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Radio’s Reach Hits All-Time High Note. Radio’s national audience hit an all-time high for the second year in a row in the second quarter. Some 245 million Americans age 12 and older used radio in a given week during the three months ending June 30, according to Nielsen’s Audio Today report. The number provides another statistic for the industry to tout as it reminds advertisers that it surpassed television as the nation’s top reach medium in the first quarter. In each of the past two years, radio’s weekly cume audience has reached all-time highs, according to Nielsen. “As we are faced with an ever-expanding list of media options, radio maintains its place as a significant part of the listening experience,” Nielsen says in the new report, released Tuesday morning. While radio’s reach extends across all major demos and ethnicities, the new quarterly report zeroes in on multicultural audiences, and finds the penetration among Black and Hispanic Americans is at an historic high. African-Americans and Hispanics spend more time with radio each week than any other ethnic group, the report finds. Radio’s weekly reach among Blacks and Hispanics has been growing steadily over the past five years, Nielsen finds. Since 2011, the weekly national Black radio audience has grown 5% (from 29.8 million to 31.3 million), and 11% among Hispanics (from 36.5 million to 40.4 million). Combined, the two groups account for nearly one-third (29.3%) of the national radio audience and represent 71.7 million audio consumers. “These Black and Hispanic consumers spend more time with radio each week than any other group, and possess enormous buying power for advertisers looking to reach a qualified audience when they are away from home and in the marketplace ready to purchase,” the report states. Meanwhile, the number of radio listeners in all groups beyond African-American or Hispanic has declined 1.2% from 175.5 million in 2011 to 173.4 million in 2015.

Diversity Rules Among Latino Listeners. As the number of bilingual, bicultural Hispanics continue to grow, radio listening behavior among Latinos continue to evolve, reflecting a wide diversity of programming, from young-targeted English-language formats to older-skewing Spanish-language stations. But new Nielsen data shows regional Mexican remains the top format, grabbing a 16.3 share of all Hispanic listening in 2014.That format was followed by CHR (9.3), Spanish contemporary/hot AC (8.9), Spanish adult hits (7.0) and rhythmic CHR (6.4). But age and language preference play critical roles in which formats Hispanics listen to. For example, a pair of English language formats—CHR and rhythmic CHR—take the top two positions among audiences aged 12-17, accounting for more than one-third of listening. Regional Mexican is next (12.4) followed by hot AC (7.8), and Spanish contemporary /hot AC (5.7). And three of the five most listened to formats among 18-34-year-old Hispanics are English-language formats, although regional Mexican trumps them all with a 17.5 share. Spanish-language formats have a tighter grip among Hispanics above the age of 25, accounting for the top two positions in the 25-54 demo and three in the 35-64 demo by significant margins. English-language formats occupy the five top positions among English-dominant Hispanics while Spanish-language formats take three of the top five among Spanish-dominant Hispanics. Shining a spotlight on Hispanic radio listeners, Nielsen finds they skew more male and are most likely to work full- or part-time. Hispanic heavy radio users also tend to be younger and live in the largest households. Among Hispanics, persons 35-54 have the highest concentration of radio listeners. But the medium delivers weekly cume ratings of 93% or greater in almost every Hispanic demo from 25-34 all the way up to 55-64. Hispanics spend an average of 12 hours and 13 minutes with the medium each week, and middays (10am-3pm) is the most popular daypart.

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Urban AC Tops Black Audience Numbers. Only two formats command more than half of all radio listening among African-Americans—urban AC, which had a 31.2 share during 2014 according to new Nielsen research, and urban contemporary with a 19.1. No other formats come close. Rhythmic CHR grabbed a 7.5, CHR posted a 5.2 and AC notched a 4.6. Urban contemporary was the dominant choice among listeners in the 12-17 and 18-34 demos while urban AC reigned supreme in the 18-49, 25-54 and 35-64 cells. Urban AC’s dominance among African-American radio listeners is a reflection of which demos within the group are its biggest radio listeners. Among blacks, radio is strongest with persons 45-54, reaching 94.5% of men and 93.7% of women in that age cell. The medium’s next strongest demos are persons 35-44 (92.9% for men, 93.1% for women) and persons 55-64 (92.6% in men, 92.2% in women). But radio has wide penetration across all African-Americans, reaching close to 90% of teens and persons 18-24 and more than 90% of persons 25-34. Radio’s Black audience is 31 million strong and 52% are female. They spend an average 12 hours and 53 minutes with radio each day, the most of any ethnic group. Afternoon drive (3pm-7pm) is their biggest daypart and nearly two-thirds of their listening (63%) occurs out of the home. More than half of Black radio listeners work full-time, 14% work part-time and 35% are not employed full-time or part-time, such as students and retirees.

