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Radio 2015: Demonstrating digital engagement becomes more critical. Interactivity will be the
name of the digital game for radio this year, as the industry deploys digital assets to deliver a more
engaged audience to advertisers. Mobile apps that let listeners interact with content and advertising
will become more common, digital experts say, with a goal of boosting engagement metrics. “Traditional
broadcasters need to come up with reasons for listeners to come back and engage with the audio
player, if they want to be competitive with click-through rates on the engagement side,” says Matt
Cutair, CEO of digital audio rep firm AudioHQ. As radio competes more aggressively for digital dollars,
the ability to demonstrate audience engagement will become more critical. “Anytime you bring digital
measurement accountability and engagement metrics to traditional media, that adds value,” Cutair
says, pointing to apps like Clip Interactive and NextRadio as ways to bridge the gap between broadcast
and digital. Using digital metrics to prove engagement is expected to contribute to another year of
robust digital growth, following gains of 12% last year and 16% in 2013, per the Radio Advertising
Bureau. “We’re bullish on radio’s ability to generate increasingly noticeable revenues in the online
world in 2015,” BIA/Kelsey chief economist Mark Fratrik says. But radio’s digital strategy is still taking
shape on a landscape where the only constant is change. “If we had a blueprint that was working,
everyone would adopt it,” Greater Media CEO Peter Smyth says. “I don’t think anybody has cracked
the code yet.”
Radio 2015: All this
week Inside Radio
will examine the
biggest issues facing
broadcasters, along
with trends to be on
the lookout for in the
coming year.
Bigger focus on digital quality could grow streaming audience in 2015. Weekday listening to broadcast radio streams
measured by Triton Digital increased 15% in 2014’s third quarter, compared to the same period last year. Pureplay listening
grew at three-times that rate (49%). To kick digital listening up a notch, radio needs to improve the quality of its streams,
digital experts say. “One of the challenges radio has in monetizing its streams has to do with their quality,” says BIA/Kelsey
VP of strategic sales Stacey Sedbrook. That means using adaptive bitrate streaming technology to reduce buffering,
she says. And substituting music or original content during long on-air spot breaks to improve programming appeal. The
amount of digital-only audio content created by broadcasters is expected to grow this year. It’s not just the big operators like
iHeartMedia and CBS Radio that are building their online audiences with digital-only stations. Smaller operators like Journal
Broadcast Group have launched web-only stations targeted specifically for local audiences. More pureplay competition will
put pressure on radio to “become better and to improve its programming,” BIA/Kelsey chief economist Mark Fratrik says. But
he expects their sales impact to be limited to national buys, apart from Pandora, which has hired local sales staffs. In fact,
Fratrik believes streaming services may have a greater impact on satellite radio than local broadcasters. “The way stations
can connect with audiences reaffirms my position that radio is well positioned to compete in this different ad marketplace
because it has brand-name appeal, information programming and the local sales staffs that a lot of digital services would
love to have,” Fratrik says.
What radio needs to do to grow streaming revenue in 2015. In March 2012, then-Katz360 president Brian Benedik
suggested broadcasters scale back in-stream spotloads to put more pressure on pricing and give sellers more leverage.
Nearly three years later, another digital audio sales exec is echoing that call. AudioHQ CEO Matt Cutair says it’s harder to
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get “quality rates” from advertisers for broadcast streams than for pureplays because a glut of broadcast streaming inventory
outpaces demand. “There’s a lot of additional supply which keeps the pricing and demand low,” Cutair says. Because they
run lighter ad loads, pureplays are able to drive higher demand for their inventory. The availability of broadcast streaming
inventory across a host of ad networks only adds to the problem. “That sales duplication gives agencies more leverage on
pricing,” Cutair says. Because they require users to provide their gender, age and ZIP code, pureplays also have an ad
targeting advantage, though some broadcasters are requesting users to provide that info. Stations that combo sell their
on-air and online inventory could get a boost when Nielsen introduces digital audio measurement. Integrated audience
measurement “could have a huge impact,” BIA/Kelsey VP Stacey Sedbrook says. It could trigger the release of more ad
dollars from marketers that have been sitting on the digital audio sidelines. “There is still a segment of the buying community
that is holding all or a high percent of their money that should go to digital, if there was universal measurement,” Cutair says.
