July 1, 2015
As the radio industry heads into the crucial third-quarter sales season, some broadcasters are ready to tout visible signs of improvement after an uneven first half of 2015. After a down fiscal quarter ending May 31, Emmis CEO Jeff Smulyan says June was "dramatically better" and July and August appear to be "marginally better," adding that it’s still early to assess. "Certainly we’re in positive territory which is very encouraging," Smulyan tells Inside Radio. Hubbard Radio president & COO Drew Horowitz agreed with that last assessment, saying the trend has been positive for the company, which recently expanded its geographic footprint into growing markets such as Phoenix and Seattle. "I’m optimistic that as the back half of the year gets more momentum, we’re going to be more positive," Horowitz says. Both execs, and others, remain understandably cautious in their optimism in light of an uncertain U.S. economy, advertisers and agencies trying to do more with less money and an increasingly competitive ad market. "It continues to be challenging," Horowitz says. "Overall as I look at the industry, it’s more of the same right now." That’s a sentiment echoed by small market broadcaster Joe Schwartz, president & CEO of Cherry Creek Radio, who says he hasn’t seen much difference in business conditions from the first quarter to the second to the third. "Radio works better than it ever has, nothing has changed in that regard," Schwartz contends. Yet despite innovations in programming, digital platforms and live events, Schwartz says the medium doesn’t get the dollars it deserves in light of its long reach and ability to deliver results. In terms of digital initiatives, while they haven’t brought a significant return for Cherry Creek, others are seeing a payoff. Hubbard’s 2060 Digital agency, which services local clients, is producing "some nice growth" for the company, Horowitz says, since rolling out market-by-market in January.
Spending said to be strong in top categories. How is automotive, radio’s top spending ad category, pacing for the third quarter? The answer depends on whom you ask. Hubbard Radio’s Drew Horowitz says the category is "certainly healthier" and showing a "nice recovery trajectory," due in large part to strong expenditures by local dealerships. Cherry Creek Radio’s Joe Schwartz says the category has been erratic. "Auto dealers are told one quarter they have to spend X percent on digital and the next quarter that they can do whatever they want," Schwartz says. Emmis CEO Jeff Smulyan describes auto spend as "a little softer than we’d like," adding that he feels "better about auto as the year goes on." Healthcare continues to be strong, these broadcasters say, though not quite as robust as it was. Restaurant spending is growing and retail is up, especially in the home improvement category as the housing market shows greater signs of life. Telecom spending remains strong, though not to the degree it was when AT&T and Verizon were engaged in a fierce marketing battle to siphon one another’s customers. "The telecoms are still spending but it’s not as robust as it was last year," Horowitz says. With consumer media habits continuing to change and the number of advertising options multiplying, local businesses are looking for a more consultative approach from their media partners, broadcasters say. "Most advertisers are in the same boat we’re in," Schwartz says. "They’re trying to figure out what to do to move the needle."
No comments:
Post a Comment