Wednesday, April 10, 2013

Wednesday's Radio & Media News - April 10, 2013

BIA/Kelsey: U.S. Social Ad Revenues to Reach $11B in 2017

BIA/Kelsey

BIA/Kelsey forecasts U.S. social advertising revenues are expected to grow from $4.7 billion in 2012 to $11 billion in 2017, representing a compound annual growth rate (CAGR) of 18.6 percent. BIA/Kelsey expects social advertising's local penetration to steadily increase as social networks continually improve the ease of onboarding, local targeting and campaign management for both brands and SMBs. Locally targeted social ad revenues will grow at a 26.4 percent CAGR, from $1.1 billion in 2012 to $3.6 billion in 2017. "Social networks are evolving their ad products and features to improve performance," says BIA/Kelsey Director of Consulting and Senior Analyst Jed Williams. "Native social formats, including video, and mobile-social advertising will be the principal market growth drivers." According to the forecast, display remains the dominant social ad unit, although native ad formats such as Facebook's Sponsored Stories and Twitter's Promoted Tweets require re-thinking of traditional display to optimize social campaigns, especially on mobile platforms. BIA/Kelsey forecasts U.S. native social advertising revenues to grow from $1.6 billion in 2012 to $4.6 billion in 2017 (CAGR: 22.9 percent). Also driven by Facebook and Twitter, U.S. social mobile ad revenues approached $600 million in 2012, and are expected to grow to $2.2 billion by 2017 (CAGR: 29.9 percent). BIA/Kelsey custom advisory service clients can log into the client resource center to download the full U.S. Social Local Media forecast.



New Data Correlates Social Engagement with Traditional Radio Ratings

Jelli

Jelli, the cloud platform for radio, today released new data that shows a direct correlation between an increase in social engagement with higher ratings for traditional radio broadcasts. In addition, the company provided data showing how socially-engaged listeners interact with traditional radio spots that were aired during these broadcasts. Building upon recently published research by Nielsen about the correlation between Twitter engagement and television ratings, Jelli analyzed data over the past year related to audience engagement with radio, another massive traditional medium like television which is beginning to see a more active "feedback loop" during broadcasts. During a 13 week period, Jelli measured weekly active registered users who were using Jelli's online or mobile app to vote to choose the music played during live broadcasts on five different radio stations based in four cities across the United States. The results were weekly social engagement for the sample stations increased 127%, and Ratings (i.e., weekly cume) for those stations increased 30%. The five radio stations measured were owned by three different radio groups and represented a range of musical formats. There was no common promotion or other connection between the stations, other than the use of the Jelli platform to enable their audiences to choose the music broadcast on air in real time.

In addition to driving ratings, Jelli also measured how the audience reacted to radio spots served when the audience was engaging with the broadcasts. When a radio spot played on the air, a synched display ad from the advertiser was presented to the listeners online and via mobile apps. The results were 0.10% to 0.15% of the weekly cume ratings base (i.e., all listeners) took some action with the advertising. This is roughly two to three times typical performance of online display advertising, and 1 to 3% of logged-in listeners clicked through on the display portion of the ad. "Our data shows that higher social engagement levels can have a direct impact on increasing overall audience size as measured by traditional ratings," says Jelli CEO Mike Dougherty. "In addition, adding a 'feedback loop' to a one-way broadcast can drive measurable brand engagement with the traditional radio spots aired on these broadcasts."



Report: iHeartRadio to Take Over 'Tonight Show' Burbank Studio

iHeartRADIO

Clear Channel's iHeartRadio has reportedly "signed on for 20,000 square feet in The Burbank Studios on a 10-year lease reportedly worth between $5 million and $7 million, according to the property's owner." The Burbank Leader reports that the space is in the same building that currently houses "The Tonight Show with Jay Leno" and NBCUniversal's news operations, both of which are expected to move out within the next 14 months. iHeartRadio, which is based in New York City, has not announced what it plans to use the space for. According to the published report, Clear Channel spokeswoman Angel Aristone said the company wasn't releasing information about the lease. "Jeff Worthe -- founder of Worthe Real Estate Group, which owns The Burbank Studios -- said he thought the company's decision made sense because it already leases space in The Pinnacle, an office building located basically across the street." The Leader notes that Worthe's company also owns The Pinnacle. "You know, there's a lot of logic to having a musical act on air, on the [Clear Channel] stations, then obviously they can walk across the street and play at the iHeartRadio studio," he said. "[Clear Channel has] been a tenant of ours for many years, so we're excited to have another division of theirs move in." A 982,000-square-foot facility, The Burbank Studios contains office space, sound stages and production facilities. NBCUniversal plans to move its news operations from The Burbank Studios to its state-of-the-art facilities on the Universal lot by the end of 2013, and "The Tonight Show" is slated to move to New York City next spring.