That would allow advertisers to see how listeners move from one platform to another during their audio day, and help them
buy more effectively from a reach and frequency perspective, buyers say.
Will 2015 be the ‘year of audio?’ As podcasting continues to move from niche to mainstream, radio is uniquely positioned
to capitalize on the trend. With a bench of on-air talent and production facilities, content can be repurposed for on demand
consumption, or entirely new consent can be created. It’s a card pureplays aren’t able to play. The on-demand opportunity
is so big that CBS Radio EVP of programming Chris Oliviero has gone as far as heralding 2015 as “the year of audio. I see
no reason why on-demand can’t provide the same lift for audio that it does for video,” Oliviero says, pointing to the extensive
mainstream press generated by NPR’s “Serial” series, which has become the most popular podcast in history. With time
and bandwidth restrictions eliminated by technology, on-demand programming need not be limited just to repurposed on-air
content. There’s room to create new original content that lives only online. “But it has to embrace all the benefits of the new
technology,” Oliviero says, adding that CBS will become more aggressive in the space this year. Greater Media also sees
an opportunity. “Podcasting is a very good business,” CEO Peter Smyth says. “But that goes back to having great local
personalities and local content so that you can develop a great digital business in the marketplace.” Like all things digital,
podcasting may be a matter of amassing an audience first and figuring out how to monetize it later. “The podcasting model
is problematic because you can’t put enough advertising in there to support it,” says Borrell Associates CEO Gordon Borrell.
Inside Radio Readers Poll: Bigger salaries in 2014. Base salary raises may have been difficult to score last year, but the
largest number of readers report their annual pay increased since the end of the Great Recession. More than four-in-ten
(42%) of readers who took Inside Radio’s year-end survey say their compensation increased in 2014. That compares to
37% who said the same last year. It also beats 2012 (32%) and 2011 (30%) when revenue was growing at a comparatively
faster pace. The number who earned more last year was even bigger than those who said their pay check was flat
compared with a year earlier — 39% said they didn’t make any more. That’s the lowest level in four years. And 19% reported
a smaller paycheck — that’s essentially even with the 20% who said that a year ago. The increases came despite little help
from commission rates. More than half (61%) said their station’s rates held steady last year. There was some glimmer of
hope: more (24%) said their rates were higher than those who said lower (14%). Those percentages are nearly identical to
2013 results. What about 2015? There’s a bit a less optimism about additional pay increases this year. A majority (51%)
think it will be a year of no raises, a three-point increase compared to last January. One-in-ten are worried they’ll earn less.
But nearly four-times as many readers (39%) expect compensation will go up.
For those looking for a new job, it remains an uphill battle. Despite a slowly recovering economy, one-third (34%) of
Inside Radio readers predict their station’s staff size will increase this year. That compares to 37% who said that last year.
For a second consecutive year, half of people who took the survey say it’s more likely the staff size will remain the same.
There’s also some still worried that layoffs will continue, with 17% predicting downsizing will hit where they work. That’s a
shade more pessimistic compared to the past three years.
Radio 2015 continues — including more from our year-end survey — in tomorrow’s Inside Radio.
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Scripps to put Steve Wexler over its new radio group. E.W. Scripps and Journal Communications begin 2015 as two
separate entities, but by mid-year the two companies expect their merger to be completed. Ahead of the rollup, which
executives will remain is coming into focus. Journal Broadcast Group EVP of radio Steve Wexler will become vice president
for radio at Scripps following the closing. He’s one of two managers who’ll hold a Scripps business card. Wexler’s counterpart
at Journal’s television stations, Debbie Turner, will become a divisional manager for Scripps. The moves, announced in a
regulatory filing, did not indicate whether Turner will remain general manager of WTVF-TV in Nashville. It did however reveal
that Journal president and chief operating officer Andre Fernandez will exit once the Journal-Scripps merger is completed.
