Welcome to RBR's Daily Epaper
Volume 25, Issue 16, Jim Carnegie, Editor & Publisher
Thursday Morning January 24th, 2008

Radio News ®


Entercom on board for PPM
Entercom hadn't been under any immediate pressure to sign a contract with Arbitron for Portable People Meter service, since it had no stations in the first markets on the roll-out list. CEO David Field applauded the increased audience reach demonstrated by PPM as he signed a contract with Arbitron for PPM data in his 14 markets scheduled for the roll-out. "The Arbitron Portable People Meter is reporting that an average radio station reaches twice as many listeners as the diary has been telling us. If the New York Times were to discover that its readership was twice as large as everyone thought, they would likely stage a parade down Madison Avenue. Radio should not pass up any opportunity to remind advertisers that we are a reach medium, one that offers marketers the most cost effective opportunity to expose more of their consumers to their advertising messages," said Field in the announcement released by Arbitron. Under the current roll-out schedule, the first Entercom market to receive PPM will be San Francisco, beginning in September of this year, with Entercom home base of Boston to follow in March 2009. Other Entercom markets on the roll-out list to have PPM by the end of 2010 are Austin, Denver, Greensboro-Winston Salem-High Point, Indianapolis, Kansas City, Memphis, Milwaukee, Norfolk, Portland OR, Providence, Sacramento and Seattle.

Another view: National business isn't tanking
After reading our report yesterday, which you can still find on www.RBR.com, Bear Stearns analyst Victor Miller told clients that national spot sales for radio are not really tanking. "Perception: RBR Suggests 1Q National Advertising 'Tanking'-Down 17%. This AM, RBR, an influential radio trade, suggested that 1/7/08 national ad pacings for one major radio rep firm were 'tanking'; down 17.2% for the top 100 markets," Miller wrote. But he said the reality is better: "We believe that national ad business has improved the last 3 weeks, and that on an 'apples to apples' basis, is down closer to high-single-digit now [national is 22% of radio business]." Miller added that AT&T was placing its business as national last year, but is now local, and that the writers strike has wiped out February sweeps business from television. "1/7 pacings are awfully early given 1Q represents only 22% of a year's revenue (no rush for advertisers to place ads). Also, the RBR numbers are adjusted downward by 6% to reflect 1Q 2008's 13 weeks [broadcast calendar] versus 12 weeks in 2007's 1Q. But while the full 6% adjustment is made, there is actually very little business written in week 13 for 1Q 2008; so the decline is exaggerated right now," Miller said.

RBR observation: We hope he's right. While a high-single-digit decline in national business is better than a double-digit one, it is still hardly anything to cheer about. Miller concluded by telling clients not to expect much for the first half of 2008, but he thinks increased political and online spending will offset a decline in core advertising dollars, resulting in a flat year.


Clinton leads the pack
in press coverage

If there's no such thing as bad publicity, then the US media pack is doing Hillary Clinton (D-NY) a world of good by keeping a spotlight on her to a greater extent than any other candidate, at least during the week of 1/14/08-1/20/08. According to the Project for Excellence in Journalism, she is strongly featured in almost 30% of all campaign stories, just ahead of Barack Obama (D-IL) and all Republican contenders. Clinton was the main topic in 17.6% of all campaign stories (PEJ monitored a total of 472), and was prominently featured in 11.4% more, for a total of 29%. Obama's numbers were 15.5%/12.3%/27.8%. Back in the Democratic pack were John Edwards (D-NC, 2.5%/3.6%/6.1%) and Dennis Kucinich (D-OH, 0.8%/0.7%/1.5%)

On the Republican side, the leader was Mitt Romney (R-MA, 14.6%/10.8%/25.4%), who edged out John McCain (R-AZ, 10.6%/12.9%/23.5%). Mike Huckabee (R-AR) was a stronger third than his Democratic counterpart Edwards (5.5%/8.9%/14.4%). Down the pipe were Rudy Giuliani (R-NY, 2.3%/1.7%/4.0%), Fred Thompson (R-TN, 0.4%/1.1%/1.5%) and Ron Paul (R-TX, 0.4%/0%/0.4%). Potential candidate Michael Bloomberg was not a factor during the week (I-NY, 0.4%/0%/0.4%)

