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Welcome to RBR's Daily Epaper
Volume 24, Issue 202, Jim Carnegie, Editor & Publisher
Tuesday Morning October 16th, 2007

Radio News ®

Radio One signs for PPM
Radio One had been encoding for PPM in Houston and Philadelphia, but not buying the data. Now, with PPM on the horizon for Los Angeles, Radio One has signed a group deal with Arbitron covering the next five years for all 16 of its markets, including 15 that have or will have PPM. Amid complaints being voiced that Urban and Spanish stations have suffered the biggest ratings drops in the conversion from diaries to PPM, Arbitron was careful to include quotes in its announcement from Radio One CEO Alfred Liggins citing the upside of PPM for Urban stations. He noted in particular the evidence that stations targeting people with jobs tend to be the most listened to under PPM measurement. "Electronic measurement is providing compelling evidence about the power of Urban radio to reach and engage the African American consumer. It is also demonstrating the 'working persons' advantage that Urban radio offers marketers who want to reach the brand conscious and brand loyal African-American consumer," Liggins said. He also commended Arbitron for taking steps to address the concerns of Urban broadcasters about PPM measurement.

RBR observation: Arbitron is meeting with the New York City Council today to try to allay fears that PPM will negatively affect ratings and revenues for stations targeting minority audiences. PPM is currently gathering audience data in the New York Metro, but only in a pre-currency mode. Before the company arranged today's meeting to explain the methodology, Arbitron had been publicly attacked by City Council Speaker Christine Quinn, who demanded that the company halt or delay PPM implementation. We note that similar objections were heard when Nielsen began rolling out Local People Meter measurement for television in the largest markets, but that uproar died down as broadcasters and ad buyers adjusted to the ratings changes. (Note: Yesterday's MRB indicated that Radio One had previously subscribed to PPM in Philadelphia, but Arbitron later corrected that information. Radio One has only been encoding in both Houston and Philadelphia.)

3B possible for 2008 political
TNS Media Intelligence says that 2008 should produce a bumper crop of political spending, both on elections and issue advertising, with total ranging anywhere from 2.5B to 3B. That's on top of a what has been a robust off year of political/issue spending. TNS's Campaign Media Analysis Group estimates that 529M has already been spent this year, a total that should settle somewhere around the 700M mark by the end of December, fueled in part by three off-year gubernatorial races in Louisiana, Kentucky and Mississippi.

In addition to a great deal of issue advertising, including a recent blitz over the SCHIP veto, the presidential primaries are fueling early spending in 2007. TNS suspects that 2008 will blow past the 100M mark before the year is a month old. Republicans will face long odds in their attempt to regain control of the Senate, where they are defending 22 seats (to only 12 for the Democrats). On top of that, the party is facing at least five retirements, plus difficult defensive campaigns in Minnesota, New Hampshire and Maine. TNS speculates that Republicans may emphasize House races because of this, keeping Senate spending at or below 2006 levels while raising the ante for the House of Representatives. Tomorrow: Projected hot spots identified.

FCC runs out of patience
We guess this FCC proceeding has been a dragged-out affair. Just looking at the title of it: The 2006 Quadrennial Regulatory Review of the 2002 Biennial Regulatory Review of Broadcast Ownership Rules and a Whole Bunch of Other Related Stuff (OK, we mangled the title, but it does in fact eat up over half of any page the FCC releases on the topic). Anyway, the FCC has been trolling for comments one way or another on the most recent post-remand attempt at proceeding with the proceeding since 7/24/06. It has extended the period for comments many times, and the deadline was back at the beginning of the month with reply comments due today (10/16/07). A coalition of organization known as Diversity and Competition Supporters have asked for a further extension, in particular because they claim a number of broadcast companies would like to comment on DCS's proposals to increase minority and female ownership of broadcast properties. The National Association of Broadcasters has filed in support of the DCS request. The FCC isn't going for it this time. It said many of these proposals have been in the public record for over a year, and that anyone wishing to comment has had ample time to do so. In other words, the Commission believes it has assembled "a complete record upon which to base Commission decisions" and will honor its other responsibility, to act on its responsibilities in a timely manner.

RBR observation: Most people with knowledge of this issue seem to agree that reviving the tax credit with makes it more attractive to sell a broadcast property to a socially disadvantaged business is one of the best tools available. That is not a matter for the FCC, it is a matter for Congress. Charles Rangel (D-NY) has been one of the more recent legislators to bring the matter up, and John McCain (R-AZ) has been known to back it in the Senate. Maybe with your help, your own representatives will help bring it back to life.

