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THE MOST TRUSTED NEWS IN RADIO
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TUESDAY, SEPTEMBER 29, 2015
Radio Set For Next Phase Of Programmatic. As technology continues to transform how advertising is bought and sold, the radio industry is preparing to jump feet first into programmatic ad sales. iHeartMedia is beta-testing a private exchange for network inventory across its 850 stations. Once the testing is complete, Katz Radio Group will roll out Expressway from Katz, an industry-wide spot exchange for the 4,400 radio stations it represents. That is set to give the industry the scale needed to compete with established digital players. Katz initially will focus on automation and real-time reporting. But over time it will integrate data and insights to enable new sales models. Katz Media Group CEO Mark Rosenthal says this will allow all the radio companies it represents to contribute inventory to the exchange and to build their own private networks. Both demand-side platforms are intended to enable advertisers to buy radio at scale the way they purchase digital advertising and to push the medium closer to better tap into what is expected to be a $40 billion programmatic and digital ad buying pool by the end of 2016. Both exchanges use the cloud-based technology platform built by Jelli. “We believe it is important to leverage technology to bring radio buying and selling into the digital age and make the growing radio audience more readily assessable and data-infused for advertisers and marketers,” iHeartMedia CEO Bob Pittman says. “What makes our platform unique is the engagement that ‘sound’ can generate with an audience,” one that Nielsen has shown generates a 6 to 1 Return on Investment, Pittman adds. Giving the People What They Want—Agency execs on their great excitement over radio’s embracing programmatic, only at InsideRadio.com.
Programmatic Moves Buying Into New Age. Using computers, algorithms and data to buy and sell radio advertising is designed to accomplish three goals, programmatic proponents say. The first is to move beyond 50-year-old ratings demographics to include deeper audience segmentation and consumer targeting that more closely matches the medium to the advertiser’s needs. Brian Kaminsky, iHeartMedia president of programmatic and data operations, says the company’s private exchange “will leverage our data to help advertisers buy by audience cohorts, listener taste profiles, time of day, macro and micro purchase patterns and intent, environmental triggers like weather and traffic and factors that go beyond traditional ratings and embrace consumer trends and patterns.” Katz, meanwhile, will rely on third-party data—such as weather, traffic, environmental activity, political affiliation and other consumer insights—to help buyers target specific consumers. “Having more granular data about radio listeners and environmental conditions will give advertisers the ability to more finely hone their campaigns for the largest possible ROI,” says KMG CEO Mark Rosenthal. Buyers will still identify whom they want to target, such as consumers who have owned their car for five years or more or are coming off a three-year lease. The system would use an algorithm to evaluate the ad inventory that matches that audience segment. “Programmatic ad buying done right means we’ve offered the most appropriate available inventory for the campaign in question,” Rosenthal says. More Programmatic Goals—Katz discusses more programmatic objectives at InsideRadio.com.
Katz —Programmatic Good For Targeting Client Needs. A chief concern expressed by the radio sales community about programmatic buying is that it will commoditize radio and lead to “a race to the bottom” in ad rates. But according to Katz Media group CEO Mark Rosenthal, a more accurate descriptor is “race to the ROI,” since clients will get a better return on
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their ad dollars. For radio, programmatic isn’t about price or offering advertisers the lowest priced ad inventory, he says. It’s about better matching ad inventory to the client’s audience target, which should lead to improved ROI. “The highest value inventory will always be available at an appropriate cost,” he says. “But highest value is no longer the ‘one size fits all’ of a ratings-driven world. The highest value inventory is wildly different for each advertiser and campaign.” Another worry is that the machine will replace salespeople and lead to job layoffs. But programmatic proponents argue that it won’t take the place of sellers; it will instead free them up from the most tedious aspects of the process, allowing them to instead focus on consultative selling and better understanding their clients’ business needs. “Without human facilitation and intervention, programmatic cannot live up to its potential,” Rosenthal says. “It’s extremely important to put radio into the programmatic planning process and allow it to attain dollars specifically allocated to automated buying,” iHeartMedia CEO Bob Pittman says. “Through programmatic, radio will have the ability to provide new tools to advertisers to buy more effectively and drive new, substantial, increased revenue to our sector.”