Nielsen Finds It Can Map Out Diversity Listening. When Nielsen looked at the markets and states with the highest penetration of listening to urban or Spanish-language formats, it found geography and market size played a huge role. The footprint of where multicultural listening is highest mirrors the larger population trends taking place in the U.S. today. The states with the highest share of Black consumers listening to urban radio formats are centered in the East, specifically the mid-Atlantic and the South. There were only two states west of the Mississippi (Arkansas and Louisiana) that indexed above the national average. The states where urban formats capture the highest portion of radio listening were Mississippi (29.9%), Louisiana (28.8%), Georgia (26.6%), South Carolina (23.5%), Alabama (19.4%) and North Carolina (17.9%). Conversely, the Hispanic map looked a bit different, where western states and states with large urban areas, such as New York and Chicago, led the way for listening to Spanish-language radio. The national average for all Spanish-language radio formats combined is a 6.1% audience share. Yet in several states, Spanish-language radio commanded a much bigger share, such as California (19.1%), Texas (16.5%), Nevada (13.1%), Florida (11.1%) and New Mexico (10.1%).

Hubbard Open To New Sounds With PodcastOne Investment. With podcasts reaching a growing, advertiser friendly audience, Hubbard Radio is looking to a new partnership with podcast producer PodcastOne to help the company create new content and help guide its group through the exploding podcast space. “We’re pretty convinced podcasting will be part of the audio ecosystem,” Ginny Morris, Hubbard Radio CEO and chair, tells Inside Radio. “We know it is still evolving and maturing, and we’re intrigued by what [PodcastOne] has going on and we have a chance to be a part of it.” The companies will work together to create new content, some of which would involve Hubbard stations’ talent. Under the new deal, Hubbard acquired a 30% stake in the podcast network, worth about $10 million, according to media reports. PodcastOne and parent company Courtside Entertainment Group will maintain independent control of the on-demand audio network’s operations. Launched by Westwood One founder Norm Pattiz, PodcastOne offers more than 200 programs from a menu that includes stars such as Adam Carolla, Shaquille O’Neal, Steve Austin, Dan Patrick, Chris Jericho, Penn Jillette, Nicole “Snooki” Polizzi, Shawn and Larry King, Laura Ingraham, Dr. Drew and “TheCHIVE.” Morris says the partnership gives Hubbard access to PodcastOne’s expertise with the format. So far, Hubbard has limited its podcasting efforts to repurposing some on-air shows for future downloads.

Why Hubbard-PodcastOne Makes Dollars and Sense. Hubbard Radio did the math before its recent $10 million acquisition of a 30% stake in PodcastOne. With 32 million Americans having listened to a podcast in the past week and the channel drawing a loyal, affluent audience, Hubbard’s investment added up—especially given what appears to be a more lucrative looking future for podcasts in general. The deal is only the latest in a flurry of recent radio industry investments in the fast-growing podcast space, reinforcing the industry’s interest. The podcast audience is more likely than the general population to have a household income of $75,000 or greater and almost half of podcast consumers are age 18-44, according to podcast consultancy Amplifi Media. The E.W. Scripps Company on July 22 announced a deal to acquire Los Angeles-based Midroll Media, which operates the largest podcast sponsorship network. Cumulus

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Media and sister network Westwood One said on July 1 that they have partnered with audioBoom to use the London-based podcast network’s platform to embed short-form on-demand audio and podcasts on Cumulus websites and mobile apps. PodcastOne chair Norm Pattiz, a radio veteran who also founded Westwood One, says station owners such as Hubbard are wise to embrace podcasting. In radio, he says, “It has been tough to show growth, so why not embrace an area that’s growing?” He says the deal gives Hubbard access to PodcastOne content and talent, while his company can work with Hubbard’s radio and TV properties, including on-air talent. Future podcasts, he says, could be localized for particular markets or national appeal. Hubbard’s media assets also provide PodcastOne with strong promotional platforms for its content. “There are tremendous benefits for both sides,” Pattiz says. Following the Money: Hubbard CEO Ginny Morris talks about ways to monetize podcasting, only at InsideRadio.com.

