Holiday Spend To Hit Ho-Ho-Whole New Level.

INSIDERADIO
October 22, 2015

  As retailers gear up for holiday shopping season, new data shows consumers are ready to shell out more money on gifts than they have in 14 years—and they’ll be buying less online. The National Retail Federation says holiday spending per person will reach $805.65 this year, with $462.95 allocated for gifts. That’s the highest gift-giving allowance in the time the group has tracked spending. Overall holiday spending is up slightly from last year’s average $802.45 per person, the NRF said. While 46% of consumers say online will factor into their purchases, 52.9% say they’ll purchase from online retailers, down from 56% last year. That marks the first annual decrease in the portion of consumers shopping online, the NRF notes. Mobile shopping, however, is gaining popularity, with 21.4% of smartphone owners saying they’ll buy items on their device, the highest level since the group began asking about mobile shopping in 2011. No doubt, many retailers will likely increase radio advertising outlays in the fourth quarter. In preparation, some retailers, including department stores, discount stores and jewelers, have already upped radio ad frequency. Leading the way, according to tracking of radio spots by Media Monitors, is department giant Macy’s, the no. 10 overall radio advertiser, which increased spot volume 14% from January to September 2015 compared to the same period last year. Jeweler Jared (no. 53) boosted its radio weight 48%; and JCPenney (no. 15) is up 13%. But two notable retailers may be holding their fire until the fourth quarter. While still a major investor in radio, Walmart (no. 55) pulled back considerably on its volume in the first nine months, with total spots down 68%, while Target (no. 297) decreased radio spots by 27%.

Competitive QSRs Add More Radio To 2015 Ad Menu. Brands always battle for greater market share, and radio often plays a key role for companies in highly competitive industries working to get their message out. And for the first nine months of the year, that axiom went double for top quick service restaurants. Other categories that increased their radio advertising, according to spot counts on stations tracked by Media Monitors, include automotive manufacturers and dealers, wireless carriers, insurance companies and auto parts retailers. But QSRs accounted for four of the 12 largest volume increases in ad time, with fast food chain Wendy’s, currently the no. 7 radio advertiser, leading the charge. Wendy’s increased radio ads 62% compared to the same period last year, resulting in the largest growth in its segment and among all radio advertisers. Burger King, the no. 37 heaviest radio advertiser, increased its radio commercial volume 102.4%, while Dunkin Donuts (no. 96) upped ad time 71%, and Taco Bell (no. 23) increased volume 29%. Other fast food chains, including Jack in the Box, Sonic and Jimmy John’s, have similarly boosted radio buys, while heavyweight McDonald’s (no. 4) pulled back slightly, measuring a 2.4% decrease. Meanwhile, automotive, radio’s largest advertising category, is on the upswing as well, with several dealer associations upping radio frequency. Nissan Dealer Association is making an aggressive push, increasing radio ads 257% and rising to no. 44 on the list, while the volume of radio spots from the Honda Dealer Association (no. 32) rose 43%, Toyota Dealer Association (no. 52) climbed 34% and Lexus Dealer Association (no. 111) rose 93%. Among the domestic car companies, Chrysler-Dodge-Jeep (no. 31) increased radio ads 19% and Ford Lincoln Mercury (no. 25) inched up 4%.

Web Ad Dollars Hit Historic Heights. Driven by explosive mobile growth, Internet ad revenues in the U.S. rocketed 19% to a landmark high of $27.5 billion in the first half of 2015 compared to one year earlier, according to a report issued Wednesday by the Interactive Advertising Bureau (IAB). Mobile revenues shot up 54% to $8.2 billion in what IAB senior VP of industry services Sherrill Mane called a “still explosive growth rate.” Mobile apps and websites that offer access to audio streams and on-demand content have become a priority for many radio stations and the new IAB numbers show that to be a smart strategy. Mobile now represents 30% of the revenues generated by the entire Internet advertising marketplace, up from 23% one year ago. Digital video, another priority for a growing number of radio broadcasters, hit $2 billion in the first half, a 35% year-over-year jump. “Digital video is one of our key drivers,” Mane said, more than tripling since 2010. Social media revenues reached $4.4 billion in the first half, a 51% hike over the same period in 2014. “Social media is maintaining astoundingly strong growth rates,” Mane said, with an annual growth rate greater than 50% every half-year. Display-related advertising revenues in the first half totaled $6.8 billion, a 5% uptick, accounting for 25% of overall digital ad revenue. And after declining in 2014, online CPMs (cost per thousand) grew to an average $11.67. The same top three ad categories continued to account for nearly half of online ad revenue—retail (22%), financial services (13%) and automotive (13%).

 

 

 


 

Hulu Opens Doors To Programmatic Advertising

More and more we are seeing content streaming companies like HULU, Netflix and Amazon taking revenue from traditional TV broadcast companies in addition to what agencies are pulling from them in digital, mobile, social and search. The only avenue today and the future survival for TV is local direct...which is always the pillar of strength and solid net margins. With TV giving away inventory and low-ball rates during political making many of their local businesses suffer while TV station management grabs short term revenue boosts, we have spoken to may local businesses who say they always get shortchanged during political and often find it hard to go back. Be careful for what you wish for! Philip Jay LeNoble, Ph.D. CA 

• by Felicia Greiff, Yesterday, 5:15 PM

The wait is over -- Hulu’s programmatic advertising went live yesterday.
The company announced the platform with an explanatory video on its blog. Oracle will handle the “pumping and flowing” of information using first-party and third-party data, while Yieldex will “think and forecast various scenarios” for inventory management.