RBR observation: We think that old saw about bad publicity may refer to entertainers or novelists, but for politicians, bad publicity can indeed be damaging. Just ask Duke Cunningham (R-CA), if you can get access to him on visiting day at the correctional facility where he is currently in residence. Or ask John Kerry, whose failure to forcefully respond to negative advertising has turned the word "swiftboat" into a verb in the USA. Giuliani's coverage level figures to go up in the next measurement as he makes what may be his last stand in Florida. And there was a lot more noise around Bloomberg, so his numbers should pick up, too.

President postpones ad campaign kick-off
The White House felt it might be seen as opportunistic to announce Office of National Drug Control Policy advertising campaign aimed at preventing the abuse of prescription drugs. The reason was the unfortunate and coincidental death of actor Heath Ledger. Although reports noted that preliminary autopsy results were inconclusive, sleeping pills were found near his body. According to reports, teens are avoiding illegal drugs but use of ill-gotten prescription medicines has been on the upswing. WH Press Secretary Dana Perino did not know when the event would be rescheduled.

RBR observation: Hey, we're big kids. If we're big enough to use such drugs, we're big enough to get straight talk from our government. It would seem that this would be the perfect incident to scare kids straight. So let's add this to the list of demands. We're adults -- we and our children will be able to withstand the horrific effects of an occasional slip of the tongue that results in a bad word going out over the airwaves, and we'd prefer that to a national nanny putting the freeze on the free exchange of art and information over the airwaves out of fear of a national nanny. And we're adults -- we can handle bad news and strongly-worded advertising campaigns. Now go out there and have kick off your campaign, Mr. President.


Ad Business Report TM

Google and Publicis team up
The CEOs of Publicis Groupe and Google said in a press conference this week they would jointly develop an approach to digital advertising that was both creative and technologically savvy. Neither Maurice Levy (left) of Publicis nor Eric Schmidt (right) of Google, speaking at Publicis' HQ, would put a value on the partnership, according to a NY Times story, but they asserted the collaboration gave them a "first-mover advantage" in combining the programming knowledge of Google with the creativity of ad agencies. The resulting tools and business intelligence would not necessarily be proprietary to the two companies but could help propel the growth of digital advertising, they said. In the US Google already uses its technology to sell ads across TV, newspapers and Google Radio for selling radio ads.

"It is possible that what emerges could drive the development of 'open source advertising,' Schmidt said, if the tools were made widely available. "We are excited about the progress that's been made and about the initiatives already under way," the companies said in an internal memo to Publicis staffers. "Google, for example, has established a dedicated global account team for Publicis Groupe...[and] has been given access to various early-stage advertising technologies. Publicis Groupe is sharing with Google its wealth of agency experience know-how...The two of us share a vision that new and highly innovative advertising technologies - offering fast, reliable operations, economies of scale and significantly more precise metrics - will dramatically improve efficiency and efficacy of ad campaigns and media planning."

RBR observation: Publicis Groupe owns Zenith Optimedia and Starcom Mediavest. A lot of money is spent through these agencies in traditional media as well as digital. Perhaps those broadcasters who have already signed up with Google Radio may get a leg up on buys after this partnership gets established. Streaming audio may see some of this as well. It's all about improving efficiency, targeting and tracking response to ads. If Google's technology helps gain insight and improves metrics, then Publicis will gain a leg up with clients.

Chipotle names DeVito/Verdi AOR
Chipotle Mexican Grill has named DeVito/Verdi NYC its AOR. "Great creative has always been an important part of our advertising," said Jim Adams, executive director of marketing at Chipotle. "Sal DeVito possesses one of the great creative minds in advertising, but DeVito/Verdi also knows how to put that creative to work. They understand and share our vision that advertising can inform and entertain, while also driving business." DeVito/Verdi's work for Chipotle will include work on outdoor, print, radio, digital and non-traditional executions, as well as national media planning and buying.