Inside Radio Special Edition Set For Show. The industry is gathering in Atlanta for the Radio Show and the RAIN Summit during what is a pivotal moment in the evolving narrative of the media industry—one where radio continues to gain strength and recognition. And Inside Radio explores the ways broadcasters are shifting the world’s original location-based medium for the digital age in our annual special edition. We showcase new state-of-the-art performance spaces that stations are using to mine the fertile intersection of live events and digital technology. In an exclusive interview, CBS Radio president Andre Fernandez acknowledges radio’s digital future and ponders the industry’s biggest opportunities for growth. Heading into the 2016 election season, we size up radio’s prospects for topping a predicted $1 billion in political advertising sales. And we tell the amazing rags-to-riches tale of how National Radio Award winner George Beasley has been educating the industry by example in a 50 years-plus career. You’ll also find the latest format scorecard, drive-time ratings leaders and other vital stats. If you’re attending the Radio Show, look for a copy of the special magazine edition of Inside Radio in your convention bag or in the publication bins. You can also access a digital version of the special edition HERE.
Ad Week—Podcasts Deliver Engaged Listeners. Podcasting is emerging as a powerful platform to grow audience and recruit more advertisers, according to a group of podcast hosts and media executives speaking at Advertising Week Monday in New York. Both consumers and brands are craving intimate, long-form programming, said Gayle Troberman, iHeartMedia’s executive VP and CMO. Listeners, she said, want to get to know the on-air personalities better and podcasts allow time for that. “They want richer stories, back stories, the stuff we didn’t have time to air,” Troberman said at a panel titled, “The Golden Age of Podcasting,” where she appeared with Norm Pattiz, network radio vet and CEO of the Podcast One network, and two podcast stars who are also well-known media brands, Adam Carolla and Perez Hilton. Advertisers are interested in podcasts precisely because they reach highly engaged, loyal listeners. To serve advertisers, Troberman noted that iHeart created a division, Sound Board, which produces branded content in partnership with ad agencies and brands, including podcasts. When Podcast One first launched, Pattiz noted, it mostly carried direct response ads. Now, he says, about half of the advertisers on the network’s 200 programs are major brands. During an hour-long podcast, Pattiz said his company can sell four spots an hour and can offer up engaged listeners who are “more likely to consume the product than someone who turns it on in the background,” he said, adding, “It is hugely important to radio, so radio should embrace it.” It’s In the Way That You Use It—Carolla drives a Jaguar, sells Mazdas, and everyone’s happy; read the tale at InsideRadio.com.
Podcast Size Matters Less Than Commitment. For all the hype about podcasting, the precise definition of what constitutes one is a bit elusive. As podcasting matures, both programmers and hosts are tinkering with program length, subject matter and how best to integrate advertisers. One mistake, industry execs caution, is thinking podcasts need to be short-form programs. “There is no research that shows what the perfect length for podcasting is,” Podcast One CEO Norm Pattiz said
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Monday at an Advertising Week panel on the subject. iHeartMedia’s executive VP and CMO, Gayle Troberman, said radio programmers have erred in making digital content too short and snappy. “Millennials, the coveted generation, are listening to hour-long podcasts,” she said. “We have to think harder about how to really engage our consumers with content, not just distract them and make things shorter because we don’t think they can handle longer content.” Longer podcasts, Troberman added, give hosts more time to talk and engage listeners, furthering connections between the audience and the talent, and, by extension, the advertisers supporting the content. To prove that out, iHeart is creating co-branded podcasts with advertisers. On the talent side, podcaster Adam Carolla, a former radio personality who now hosts several series for Podcast One, says long-form podcasting affords hosts more creative freedom, compared to broadcast radio, where hosts are sometimes confined by a format and reined in by program directors. Celebrity blogger Perez Hilton, who hosts a weekly podcast on CBS Radio’s play.it platform, says podcasting brings him a new audience interested in both his celebrity dish and his personal life, and he is exploring ways to integrate his podcast with social media. The Right Stuff—Podcast producers reveal what they’re looking for in content at InsideRadio.com.