Facebook-owned LiveRail is providing a “safe passageway for data to enter and exit campaigns.”
An ad frequency cap will be maintained through the process, and the company will not add real-time bidding.

Hulu will automate the ad-buying process at first, then work with individual advertisers to marry data with creative assets, CEO Mike Hopkins told Online Video Net.
The streaming service teased its programmatic offering in August, shortly before its commercial-free plan was introduced in response to people canceling their Hulu subscription (or not signing up at all) because of ads.

With competitors Netflix and Amazon offering ad-free plans, some advertisers wondered what their place was in Hulu’s future. Hulu CEO Mike Hopkins quelled those fears at the IAB Mixx conference. He said most new subscribers are going with the lower-priced ad-supported tier, and called advertisers “heroes” for making the cheaper plan possible.

Hulu, owned by Fox, NBC Universal and Walt Disney Co., offers subscriptions for $7.99 per month or a commercial-free plan for $11.99 per month. Brands who have advertised with the service include Johnson& Johnson, Visa, Pepsi, Microsoft, Verizon Wireless, Honda, State Farm and Allstate.

Maybe Television ISN'T The New Television

Last week Dave Morgan's post, "In Massively Fragmented TV World, Is Content Still King For Media Owners?" received a number of responses. Mike August commented, "Content was once King and analog distribution its kingdom, but in a broadband world that commodotizes that distribution, 20th century PUSH media titans now compete with 21st century Media pirates in a new PULL media reality. The new King of Content is the customer, and they have formed a Viewerocracy that requires Content Owners and their marketing partners to win their vote...."

Monday, Oct. 19, 2015 By Maarten Albarda There is a new book out by Michael Wolff called “Television is the New Television.” I have not read it yet,  but have seen various reviews of it. It seems Wolf says that all the main digital media want to be television. Facebook, with its enormous reach and now-auto-playing videos, wants to be television. Google, with its equally humongous reach, wants to be television, which is why it has YouTube. Twitter wants to be TV with Vine and Periscope. And the print media, with its video-heavy digital platforms, want to be TV. Even Snapchat thought it wanted to be TV, but has now fired its content making department. Wolff explains that TV makers and distributors have more than one source of income: commercials and distribution. The “new” media have only one: commercial time/reach. I read somewhere that last year, CBS makes as much money from distribution as it does from selling airtime, and that the share of distribution income is growing, while advertising revenue is shrinking. But I don’t know if I want to call any of this TV. We watch quite a number of programs in the Albarda household, coming from all sorts of “TV sources” like ABC, CBS, Netflix, CW, Crackle, Amazon Prime, the BBC and a whole range of others. We watch 80% of our TV on our own schedule, as opposed to the originators’ schedule (I did not call it broadcasters’ schedule on purpose, because many of the originators aren’t broadcasters in the traditional sense). It is sometimes DVR-ed (if we remember), but most times we watch via the on-demand channel from Time Warner, ROKU, Google Chromecast, Amazon Prime or any other platform that might carry what we want to see. We do secretly love the DVR the best, because it allows us to fast-forward through the commercials. Let’s be honest -- so do you. The on-demand channels always show that title screen at the beginning that “certain functions” will not work for the program you’re about to see. What they mean is that the fast-forward button, our TV ad blocker, is not functioning. Really annoying, right? I don’t know how much a spot for, say, “Modern Family” or “Madam Secretary” via on-demand costs (a C3+ buy I guess), but I assume it is cheaper than “regular” TV. And when I watch a show via my DVR, I don’t care what you paid, because I’m fast-forwarding most ads. Side note: We do make exceptions for commercials that show something we are interested in (typically a new movie release). Still, the ads are almost never for something we are in the market for. We also watch some commercials for their entertainment value. You’re welcome. I know our experience cannot be used as the template for the average American family. But I am betting that your at-home viewing experience will have some overlaps with how we view here Chez Albarda. And that takes me back to Michael Wolff’s book title. TV is perhaps not the new TV. I think TV is just a screen.

Connected Car Will Still Be Steered By AM/FM.

INSIDERADIO

October 19, 2015

While the connected car of tomorrow is likely to include a touchscreen as big as an iPad and as many options and outsized ambitions and hype, radio industry executives that Inside Radio spoke with registered little surprise when studies showed AM/FM radio still rules the dashboard among consumers and auto manufacturers—and looks to continue to do so.

 

A handful of surveys over the past six months continue to confirm that the No. 1 audio device new car buyers desire is traditional radio. In its Sept. 30 RAIN presentation "Dashboard Dynamics," research company Strategy Analytics showed that 72% of potential vehicle buyers insist on AM/FM, followed by a CD player (50%), portable music player access (50%), apps (37%), satellite radio (29%), Internet radio (27%) and HD Radio (20%). Still, "daily radio users are likely or very interested in having local top-connected services available through their infotainment system," noted Roger Lanctot, Strategy Analytics associate director of Global Automotive Practice, which includes real-time traffic (70%), local gas availability (65%), weather (61%) and local search (51%). Steven Davis, an assistant buyer for car audio products at retailer Crutchfield, tells Inside Radio, "Manufacturers realize that the smartphone, Bluetooth and other connected services like Android Auto and Applelink are important extra features, but…AM and FM are still an important part of the [audio] puzzle." Adds Radha Subramanyam, president of Insights, Research & Data Analytics at iHeartMedia, "We know that regardless of what entertainment looks like in the future, an AM/FM radio will be part of your car. It’s built into American culture. It’s easy to use, it’s safe and it is America’s companion….Radio is a best friend in the seat next to you."
Connected Car—Seeking Balance Between Screen, Safety. The so-called connected car of the future has been described as everything from "vehicular content consumption" to a "digital hub on wheels." With today’s car entertainment systems already beginning to resemble a combination laptop and airline pilot’s console, one has to wonder: Is this too much of a good thing? While studies continue to show that the No. 1 most desirable dashboard feature is a traditional AM/FM radio, automakers are scrambling to offer younger new car buyers a dizzying array of clickable choices, including Sirius/XM, embedded access to Pandora and Spotify, USB inputs for smartphone connectivity, Applelink (which includes connectivity to an iPhone iTunes playlist), navigation apps and the old-school CD player.

