INSIDERADIO
September, 15, 2015
As the advertising domain continues to endure an ongoing evolution, a just-released study from ZenithOptimedia reveals that next year, mobile advertising will overtake newspapers for the first time. “Mobile advertising remains the driving force behind the growth of the entire advertising market, contributing 83% of all new ad dollars between 2014 and 2017,” the agency says.
ZenithOptimedia’s Advertising Expenditure Forecast says that in 2016, advertising via mobile will rank as the third-largest advertising medium, with 12.4% of the global adspend, behind television and desktop Internet.
Mobile advertising will grow 38% in 2016 to $71 billion, while newspaper advertising will shrink 4%
to $68 billion, or 11.9% of the total spend. “Print adspend continues to decline across most of the
world, as it has done since 2008,” ZenithOptimedia says. “We predict newspaper adspend will shrink an average of 4.9% a year through to 2017, while magazine advertising will shrink by 3.2% a year.” Their combined share of global adspend has fallen from 39.4% in 2007 to 19.6% in 2015, with an expected drop to 16.7% by 2017. The picture isn’t a lot prettier for television.
By 2018, Internet advertising will trump TV around the world. In all, global advertising is on course to grow 4% by the end of 2015, the study says—although that forecast is down 0.2 percentage points since June, due to “broad-based deceleration across the world,” with Brazil and Russia in recession, and “China slowing down. We expect Mature Markets North America, Western Europe and Japan to contribute more to global adspend growth this year than Rising Markets, for the first time since 2006.”
Radio Still Tops For Discovering Tunes. While online streaming services may be gaining in popularity, a new study from Nielsen Music reinforces the fact that radio remains tops for discovering tunes. According to the fourth-annual Music 360 2015 report, 61% of U.S. music listeners say they discover new music from terrestrial or satellite radio. This represents a 7% increase
over last year. In all, 91% of the U.S. population listens to an average of more than 24 hours of music each week, the study says. “Whether we’re in the car, at work, working out or surfing the web, we love listening to music,” Nielsen notes.
Of the total that regularly listens to music, 75% tune in online, while 44% are now accessing music on smartphones, up 7% from last year.
Streaming music continues to grow exponentially: While Americans streamed more than 164 billion on-demand tracks across audio/video platforms in 2014, they streamed 135 billion in the first half of 2015 alone. That is a 90% increase from the same period last year. Word of mouth is also important for discovery, particularly among teens: 65% say they find new music through family and friends, well above the average of 45% among all ages that rely on word of mouth. Additionally, 12% say that live events introduce them to new music.
Inside Story: NFL Delivers Power Sweep For Radio. In a perennially competitive
media industry, radio stations are always hungry for marquee programming to attract
listeners and advertisers—the more constant and engaged the better. Thankfully, a
local NFL franchise can deliver on both sides of the proverbial ball, and it remains
wildly coveted, with its undeniable record of success. “The NFL is a giant marketing
machine for a station, from programming to promotion to sales,” says sports and media
consultant David Pearlman, of Pearlman Advisors. On average, NFL football delivers
larger audiences than any other pro sport, and its fans are passionate, committed and
hungry for information. “That sets a football broadcast apart from regular programming
on a radio station at any time,” says Bob Snyder, Nielsen’s director of sports audio. It’s
the kind of power—and opportunity—available from all 32 NFL teams. In Pittsburgh,
during the 2014-15 season, Steelers games delivered a whopping 56.4 average-
quarter-hour share among men 25-54, the highest in the league. Six teams attracted
40-plus in-game shares in that same demo. Overall, in Chicago, Bears games attracted
an average in-game cume audience of 481,300 listeners p 6+, while New York Giants
games averaged 397,200. Few events, other than breaking news or weather, can rival
those numbers. “The NFL is currency in its markets,” says Cumulus Media’s Bruce
Gilbert, SVP of sports. “People talk about the weather and how is our team. We want to
be in the middle of those conversations.”
NFL Value Goes Beyond Sunday For Radio. Thirty years after KODA, Houston
became the first FM station to air NFL games, the majority of flagship pro football
stations are now FM outlets. Many are sports talk, but some are music stations, and
they’ll break format on Sundays, treating games as tentpole events with the goal of
moving listeners to other days. CBS Radio-owned country “The Bull @100.3” KILT-FM,
Houston for instance, shares game-day broadcasts with sports talk sister “Sports Radio
610” KILT. On those days, it’s all about the X’s and O’s for KILT.
“The NFL provides FM stations with a built-in marketing tool and serves as a magnet to get ears to the station,” says Chris Oliviero, executive VP of programming for CBS Radio, which has NFL rights in nine markets “Then, it is up to the program directors to get them to stick around during the week.” Station managers say the NFL provides an invaluable promotional platform for weekday shows. “The goal is to try and recycle that audience,” says Brad Willis, program director for Cumulus-owned sports talk “104-5 The Zone” WGFX, Nashville, the Tennessee Titans’ local radio flagship. “We’re using every ID and position possible to point people back to the next day’s programming or the next appointment.”
Landing an NFL broadcast deal is no small feat. Rights fees are costly and the teams want multiplatform exposure. In many markets, competition for rights will drive up pricing to as high as millions per season. Some stations have maintained their team’s broadcast rights for decades, such as
iHeartMedia-owned “NewsRadio 850” KOA, Denver, which has broadcast Denver Broncos games for more than 40 years.
It’s a give and take—teams want exposure on multiple stations, broader marketing and promotional efforts; stations want support with access, programming and events. “It is in everyone’s interest to drain every bit of power they can get out of the partnerships,” says Cumulus Media’s Bruce Gilbert.
Philly Stations Prep For Pope’s Visit. When Pope Francis comes to Philadelphia on Sept. 26-27, he brings with him blessings and some understandable municipal headaches. And the highly anticipated visit is making news for area radio stations, some of which are arranging for logistical solutions to report on the events. The pope’s East Coast tour brings him for a stretch to Center City Philadelphia, which will be cordoned off into security zones; major roadways and bridges will be shut down, including Interstate 76 and the Benjamin Franklin Bridge. Some broadcasters find themselves inside security perimeters, including several CBS Radio outlets, and execs are scrambling to adjust travel plans and staffing. Of course, these aren’t bad problems to have, considering the import of the story. At CBS-owned news powerhouse KYW (1060), station managers started a year ago to plan coverage and operations. Major news events such as this are a bonanza for news/talk stations, says KYW station manager Steve Butler. “There are so many stories to tell and we are usually a go-to source for travel and traffic information,” he says. In July, KYW launched a dedicated HD sidechannel, dubbed
“The PopeCast,” devoted to all-things papal on 96.5 FM-HD3 and live streams online. Already, the channel has aired more than 100 stories, including news updates and lighter features, such as a story on the new Hyundai-built vehicle the Pope rides in, and a toaster that emblazons the Pope’s image onto bread.
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