Still Room To Grow For Internet Radio. Internet radio’s audience is growing steadily and more advertisers are becoming first-time users of the medium. But streaming audio still has work to do to spread its value proposition to the advertising community, a group of online broadcasters said Monday at an Advertising Week session in New York. As of August, online radio had about 4.2 million people listening to it simultaneously in the U.S., according to Triton Digital president of market development John Rosso. “The space is really growing rapidly,” Rosso said during the “Internet Radio is Bigger than Facebook?! What it Means for Marketers” session. Online radio listening peaks between the drive times, with 10am and 2pm among its most listened-to hours, making it a strong complement to broadcast radio. Xappmedia CEO Pat Higbie said his company’s voice-activated ad technology, which allows listeners to speak commands such as “download coupon” to interact with streaming audio ads, is experiencing virtually the same response rate from 6am to 12 midnight. “When we get the interaction paradigm right, the opportunity for advertisers is off the charts,” Higbie said. He and others on the panel spoke about the need for evangelizing not only the efficacy of streaming audio but audio in general. “Most of the people that we talk to in the advertising community care about the visualization around their brand’s look and less about how their brand actually sounds,” said iHeartMedia president of digital revenue strategy Carter Brokaw. His company is talking up the “importance of sound” and investing in an audio strategy. “It’s one of the most under-utilized mediums out there today and it’s incumbent on everyone on this panel to go out and socialize the efficacy of the audio world,” Brokaw said.
With Bubba Probed, Nielsen Delays Ratings. Nielsen said Monday that the release of the September ratings for the Tampa market would be rescheduled “to allow for completion of additional Quality Assurance steps.” The announcement follows the news that Beasley Media Group is investigating allegations of attempted ratings distortion activity in the market involving Tampa-based morning man Bubba The Love Sponge. Nielsen informed clients on Monday that the release of the September monthly and September Week 4 weeklies for the Tampa market would be rescheduled “to allow for completion of additional Quality Assurance steps.” The ratings had been set for release Tuesday at 12 noon Eastern. Nielsen said an updated delivery schedule for the market would be provided when the Quality Assurance steps had been completed and that all other PPM markets will release as scheduled. The announcement follows the news that Beasley Media Group is investigating allegations of attempted ratings distortion activity involving morning man Bubba The Love Sponge in the Tampa market, after being contacted by Nielsen. The measurement giant said on Friday it is working to resolve the issue. “We became aware of evidence of attempted ratings distortion activity in the Tampa market. We are working to resolve this issue and will provide additional details when they become available,” Nielsen said in a statement issued Friday. “Nielsen is committed to maintaining the highest standards of data integrity and acts swiftly to ensure that those standards are upheld.” Beasley, in turn, issued a statement saying, “We have been made aware of the allegations and are in the process of investigating. We have no additional comments at this time.”