 "Car dashboards seem drastically behind the times in terms of [user interface design]; they are unintuitive, cluttered with unnecessary information and, worst of all, distracting," a TechCrunch story espoused this month. That last point seems paramount. Carmakers stress that safety is job-one for the car of the future, but they are also driven to pack more into that increasingly ubiquitous dashboard screen. At the Radio Show, Scott Burnell, global lead, Business Development & Partner Management for Ford Motor Co., said that "broadcast is never going away, but the consumption of media is going to the digital side. As you scale younger, consumer habits will change— and these are the ones who will be buying vehicles for the next 40 or 50 years. We are aware that buyers under 30 don’t care about a button that says AM and FM. They say put it all on the screen and I’ll find it."

Numbers Show Auto-AM/FM Demand.

An April 2015 study released by market research company Ipsos provided an eye-opening revelation that despite all the many gizmos and gadgets working their way into vehicle dashboards, it is AM/

FM radio that consumers want most. According to the numbers, 84% of Americans choose traditional radio for audio entertainment over new technology options, with 62% listening to radio daily in their cars and 67% saying they tune in as soon as they put on audio in the car. Likewise, among those that are currently streaming digital audio services, 80% say they are not willing to pay for audio entertainment. "There is a tremendous level of comfort with the functionality and features of radio in the car," Ipsos MediaCT VP Thomas Spinelli tells Inside Radio.

 

"Despite the rapid growth in the connectivity and media options available in cars today, the average consumer simply does not want to lose their regular radio. These new infotainment options should be seen as complementary to traditional radio, not as a replacement for the familiar radio experience." Additional data also suggest that for young car buyers, those complementary options are worth waiting for. A recent survey from AT&T Drive Studio and Ericsson reveals that 78% of car buyers globally would delay a purchase by one year to buy a vehicle with connected services from their preferred brand. Also, 75% of those surveyed globally consider them an important feature in their next car. "This confirms that drivers today are tech savvy and value services that improve their driving experience," SVP of Internet of Things for AT&T Mobility Chris Penrose notes in a release. "With this increased awareness, we believe you’ll see adoption of integrated wireless connectivity in the car continue to take off."

   


  


 

Eyeview, Wide Orbit Team For Local Programmatic TV Ad Buys

 

• by Sara Guaglione, October 16, 2015, 5:13 PM

Eyeview, a video advertising platform, and WideOrbit, an ad management software firm and programmatic selling provider, have joined forces to offer programmatic TV ad buying from local broadcast stations through WideOrbit's WO Programmatic TV.

 

Eyeview clients will be able to use their platform to buy TV advertising from local broadcasters’ inventory with WideOrbit’s program.

Oren Harnevo, CEO and co-founder of Eyeview, states the company's tech, combined with WideOrbit's reach, is an attractive proposition for advertisers, as it "brings ROI and performance measurement to their TV campaigns.

 

Harnevo said the partnership will allow advertisers to target audiences with personalized video content at scale.

Bill Harvey, media research pioneer and co-founder of Next Century Media and New Electronic Media Science, said Eyeview and WideOrbit won’t be the first to make this kind of move in order to get greater ROI from television buys.

 

"By applying best practices from digital advertising, marketers can optimize television ad buys and assure they reach more of the right people with the right message," Harvey stated.

Ian Ferreira, SVP programmatic TV at WideOrbit, was upbeats about the buying opportunities for marketers. He claims the alliance will give Eyeview platform users "smart, data-driven decisions for reaching and activating valuable TV audiences."

 

In April, the flagship station of the Boston Red Sox, WEEI-FM,  added WO Streaming for its WEEI Sports Radio Network affiliates. Listeners within reach of the WEEI Network receive ads geo-targeted to their market.

In July, Eyeview raised $8.1 in Series C funding to expand the company's market throughout the U.S. and to further develop its technology. To date, it's raised $19.4 million.

Nielsen—Radio Linked To Huge Plus-Side ROI.

INSIDERADIO

September 18, 2015

Few advertiser goals are more vital than plus-side return on investment, and radio appears to be a blockbuster conduit, providing a sizable payoff for brands in four retail categories, according to a new sales effect study from Nielsen. Depending on the category, radio exposure led to increased sales, foot traffic and dollars spent per shopper. For mass merchandise retailers included in the study, the medium delivered a staggering 16-1 return on investment. Radio also begat a plus-side ROI for each of the categories, including home improvement stores (10-1) and quick service restaurants (3-1), in addition to a 17-1 return for department stores, a number that was first previewed Sept. 30 at the Radio Show in Atlanta. Hispanic consumers, a segment that over-indexes for radio usage, led all categories measured in total spend and drove increased sales ranging from 9% to 49%. The new study comes as agencies and advertisers increasingly expect ROI validation from their media partners. In each category, the study found radio exposure positively affected bottom line sales and drove new, valuable shoppers. Pierre Bouvard, chief marketing officer of Westwood One and Cumulus, said as much in response. "In the past two years, Nielsen has looked at 22 brands advertising on the radio across multiple categories and the results are consistent—radio resoundingly drives consumer spending," he said. "In fact, across all of the examined categories, radio delivers an average $8 incremental sales for every $1 spent. As marketers look for measurable ROI, Nielsen’s studies demonstrate the true value of radio to not only provide massive reach, but directly impact consumer spending." The Necessity of Radio—Nielsen analytics exec weighs in on the medium’s value at InsideRadio.com.

