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Welcome to RBR's Daily Epaper
Volume 25, Issue 244, Jim Carnegie, Editor & Publisher
Tuesday Morning December 16th, 2008

Blockbuster: CBS/CCBI swapfest
Seven stations in five markets will be going back and forth between radio giants CBS and Clear Channel. CBS gets two in Houston, while Clear Channel bulks up in Portland, Seattle, Sacramento and Baltimore. In all five markets, the stations will be moving from one cluster to another, leaving each deal participant with a minimum of four stations. The two companies have retained Bond & Pecaro to come up with station valuations. Click the headline for station details.

RBR observation: This transaction is just dripping strategy like a stack of pancakes drips syrup. It's a like kind exchange, keeping the tax man at bay; it is basically a cash-free swap, keeping a massive scavenger hunt for credit off the table; and neither company is even entering a new market or exiting an existing market. It's tailor-made for current economic conditions. Look for more like it.

Arbitron accelerates cell phone-only inclusion
No more waiting for cell phone-only households to be included in Arbitron diary market sampling. The company says all diary markets will get cell phone-only sampling by the Fall 2009 survey, including 151 markets, not just 50, who'll get it for the Spring 2009 survey.

RBR observation: Arbitron had been under pressure from diary markets for some time to improve the sample - in particular, getting more participants under 55. In response, the company first announced that some diary markets would get cell phone-only sampling in the Fall 2009 survey, then moved that to Spring for 50 markets. Then Nielsen jumped into measuring US radio markets by diary. Bam! The timetable is dramatically speeded up and everyone will get cell phone-only sampling before 2009 is over. Don't ya love competition?

McGavren Guild keeps SBS, WBEB
McGavren Guild, the newly reformed rep firm from the ashes of Interep, has extended its rep agreement with Spanish Broadcasting System and legendary radio station WBEB-FM, "B101," Philadelphia. The firm also reached agreement with Davidson Media Group, Golden Door Broadcasting, and several other Hispanic broadcasters, with discussions with several more general market broadcasters in the works.

Smulyan upbeat on radios in cell phones
Emmis Communications CEO Jeff Smulyan and some other radio industry leaders have been pushing the idea of having a radio receiver included as standard equipment in every cellular telephone. The wireless companies wouldn't be doing this out of the goodness of their hearts. It would save them a lot of money, not to mention providing a benefit to their customers. RBR has an update from Smulyan on the talks.

Matthews rumors won't go away
Just when the prevailing winds seemed to be suggesting that the prospect of a Pennsylvania Senate run for MSNBC's Chris Matthews was a ploy in his upcoming network contract renewal negotiations, along came no less than the sitting Pennsylvania governor to pour a few gallons of gas onto the flames. In an appearance on Bloomberg Television, Ed Rendell (D) said Matthews looked good in early polling for both the primaries and for a run against Arlen Specter (R-PA).

RBR observation: Another piece of conventional wisdom is that if Matthews is indeed going to toss his hat in the ring, he needs to withdraw from MSNBC ASAP. As we noted earlier, we suspect Specter's oppo research team would have a field day with the rich treasure trove of Matthews footage available to them. But we didn't see a pseudo-endorsement from Rendell coming, so we guess we will just stay tuned.

Ideas Working Now tm
Tips on Food Supplement Advertising
By Gregg Skall, Womble Carlyle Sandridge & Rice, PLLC
Food Supplement advertising has become an active area in broadcast advertising as it has elsewhere. The Federal Trade Commission (FTC) and the Food and Drug Administration (FDA) work together, but have divided their responsibilities regarding dietary supplements. While the FDA deals with matters involving the products themselves, such as product labeling, including packaging, inserts, and other promotional materials distributed at the point of sale, the FTC has primary responsibility for claims in advertising, including broadcast ads, and internet marketing...


Radio can be big winner in media reallocation for Big 3
According to a recent analysis of BIGresearch's Simultaneous Media Usage Survey (SIMM) database by Prosper Technologies, wide gaps exist between how ad dollars have been spent versus what consumers say works best when it comes to buying a car. One glaring difference is the disproportionate allocation of spending on TV versus other media. An example is that the amount of radio consumed, its influence to purchase, combined with lower costs makes it a stronger media option, which according to consumers is under-utilized. This is great news for the radio industry-click the headline to see all.

RBR observation: Indeed, what's really amazing when you look at media influence weighted by consumption and media cost for people planning to buy/lease a car/truck, radio really gets a huge bang for the buck. The Big 3's percent of total US ad spend in 2007 was only between 1.9% and 3.5%. However, according to the weighting, it was a whopping 21.5%--the highest influence of all media.

ReplaceAds debuts as third largest online ad network
ReplaceAds has debuted as the third largest online radio advertising network in the October comScore/Arbitron Online Radio Ratings. Nearly 1.8 million different people (1,770,500) age 12+ listened for five or more minutes to stations affiliated with the network during an average week in October. The ReplaceAds Network includes more than 3,500 broadcasting stations, and includes music, sports, news, talk and special Interest broadcasts. ReplaceAds works with advertisers to develop Internet advertising campaigns that deliver premium and measurable results while delivering revenue to ReplaceAds' broadcast partners.

Winterize your account ledger
A local insurance group recently sent out a press release advising homeowners of the need to take quick action in the event of severe winter weather. Some of these recommendations are to protect the structural integrity of their property, such as insulating pipes; others are safety-oriented, such as preventing icy sidewalks. Many of them will result in a trip to a local hardware store.

RBR observation: Maybe your local hardware stores, and other businesses that may have necessities in the event of a weather emergency, are balking at running a schedule just now. We suggest that you don't take no for an answer: Pre-sell them on special winter emergency spots...