The Motley Fool: Pandora's '200 Million Is Just a Number'

The Motley Fool

One day after we reported that "Pandora claims that it has reached a milestone of 200 million registered users in the U.S.," we find a report that expresses the same skepticism that broadcasters often have about Pandora's ongoing claims. And this report is not from broadcast radio or the specialized media that cover broadcasting. "As far as milestones go, 200 million is a pretty big number," writes The Motley Fool. But, says their report, "there's a big difference between 200 million registrations and 200 million users. Pandora puts out monthly user metrics, and we know that it had 69.5 million -- a little more than a third of its total registrations -- check in as active listeners as of the end of March. That's a big number, and it's up a healthy 36% increase over the past year. But it's not 200 million." The Motley Fool, which specializes in investing information, writes: "Investors also need to consider the value of these 200 million cumulative registrations. How many of them are duplicate accounts? How many of them no longer exist? What's a Pandora account worth?" Saying that we may never get an answer to the first two questions, they "can give the third query a shot," The Motley Fool notes, "Since Pandora's market cap is $2.2 billion, we can divide that figure by 200 million to arrive at a value of $11 per registered user -- or closer to $32 for each of Pandora's nearly 70 million active listeners." And, says the report, the market's perceived value of Pandora's membership is low because the company just isn't good at milking revenue out of its users. Read the full report here. The Motley Fool has a lot more to say about Pandora's value -- or lack thereof -- concluding: "Pandora has a long way to go."



Nielsen: U.S. Women Control The Purse Strings

Nielsen

Most married men -- if they're being honest and their wives aren't nearby -- will say they know this: Women outspend men. And radio knows this, as many stations focus on advertiser-desired female demographics. Now, a report on a new Nielsen study tells us, "Women have tremendous spending power in America today -- and it's growing. Market estimates about their total purchasing prowess varies, ranging anywhere from $5 trillion to $15 trillion annually. And the scope of that spending is notably vast. Nielsen Women Outspend Men Fleishman-Hillard Inc. estimates that women will control two-thirds of the consumer wealth in the U.S. over the next decade and be the beneficiaries of the largest transference of wealth in our country's history—compelling insight for anyone curious about who’s keeping the U.S. economy going these days. In addition to handling the bulk of the purchasing decisions for consumer goods in the U.S., they’re also likely to influence or manage many other big ticket purchases—homes, autos, appliances, furniture, etc.—not to mention a large portion of the apparel, groceries and everyday purchases."

Men Are Shopping More Too
"Women may be the dominant retail shoppers, but men are taking a more active role in the shopping process than they have in the past. Between 2004 and 2012, U.S. women reduced the number of trips they made across most retail channels, while men increased their visits to all outlets except grocery and drug stores. Female shopping trips are most important to the mass merchandiser and dollar store channels, while male shopping trips are of greater relative importance within convenience/gas, grocery and warehouse club outlets. Women spend more money per trip than men in all of the channels examined, but in many channels, the differences between the sexes are not as great as one might expect. Nevertheless, spending differences do indicate that women drive the larger stock-up or planned trips as they outspend males by $14.31 per trip in supercenters and by $10.32 per trip in grocery stores."

What This Means for Marketers
"Considering the spending power that women wield in today’s marketplace, it’s particularly important for advertising and marketing messaging to resonate with them. Specifically, Nielsen NeuroFocus research has found that the female brain is hard-wired with evolutionary strongholds to create a very specialized customer whose purchasing prowess has never been stronger. For example, we know attention is the first step toward intent and brand loyalty. The second step toward loyalty is retention. Women remember more and differently than men do, so talk to both her emotional and rational sides and acknowledge her attention to detail. Layering emotional decision-making opportunities with rational information will increase purchase intent and will have strong “sticking” power. According to Nielsen NeuroFocus, the female brain is programmed to maintain social harmony, so messaging should be positive and not focus on negative comparisons or associations."



NAB Show Attendance Up This Year

NAB Show

The 2013 NAB Show in Las Vegas saw attendance grow to a total of 92,414 registered attendees, up from 91,565 in 2012, according to preliminary figures from the NAB. There were 24,461 international attendees, representing 155 countries. There were 1,703 news media attendees included in the overall number. "Once again, NAB Show serves as the premiere event for content and communications professionals from around the globe," says NAB EVP of Communications Dennis Wharton. "We're thrilled by the continued support from our exhibitors and attendees, and delighted that NAB Show's brand remains a powerful enabling force for technological advancement in media and entertainment." NAB reported exhibit space grew nearly 10 percent over 2012. This year's NAB Show included 1,600 exhibitors spanning 900,000 net square feet of exhibit space -- up from 815,000 net square feet in 2012. The 2013 NAB Show in Las Vegas continues through tomorrow (April 11).