Breaking Down Nielsen’s Radio Ad-Vantage Study. A new study by Nielsen found that among categories of radio advertisers, department stores have been buying themselves the biggest bang for their buck. Four department store brands that used radio campaigns experienced a 10% increase in sales, a 3% increase in total number of buyers and a 6% increase in dollars spent per customer. All told, radio delivered a whopping return of $17 for every $1 spent. A pair of radio-using home improvement store brands saw a 4% increase in sales, an 8% increase in total number of buyers and a 2% increase in transactions. Radio’s ROI for the home improvement stores was $10 for every $1 spent. Two mass merchandiser retailers that bought radio ads experienced a 1% increase in overall sales, 2% increase in total number of shoppers and 2% lift in dollars spent per transaction. That added up to a $16 return for every $1 spent. Finally, three quick-service restaurant brands that implemented radio campaigns saw a 6% increase in sales, a 6% increase in consumers and a 1% increase in dollars spent per purchaser. The new research is the latest in a series of ROI studies from Nielsen, showing radio produced a plus-side ROI range from 1.38 for soft drinks to 23.21 for retail. The study cross-referenced time-stamped PPM listening data with Media Monitors spot tracking data to determine which listeners were exposed to the ads. Nielsen tapped its credit and debit card expenditure data to track the participants’ department store purchases and calculated the brands’ radio ad spend with SQAD data. Study participants were separated into two groups and weighted to be identical on key characteristics including age, gender, race, education, employment status, household size, children and buying history.

Nielsen Confirms Radio’s Political Clout. As radio works to extract a larger share of what is forecast to be record-setting election season ad spending, new research from Nielsen shows the medium’s political firepower goes well beyond just a stop on the talk show circuit. Radio can deliver voters to the polls, the study concludes, and the best stations to reach specific voter segments vary from market to market and daypart to daypart. In a first-of-its-kind study, Nielsen matched Experian Simmons Political Personas Consumer Segmentation with PPM listening data in Los Angeles and Philadelphia. In L.A., Nielsen found that a single radio station reaches more than one-third of each of three voter segments in both parties while in Philly a single radio station reaches as many as 54% of each voter segment. In early morning L.A. traffic, when L.A.’s mild Republicans are driving to work, news/talk/information formats rank highest. During their drive home, mild Republicans listen to news/talk/information, AC and adult hits to equal degrees. Conservative Democrats in L.A., on the other hand, prefer Spanish contemporary on their morning drives, followed by all-news and Spanish adult hits. During the afternoon drive and on weekends, they evenly prefer AC and Spanish adult hits. The study found that radio can be a key way for candidates to connect with specific voting segments and that different formats deliver specific voter groups in particular markets. “The best choice of format is as unique to the local market as the districts and the propositions that will be voted on,” Nielsen said in the research report. “Radio’s local approach to programming means that local stations attract different voter types in each market, and that these voters migrate to different stations depending on the time of day.”

 

Multiscreen Users Favor Live TV Ads, Funny Spots

 

• by Wayne Friedman, October 14, 2015, 10:34 AM

U.S. multiscreen media users are more receptive to live TV ads, TV commercials that are funny and digital video ads that can be skipped.

 

Live TV ads were favored over other formats overall, for a 29% score. On-demand TV ads came in at 21%, followed by commercials on computers at 20% and tablet and smartphone each with 19% -- according to a new study from Millward Brown.

The survey said consumers prefer "skippable pre-roll" video ads -- 44% were in favor here and skippable mobile pop-ups (41% favorably. Less favorable were mobile app pop-ups (11%) and non-skippable pre-rolls (15%). That said, the most popular ad format is mobile app reward videos, which earned a 54% score.

 

Overall, 45% of U.S. multiscreen users said they were less likely to skip ads if they were funny or humorous. Thirty-three percent said they would pay attention if reward points or coupons were part of the deal.

 

Multiscreen users also favor branded videos that are not advertising. Here, tutorial videos had a 64% favorable rating; with expert review videos at 55% and user review videos at 52%.

The survey also noted that among younger Millennials, 16 to 24 years of age, more digital time is being spent watching video -- 45% of computer time and 64% of all tablet time is spent watching videos.

 

The Millward Brown “AdReaction” survey came via smartphone or tablet from more than 13,500 16- to-45-year-old multiscreen users across 42 countries. Multiscreen users were defined as people who own, or have access to, a TV and a smartphone and/or a tablet. In the U.S., Millward Brown surveyed 1,000 consumers.

 

The survey also parallel copy tested 20 TV ads across TV, digital and mobile platforms in eight countries, interviewing more than 10,000 consumers.

While Online Video Viewing Is Up, TV Ads Still Work Better; Here's How to Improve Your Online Video Ads

 

• by Richard Whitman, October 14, 2015, 6:17 PM   

A new Millward Brown report, "AdReaction: Video Creative in a Digital World," which examined video use and creative response across screens and the impact for marketers, found multiscreen users now spend as much time viewing online video as they do viewing TV.