"Holy Hip Hop Radio" joins Reach FM Radio Network
Minister Eddie Velez, host of the nationally-syndicated Holy Hip Hop Radio show, announced the 3-hourly weekly broadcast joins Reach FM beginning tomorrow. Reach FM touches up to 9 million listeners (24/7) within and throughout the state of Florida. Holy Hip Hop Radio can now be heard from Coast-to-Coast on leading FM stations. Holy Hip Hop Radio can be heard on Reach FM from 9 P.M. to midnight (Fridays).


Media Business Report TM
The good news: pullback on campaign coverage
But the bad news? That's because the economy is tanking. The troubles with the housing bubble and subprimes, the weakening dollar and the canaries all around singing out "recession" managed to get a double-digit piece of the collective newshole for the week of 1/14/08-1/20/08, knocking campaign coverage from 49% the previous week to a still-healthy 39%. All five media measured by the Project for Excellence in Journalism placed these stores one and two. However, in the cable world, it was still mainly wall-to-wall elections, with a campaign-to-economy margin of 65%-7%. Radio was on a subdued version of the same track, with a 42%-7% margin. Speaking of margins, the apparently marginalized President George W. Bush finished up his trip to the Mideast, an event that tied for third on the overall chart with a minuscule (for third place) 2% of available time and space. An aspect of a news week with dominant stories is a wide variety of niche stories not in the overall top ten but on one or more individual top ten lists. This week there were 18 such topics. And thanks, cable. We almost got through the day without thinking about either Britney Spears or OJ Simpson -- but since you guys think this kind of tabloid fodder is "major top 10 news," our pristine record has now been sullied.
| Top ten lists here |


Media Markets & Money TM
Karmazin theme song: Night and Day
Craig Karmazin's Good Karma Radio has been using two stations to get ESPN Radio fare out to the citizens of Milwaukee, a daytimer on 1510 kHz and an LMA with a 1290 kHz facility for when the sun is down. A new deal with Salem Communications for WRRD-AM will put that hybrid "ESPN Radio 1510 Days/1290 Nights" hybrid to bed. The 540 kHz station will give Karmazin's ESPN programming a single-station solution, with a new format being placed on the 1510 station. The price for the station will be 3.8M cash.


Washington Business Report TM
NAB takes exception to white space advocates
The Wireless Innovation Alliance, which would like to flood the so-called white spaces between licensed broadcast television stations with unlicensed devices, has charged the NAB with mounting a scurrilous misinformation campaign about their plans. In a letter to WIA's Jack Krumholz (who's day job is with Microsoft), NAB President/CEO David Rehr begged to differ. Tellingly, Rehr pointed out that sharing the results of FCC testing of such devices can not be called a "public misinformation campaign." The WIA is in fact the organization playing with the truth, finding reasons to excuse its engineers for failing to pass muster under government testing. Because of that failure, "...it comes as no surprise that more than 80 members of Congress have contacted the FCC to express concerns about the impact these devices could have on the ability of television viewers to receive analog and digital television signals without interference." Rehr said WIA was trying to get their devices into circulation before proper testing has been concluded. The FCC should not, and broadcasters will not sit still for that.


Entertainment Business Report TM
Fox News Radio details
Super Tuesday coverage

Fox News Radio will provide live wall-to-wall coverage of Super Tuesday beginning at 7:00 PM-11:58 PM ET. Fox News' Mike Majchrowitz will anchor the coverage of Super Tuesday along with FNR political analyst and Washington Post columnist, Jeff Birnbaum. FNR reporters and political insiders from across the country will also provide updates of the results from campaign headquarters and polling sites. If results are not conclusive at 11:58PM ET, FNR will stay on the air until results are in. After the results come in, FNR will also come back on throughout the night to anchor any major victories or concession speeches that may come out. Coverage can be heard on Fox News' radio affiliates across the country, XM and Sirius and will be streamed on foxnews.com.