Jon Rish Quits Boston's WEEI Over Pay Cut

Jon Rish

Entercom Sports Talk WEEI-FM, Boston, fill-in play-by-play voice, and host for the station's Red Sox broadcasts, Jon Rish, has resigned, after being asked to take a pay cut. He had been working without a contract since December. Boston.com reports that Rish notified WEEI Program Director Jason Wolfe only three hours before the beginning of the Red Sox home opener because he wanted to tell him in person and not by phone. Rish has hosted pre-game and post-game for the network since 2006, and reportedly was asked to take a 30 percent salary reduction, the latest of cost-cutting moves by Entercom, the most notable of which was the firing of afternoon host Glenn Ordway in mid-February. "I will say I could no longer justify working for Entercom," Rish told Boston.com. "It wasn't fair to me and it wasn't workable for my family. It's a very difficult decision to explain to other people because calling Red Sox games is viewed as a dream job. But it was not as difficult a decision for me as you might think. It was not a difficult decision to explain to my wife." Rish, who teamed with Joe Castiglione for a few broadcasts this season with Dave O'Brien calling the women's Final Four for ESPN, has been the fill-in voice on the game broadcasts since 2008. He also has filled in on Wednesdays in recent years when O'Brien has been away calling "Wednesday Night Baseball" for ESPN.



Maverick Media Sells Santa Rosa Cluster

Hot 101.7

Sonoma Media Group has agreed to acquire the five-station Maverick Media of Santa Rosa cluster. Terms of the deal are not disclosed, but we will get a price for the sale when license transfer paperwork reaches the FCC. There is a report from California that says the price of the deal is $4.5 million, but that's yet to be confirmed. The five stations going to Sonoma Media Group include CHR-Top40 "Hot 101.7" KHTH-FM, Hot AC "Mix 104.9" KMHX-FM, Country "Froggy 92.9" KFGY-FM, Classic Rock "97.7 The River" KVRV-FM, and "News Talk 1350" KSRO-AM. Mix 104.9 Sonoma Media Group was recently formed by Lawrence Amaturo, who was a minority owner in his father Joseph’s Amaturo Group. "I'm thrilled to return to a business that I enjoy so much -- particularly because it's in a community that I love and one that I feel I know so well," says Amaturo. "Gary Rozynek and his team have done a superb job with this five-station cluster; the very best in our market. I firmly believe the time is right to dive back in to serve our Sonoma County clients and listeners." Amaturo currently operates two automotive dealerships and a web design company in Santa Rosa. The Amaturo Group sold the "Playlist 92.7" trimulcast around Los Angeles to EMF Broadcasting in December for $8.8 million. A news release tells us that Media Venture Partners represented Sonoma Media Group in the transaction. CEA Capital Advisors represented Maverick Media, which continues to own 15 other stations in Ohio, Wisconsin and Illinois.



Los Angeles 'K-Day' to End? Sold -- Again!

K-Day

Classic Hip-Hop "93.5 K-Day" featuring "Back in the Day Hits" in the greater Los Angeles area is coming to an end. That is, assuming a new deal to sell the stations goes all the way to closing. KDAY-FM/KDEY-FM owner Magic Broadcasting has agreed to sell the stations to RBC Communications for a reported $19.5 million. KDAY-FM is licensed to Redondo Beach-Los Angeles and KDEY-FM to Ontario-Riverside. RBC will reportedly flip the stations to a Chinese format when the sale closes. Phoenix Satellite Television, a British Virgin Islands based company which operates six cable networks in China, owns a 20% stake in RBC. Anthony Yuen holds the other 80% through his RBC Investments. You might remember there was a previous deal to sell the "K-Day" combo that never closed. In 2010, Magic Broadcasting announced a sale to SoCal935 for $35 million, only to later have the deal fall through. Brokers for the new deal are Media Venture Partners and Jorgenson Broadcast Brokerage.



Legendary Top 40 Programmer George Wilson Dies at 83

George Wilson

Legendary 1960s and 70s Top 40 programmer George Wilson has died, following complications of a heart attack at the age of 83. He had recently been hospitalized for his heart condition. Wilson earned a major reputation for his aggressive and creative programming style, notably at Bartel Broadcasting and the Starr Group in the '60s and '70s. Wilson was twice honored as National Program Director and named by his peers as Radio Executive of the Year. Wilson also served as Station Manager, President and a board member of several major radio broadcast groups. He most recently operated Memory Tunes and was on the Nominating Committee of the "Hit Parade" Hall of Fame. Don Barret at LARadio.com reports that he was born George Wilson Crowell on July 18, 1929, in Katonah, New York. Wilson's wife Jackie, daughter Terry and son-in-law Rob were at his bedside when he passed.