The study, conducted across 42 countries and 13,500 respondents, found that globally among multiscreen users ages 16-45, videos are viewed for more than three hours daily (204 minutes on average). The largest chunk of time spent daily was in Nigeria with 4.5 hours , while Hungarians reported the least amount of time spent at 2.5 hours a day.

While half of this video viewing (102 minutes) is on TV, one-third is now conducted via mobile devices (45 minutes smartphone, 20 minutes tablet), and the remainder (37 minutes) is viewed on laptops or PCs. While this may presents a significant advertising opportunity for marketers, receptivity to digital video ads is much lower (19 percent favorable) than for live TV ads (29 percent favorable).

Of the findings, Millward Brown Digital Global Brand Director said: "While video is now available on myriad screens, applying TV thinking to digital content and placement is simply not acceptable, and consumers expect more from online advertisers. By exploring behaviors and preferences related to screens and advertising, AdReaction Video provides a roadmap to help marketers build effective media plans and creative approaches that target the right people in the right context with the right content."

Additional findings from the study offer tips for agency creatives to implement to improve the response of online video.

People are receptive to targeting, but don't want to be stalked. The study found that consumers are most receptive to video ads targeted based on their interests (41 percent receptive) or preferred brands (40 percent receptive) and least receptive to ads based on their web browsing history (25 percent receptive). Even though web browsing behavior may drive interest-based targeting, the findings indicate improved targeting is likely to work best.

Context matters. Currently, 498 percent have a negative view of video ads. Twenty-nine percent of consumers said they were less likely to skip, and pay more attention to, online video ads that offer rewards, and they were most receptive to skippable and click-to-play ad formats that provide control over what they see. So cut that autoplay crap.

Content is still king. The study's findings suggest the need to consider digital earlier in the creative process and a solid focus on optimization across screens. And while skippable formats might be a creative the study finds viewers want the option and given them the option is the lesser of two evils.
Other points of note from the study:

Respondents noted they have more control over digital ads than TV ads, with the majority believing the laptop gives them the most control (63 percent). This, of course, explains the irritation with online ad formats which do not offer this control.

Skippable pre-rolls (34 percent favorability) and skippable mobile pre-rolls (31 percent) are viewed much more favorably than mobile app pop-ups (14 percent) and non-skippable pre-rolls (15 percent). The most popular ad format is mobile app reward videos (49 percent favorable).

Consumers are slightly more receptive to viewing video ads while at home (28 percent) versus at work (21 percent).
Points to ponder as you embark upon your next online video campaign.

US Auto Sales Show Big Gains, Except At VW

Strong consumer demand, easy credit and generous incentives combined to fill dealer showrooms In September. The industry sold 1.44 million cars and light trucks last month, up 15.8% from a year ago.

 

By Dee-Ann Durbin & Tom Murphy

    

The Associated Press, October 2015 DETROIT (AP) -- September was a blockbuster sales month for the U.S. auto industry - except at Volkswagen, where an emissions scandal forced the company to halt sales of most of its diesel-powered vehicles.

Strong consumer demand, easy credit and generous incentives combined to fill dealer showrooms. The industry sold 1.44 million cars and light trucks last month, up 15.8 percent from a year ago.

 

Ford's U.S. sales grew 23 percent in September, Nissan surged 18 percent and Fiat Chrysler's U.S. sales jumped nearly 14 percent. Sales at General Motors rose 12 percent, while Toyota posted a 16 percent gain. Honda's sales were up 13 percent.

 

Analysts had expected big increases because Labor Day was included in September this year versus August a year ago. Labor Day weekend is typically one of the biggest sales periods of the year, as dealers offer discounts to clear cars off their lots before the new model-year vehicles arrive.

The Volkswagen brand struggled after Sept. 18, when the U.S. government revealed that nearly 500,000 VW and Audi diesels sold in the U.S. had software that let them cheat on emissions tests. Volkswagen halted sales of 2015 and 2016 diesel models of the Passat, Jetta, Golf and Beetle.

Right now, the scandal appears to only be hurting only the German automaker. VW's sales were up less than 1 percent over last September. Diesels accounted for just 11.7 percent of the company's total sales, compared with the usual 20 percent.

The U.S. market has remained a bright spot for automakers as the Chinese economy slows. China is still the No. 1 market globally, but sales there were up just 2.6 percent in the first eight months of the year. U.S. sales grew nearly 4 percent in that time period.

 

"The economy still has room to grow and so do auto sales, particularly now that the (millennials) are entering the workforce and starting households," said GM's chief economist, Mustafa Mohatarem, in a statement from the company.

 

There is some concern that the momentum could cease if an impasse in contract talks between the Detroit automakers and the United Auto Workers isn't resolved soon.

 

Karl Brauer, a senior analyst with KBB, said sales could drop significantly if automakers and the UAW can't come to an agreement on new contracts for GM, Ford and Fiat Chrysler. It wouldn't take long for a strike at their U.S. plants to crimp vehicle availability. On Thursday, the union said Fiat Chrysler's factory workers rejected a proposed contract; 65 percent of workers voted against it.

Here are more details of automakers' September sales, which were released Thursday:

- There was a bright spot for Volkswagen. Its luxury Audi brand - which has one model, the A3, involved in the scandal - saw sales climb 16 percent and said September was a record month for the brand in the U.S. Sales of Audi's big SUVs like the Q5 and Q7 were strong, and A3 sales rose 16 percent.

