compete with other new digital technologies for the drivers' attention in the digital dashboard." Some 33 carmakers now include factory-installed HD Radio Technology on 170 different models. And 80 different models include HD Radio Technology as standard equipment. Over 3.4 million HD Radio-equipped cars were sold in 2012 and 20% of all new cars sold in 2012 included HD Radio Technology. Some 33 automakers now include factory-installed HD Radio on 170 different models, while eighty different models include HD Radio as standard equipment. Over 3.4 million HD Radio-equipped cars were sold in 2012 and twenty percent of all new cars sold in 2012 included HD Radio. HD Digital Traffic Services enable stations to transmit up-to-the-minute traffic, weather and other information and plot it onto car navigation screens. Two national networks, built by Clear Channel and the Broadcaster Traffic Consortium, and encompassing over 600 radio stations across the country, are now delivering HD Digital Traffic. Both the new 2013 Toyota radio featuring the Clear Channel Total Traffic Network service as well as the recently-introduced Mitsubishi unit with the Nokia/BTC service will be on display at the upcoming NAB Show in Las Vegas.

Artist Experience is another area of growth for iBiquity. It enables stations to provide synchronized images such as album cover art with their audio programming. It can also deliver station or advertiser logos for better branding and station recall, as well as reinforcing audio ads. Over the past year, 10 broadcast groups, including Clear Channel, CBS, Emmis, Entercom and Greater Media have worked to implement Artist Experience on their stations. Currently more than 450 stations are supporting Artist Experience on close to 850 digital broadcast programs nationwide. This feature is now widely available in new HD Radio car receivers from BMW, Buick, Chevrolet, GMC, Lexus, Toyota and Volkswagen as well as CE manufacturers Alpine, JVC, Kenwood, Pioneer, SONY and Insignia.

Delmarva Broadcasting Announces Management Moves

Michae lReath

Delmarva Broadcasting promotes News Talk WDEL-AM and Hot AC WSTW-FM General Manager Michael Reath (pictured) to Vice President. Also, Delmarva Interactive General Manager Mark Weidel assumes additional duties in the newly created position of Steinman Communications Director of Digital Media. Reath has been with the company for 23 years, holding several sales and management positions. He's served in his current position since 2006. As VP, Reath becomes the immediate successor to President/CEO Pete Booker in the company's management succession plan. Says Booker, "Mike has comprehensive knowledge of our industry, and considerable success and experience with our company. His balance of creativity and business judgment make him the right choice for this important position." Weidel will oversee the development of all of the digital media products for the Steinman groups broadcast properties, newspapers, specialty publications and B to B Digital programs and their integration into the companies’ individual and combined marketing and sales efforts. Delmarva Broadcasting Company is one of Steinman Communications' four operating companies. Says Steinman Vice Chair Bob Krasne, "With his selection, Mark has become a key member of our joint companies' management team and will be instrumental in leveraging skills and products developed in each company across our enterprise. His appointment signals a new era of cooperation among the Steinman Communications companies."

Report: Nils Larsen Out as Tribune Broadcasting President/CEO

Nils Larsen

Tribune Broadcasting President and CEO Nils Larsen has exited the company. This also ends his role as EVP and Chief Investment Officer for parent Tribune Company, reports Chicagoland Radio and Media. "Larsen's exit was confirmed to CRM by a spokesperson for Tribune Company today, but no official statement will be made on the exit," writes CRM. Larsen joined Tribune in December 2008, and became Chief Investment Officer in 2009. He was one of the four executives elevated to run the company upon the exit of Randy Michael, and was named President and CEO of the broadcasting division in May 2011. "Larsen is a longtime business associate and friend of former Tribune Chairman/owner Sam Zell.," writes CRM's Larz. "It was 'financial whiz kid' Nils Larsen, along with Randy Michaels, who had helped Zell gain a huge profit on his investments in Ohio radio company Jacor Communications in 1999." CRM also says, "Most in the industry knew that Larsen was never put in the Tribune Broadcasting role to advance the company's broadcasting division, but rather to have him watch carefully over the finances of the division while it struggled to exit bankruptcy for years. Tribune Company finally exited bankruptcy on December 31st." Last month, veteran Chicago media executive Larry Wert took over as Tribune Broadcasting's new President of Local Broadcasting, but at the time we were told that would not affect Larsen's position -- although many were skeptical about that.

Behind the Microphone: The Ins and Outs of Radio
img Program Director and afternoon host Erin "Charlie" Buchwald exits Rhythmic CHR "Jamz 96.3 FM" WAJZ-FM, Albany, to join CHR-Top40 "Y101" WYOY-FM, Jackson, Mississippi, as Music Director and midday host ... Sam Sylk joins Urban AC "93.1 FM - Cleveland's R+B Leader" WZAK-FM as midday host ... Rhythmic CHR "U92" KUUU-FM, Salt Lake City, APD/MD and afternoon host Ron T resigns. No specific explanation is offered ... Country "K99" WHKO-FM, Dayton, names former senior morning producer Chris Harley as Assistant PD, and morning co-host Nancy Wilson as Music Director. Also, Dylan Reed is named named afternoon host, replacing Shane Collins. Harley's new APD role extends to the full Cox Dayton cluster ... Detroit Hot AC "96.3 DVD" WDVD-FM and Adult Variety Hits "93.1 Doug FM" WDRQ-FM midday host Jake Edwards exits ahead of a move to Tennessee.


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