Westwood One announces
Six Grammy nomination specials

Westwood One is presenting six format specific Grammy Nomination Specials for Country, CHR, Alternative, Hot AC, Urban and Classic Rock formats. Each special is two hours in length, and will air Saturday, 2/2-Sunday, 2/3, prior to the 50th Annual Grammy Awards on 2/10. The Grammy Show (CHR/pop) - Music and interviews from Grammy nominated artists including Kanye West, Fergie, Rihanna, Justin Timberlake. The Grammy Edge (Alternative Rock) - Music and interviews from artists including Foo Fighters, White Stripes, Paramore, Tool, Eddie Vedder, Beastie Boys. Hot AC Grammy Special - Music and interviews from artists including Amy Winehouse, Plain White T's, Daughtry, Maroon 5, Nelly Furtado. Urban/Hip-Hop Grammy Special - Music and interviews from Urban/Hip-Hop nominees including Kanye West, T-Pain, Alicia Keys, Soulja Boy, Beyonce. All About The Grammy (Classic Rock) - Music and interviews with Classic Rock nominees including Paul McCartney, John Mellencamp, U2, Bruce Springsteen. Country Music Grammy Special - Music and interviews with Country nominees including Carrie Underwood, Brad Paisley, George Strait, Dierks Bentley, Keith Urban, Trisha Yearwood.


Internet Business Report TM
Last.fm launches free on-demand platform
CBS Corp.'s Last.fm (www.last.fm) announced it is launching a service to allow anyone to listen to music on the site for free. Last.fm, like Pandora and Jango, is a recommendation engine that guides listeners to music they are likely to enjoy based on prior selections. In launching this service, Last.fm becomes the first music Web site to offer free, global, on-demand access to the largest licensed catalogue of music built on partnerships with all four major record labels--including Universal Music Group, Sony/BMG, Warner and EMI--as well as CD Baby, IODA, the Orchard, Naxos and more than 150,000 independent labels and artists. The service will be ad supported.


Ratings & Research
Retailers to rake in the bucks around Super Bowl
According to the Retail Advertising and Marketing Association's 2008 Super Bowl Consumer Intentions and Actions Survey, sales on televisions and furniture will increase over last year in anticipation of football's biggest day. This year, consumers plan to purchase 3.9 million televisions for Super Bowl Sunday, up more than 50% from 2.5 million last year. In addition, viewers plan to purchase 1.8 million pieces of furniture, up from 1.3 million last year. Young adults 18-24 will be outspending other consumers as one in ten (9.8%) of these viewers plans to purchase a television and one in 20 (4.9%) will buy new furniture. The survey found that 158 million people will watch the Super Bowl this year. Consumers plan on spending an average of 59.90 on Super Bowl-related merchandise, up from last year's 56.04. Total spending for the 2/5 Super Bowl is expected to reach 9.5 billion.

Fans watch bowls, want tourney
More than 108 million people tuned in to watch at least part of the college bowl games, according to ratings data from Nielsen. But the company also surveyed college football fans by telephone and found that 51% of them wish there was a playoff tournament to crown the champion. With no tournament, there is dispute every year about which are the top two college football teams and whether they get selected to play each other in a bowl game. The Bowl Championship Series was supposed to deal with that, but not everyone agrees that LSU and Ohio State were the two top teams. LSU beat Ohio State in that recent BCS Championship game watched by 23 million viewers, the most of any bowl game this season. But Nielsen's poll found that only 41.8% of respondents thought those were the two top teams. A similar number, 41%, indicated that there are too many college football bowl games (currently 32) in Division 1-A, while 34% disagreed. Just over half (51%) of all respondents agreed that "college football needs a tournament system like that which is used in college basketball." Only 20% disagreed with the idea of a playoff and 9% were undecided. The most passionate college football fans (indicated by their responses) held stronger opinions: 62% want a playoff.


Transactions
2.2M KSRM-AM/KSLD-AM/KKIS-FM, KWHQ-FM & KFSE-FM Soldotna-Kenai AK (Soldotna, Kenai, Kasilof AK) from KSRM Inc. (John C. Davis) to Blayde Communications Inc. (Cherie L. Curry, Scott B. Curry). 20K escrow, 420K note, 300K carry back note, 715K to settle three seperate debts, 197K debt assumption, 548K cash at closing. Includes non-competes. Existing superduopoly. [File date 12/26/07.]