Higher Auto Sales May Engineer More Ad Dollars. Those two sounds—the “ka-ching!” of cash registers and the “vroom!” of new autos being sold—are favorites for radio, and with auto sales hitting record levels, it’s vital for radio to keep a close eye on its No. 1 advertiser, and find the best ways to keep the dealership ad money flowing. Automotive sales will account for $1.75 billion in radio ad spending this year, according to BIA/Kelsey. Estimates from Kelly Blue Book and Edmunds call for monthly new vehicle sales for July to reach 1.47 million units, and an annual adjusted rate of 17.1 million. For July, the eight major manufacturers are expected to show year-to-year gains. Analysts credit a healthier economy and demand for trucks, SUVs and luxury vehicles with fueling the positive gains. Indeed, as the overall economy has improved and unemployment drops, observers say consumers have started to make big-ticket purchases again, including new vehicles. Particularly in an off-election year, automotive advertising is critical for radio stations. The question is: How do you grow radio’s ad money commensurate with this, especially in a competitive media market? Jim Doyle, principal of Jim Doyle & Associates, a sales and marketing firm that specializes in automotive, understands the challenge, while acknowledging that radio broadcasters are at risk of losing auto ad dollars to digital media as more clients look to grow their digital ad portfolio. “I would guess that most of the radio and TV stations are not experiencing record revenue from auto dealers,” he says, calling it a potential “major issue for operators.” To put that in reverse, Doyle suggests radio broadcasters leverage their local relationships with auto dealers and store general managers (“generals to generals,” Doyle says), adding that stations need to demonstrate the effectiveness of broadcast advertising. Numbers Games: Doyle talks about how stations can use research stats to sell their story to dealers, only at insideradio.com.

Pre-’72 Fee Ruckus? It Might Get Loud. A settlement reached by the three major label groups with SiriusXM Radio over its broadcast of recordings made before 1972 has raised the specter of whether the labels plan to come after other outlets that publicly perform pre-‘72 recordings. If they did, a new report suggests the consequences could be dire for radio stations whose bread and butter are older recordings. Entitled “How Will the Radio Industry be Affected by pre-1972 Music Performers’ Fees,” the report by BIA Kelsey chief economist Mark Fratrik focused on stations in the state of New York, where ’60s pop band the Turtles still have litigation pending over pre-’72 royalties. The analysis found that imposing a performance fee for pre-‘72 sound recordings could affect about 86 stations in the state. It notes that oldies- and nostalgia-formatted stations that broadcast pre-’72 recordings aren’t typically huge revenue generators and are marginally profitable. “The amounts that may be imposed for airing this programming in the recent past may tax these stations dramatically,” Fratrik says. “Moreover, these stations may be forced to either go off the air or move to a second best alternative format as a result.” Fratrik says it’s difficult to determine the full impact because the performance fees would be the result of damage awards assessed by local juries under New York Common law and that legal expenses and jury awards could vary considerably from case to case. “Nonetheless, the projected costs could constitute a significant percentage of local station revenues, leading to a decline in a station’s competitive position and a reduction in public service,” Fratrik concludes.

Simpson Returns To DC Airwaves. Donnie Simpson, a morning radio fixture in Washington, DC for 33 years, will return to the airwaves in the nation’s capital, ending a five-year retirement. Simpson will host afternoon drive for Radio One urban AC “Majic 102.3” WMMJ starting August 17. Simpson was last heard in DC on CBS Radio rhythmic CHR WPGC-FM (95.5), which he left in January 2010, reportedly over clashes with management about how to make his morning show more conducive to PPM ratings measurement.