 

- General Motors Co. sold 251,310 cars and trucks. Total Chevrolet sales rose 11 percent, and the company said GMC had its best September since 2004.

 

- Ford sold 221,599 vehicles, with its F-Series pickup truck - the top-selling vehicle in the country - climbing 16 percent to more than 69,000 trucks. Ford's Lincoln luxury brand notched a 20 percent sales increase thanks to new SUVs.

 

- Toyota sold 194,370 vehicles. Prius hybrid sales rose 12 percent despite relatively low gas prices, while RAV4 SUV sales jumped 18 percent.

 

- Fiat Chrysler sold more than 193,000 vehicles for its best September since 2000. Jeep sales rose 40 percent, offsetting slower growth elsewhere. Sales for the company's Ram and Dodge brands climbed 4 percent and 3 percent, respectively.

 

- Honda sold 133,750 vehicles. The CR-V small SUV set a monthly record, with sales up 26 percent to nearly 30,000.

 

- Nissan sales rose to 121,782, helped by a 30 percent increase for its Infiniti luxury brand.

Nielsen To Roll Out Updated PPM Encoders.

INSIDERADIO

October 6, 2015

After months of consternation and controversy, Nielsen is moving its updated PPM encoders from the lab to the market. The company on Oct. 12 will implement new Critical Band Encoding Technology (CBET) software in the Baltimore and Washington, DC markets, where it has been testing the technology, before expanding to all PPM markets in November. The enhancements are a set of algorithm updates that Nielsen says better hides its watermarks in a station’s audio signal, allowing it to make PPM codes stronger and more robust while keeping them inaudible. "These enhancements will improve the PPM device’s ability to detect encoded audio in challenging acoustic environments such as high background noise or low volume content," the company said Thursday in a memo to clients. Lab tests conducted in New York simulated a variety of audio environments and measured different types of programming such as music and talk. During a 30-minute session at the Radio Show, Nielsen chief engineer Arun Ramaswamy said the number of codes detected per minute more than doubled from one with the legacy encoders to 2.5 with the updated encoder. The enhanced encoder credited 100% of quarter hours in challenging acoustic conditions while the legacy encoders credited as few as 69% for some spoken word programming. In addition to lab testing, Nielsen field-tested the new CBET on 19 radio stations in various formats in Washington, DC and Baltimore. Nielsen used both the old and new encoders on the stations and compared the results. The new CBET had a positive impact on audience estimates. The test stations experienced an average 15% increase in AQH persons 6+ with the enhanced encoders, which didn’t impact currency ratings. With routine ratings rounding, about 40% of the station daypart/demo cases had a 0.1 point AQH rating gain but the lift in AQH ratings was higher among persons aged 35 and older in the 6am-7pm daypart.

Nielsen, Tuning Out Noise, Resets Audio Standard. While a 15% lift in AQH persons would suggest that Nielsen’s existing PPM encoders have been under-counting audiences, managing director of local media USA Matt O’Grady doesn’t see it that way. "PPM was designed for certain standards of listening with certain background noise and an acceptable level of transmission and recognition of those codes," he told Inside Radio after the company’s Radio Show presentation. The encoding update Nielsen just finished testing improves their detection for today’s more challenging acoustic environments. Stations involved in field tests of the enhanced encoders included both those using the Voltair audio processor and those that weren’t. O’Grady declined to comment on specific results of Voltair-equipped stations compared to those without it, other than to say they were "very similar." The company plans to do more testing of its new Critical Band Encoding Technology (CBET) "and we’ll have more to say on it," O’Grady said. Nielsen’s position on Voltair remains unchanged, O’Grady said, qualifying that it "doesn’t endorse the use of Voltair to impact our numbers." O’Grady said Nielsen has no plans at this point to require stations to stop using the audio processor. "We believe that our solution will not make it necessary to use that," he said. "Our watermark and our CBET are ours to maintain and support and to distribute to clients equally. When a market switches, they all get it on the same day at the same time so it is a level playing field." The company said it plans to share the new CBET rollout schedule and hold a client webinar during the week of Oct. 5 to review test results. Chief engineer Arun Ramaswamy told Radio Show attendees that the company worked closely with the Nielsen Audio Advisory Council’s technology subcommittee, which provided insights and feedback, and that it has shared results with the Media Rating Council throughout the process.

Home Depot Calls Radio Big Part Of 99% Awareness. Home Depot has an ongoing "Let’s Do This" attitude about radio. As one of the medium’s most consistent advertisers, the retailer and its ad agency reps discussed their ongoing affair with the airwaves at the Radio Show’s Thursday morning Advertising Breakfast. Among qualities Home Depot identified as radio’s strengths—pervasive reach, theater of the mind, flexibility and immediacy. insideradio.com PG 3

"Radio is a major part of the reason that Home Depot has 99% brand awareness. We wouldn’t continue to be so invested with radio if not for the success in reaching our customers," said Michael Hibbison, Home Depot’s VP of Integrated Media. "One of the things we love is that you’re in your car, backing out of your driveway, and we are engaging interest in the moment for your next home project." Diane Fannon, principal of The Richards Group, which has Home Depot’s creative business, added that radio’s results are also quantifiable—and provide a thumb’s up. "A year ago, we primarily looked at TV data, but now we look at radio and digital, and what we see from radio is always really strong. Out ads catch people’s attention, they stay with it, and the ads have a very favorable impression with consumers." Added Hibbison, "We need to make sure we’re relevant when the customer is in the middle of a project, and radio remains such a huge part of that to help us get our message out. It’s the one medium that has really stood the test of time."

