Radio raises curtain on live events.

INSIDERADIO

March 24, 2015

Client demand for live events continues to grow, driven by an increasing appetite among marketers for experiential components in their campaigns. Event revenue accounted for one of every ten dollars the radio industry booked last year. From big to small, CBS Radio produces more than 1,000 events a year, including 12-30 signature events in each of its markets. Add up everything iHeartMedia does, from the smallest local events to its fall Las Vegas blowout, and the number reaches 20,000. Townsquare Media staged 140 events in the fourth quarter alone. The segment has grown to where Townsquare now reports it as a standalone operating segment, one that grew 31.6% netting $8.5 million in profit last year. Radio enjoys an envious position among media for building and monetizing events. A well-operated station has its finger on what’s popular with its target audience, giving it an upper hand in curating events tailored to listener lifestyles. It also has a built-in marketing machine. "We look at ourselves as an event production company that happens to have a large marketing vehicle behind it," CBS Radio VP of integrated marketing Jennifer Morelli says. "We shape and build our events based on what we know the consumer demand is and then, ultimately, there would be a sponsorship demand." Beyond growing topline revenue, events also provide obvious branding and marketing opportunities for the presenting stations. But with all the rewards come some inherent risks. "They’re kind of tricky to run," Townsquare CEO Steven Price said during a recent earnings call. They require expertise in booking talent and venues, along with production and promotional skills — "especially if you’re taking capital risks in the events and not just doing a co-promotion or being the marketing partner," Price said.

From bacon to beauty, radio’s events portfolio is expanding. One reason why radio’s live event revenue is growing at a double-digit percentage rate is that the industry continues to expand the range of events it produces. While concerts remain benchmarks for many, the menu has expanded to include events built around other listener passion points, including pets, food, wine, beer, sports, fashion, family, art, the outdoors and, of course, bacon. More than 2,000 tickets sold out in January for Indianapolis’ first-ever Bacon Fest, produced by the city’s iHeartMedia cluster. Local chefs created what director of operations Rob Cressman calls "a wide array of bacon-inspired deliciousness," attracting 20 participating vendors. Off-air revenues are flowing from a menu of local On Tap craft beer festivals and Insane Inflatables 5K runs produced by Townsquare Media. Radio One expects 4,000 to attend its first EmpowerOne Expo April 12 at the Cleveland Convention Center to see Wendy Williams and Iyanla Vanzant speak as part of a day full of seminars and workshops ranging from health and love to finances and beauty. Tickets are priced from $25 to $40. Also tapping the empowerment theme, Univision will stage local events in 11 cities to promote entrepreneurship and personal prosperity as part of its Univision Contigo initiative.

With Americans spending a record $55.7 billion on their pets last year, Pet-a-Palooza has become a fixture for CBS Radio in many of its markets. For Las Vegas hot AC "Mix 94.1 KMXB, it attracts over 10,000 pet lovers and 4,000 pets to an outdoor park where nationally known bands