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Simpson had been at WPGC from 1993-2010. Joining Simpson on WMMJ, according to the Washington Post, are former sidekicks Chris Paul and Huggy Lowdown. Paul is currently heard on Red Zebra sports “ESPN 980” WTEM and the nationally syndicated “Tom Joyner Morning Show,” which airs on WMMJ. Simpson’s return is part of a refresh at WMMJ, which today adopted the slogan “The Real Sound of the DMV” and tweaked its music mix to blend R&B, classic hip-hop and DC homegrown Go-Go music. Lowdown now hosts what the station describes as an “all-music, commercial-free morning house party” for one hour after the Joyner show ends at 9am. Simpson was heard on a string of urban stations in Washington starting in 1977. He also had a national profile as host of BET’s “Video Soul” from 1983-1986. Radio One wants to leverage that video profile and experience. It says Simpson’s production company will collaborate with its sister cable TV channel TV One to create programs that will put the host back on TV by the fourth quarter of this year.

Internet Radio Ad Load Climbs. A new quarterly report by ad tech company Xappmedia shows Internet radio ad loads on mobile climbed in the second quarter of 2015, but still trail Q4 2014 levels recorded at the height of the holiday advertising season. Whereas Q1 2015 experienced a 16% decline in ad load over the previous quarter to an average of 2 minutes 18 seconds (2:18), Q2 2015 is up 10% sequentially to an average of 2 minutes 32 seconds (2:32). The seasonal fall in ad spending impacted the first quarter and seasonality plus a rise in advertisers is likely driving second quarter increases. Xappmedia also reports that the number of advertisers on the five Internet radio publishers tracked were up in Q2. Advertisers totaled 149, a 26% rise over the previous quarter. In Q2, 21% of advertisers identified were local, up from 15% in Q1, which suggests Internet radio publishers are making an effort to broaden the advertising base beyond national advertisers. There is a clear trend toward increased usage of 30-second ads. Brand advertisers seem to heavily favor 30-second ads and newer advertisers are most likely to start with that ad length, likely because of familiarity with broadcast radio practices. This phenomenon may also be driven by the ad formats offered to them by publishers.

Disharmony Remains In FL Classical Sale. There’s discord in South Florida over the sale of three classical music radio stations from American Public Media Group (APMG) to California-based religious broadcaster Educational Media Foundation. A disgruntled former board member of one of the sold stations is crying foul over the way the deal was conducted. Richard Rampell, former board member of West Palm Beach’s WPBI-FM (90.7), has asked Florida’s attorney general, Pam Bondi, to investigate the sale. That station’s board apparently learned that APMG hadn’t received authorization from the Classical South Florida network board before making the $21.7 million sale; when some members complained, they were told they’d be on the hook, legally, if the sale crashed. The West Palm Beach Post said EMF would be willing to sell the stations back, and Rampell is looking for investors and public support. The three stations— WPBI; WKCP, Miami (89.7); and WNPS, Fort Myers (88.7)—had been operating at a loss, APMG says. But now, WLRN, an NPR station in Miami, says it will change its HD-2 radio channel to “Classical 24” beginning Aug.10. While that would bring classical back to the general area for those with HD Radios, it’s uncertain that the station would reach all of Palm Beach County. Johnny Diaz, a reporter for South Florida’s Sun-Sentinel, says there has been “outcry” over the sale of the stations but not much in the way of media coverage. Asked to comment on reaction to the sale, a spokeswoman for APMG said, “We strongly disagree with the way the sale has been characterized.”

Blasi Returns To Westwood One As SVP. Westwood One has hired sales executive Tasha Blasi Pannuzzo as senior VP of marketing & sales for its Nash country lifestyle brand. In her newly created role, Blasi, as she is known professionally, will oversee client relations, brand partnerships and multiplatform integrations for all of the company’s Nash entertainment brand programming platforms. Blasi is based in New York and reports to Westwood One president Steve Shaw. It is a homecoming for Blasi, who previously worked at Westwood One from 2005-11. During her earlier tenure, the network says she was one of its top sellers before moving up to manage the Business Radio Network and lead sales and marketing for the launch of the Wall Street Journal Radio assets. More recently, Blasi was a sales director at online radio network TargetSpot. Earlier in her career, she was a high school biology and chemistry teacher, a private tutor and an entrepreneur who created several small businesses.

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