Forecast 2019: The Midterms And Your Bottom Line

Forecast 2019: The Midterms And Your Bottom Line

October 25, 2018

How Midterm Election Results Will Affect Your Bottom Line

In less than two weeks, this country will go to the polls for midterm elections — some believe the most significant in years, especially in terms of the economy. 

How will the composition of the 116th Congress impact investor and other economy-related decisionmaking?
If Republicans hold on to their majority, will it set the stage for party leaders to address deficit concerns? Or if Democrats take control of the House, can we expect to see legislative gridlock for the next two years?
Whatever the outcome, it will be time for postmortem analysis. 



You can’t budget for what you don’t know, or minus crucial information. Perspective is also important, as are today’s facts and historic indicators.
One week after this historic election, Forecast 2019 will provide the depth and expert evaluation you need in planning the coming year. Forecast’s opening panel of industry experts will be ready to offer their prognostications on what’s in store for the country and media in the near and long term future, as well as what categories, platforms and initiatives are most likely to generate the most revenue growth and expansion. 

Wells Fargo analyst Marci Ryvicker

The panel will be moderated by Marci Ryvicker, managing director/equity research at Wolfe Research and co-chair of Forecast 2019. Marci brings years of experience to the table, with specific focus on diversified entertainment, broadcast, outdoor, and cable/satellite. Ryvicker began her career as a certified public accountant at PricewaterhouseCoopers, LLC. She earned her MBA degree from Harvard Business School and holds a BS in economics 
with a concentration in accounting from the Wharton School of the University of Pennsylvania. Ryvicker is a certified public accountant and a CFA charterholder. She is also a member of the CFA Institute, the New York Society of Security Analysts, the American Institute of Certified Public Accountants, and the New York State Society of Certified Public Accountants. 
Joining Marci are experts whose insights will help you navigate the coming year with more confidence: 
John Bishop is head of media insights and research at MediaVillage, the media industry’s leading market intelligence, content marketing, and business connections firm. Bishop works closely with content providers, media agencies, and advertisers, providing tools and resources that empower more informed decisions and relationships. Bishop has two decades of experience providing B2B and consumer insights to companies across a range of industries, with a focus on 
media and technology. His consulting expertise includes applying behavioral science, including the consumer motivation and emotion behind decisionmaking, to help clients understand the whys behind behaviors and trends. Before joining MediaVillage, he led strategy and analytics teams at media and advertising agencies (Ogilvy, Digitas, MediaCom) and market research firms (GfK, System1/BrainJuicer). 
Mark Gray is CEO of Katz Media Group, the leading national expert in audio and television advertising solutions. Gray has been a leader in the media industry for more than 25 years, building a first-class media sales organization that delivers results for its broadcast partners and the nation’s top brands. As CEO, Gray oversees both Katz’s radio and television companies. His primary focus is to lead Katz’s team of industry experts to deliver innovative ideas for advertisers and 
agencies, driving revenue for Katz’s partners as well as developing Katz’s technology and digital offerings, including bringing Katz to the forefront of the programmatic buying arena. His tenure with Katz has included various management roles, including president of the Katz Radio division before being promoted to president of Katz Radio Group in 2006. Gray is a member of the board of the Broadcasters Foundation of America, a member of the RAB’s Executive Committee, and sits on the board of trustees for the Alliance for Women in Media. 
Davis Hebert is a director and senior high yield analyst at Wells Fargo Securities covering the media, cable, and telecommunications sectors. Hebert joined the High Yield Research team in 2007 and is a member of the Institutional Investor All-America Fixed Income Research Team, most recently placing No. 1 in the Broadcasting & Publishing sector, No. 2 in Telecom Services, and No. 3 in Cable & Satellite in the 2018 survey. Before joining the group, Hebert spent 
time in leveraged finance on loan underwriting and portfolio management functions for the media and telecom sectors; he also has commercial banking experience. Hebert received a BSBA in finance from Appalachian State University and an MBA from Virginia Tech. He holds the Chartered Financial Analyst designation and is a member of the CFA North Carolina Society. 
Vincent Létang is EVP of global market intelligence for MAGNA, overseeing market research, forecasting, strategy, and advisory services. Among the regular publications of Létang and his team are the Global Advertising Forecasts (a bi-annual report on advertising spending in 70+ countries, with 5-year forecasts), the Media Economy Report, the quarterly U.S. Advertising Forecasts, and the new Programmatic Report. A leading expert in media economy and the global advertising market for nearly two decades, Létang joined MAGNA after spending six years as head of advertising research for IHS Screen Digest in London, where he launched Advertising Intelligence, an online service focusing on global television and digital advertising market trends. Before joining Screen Digest in 2005, Létang was a senior consultant in the media practice in BIPE Consulting in Paris for six years. 
Forecast 2019 brings together the best and brightest talent in broadcasting and advertising to forecast the coming year, and to discuss the trends and momentums that will affect ratings and revenue. 
From Washington to Wall Street, automobiles to mobile devices, Forecast focuses on what’s ahead in the broadcast community’s future and how to prepare for its opportunities and challenges.
This is the industry’s only forum that allows radio owners, CFOs, group executives, managers, and Wall Street analysts to gather for an open exchange on conditions and expectations for the coming year.
The conference concludes with the networking event of the year, the annual “Top 40” cocktail reception, honoring Radio Ink’s 40 Most Powerful People in Radio.