He’s been at the company since 2008, first as chief financial officer, and as its president since 2012. Fernandez will depart
with a golden parachute topping $2 million. Current Journal CEO Steve Smith will become chairman of the newly-formed
Journal Media Group (JMG), which will become the new holding company for Scripps’ and Journal’s print properties. Also,
Journal CFO Jason Graham will transition to JMG and Journal EVP/COO Betsy Brenner, who has managed its newspaper
division, will also shift to JMG and become publisher of the flagship Milwaukee Journal Sentinel. Scripps SVP Tim Stautberg
will become the new CEO for JMG. In a filing with the SEC, Scripps says it expects the new Journal Media Group to trade
on the New York Stock Exchange under the ticker “JMG” after the merger.
SCBA: Nearly 500 new advertisers on SoCal radio in 2014. Expanding radio’s list of customers can help grow industry
revenue and account rep commission checks. To that end, the Southern California Broadcasters Association reports radio
attracted 463 new or returning advertisers in the first 11 months of 2014. Those clients placed ad buys worth $38,358,316,
according to SCBA. “If radio’s real strength is local, then this impressive new business fact speaks loudly about the new
partnerships that local and regional businesses have developed with Southern California radio,” the trade group says in
a report to members. It helped soften the blow of softer national sales, which were off 10.4% according to Miller Kaplan
Arase data. Los Angeles market revenue declined 2.2% through the end of November. Bright spots include off-air revenue,
which grew 14.9%, and network billings, which soared 64.7%. In its just-released Quarterly Market Guidance Report, the
SCBA is forecasting a “fast start” to first quarter business based on several economic indicators in the region. “Our regional
economy is coming back decisively and as a result, the advertising environment for radio should be even stronger in 2015,”
SCBA president Thom Callahan says. Read the full report HERE.
Car ad sales may get a boost from still-strong auto sales. With a strong final month of sales, preliminary estimates show
16.92 vehicles sold last year as 13 automakers set new U.S. sales records. It was the fifth year in a row that car sales
increased. Ford has been on radio pushing its new F-150 truck and Ford sales analyst Erich Merkle says that single model
made up 5% of its sales in December, a month that was Ford’s best since 2005. But it was Chrysler that posted the best
numbers, with sales up 20%. General Motors was close behind with a 19% jump in sales. In what may be good news for
radio, several analysts think carmakers may need to turn more promotional in 2015 to keep that pace up, and several auto
executives said yesterday they think this year’s sales figures could be slightly lower. But Mustafa Mohatarem, GM’s chief
economist, disagrees, pointing to economic momentum. “Car-buying fundamentals remain strong and we expect higher
industry sales in 2015,” he says. Year-end clearance sales drove radio spending last week. Nissan, Honda, Toyota, and Ford
regional dealer associations were the biggest-volume radio advertisers on stations tracked by Media Monitors.
HD Radio unit sales approach 25 million.
The expanding integration of digital radio into car dashboards has 2015
beginning with nearly 25 million HD Radio units now in the marketplace. That’s an increase of 43% compared to the 17.5
million units that were sold by this time a year ago. “HD Radio technology is now shipping in close to half of all cars sold
and provides a massive platform for AM/FM broadcasters to offer a rich suite of services in the new connected car,” CEO
Bob Struble says. All major auto brands now offer factory-installed HD Radio and the digital receivers are now standard
equipment on all vehicles sold by eight automakers. An RDA Group survey of car buyers released in September showed
71% were aware of HD Radio technology. That was an increase of 11 points from a 2012 survey. HD Radio is also available
in more than 70 consumer products, according to iBiquity, which is roughly the same as last year. The number of HD Radio
stations has remained fairly steady, with more than 2,200 stations utilizing the technology.