Feeling down? Could be your job
A government study has found that 7% of all US full-time workers have suffered "a major depressive episode" during the past 12 months, and that the likelihood of such an event may be related to the type of employment the worker is engaged in. The bad news? Lawyers are below average at 6.4%. The worse news? Entertainment and media is nearer to the top of the depressive heap. Lumped into a category called Arts, Design, Entertainment, Sports and Media, the group was over two points worse than average at 9.1%. The most depressed group is Personal Care and Service, at 10.8%, followed by Food Preparation and Serving (10.3%), Community and Social Services (9.6%) and Healthcare Practitioners and Technical (also 9.6%). Sales, also part of broadcasting, was near the middle of the pack at 6.7%. The least depressing jobs are Engineering, Architecture and Surveyors (4.3%), Life, Physical and Social Sciences (4.4%), Installation, Maintenance and Repair (4.4%) and Construction and Extraction (4.8%). The study is the National Survey on Drug Use and Health (NSDUH) from the Office of Applied Studies of the Substance Abuse and Mental Health Services Administration (SAMHSA).

Market reacts to dropped Hearst bid
The stock price of Hearst-Argyle Television declined 6% yesterday after Hearst Corporation dropped its bid to buy out public shareholders. Even so, the stock price closed three cents above the abandoned bid of 23.50 per share and well above the 20.42 price back in August before the offer was made. So, what happens now? Bear Stearns analyst Victor Miller doesn't think this is over. But he wonders what message Hearst Corporation was trying to send. "Hearst Corp. did not offer a 'bump' in the price, which was a bit surprising. The 'no bump' suggests Hearst Corp. is sending a message. Here are some ideas: Hearst Corp. a) has changed its mind on the prospects/valuations for TV assets, b) is preparing for a new bid but wants to tamp down shareholders expectations, c) could not come to an agreement on valuation with HTV's largest shareholders (for now) or d) is simply going through the machinations of the process and will weigh the possibility of a higher bid. Which one is Hearst Corp. sending?" Miller asked as he pondered the issue for his clients. But while there is no bid currently on the table, Miller thinks there is another chapter yet to be written, but that may take some time. "We still think a bid in the 25.50-27.00 range is a more accurate representation of company value," the analyst said.

RBR observation: Hearst Corporation still owns 73% of Hearst-Argyle, so it is not likely to seek another buyer, nor would any unsolicited bid have much chance of going anywhere. As noted by some of the folks who'd objected to the 23.50 price, Hearst Corporation has paid more than that for many of the Hearst-Argyle shares it now owns. We wait to see if the company goes back to buying shares in the public market. That 27% stake now held by the public could just be gnawed away until Hearst Corporation makes another bid to take Hearst-Argyle private.

Sportscaster dies on the job
Colleagues at Genesis Communications are mourning the sudden death of Keith Lippert, who was stricken Friday night as he prepared to do play-by-play of a high school football game in Melbourne, FL. Lippert, who was 43, and two other staffers from WIXC-AM had unloaded their gear and were heading to the press box to set up. But as Lippert started to open the door, he collapsed. After treatment at the scene, he was transported to a nearby hospital where he was pronounced dead. Along with his play-by-play work, Lippert had hosted the "Friday Night Locker Room with Keith Lippert" show on WIXC. A memorial service is scheduled for Saturday.

Ad Business Report TM

McGavren-Guild signs WKLU-FM in Indianapolis
Interep announced today its McGavren-Guild Radio Sales has signed an agreement to provide national sales representation to WKLU-FM, a classic hits station in Indianapolis. Said Russ Oasis, Owner, WKLU-FM: "We use McGavren-Guild to rep our cluster in Fort Wayne and couldn't be happier. The recent reshuffling of representation agreements in Indianapolis created a unique opportunity to now have McGavren in both markets. This is a win-win for all."

CC Radio EAR Awards
announce finalists

Clear Channel Radio announced the 42 finalists for the 2007 Excellence in Advertising on Radio (EAR) Awards. Nearly 1,000 entries were received for this year's competition. Winners will be honored and prizes will be handed out-including the Best of Show prize of 1 million in CC Radio advertising-at an awards show 11/2 at Lincoln Center. Stephen Colbert of Comedy Central's Colbert Report has signed on as special guest host for the event.
| The 2007 EAR Awards Finalists are |

Vsurance launches national campaign
Vsurance, a leading provider of pet health insurance, announced that the Company will launch a national television campaign on major networks such as ABC, CBS, NBC, CNBC, FOX NEWS, CNN, National Geographic and Discovery Channel. The effort will launch 10/17 on CNN. During this national marketing campaign kick-off period, Vsurance will be highlighting the company's pet health insurance products, such as its Get HIP plan, as well as the pet health insurance industry in the U.S. The campaign is part of the company's larger national campaign, which includes a broad combination of radio, television, print, as well as outdoor billboard in major metros.