Southern California Radio Columnist Gary Lycan Dies at 68

Gary Lycan

Orange County Register radio columnist Gary Lycan has died at the age of 68. OCRegister.com reports, "Lycan had battled prostate cancer in recent years but continued to write his column; the most recent one appeared in the Register on Saturday. He died in his sleep Tuesday, said Hazel Wurfl, his companion for the past eight years." Lycan was one of a handful of newspaper people who still reported on radio in recent years, and was frequently quoted here and by others that cover news about radio and media. He was called "the dean of radio writers" and wrote for the OC Register for almost 40 years. Reporting his passing, the OC Register calls him "one of the preeminent experts on the past and present of Southern California's airwaves." According to LARadio.com, Lycan was diagnosed with prostate cancer in the summer of 2010.



Ten More Congress Members Sign Onto 'Local Radio Freedom Act'

Congress

A bipartisan group of nine additional House members and another Senator have signed onto a resolution that opposes "any new performance fee, tax, royalty, or other charge" on local broadcast radio stations. "The Local Radio Freedom Act" is now currently co-sponsored by 118 Members of the House and nine Senators. Adding their support to the Local Radio Freedom Act are Reps. Ron Barber (AZ), Jeff Duncan (SC), Sam Graves (MO), Peter King (NY), Devin Nunes (CA), Steven Palazzo (MS), Joe Pitts (PA), Reid Ribble (WI) and Paul Ryan (WI). Sen. Max Baucus (D-MT) is the latest lawmaker to sign onto its companion resolution in the Senate. Reps. Michael Conaway (R-TX) and Gene Green (D-TX) introduced the Local Radio Freedom Act in the House of Representatives on February 15 along with 71 additional co-sponsors. An identical resolution was introduced in the Senate on March 6 by Senators John Barrasso (R-WY) and Heidi Heitkamp (D-ND). This week, Clear Channel and independent record label Wind-Up Records struck a deal to permit radio stations to pay sound-recording performance royalties in exchange for lowered digital performance fees. The agreement is similar to other private-market deals struck in recent months between broadcasters and record labels without the need for government intervention. Examples of such agreements include those between Clear Channel and RPM Entertainment, Entercom and Glassnote Entertainment Group; and Beasley Broadcasting and Big Machine Label Group. A full listing of the 118 House cosponsors of the Local Radio Freedom Act, and the nine Senate cosponsors is available here from the NAB.



Courtside Appoints Roby Wiener EVP of Client Strategy

Courtside Entertainment Group

Courtside Entertainment Group names Roby Wiener to the newly-created position of EVP of Client Strategy, effective immediately. Wiener will oversee branding, client strategy and market research for all of Courtside's divisions, including radio, Launchpad Digital Media and PodcastOne.com. Most recently with Dial Global, Wiener joined the company after its merger with Westwood One in 2006 when she was appointed Chief Marketing Officer and EVP of Marketing. "I can't think of a better person to communicate the value of the changes that are going on in media today," says Courtside Chairman Norm Pattiz. "I've known Roby longer than I've known my wife and I love her almost as much. I couldn't be happier to have her as a part of our team on this very exciting ride." Wiener tells us, "Technology continues to shape the way people share ideas and my passion has always been to help advertisers be an important part of that dialog. Launchpad's communication platform provides a remarkable new approach for advertisers to tell their stories with an authenticity that truly resonates with consumers, engaging with them on their terms."



Behind the Microphone: The Ins and Outs of Radio
img Longtime morning co-host Kristi Leigh exits Hot AC "Mix 107.7" WMMX-FM, Dayton, after more than 20 years with the station. The station says only she's no longer part of the morning show, although reports from Ohio say she was cut loose with "appreciation for all of her contributions during her time" with the Clear Channel station, and that they "wish her well" -- but not at "Mix 107.7" ... Darin "CEO" Gloe joins Rhythmic CHR "92.9 The Beat" KOSP-FM, Springfield, Missouri, as Mix Show Director. Gloe is also heard on CHR-Top40 "K-Hits" KHTT-FM, Tulsa. Also, the "92.9 The Beat" adds Bailey as Music Director and afternoon host, joining from Alternative clustermate KQRA-FM. And JB Love joins KOSP-FM as night host, arriving from CHR-Top40 WZOK-FM, Rockford, Illinois ... Classic Hits "Kola 99.9" KOLA-FM, Riverside-San Bernardino, California, adds Irma Blanco to the "Jesse Duran in the Morning Show" starting April 15. Blanco returns to the cluster after working most recently at "104.3 MyFM" KBIG-FM, Los Angeles ... At Townsquare Media Lawton, Oklahoma, "Critter" Brown is promoted to cluster Operations Manager, and will also continue as Program Director of Rock "Z94" KZCD-FM. Also at the cluster, Nancy Mace, on-air host on Country "K-Law 101" KLAW-FM is named brand manager for Classic Hits "My 107.3 FM" KVRW-FM. And Clay Miller is the new afternoon host at KLAW-FM.



MHBC

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