Inside Story: Experts On Selling Radio’s Reach To Buyers (Part I). Let’s call it radio’s great reach misconception. Nielsen says the actual weekly reach of AM/FM is 93%. An Advertiser Perceptions study says ad execs put that figure at only 64%. In Part I of our Inside Radio roundtable series—which runs all week—we asked six industry experts to say very specifically how they’d close the gap. According to Steve Chessare, VP and Market Manager, Greater Media Detroit, the onus is on the industry to market the brand better. "For as long as I’ve been in radio, we have been talking about validating the outstanding weekly reach of AM/FM radio, yet there still remains a 30% gap" Chessare says. And the answer? "We have to educate advertisers one at a time, and meet their marketing needs by creating customized programs. It’s up to us to be evangelists of our still-powerful medium." Scott Herman, COO of CBS Radio, suggests a slightly different but equally proactive approach. "Numbers alone won’t change perception; seeing tangible evidence of the influence and relevance of a local radio station in its community will," he says. "Continuing to expose the ad community to our strengths in delivering a large and loyal audience, and strategically marketing to them can have tremendous effects on our long-term business." Each of our exec respondents stressed the need to keep the information fires burning. "At iHeartMedia, we stress radio’s reach with potential and current advertising partners in all our markets in every meeting," says Radha Subramanyam, president, insights, research and data analytics for iHeartMedia. "We’ve hosted events for advertisers and media with other radio companies for the sole purpose of educating them about those numbers." And Drew Horowitz, president and COO, Hubbard Radio, stresses the need to own the perception conversation. "We cannot allow the digital streamed products to call themselves radio and present themselves as an interchangeable alternative," he says.

Radio Reach Shift—A Four-Point Plan. There’s a whopping 30 percentage-point difference between Nielsen’s view of AM/ FM’s reach (93%) and the belief of ad executives (64%). To ford that gulf, Pierre Bouvard, CMO, Cumulus Media/Westwood One, part of Inside Radio’s six-person exec roundtable, offers a six-point plan to turn things around. Use our airwaves to tout radio’s powerful reach for advertisers. With clients and ad prospects among radio’s reach audience, stations have the opportunity to "use their funny and entertaining on-air talent to create engaging ads touting radio’s powerful reach," says Bouvard. Create a salesperson test of a "must know" set of facts. "In order to work in many professions, there is a basic body of knowledge you must master," he says. "RAB’s CRMC certification can ensure our salespeople know the powerful story of radio’s reach." Show up: Radio sales managers, GM’s and group executives need to attend advertiser and agency events. This is key, says Bouvard, who believes radio execs must work their schedules around ad shows so they can get the word out. "Most of America’s blue chip advertisers, their CMO and brands managers will be in Orlando, Oct. 14-17 for the ‘Masters of Marketing Conference’ put on by the Association of National Advertisers. Radio needs to be there to meet and tell our story. There are lots of advertiser/agency conferences, and radio needs to show up." We need to sell our medium first, before we sell our platform. "It’s too easy to lurch into selling your station or cluster. Sell the medium," Bouvard insists. "Check out Westwood One’s blog for examples of studies and insights that tell radio’s story. Nielsen is constantly churning out radio sales insights. In fact, Nielsen just put one of their top marketing analysts, Tony Hereau, into a position focused

Ad Execs Applaud Radio’s Many Strengths. Despite continuously changing consumer media behavior, radio has remained remarkably resilient, a group of ad agency execs said at last week’s NAB-RAB Radio Show. They also applauded radio’s connection to local audiences, calling it an effective medium for driving in-store traffic and building awareness and consideration. "TV ratings have gone off the cliff but we’re not seeing that in radio," said Jennifer Hungerbuhler, executive VP, managing director, local video and audio investment, Dentsu Aegis Network. "Radio is an unsung hero in all this fragmentation. It’s in a very good position compared to some of these other channels." With an abundance of audience data now available, advertisers increasingly want to measure return on their media investments. Nielsen’s latest radio ROI study "starts getting at exactly what agencies and clients want from radio," said Kevin Gallagher, executive VP, local activation, Starcom MediaVest Group. At the same time, marketers are looking for new ad models, presenting an opportunity for radio to serve up creative ideas. "Where radio fits in is its flexibility and speed," Gallagher said, along with the ability to weave messages directly into the fabric of the content. "Radio has always been native, that’s what DJ endorsements are," Gallagher said. But he and other agency execs cautioned that endorsing too many products could dilute their value. "It’s a valuable gem and we need to preserve its worth," Hungerbuhler said. The execs said they would like to see the industry transition to real-time audience measurement and urged radio to embrace streaming, which they said provides additional value due to its targeting capabilities.

Programmatic Seen As ‘Our Opportunity.’ If there was one thing that provoked more Radio Show discussion last week than the surprise ouster of Lew Dickey and his brother John Dickey from Cumulus Media, it was programmatic ad sales. Not only did it get its own 90-minute session, but the topic came up repeatedly in panels devoted to sales and marketing. Lured by its promise to free up time to work on marketing strategies instead of fussing over make-goods and clearances, Dentsu Aegis Network’s Jennifer Hungerbuhler said her agency is "spending a lot of time on programmatic." While she expects radio’s programmatic adoption to be a "slow process," she predicted that it is "our opportunity to create our future." Starcom’s Kevin Gallagher said it’s essential for radio to jump on board the programmatic train. "We’re making great strides in the automation part," he said. "The important part will be layering in the data." That’s especially true as more Millennials raised on digital move into key media planning roles at agencies, he said. Gallagher used a hypothetical situation of a planner with a $1 million audio budget to target moms who have cooked from recipes and have visited the client’s recipe website in the past week. If they’re not able to use audio to target that group, they may reallocate the money to digital instead, he said. "Audio can be real-time and flexible but we need to be able to add the data in for the targeting," he said. Christine Travaglini, president, Christal Radio/KRG Partnerships, said radio continues to speak about demos while agencies have moved to behavioral targeting. "If radio can show the value of its audience, think of the money you can get," added Hungerbuhler. "We’re leaving a lot of money on the table by not having that information."