Media Markets & Money TM
Close encounter in Wilkes Barre-Scranton
Bob Wilkins has his 3rd Pennsylvania station and 16th overall, now that the i's are dotted and the t's crossed on his deal for WITK-AM in the Wilkes Barre-Scranton market. According to brokers Richard A. Forman and John Pierce, the price was 400K. Wilkins is a Religious specialist.

Joyner grabs Illinois cluster
Archway Broadcasting Group has found a buyer for another cluster. Veteran broadcast group owner Tom Joyner, based in North Carolina, is buying Archway's five-station cluster in the Decatur, IL market. Media Venture Partners represented Archway and Michael Bergner represented Joyner in the transaction.

Washington Business Report TM
Bureaucrats, association heads descend on the Hill
Jonathan Adelstein will be doing the honors for the FCC and John Kneuer will represent the NTIA Wednesday as the Senate Commerce Committee takes yet another look at the DTV transition. After they are through being grilled, a select group of five association honchos will hop into the frying pan. They include David Rehr of the National Association of Broadcasters, John Lawson of Association of Public Television Stations, National Cable and Telecommunications Association's Kyle McSlarrow and Mark Peal of the Consumer Electronics Retailers Coalition. Also on hand to present the satellite perspective will be John Gieselman of DirecTV and Mark Pearl. The session starts at 2:30. For Kneuer, it will be his second hearing. He is said to be booked with the House Commerce Committee's Subcommittee on Telecommunications and the Internet along with FCC Chairman Kevin Martin to discuss the same topic during a morning session. The other panelists for that meeting have not yet been announced.

Media Business Report TM
Discovery discovers
Discovery Communications today announced the purchase of, adding to the online presence of the cable programming company. Terms were not disclosed. HowStufWorks claims 11 million global monthly unique visitors. "One of my early challenges at Discovery was determining how best to build a robust digital media portfolio. With HowStuffWorks, Discovery now has a solid platform for strengthening our digital businesses, leveraging our video assets to create new experiences for users, advertisers and our distribution partners, and taking those opportunities around the globe," said David Zaslav, President and CEO, Discovery Communications. For his part, Jeff Arnold, who will continue as CEO of HowStuffWorks, says teaming with a global media company will allow the web-based operation to continue to meet consumer expectations and aggregate large audiences.

In addition to an editorial team that creates new content every day, HowStuffWorks leverages the exclusive digital rights to over 30,000 books, 800,000 images and more than 180,000 maps as it explains the world from brains to bats, from rocket engines to roller coasters, from hybrid cars to HDTV, and countless other topics. As you would imagine, there is a video component to this, with clips from Discovery to be utilized on HowStuffWorks. And yes, there is a "How Stuff Works" TV show already in the works.

Mitt Romney tops with
campaign ad placement, so far

So far this year, Republican Presidential Candidate Mitt Romney has placed more political ads than any other two presidential candidates combined, according to The Nielsen Company findings. Altogether, Romney placed 10,893 political ads from 1/1 to 10/10/2007, compared to 5,975 for Bill Richardson and 4,293 for Barack Obama, the two runners-up. Almost 95% of the total 28,725 presidential campaign ads placed this year were on local television, and over 71% of those were placed in Iowa. During August, (759,000) and (749,000) continued to be in a tight race for the most unique visitors to their campaign websites.

Overall, the Democrats have taken the lead in running Presidential campaign advertising, with a total of 16,683 TV spots compared to 12,042 spots by the Republican candidates. Hillary Clinton has only run half as many ads as Richardson or Obama, but has spread her advertising around in many more states. With nearly 11,000 ads, Romney has far outpaced his Republican rivals. John McCain, for example, has run 166 local ads, all in New Hampshire, and Fred Thompson has run 13 ads, all on national cable. Both McCain and Thompson have only recently started running spots, with their ads airing since September. Rudy Giuliani continues his strategy of running ads exclusively on radio with a total of 642 spots airing during this time period.