Stock Talk
Stocks gain on Wall Street
Short-covering, bargain hunting and news that New York regulators were in talks to shore up the bond insurance industry pushed stock prices up on Wednesday. The Dow Industrials finished a late rally with a gain of 299 points, or 2.5%, to 12,270.

Almost all radio stocks were higher. The RBR Radio Index gained 3.132, or 4%, to 80.853. Emmis soared 13.7% and SBS was up 10% as the top performers.


Radio Stocks

Here's how stocks fared on Wednesday

Company Symbol Close Change Company Symbol Close Change

Arbitron*

ARB

41.41

+1.25

Google

GOOG

548.62

-35.73

Beasley*

BBGI

4.52

+0.04

Hearst-Argyle

HTV

20.63

+0.52

CBS CI. B CBS

23.10

+0.22

Journal Comm.

JRN

7.80

+0.33

CBS CI. A CBSa

23.02

+0.12

Lincoln Natl.

LNC

52.09

+2.44

Citadel* CDL
1.61 +0.09

Radio One, Cl. A

ROIA

1.70

+0.02

Clear Channel*

CCU

32.21

+0.07

Radio One, Cl. D*

ROIAK

1.74

+0.04

Cox Radio*

CXR

10.90

+0.01

Regent*

RGCI

1.43

+0.11

Cumulus*

CMLS

5.85

+0.42

Saga Commun.*

SGA

5.79

-0.18

Debut Bcg.

DBTB

0.95

unch

Salem Comm.*

SALM

3.90

-0.03

Disney

DIS

28.52

+0.40

Sirius Sat. Radio

SIRI

2.87

+0.22

Emmis*

EMMS

2.98

+0.36

Spanish Bcg.*

SBSA

1.65

+0.15

Entercom*

ETM

11.30

+0.30

Westwood One*

WON

1.66

+0.09

Entravision

EVC

6.20

+0.17

XM Sat. Radio

XMSR

11.20

+0.62

Fisher

FSCI

33.63

+0.48

-

-

-

-

-

*Component of the RBR Radio Index


Bounceback

Send Us Your OpinionsWe want to
hear from you.

This is your column, so send your comments and
a photo to [email protected]

Feedback on pacings and PPM

Regarding "National Pacings Dismal for Q1" (1/23/08 RBR #15).

Thank you for showing what the RAB/Forester Study showed in 2005 regarding the future of radio billing from the advertiser and agency community: If radio moves to electronic measurement (PPM), they will have more confidence in the data - regardless what it shows - and put money into radio in those markets. As you indicated, I believe there is a strong correlation to Philadelphia being the only market in the top 10 that is pacing ahead of last year, and Houston is only 7% behind last year's Q1. Did anyone else notice that Philadelphia's 11.0M is also only 600K behind Los Angeles? Remember, Philadelphia and Houston did not become PPM currency markets until late last spring/early summer. Media plans don't change overnight, but this is great news for Philadelphia and Houston.

How much more evidence do we need to move forward with PPM? I also believe the data from the PPM panel that is in place for markets such as Chicago and Los Angeles should be released as non-currency "test" data so we all can get used to this transition and, as Walt Disney said, we "Keep Moving Forward".

Bob Michaels, President
Bob Michaels' MediaSense, LLC
www.mediasense.info


Below the Fold
Washington Business Report
NAB takes exception
To white space advocates like The Wireless Innovation Alliance, which would like to flood the space...

Media Markets & Money
Karmazin theme song:
Night & Day - Craig Karmazin's Good Karma Radio has been using two stations to get ESPN...

Internet Business Report
Last.fm launches
Free on-demand platform...

Ratings & Research
Retailers
To rake in the bucks around Super Bowl take advantage...