Radio vs. Digital—Telling the Story Better. In part II of our four-part roundtable look at how radio can better monetize its huge reach number and sell itself to advertisers, we asked our six industry experts about how radio can tell its story better compared to the media world’s Next Big Thing—digital. Our panel, while acknowledging the perception of digital’s place, felt it was up to the industry to better talk up its own advantages. "People love cool new things and there is nothing cooler and sexier than NextRadio," says Pierre Bouvard, CMO, Cumulus Media/ Westwood One of the technology that wakes up FM receivers on your smartphone and enables new interactivity with content and advertising. "Every time I tell an advertiser, an agency or Wall Street analysts about NextRadio…they are blown away." "‘Mobile’ is the biggest buzzword in advertising today—and the fact is that radio is more mobile than what people think of as mobile, namely the smartphone," adds Radha Subramanyam, president, insights, research and data analytics for iHeartMedia. "Radio is the best way for advertisers to reach consumers outside of the home, when they’re on the go." Drew Horowitz, president and COO, Hubbard Radio, is convinced that the answer lies in overcoming the perception issue. "We have to dim the glare of digital by showing the strength and beauty of radio through ideation, execution and creative promotion using our platform," he says. "The digital platform is fun and is the shiny new platform, [but] radio is the original mobile marketing medium." "The same old story is rarely exciting," admits Bill McElveen, executive VP, Southern region, Alpha Media. "But the story is about delivering results and we need to tell it more effectively."

Radio vs. Digital Should Be Radio + Digital. To tell its story better vs. the media world’s giant hydra that is digital, radio needs to stop making it "either/or" and start stressing the advantage of making it "one-plus-one" in a smart, collective strategy. That’s the consensus from six industry experts in part II of our four-part radio reach roundtable. "The success of radio has always been, and always will be, about touching people on a daily basis," says Steve Chessare, VP and market manager, Greater Media Detroit. "As a medium, radio is unsurpassed at meeting marketing objectives for our clients. Digital is a piece of that strategy as one of our many ways to engage people…Digital alone cannot achieve results equal to a plan that is a combination of all we have: on-air, online and on-site." "Radio can make digital more effective," adds Bill McElveen, executive VP, Southern region, Alpha Media. "It is to our advantage to provide conclusive evidence that the use of radio makes an advertiser’s digital spend more effective, moving the discussion away from ‘let’s use radio if there’s any money left over’ to ‘let’s use radio to make our digital spend more effective.’ We need to passionately position our medium to not only our advertisers but our staffs as well—and the word ‘passionately’ is key." New statistics seem to provide more and more ammunition for the effort—Nielsen recently reported that the actual weekly reach of AM/FM is 93%—and if it all comes down to simple results, the panel believes radio has a boast-worthy story to tell. Says Scott Herman, COO of CBS Radio, "Clients who use broadcast radio to promote a product, drive customers into their store or deliver a brand message will tell you the medium is an effective form of advertising."


  

 

 



  

Atkins Demonstrates Connection Between Television, Search Advertising

 

• by Laurie Sullivan @lauriesullivan, September 30, 2015, 5:32 PM

Second-screen searchers, those who use their mobile device while watching television, present a huge opportunity for marketers. These consumers don't passively follow a conversation. They lean forward and look for more information and answers to learn and take action.

Data and metrics prove the connection for television ads and search engine advertising and marketing. For example, weight loss specialist Atkins Nutritionals recently synchronized its national TV advertising campaign featuring Sharon Osborne with paid search campaigns.

Working with TV sync ad technology company wywy, and digital marketing and analytics agency Rise Interactive, Atkins synchronized its TV story across multiple screens, resulting in an increase in online searches for its products.

The TV commercial urged viewers to visit Atkins.com& to claim a promotional coupon for the products. When the Atkins TV commercial aired, wywy's technology synchronized keywords from the TV ad with Google search in real time. The synchronized campaign allowed Atkins to appear as the number one search result during and immediately after the commercial was broadcast.
Post-campaign analysis results show synchronizing TV and paid search generated an increase in engagement. TV-inspired viewers searching for the Atkins products had a lower bounce rate of -33%. Consumers visited more pages, up 34%, in pages per visit, and spent 47% more time on Atkins' site, compared with regular search users.

The connection also exists for television shows and search.
Gearing up for fall TV, Google took a look back at search patterns from this past year to see the kinds of TV moments that drove searches and what brands can learn from them.
More than twice as many second screen TV watchers search for show-related information on engines as read about it on social media. Marketers create compelling campaigns by amplifying and adding value to what people search for on the second screen.

Leading up to the 2015 Oscars, the Google Play team looked at search behavior from previous award shows and found searches for winning movies in each category peaked instantly, with heightened search interest lasting 15 minutes following the win. During that time, Google Play served dynamic, real-time ads congratulating each winner. Using second-screen search insights as a starting point, the campaign saw a 19% increase in click-through rates for the real-time ads compared with controlled ads.