Internet Business Report TM
Nielsen Online, Nielsen Mobile debut
The Nielsen Company announced that it has launched two new Internet and mobile measurement services - Nielsen Online and Nielsen Mobile. Nielsen Online is comprised of the company's Nielsen//NetRatings and BuzzMetrics services, which provide independent measurement and analysis of online audiences, advertising, video, blogs, consumer-generated media, word-of-mouth, commerce and consumer behavior. Nielsen Mobile combines recently acquired Telephia, provider of syndicated consumer research to the telecom and mobile media markets, with several existing Nielsen initiatives in the mobile market. Nielsen Mobile will use its unique measurement tools and large-scale, integrated consumer panels to understand and interpret the behaviors, attitudes and experiences of mobile consumers. Sid Gorham, the former CEO of Telephia and a 20-year veteran of the telecom industry, has been named president and CEO of Nielsen Mobile. Nielsen Itzhak Fisher, former executive chairman of BuzzMetrics, will lead Nielsen Online as executive chairman of the service.

Ratings & Research
More consumers are watching TV broadcasts online
Close to 16% of American households who use the internet watch television broadcasts online, The Conference Board and TNS reported. The number of consumers viewing entire episodes/shows on the internet has doubled from a year ago. Nearly 73% of online households use the internet for entertainment purposes on a daily basis and an additional 15% search for entertainment several times a week. Online viewers cite personal convenience and avoiding commercials as their top two reasons for watching TV broadcasts on the Internet. Four out of every five online viewers say that watching these programs online has not changed their television viewing habits, but a small percentage claim that their traditional television viewing has decreased. Online users catching up on missed content have increased to 42% from 30% a year ago. Consumers viewing entire episodes on the internet have doubled, and now approximately half watch their favorite shows online. This has replaced the news as the most widely viewed content online.

20M WMCU-FM Miami-Ft. Lauderdale-Hollywood FL (Miami FL) from Trinity International Foundation (Paul J. Maurer) to American Public Media Group (Glen D. Nelson, David R. Strand, William H. Kling). Cash. [File date 10/1/07.]

Stock Talk
Debt worries on Wall Street
Stock prices declined on Monday after some of the nation's biggest banks, urged on by the US Treasury, announced creation of a fund to buy up assets from structured investment vehicles (SIVs), which buy corporate bonds and subprime mortgage debt - essentially a bail-out of the crumbling subprime market. That worried traders because it showed that the issue is still roiling the credit markets. The Dow Industrials fell 108 points, or 0.8%, to 13,948.

Radio stocks joined in the retreat. The Radio Index dropped 1.439, or 1.2%, to 122.443. Hearst-Argyle, which is not a part of the index, dropped 6% after Hearst Corp. dropped its buyout bid. Westwood One was down 4.2% and Citadel declined 3.3%.

Radio Stocks

Here's how stocks fared on Monday

Company Symbol Close Change Company Symbol Close Change




















Journal Comm.







Lincoln Natl.




Citadel CDL
4.41 -0.15

Radio One, Cl. A




Clear Channel




Radio One, Cl. D




Cox Radio












Saga Commun.




Debut Bcg.




Salem Comm.








Sirius Sat. Radio








Spanish Bcg.
















Westwood One








XM Sat. Radio





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Below the Fold
Ad Business Report
CC Radio EAR Awards
Announce 42 finalists finalists for the 2007 Excellence in Advertising...

Washington Business Report
Bureaucrats and Association heads
Descend on the Hill Wednesday as the Senate Commerce Committee takes yet another look at the DTV...

Internet Business Report
Technology waits for No One
Nielsen Online, Nielsen Mobile debut 2 new Internet & mobile measurement services...

Media Markets & Money
Close encounter in
Wilkes Barre-Scranton as Bob Wilkins has his 3rd PA station and 16th overall...

Stations for Sale

Market your Stations For Sale
in our daily epapers.

June Barnes
[email protected]

Radio Media Moves

Argaman to Cox
Cox Radio announced the appointment of Sean Argaman to General Sales Manager of WBAB-FM Long Island, NY. Argaman most recently served as the Senior Director of Sales for the New York Islanders professional hockey franchise. Prior to joining the Islanders, Argaman held the position of Local Sales Manager of WBAB.

Five more years
Greg Hill, host of the "Hill-Man Morning Show" on Entercom's WAAF-FM Boston, has signed for another five years with the station. Hill has been at WAAF since 1986 and has been doing mornings since 1989.

Hillier joins SSI as VP
There's no doubt that Chuck Hillier knows the sales ropes and now he is on board with Syndicated Solutions Inc. (SSI) as VP/National Sales. Hillier will be based in Chicago. If the name rings a bell, think of HNWH. Yes, he was the Hillier in the rep firm Hillier, Newmark, Wechsler & Howard and also served as President/GM of Emmis' WKQX-FM "Q101" Chicago.