Just Advertising During the Super Bowl Could Appear Political for Brands

The Wall Street Journal

Just Advertising During the Super Bowl Could Appear Political for Brands

Amy Schumer’s ad boycott of one casts showing up as taking sides

By Nat Ives

Oct. 24, 2018 11:45 a.m. ET

Amy Schumer’s decision to support Colin Kaepernick by refusing to do Super Bowl ads is the latest sign that advertising’s biggest stage is becoming increasingly political for brands, marketers and industry experts say.

“Everything right now is so supercharged, and then arguably the Super Bowl is the lightning rod on the top of a tower,” said Bryan Buckley, who has directed dozens of Super Bowl commercials, including spots for brands such as Bud Light, Coca-Cola , FedEx , E-Trade and Monster.com.

Some Super Bowl ads already are stirring up partisan passions, like the 2017 Budweiser ad about the brand’s immigrant roots, which some called a critique of President Trump’s immigration policies. Now every spot is under the microscope, and the scrutiny is even creeping beyond the ads’ content, Mr. Buckley said.

“All of a sudden the event itself is controversial,” he said.

CBS, which will televise the 2019 Super Bowl on Feb. 3, 2019, can still expect to collect hundreds of millions of dollars for ad time during the game. The audience again will be television’s largest of the year. But some people will call advertisers’ presence a sign of support for the way the NFL handled Mr. Kaepernick’s racial justice protests when he was a player, industry experts said.

Mr. Kaepernick has filed a grievance accusing the NFL’s owners of conspiring to keep him out of the league because of those protests. In August, an arbitrator denied the NFL’s request for a summary judgment to dismiss the case. In September, Nike celebrated Mr. Kaepernick in an ad campaign that put the controversy back in the headlines. Mr. Trump called it a “terrible message.”

“I personally told my reps I wouldn’t do a Super Bowl commercial this year,” Ms. Schumer wrote on Instagram last Friday as she discussed NFL player protests, adding, “Hitting the nfl with the advertisers is the only way to really hurt them.” She has appeared in one Super Bowl ad, a 2016 spot for Bud Light.

Advertising in the Super Bowl is likely to become more fraught, even for brands and ads that don’t try to take stands, said Jonathan Mildenhall, co-founder and chief executive of the consultancy TwentyFirstCenturyBrand. He was previously chief marketing officer at Airbnb Inc., where he helped create a 2017 Super Bowl ad with a tolerance theme.

“All endorsement is support for the NFL and the cultural role the Super Bowl plays in society,” Mr. Mildenhall said in an email. “It used to be proudly middle America. Now it has a divided narrative.”

It is getting harder for marketers to project neutrality in general, said Keith Johnston, vice president and research director at Forrester. “People are going to just have to pick a side,” he said. “You’re either for something or against something and you’re either going to make money or not make money.”

(That’s true for Ms. Schumer as well, Mr. Johnston said: “She’s making a stand on behalf of her personal brand.”)