Intelius picks DeVito/Verdi as AOR
Intelius, provider of online information services, including people search, background checks, identity theft protection and employment screening, has named DeVito/Verdi as its new national advertising agency, it was announced today by Susan Koehler, chief marketing officer of the Bellevue, Washington, based company.

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From one Wallowa to another
Wallowa is a peak, a valley, a county, a town, a river and two radio companies. One, Wallowa Valley Radio Broadcasting Corporation is selling Enterprise OR combo KWVR AM-FM to Wallowa Valley Radio LLC. The seller is headed by Lee Perkins. The buyer's principals are members of the Frasch family, Richard, Mary and David. The price is $650K. The stations are in the northeast portion of Oregon far from Arbitron or Eastlan territory.


N/A WLCC-AM Tampa-St. Petersburg FL (Brandon FL) form Adam Lindemann to Minority Media & Telecommunications Council (David Honig). Donation. Existing management will continue to run station and use "for the training, in broadcasting, of minorities and other socially-disadvantaged persons." Buyer is non-profit entity. [FCC file date 11/25/08]

Kiddie wars continue to heat up
Now there's a movie out, called "Consuming Kids." It comes from an organization known as the Media Education Foundation, and it juxtaposes a population including 52M individuals age 12 or younger, rising rates of bipolar disorder, depression, type II diabetes, hypertension, and obesity, a huge "nag-factor" retail market of $40B annually, and a huge marketing budget of $17B aimed at influencing the naggers in chief. It blames the "media diet": in general for contributing to the previously listed laundry list of problems. Conclusion: It's against it.

RBR observation: This has been a warm topic in Washington for the last few years, often showing signs of heating up but never quite reaching a boil. That may change in the couple of years ahead.


Detroit papers may end daily delivery
Is a newspaper really daily if it is only delivered to subscribers three days a week? The JOA that operates the Detroit News and Detroit Free Press is expected to make a big announcement today and one option under consideration is making four issues per week available only online and in news boxes.

RBR observation:
If this really happens, the obvious question is "why bother?" If you're trying to make your website the main delivery vehicle, go all the way. Stop killing trees. We can't imagine that many people will want newspapers on their front lawn just three days per week.

Channel M launches in-store network for Money Mart Stores
Channel M, producer of customized in-store TV networks, announced that through its Money Mart branded stores, Dollar Financial Group, an international financial services company serving under-banked consumers, launched a custom Channel M in-store TV network. Uniquely developed to reach Money Mart's core customer base, the network is available to external advertisers seeking to reach the same consumer demographic as Money Mart's.

Scandal shakes Wall Street
Concerns over just how much the Madhoff fraud scandal is going to cost financial institutions pressured stock price on Monday. The Dow Industrials were down 65 points, or 0.8%, to 8,565.

Most radio stocks were lower. The RBR Radio Index declined 1.061, or 3.9%, to 26.519. SBS fell 16.5%, Entercom 8.7% and Arbitron 8.1%.

Here's how stocks fared on Monday




























Journal Comm.





Lincoln Natl.




CC Media




Radio One, Cl. A




Cox Radio*




Radio One, Cl. D*












Debut Bcg.




Saga Commun.*








Salem Comm.*








Sirius XM








Spanish Bcg.*








Westwood One*




*Component of the RBR Radio Index

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Below the Fold

Only On
Tips on Food

Supplement Advertising

Ad Business Report
Radio can be big

Winner in media reallocation
for Big 3 auto makers

Business Report

Kiddie wars

Continue to heat up

Media Business Report
Detroit papers

May end daily delivery
make your website the
main delivery vehicle

Media Moves

Upped at Emmis
Emmis Communications
announced that Patrick Walsh, Exec VP & CFO, has added the responsibility of Chief Operating Officer to his role and will now oversee all domestic radio. Rick Cummings, president of the radio division since 2002, will remain with Emmis and focus once again on his passion as President of Programming for Emmis Radio. Walsh will continue to serve as CFO, a title he has held since September 2006.

Virginia PD
Lisa Allen has been hired as program director of Monticello Media's "Your Country 99.7" WCYK-FM Charlottesville, VA. Allen, a 23 year radio veteran, spent the last 10 years as program director of "Free Country" WFRE-FM Frederick, MD.

New duties for Wilson
Tribune Company appointed Ed Wilson as Chief Revenue Officer, with responsibility for growing the company's publishing, broadcasting and interactive revenues. He remains president of Tribune Broadcasting, overseeing the company's 23 television stations, WGN America, and WGN Radio.

Bryant to Metro Networks
Westwood One's Metro Networks announced Kim Bryant has been named Regional Vice President, Western Region Ad Sales. Bryant will be based in Los Angeles and report directly to Metro Networks SVP/Ad Sales, Michael Reznick. Kim Bryant joins Westwood One from CC Radio where she was President & Market Manager for San Francisco/San Jose.

Chicago shifts
Bob Shomper is leaving Tribune's WGN-AM Chicago to become the Program Director of Citadel's crosstown WLS-AM. WGN's new PD is veteran programmer Kevin Metheny, who had been VP/Programming for Clear Channel's Cleveland cluster.

Media Links is now ready to partner with you in our added Media Links section. Submit websites for inclusion here.

Stations for Sale
Market your stations on and in our daily epaper.

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

Sarah Fay, Aegis Media North America CEO
Sarah talks about marketing in a whole new dynamic-an economy in recession.
12/15/08 RBR #243

Beasley buying stock, suspending dividend
When a Wall Street broker-dealer reneged on a deal to buy 2,156,820 shares of Beasley Broadcast Group Inc. (BBGI), the folks at Beasley decided to make it an opportunity to acquire those shares.
12/15/08 RBR #243

Sunshine notice eclipsed
Thursday's final FCC open meeting for 2008 has been cancelled.
12/15/08 RBR #243

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