Stations for Sale

Market your Stations For Sale
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Contact
Jim Carnegie
[email protected]


Radio Media Moves

Big change
at "Lite FM"

Jim Ryan, pictured, is leaving Clear Channel's WLTW-FM "106.7 Lite FM" New York this spring after 11 years as PD to launch his own content consultancy. Chris Conley will be the station's new Program Director, joining from the McVay Media consultancy. Ryan will also relinquish his CCU duties as Sr. VP of Adult Contemporary Programming. "Jim Ryan's tenure as WLTW's program director is nothing short of remarkable. He took an average station and made it legendary. He's unquestionably one of the best programmers I've ever had the pleasure to work with. We're fortunate to have him continue as a consultant," said Tom Poleman, Sr. VP of Programming for Clear Channel.




More News Headlines

Bergeron to host
Golden Mike gala

Tom Bergeron will emcee the 2008 Broadcasters Foundation of America Golden Mike Award in honor of the Co-Chair of Disney Media Networks and the President of the Disney-ABC Television Group Anne Sweeney. The black-tie gala will take place on Monday, February 25 at The Waldorf Astoria in New York City. Bergeron, who began his media career on radio in New England, now hosts two primetime series for ABC: "Dancing With the Stars" and "America's Funniest Home Videos."


RBR Radar 2008
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

National pacings dismal for Q1
RBR has obtained data generated by one of the national rep firms showing just how soft national spot pacings for radio are in Q1. The numbers are pretty shocking. As of January 7th, when the data was generated, the top 10 markets were pacing 18.6% behind where they were at the same date a year earlier. Only one of those top 10 markets was in positive territory - Philadelphia. Markets 11-25 were about the same, down 16%. For the entire top 100 markets, pacings were down 17.2%.

RBR observation: Was it just coincidence that Philadelphia, a PPM market, was the only top 10 market in plus territory? Houston, the other PPM market, was not up, but it was off less than 7%, so better than most of the other big markets. Only two others in the top 25, Phoenix and Baltimore, had positive pacings.

RBR note: If you think these stats hurt then it is our recommendation you do not go to our website to see the entire details. But if you feel you must then hold on to your hair, now go ahead, view these pacing numbers at www.RBR.com
01/23/08 RBR #15

Fred Jacobs assesses
Jim Boyle's P1 advice to radio
Jacobs Media President Fred Jacobs (pictured) was intrigued by the comments for CL King analyst Jim Boyle published a few days ago in RBR (1/18/08 RBR #12) on new ways that radio stations might look to monetize the value of their P1 listeners. "These are indeed the people who are loyal, engaged, and emotional about Radio stations. We need them - badly. But for the most part, Radio continues to look past them, trolling for diarykeepers and possible PPM cooperators. "So, thanks Jim Boyle, and RBR, for swimming upstream and shaking the tree. That may be the way out of this mess," Jacobs concludes.

RBR note: You may read his entire commentary on www.RBR.com
01/23/08 RBR #15

This Week in Time
We know where we are today reading TVBR but how did we get here? TVBR's new business brief gives a quick scan on where television has been. 4 years ago -- 2004, Issue 12 - How Television stocks fared: Wall Street advance leaves broadcasters behind. Belo 26.90, Gannett 86.90, Hearst 28.42, News Corp 37.06, Scripps 92.72. TVBR looks back and compare to today. Archived issues located at www.TVBR.com

RBR note: Think it is bad in radio, TV no better off.
01/23/08 TVBR #15

This week in Time
We know where we are today reading RBR but how did we get here? RBR's new weekly radio business brief gives a quick scan on where radio has been. 4 years ago -- 2004, Issue 11How Radio stocks fared: Wall Street advance leaves broadcasters behind. Citadel 20.40, Clear Channel 44.73, Cumulus 20.63, Emmis 26.63, Entercom 50.50 - 1 year ago -- 2007, Issue 14 XM lawsuit to proceed. RBR observation: Think this doesn't matter to AM and FM stations? Think again. How Radio stocks fared: higher, earnings a mixed bag. Citadel 10.19, Clear Channel 36.50, Cumulus 10.35, Emmis 8.65, Entercom 28.11

RBR observation: You want to see price stock shock see this issue of RBR
01/22/08 RBR #14



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