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TiVo brings radio into its video recorders with iHeartRadio integration. One of the big trends on display at this week’s
International Consumer Electronics Show in Las Vegas will be a further blurring of the lines among devices. A phone
becomes a television screen, and for radio, an on-demand TV service becomes the newest receiver. That’s coming to
market as TiVo announces it will begin integrating iHeartRadio into its TiVo Roamio, TiVo Mini and TiVo Premiere line of
devices. It will converge, as iHeartRadio president Darren Davis points out, content from cable television, streaming video
services, and the internet, with live radio and personalized custom stations built from the service’s catalog of 20 million
songs. The iHeartRadio app will begin to appear on TiVo devices over the next few weeks as the company rolls out an update
to users. TiVo has already integrated several other music apps into its digital video recorders, including Pandora, Spotify,
Rhapsody and Live365.
Suddenly Chicago is home to country’s latest format war. Half of radio’s top 10 markets now have more than one
country station that covers the metro, following yesterday’s birth of “Big 95.5, Chicago’s Hit Country.” The iHeartMedia station
supplanted regional Mexican “El Patron 95.5” on WNUA, aiming for a piece of the country market that CBS Radio’s “US 99.5”
WUSN has had to itself for years. Chicago is radio’s largest market with a second full-market country station. “Big 95.5” is
calling itself “the new choice for country” and “Chicago’s most commercial-free hit country.” A station press release says it
will include some “all-time favorite throwbacks” in the mix but the majority of music heard in its first seven hours was released
in the last three years, save for about one song per hour from the ‘90s. IHeartMedia says it will announce a live and local
talent lineup soon. Among radio’s top 10 markets, Los Angeles, New York, Philadelphia, San Francisco and Washington,
DC still have just one country FM that covers the metro.
Tampa wakes up to an old-fashioned, trash-talking radio war. If you tuned in 98.7 in Tampa
yesterday morning, you might have thought you’d dialed the radio time machine back to the ‘90s.
There was a shock jock talking trash on a competitor, boasting he’d “bury” the station. There
was inside-industry talk that took listeners behind the scenes. A song parody to demoralize the
competition. A ribald on-air press conference. Even t-shirts needling his cross-town rival. Bubba
The Love Sponge Clem’s return to Tampa after a four-month absence had all the trappings of a
Howard Stem station launch. “Lock it in, we’ll be No. 1 in 30 days,” Clem promised during his first
show on Beasley Broadcasting’s WHFS (98.7), vowing to “bury the Bone” and “shove it right up Cox
Media Group’s ass.” Cox’s talk “102.5 The Bone” WHPT dropped Clem in August and replaced him
with “The Mike Calta Show,” hosted by one of Bubba’s former morning show mates. WHFS is the shock jock’s fourth Tampa
station in 23 years. Clem claimed that iHeartMedia offered him his old “98 Rock” WXTB perch back along with a syndication
deal and his own digital channel. But Clem said Beasley made “an offer I couldn’t refuse” and the company’s complete
plans won’t be known until next month, when it decides on a new format for WHFS and determines whether to move it to a
stronger signal in the market. He also hinted about adding an Orlando affiliate. “These are the mozzarella sticks before the
steak dinner,” Clem said. For now it’s all Bubba, all the time on WHFS for 30 days.
Alt rock returns to full-signal Minneapolis FM. Northern Light Broadcasting says the playlist on modern AC “K-Twin 96.3”
KTWN-FM, Minneapolis-St. Paul was “too familiar” so it’s relaunched the station as modern rock “Go 96.3.” The station,
which launched yesterday with 10,000 songs commercial-free, will continue to air Minnesota Twins play-by-play. “Our music
will be different, our people will be different, how we position the Twins will be different and how we support our sponsors will
be different,” says EVP Joe Pohlad. KTWN-FM has held flat with a 1.0 share (6+) in the last three Nielsen ratings surveys.