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iHeart Re-Ups With CW, Where Youth Is Served. Monday was a big day for iHeartMedia partnership announcements related to its tent pole concert events. The company said it signed a new multiyear deal with The CW that keeps it as the exclusive television broadcaster of the iHeartRadio Music Festival, as well as the Jingle Ball holiday concert. Capital One, meanwhile, has signed up to be the first-ever national title sponsor for the 11-city Jingle Ball Tour. The CW will broadcast performances from the Sept. 18-19 iHeartRadio Music Festival on Tuesday and Wednesday from 8pm-10pm Eastern. Held at the MGM Grand in Las Vegas, it featured a cross-section of chart toppers including Coldplay, Kanye West, Kenny Chesney, Puff Daddy, Blake Shelton and Nick Jonas. Company execs say iHeart’s musical events mesh well with the CW’s youthful audience, and give performers exposure on iHeart’s many platforms and The CW’s broad TV reach. The CW gains access to marquee talent and event programming in the highly competitive new TV season. Said CW President Mark Pedowitz: “The iHeartRadio Music Festival kicks off our fall each year with high energy and terrific music, and we are very pleased that we will continue that tradition in the years to come.” Gearing up for December’s Jingle Ball, Capital One cardholders will get exclusive first access to tickets through a presale in each city as part of the credit card company’s national tour partnership. While the full artist line-up won’t be released until October 5, iHeart said that Nick Jonas will perform at seven of the eleven tour stops. This year’s Jingle Ball tour will stop in Dallas; San Francisco/Oakland; Los Angeles; Minneapolis; Philadelphia; Boston; New York; Washington, DC; Chicago; Miami/Ft. Lauderdale; and Tampa. Capital Idea—Read about the Capital One advantage (for both sides) at InsideRadio.com.
Competitive Info—Facebook Targets TV Money. Just ahead of Advertising Week, Facebook announced the launch of “TRP (Target Rating Point) Buying,” which is the social media platform’s version of Gross Rating Points (GRPs) for video ads. It allows marketers to plan campaigns across TV and Facebook with a total TRP, buying a share of those rating points directly with Facebook. Nielsen’s Digital Ad Ratings division will measure how well Facebook’s ads perform alongside TV spots, Business Insider reports. Facebook’s motivation is clear enough, as the social media platform hopes to gain some coveted TV ad dollars. In July, Business Insider revealed that Facebook was going to allow advertisers to buy video ads using GRPs, a throwback methodology originally employed in the 1950s. “GRPs have been used for TV ad planning and measurement [and] are also used for all sorts of other ‘traditional’ advertising, like radio, print and billboards,” according to the magazine. “It’s a way to measure the reach and frequency of an ad campaign among an advertiser’s target audience.” In TV, 1 GRP is equal to 1% of the target audience the advertiser wants to reach (not the total number of people who see the ads) and the GRP goes up depending on the frequency that ad is shown. So if a TV program has an average GRP of 10, and an ad is placed on five episodes of that program, the campaign has 50 GRPs. The aim for advertisers is to get the highest possible GRPs at the lowest possible cost. “While Facebook has a huge audience of more than 1 billion users, advertising spend on the Internet still lags behind TV advertising,” Business Insider reported. “It wants to close that gap.”
This Year’s Models For iBiquity—New HD Dozen. HD Radio developer iBiquity Digital is showing off its momentum heading into this week’s Radio Show. The company announced Tuesday that it has expanded its automotive offerings to an additional 12 new models, including the Honda Accord, Jeep Renegade and Audi TT. That puts the technology in more than 210 different vehicle models, including 110 where HD Radio comes standard. The remaining new HD-equipped models now available on showroom floors are: Acura ILX, Acura RDX, Alfa Romeo 4C, Fiat 500x, Hyundai Elantra GT, Hyundai Veloster, Mazda Miata MX-5, Scion iA and Scion iM. HD Radio is now installed in about 40% of currently selling U.S. vehicles, while iBiquity claims a total of 25.1 million HD Radio-equipped vehicles are on the road today.
Inc. Mag—Here’s Looking At You, iHeart. For a medium more often heard than seen, radio stations and their corporate headquarters aren’t typically lauded for their design aesthetics. Yet Inc. Magazine recently named iHeartMedia’s New York headquarters “One of the World’s Coolest Offices,” listing it at No. 5. “When Robert Pittman, CEO of iHeartMedia (formerly known as Clear Channel Communications) decided to move the company’s headquarters from San Antonio to New York City, he decided the former satellite office needed an upgrade,” the article states. “The entrance corridor now looks like something straight out of Blade Runner.” The other companies recognized by Inc. were the home- and room-renting site Airbnb, digital marketing and e-commerce company Bluecore, Paris-based analytics company Ekimetrics and crowdfunding platform Kickstarter.
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