More News Headlines

Drudge: Imus deal done
According to the Drudge Report, Don Imus has secured a deal returning him to the airwaves on 12/3 - as most have reported - on WABC-AM NY. "Imus In The Morning" will be on a 40-second delay, hopefully enough to eliminate any disparaging comments, such as the one about the Rutgers women's basketball team that got him fired from CBS Radio and MSNBC. Drudge says it's an eight-figure, multiyear contract with Citadel. Station execs are still tinkering with the new schedule at WABC, which will likely see current morning jock Curtis Sliwa paired with late morning's John Gambling. Imus will be interviewed by Barbara Walters for a coming special.

Clear Channel letter bringing big bucks
Clear Channel CEO Mark Mays won't be keeping the letter from Senate Majority Leader Harry Reid (D-NV), and signed by 40 other Democratic senators, demanding that Mays repudiate comments allegedly made by syndicated Talk host Rush Limbaugh. Mays is letting Limbaugh auction the original letter on eBay to raise money for a charity that provides scholarships for the children of US Marines and police officers killed in the line of duty. As of mid-day yesterday, the bidding had passed 45K. Limbaugh announced yesterday that he will match the winning bid with his own donation to the charity - and challenged Reid and the other signers, including presidential hopefuls Sen. Hillary Clinton (D-NY) and Sen. Barack Obama (D-IL), to do the same. The online auction continues through Friday.

Shield looks like
a go in the House

A bill that would provide a federal shield for reporters protecting sources recently cleared a key Senate committee with a 15-2 vote, and now it looks like the full House of Representatives is set to OK a version. According to USA Today, one of the bill's backers, former Talkmeister Mike Pence (R-IN) is expecting "a strong bipartisan vote," and Speaker Nancy Pelosi (D-CA) is said to be ready to bring the matter to the floor.

Ponderosa/Bonanza Steakhouses in review
Ponderosa/Bonanza Steakhouses are launching an agency review for their 8 million account that includes creative and media for television, radio, print, E-mail, direct mail, outdoor and interactive. A division of Metromedia Restaurant Group (MRG), Ponderosa/Bonanza oversees more than 340 steakhouse restaurants worldwide.

RBR Radar 2007
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

PPM: what should the guarantee be?
Arbitron has now instituted its guarantee for Portable People Meter in-tab delivery, promising refunds to stations if it fails to hit the target for Persons 6+ measurement in any PPM market. But that hasn't satisfied the Radio Advisory Council (RAC), which has countered with a request that Arbitron instead guarantee in-tab delivery for Persons 18-54. See the Site Map in RBR

RBR observation: No doubt many stations would like to see Arbitron guarantee 18-34 in-tab delivery for PPM, but that seems to be too much to hope for. That demo is the one we see mentioned most often in emails from readers pertaining to PPM, but it has also long been a problem demo for Arbitron's diary methodology - and for pretty much every company that tries to measure anything dealing with US consumers. Asking for an 18-54 guarantee is a bit of a compromise by the RAC, giving Arbitron some wiggle room but still calling for something more focused on the problem area than a broad 6+ guarantee. Now the folks at Arbitron have to do the math and figure out what it would cost them to make sure they can hit an 18-54 target in every PPM market as the new system is rolled out to all of the top 50 markets - and the risk of refunds for an occasional shortfall. The bottom line, though, is that! Arbitron and its client stations all want the same thing - for PPM to properly measure radio listening in all demos, including the young ones.
10/15/07 RBR #201

Doldrums likely to continue
Wall Street analysts were not surprised by the 1% drop in radio revenues for August (10/11/07 RBR #199), nor are they encouraged by what they see in the advertising marketplace now. Bank of America, Jonathan Jacoby has lowered his September estimate to down 1% and sees that trend continuing into October and Q4. CL King, Jim Boyle says early September pacings appear to be weak.

RBR observation: So far 2007 has produced only three months where radio revenues were up from a year earlier. If Jacoby's predictions come true, the best we will see for the rest of the year is a flat December. That would take the tally for the year to eight down, three up and one flat. Ouch! Details of what was reported see RBR
10/12/07 RBR #200

Martin pushes LPFM
and DTV leasing

How can the FCC help more small businesses get into the communications field? FCC Chairman Kevin Martin cited leasing of DTV multicast channels and low power FM stations as opportunities for small businesses.

TVBR observation: What? Does the Chairman of the FCC not know that no business, large or small, can own an LPFM? They are strictly non-commercial and must be owned by a qualified non-profit organization.
10/12/07 TVBR #200

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