In addition to iHeartMedia’s HD-fed FM translator “Alt 93.3,” it looks to pull listeners from Cumulus Media’s rock “93X” KXXR,
which had a 4.6 share in the latest Nielsen ratings.
First of two Denver sports FMs is sold. Entercom announced last month it will sell sports “The Fan” KKFN, Denver (104.3)
as part of its Lincoln Financial Media acquisition. But Front Range Sports Network is first to strike a deal. It’s selling “102.3
ESPN” KDSP to Colorado Public Radio for $5.75 million. CPR says it will use the new FM to give its noncommercial adult
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alternative format “Open Air” a second signal. The three-year old format already airs on KVOQ (1340). “This is the natural
next step for OpenAir’s evolution,” Colorado Public Radio president Max Wycisk says, noting KDSP will significantly improve
its coverage in Denver and Boulder. The purchase will be financed through the issuance of tax-exempt bonds, and CPR
says over time the loan will be paid off by increased listener support. The ESPN Radio programming disappeared from
KDSP yesterday, and Front Range Sports is now directing listeners to tune into its Fort Collins signal KJAC (105.5), which
covers the area north of Denver. If the buyer of KKFN drops its current sports format, the move could leave Denver with just
one all-sports station: “1600 The Zone” KEPN.
FCC creates consumer complaint portal. Filing a complaint against radio stations and any
other industry regulated by the Federal Communications Commission just became a bit easier.
The agency has launched a new consumer-facing website that streamlines and creates a
more user-friendly complaint filing system. The FCC says its new “Consumer Help Center”
will also “empower consumers to resolve some problems on their own” as it answers some
common questions. For radio, that includes spelling out more clearly what is actually covered
by indecency regulations and how to report a pirate station. The website also details what
digital radio is, explaining its improved sound quality, and the need to buy a new receiver to
pick up the signals. The site will also streamline the process of analyzing consumer complaint
trends, which the FCC says will not only lead to the quicker release of complaint data but also
help the agency do a better job of monitoring trends that will help shape policy decisions. For
instance, it was able to quickly show how many radio-related complaints were filed during the
fourth quarter. The FCC says 407, or 2% of the complaints filed, were connected to FM/AM
radio. Television made up five-times as many, although the political advertising season is likely behind a majority of those.
Inside Radio News Ticker...Radio ads take on a healthy tone...Weight loss products like Acai Fresh and Final Trim were
among the biggest volume advertisers on radio last week. Media Monitors says health clubs Planet Fitness and L.A. Fitness
were also big users of radio, looking to capitalize on New Year resolutions. But it’s also worth noting McDonald’s, which
ranked No. 9 on Media Monitors weekly Spot Ten, aired nearly as many radio spots as all four of those clients combined
...Learfield Sports installs regional VPs…College play-by-play rightsholder Learfield Sports is fine-tuning its regional
structure with the promotion of four longtime company veterans to regional vice presidents to help oversee its relationships
with colleges and broadcast partners. Newly named VPs include Pam Batalis (East), Megan Eisenhard (West), Dan Hawley
(South) and Mike McCollum (West)...Oregon pubcaster faces appeal by fired leader…A $1.4 million lawsuit brought by exJefferson Public Radio executive director Ron Kramer against his former employer has been thrown out by a federal court in
Medford, OR. Kramer filed the suit in January 2013, alleging Southern Oregon University improperly dismissed him in June
2012 after running JPR for 37 years. Attorneys for Kramer have quickly filed an appeal, contending the court erred in its
portion of its ruling. He’s now seeking $1.275 million in damages...Lori Lewis to chair Conclave...The Conclave board has
elected Jacobs Media digital consultant Lori Lewis as the new chair of the not-for-profit. Lewis succeeds the outgoing Mark
Bolke, who has served in the position since July 2009. Bolke says her election “signifies the board’s commitment to moving
the mission of the organization forward.” Lewis has transitioned from air personality to programmer, and most recently as
a consultant. The Conclave marks its 40th anniversary in 2015 and Lewis says they’ll work to create a “new, fresh, and
exciting” annual learning conference...People Moves...Milwaukee morning man gets up even earlier for sister news-talk
station. Read People Moves HERE.
Henner to keynote NAB Show’s radio luncheon. Sun Broadcast Group syndicated talk host Marilu Henner will get a prime
slot on the NAB Show agenda. She’s been selected to keynote the radio luncheon on April 14 at the Las Vegas conference.
“We look forward to hearing her perspective on her enthusiasm for radio and audience relationships,” NAB EVP of radio John
David says. The event will also include the annual presentation of the NAB Crystal Radio Awards and KROQ, Los Angeles
(106.7) hosts Kevin Ryder and Gene “Bean” Baxter will be inducted into the NAB Broadcasting Hall of Fame.
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CLASSIFIEDS
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NEWS MAGAZINE HOST - BROADCAST PRODUCER/MANAGER
ACCOUNT EXECUTIVE
KJZZ in Phoenix, AZ is hiring for a Broadcast Producer Manager
who will host and produce radio programs by delivering on-air content
and technical continuity among all segments of
programming. The Maricopa County Community
College District is an EEO/AA institution and an
equal opportunity employer of protected veterans
and individuals with disabilities.
Beasley Broadcast Las Vegas
seeks dynamic AE.
HOW TO APPLY: KJZZ is being assisted in this search by Livingston
Associates. Visit www.livingstonassociates.net/openings
for the full job posting and to apply. Inquiries are welcome with
Livingston Associates. EOE.
For best consideration apply by January 9, 2015.
Do you have the ability to
develop relationships and create
customized marketing solutions
for clients? Do you have a
strong work ethic, a positive
attitude and references to back
it up? Do you have a passion for
developing new business?
If so send your resume to:
[email protected]
qual
EXTRAORDINARY OPPORTUNITY IN COLUMBUS, OHIO
FOR THE RIGHT CANDIDATE
Wilks Broadcasting in Columbus Ohio is seeking a sales leader to
be our DOS/GSM. Our cluster includes heritage Classic Rock WLVQ.
You need to be a street warrior as this in an active sales role where
you lead by example and personal revenue generation. The successful
candidate is willing and eager to maintain and grow their own list in
addition to leading a talented team. In addition you must be performancedriven and results-oriented, with excellent communication, analytical,
organizational, leadership skills and a strong work ethic.
This opening includes competitive
compensation and benefits packages.
Note DOS/GSM in the subject line when sending
resume to: [email protected]. No phone calls/recruiters
please. All correspondence will be held in the strictest of confidence.
Wilks Broadcast-Columbus, LLC is an Equal Opportunity Employer.
qual
Equal Opportunity Employer.
IT’S A NEW
YEAR!
INSIDE RADIO
REACHES RADIO’S TOP
PROFESSIONALS.
PLACE YOUR
JOB OPENING HERE!
EMAIL:
[email protected] FOR A
GENERAL MANAGER - CHARLESTON, IL
If you have a reason to be in the South Central Illinois area, and
if you are a “selling manager”, Cromwell Radio Group has a great
position for you. Growing area, college town on interstate. Not a turnaround. Performing wonderfully. Need the right GM with solid business
and digital knowledge to keep it that way and growing. We have three
FMs, two being the most listened to Country and CHR stations in the
region. Great community involvement.
This is a position where you can make a difference and see it. It is not a position for “ratings or transactional”
selling GM. It’s a “roll your sleeves up, get the job done, serve the community and be a leader” position
which is always appreciated in smaller markets. Base plus bonus and good benefits for the right person.
Current 11 year GM leaving on great terms for a position she can not pass up and we support her.
Candidate must be involved in the community and be able to lead by example. E-mail resume and cover
letter to: [email protected]. E.O.E.
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