“There will be some that will follow Amy and say we’re not going to advertise on the Super Bowl because we don’t approve of the NFL’s behavior,” said Allen Adamson, co-founder of Metaforce, a marketing consulting firm. “But the challenge for most is that there are incredibly few opportunities to reach as many people in as powerful a way as the Super Bowl.”

Staying away also might not achieve as much as Ms. Schumer hopes. “Will anyone remember who did not appear in Super Bowl ads?” said Diana Mutz, Samuel A. Stouffer professor of political science and communication at University of Pennsylvania. “Or does the attention and influence necessarily fall to those who do? My guess is the latter.”

CBS declined to comment. The NFL didn’t respond to messages seeking comment.

Mr. Buckley said the Super Bowl remains advertising’s greatest event, and is actually more interesting right now. “Maybe a blue-chipper gets nervous and pulls out,” he said. “Then you’ll have the next rebel brand—they’ll just jump on that opportunity, knowing they can get that slot.”

 

Hey All: Been away from office for 2 weeks and back so you'll hear more3 from us more frequently. Philip Jay LeNoble, Ph.D.

COMMENTARY

Rogue Political Marketers Infiltrate Media Ad Systems - Is TV Next?

• by Wayne Friedman , Staff Writer, 8 hours ago

New political media marketers continue to buy into U.S. platforms. But maybe not from up-and-coming marketers looking to become longtime clients.

Would they investing in Russian bots and troll farms in 2018? Is that the political media buy your company wants to handle?

The Justice Department says the proposed operating budget for Russian-backed advertising spend on mostly social media in 2018 alone was over $10 million.

Should someone kick that envelope full of cash back -- to a charity?

This money was overseen by Elena Alekseevna Khusyaynova, a Russian national who became the first person charged by the U.S. for conspiring to interfere in the 2018 midterm elections, according to the FBI and Justice Department.

And she wasn't just complicit this year.

Khusyaynova is accused of overseeing a $35 million media budget from 2014 to 2018 that covered spending on activists, social media advertising and placing news postings on social networks.

But as far as anyone can tell, not traditional media advertising -- like TV. Still, who is to say, in future years, this would not be an easy way into the U.S. advertising market, especially with the rapid growth of programmatic/automated media buying.

President Trump says don’t worry, never happened — despite the evidence uncovered by Robert Mueller's investigation and 17 national intelligence agencies that insist Russia interfered in the 2016 presidential election. Guessing he probably feels the same way about 2018.

Somewhat protecting TV networks from mischievous actors is TV’s limited TV inventory, which is still predominantly a manually handled process. Programmatic/automated efforts are nowhere near being fully incorporated into TV stations’ ad systems, either in local or national TV.

Commentary

What Surveys Do We Trust About The Media?

• by Wayne Friedman , Staff Writer, October 10, 2018

Forget about trusting the media. Trust your polls. Some new research shows optimism about newspapers and TV networks. Sort of. For example, Simmons News Media Trust Index found the average percentage of respondents who rated news sources as trustworthy or very trustworthy was just 40%.

They say that’s “a clear sign the news media is in crisis.”

These results seem somewhat lower than a recent Pew Research Center poll released in June, from results in February/March this year. It revealed 21% saying they have “a lot of trust,” while 49% had “some trust” and 29% “not too much/none at all.”

All positive Pew “trust” results give this around a 70% score. Maybe the answer lies somewhere in between. Yes, it’s hard to meld two different kind of polls. That’s the grim part.

Simmons says five of the top 10 most-trusted news sources comes from newspapers, with The Wall Street Journal earning top marks -- 57.7%, the percentage of Americans who trust the newspaper.
Others getting top marks: The New York Times (53.8%, 7th place); The Washington Post (53.6%, 8th place); USA Today (51.1%, 10th place); and The Washington Times (50%, 10th place).
Broadcast networks did a bit better generally: ABC News (55.9%, 2nd place); CBS News (55.4%, 3rd place); and NBC News (54.1%, 6th place).

While all this sounds good, it begs the question -- at least for top players. If 55% to 58% “trust” the top players, what about the other 45% to 42%?

Looking at the whole range of individual news organizations, it goes from 58% (The Wall Street Journal) doing the best -- and 38% for The Huffington Post (20th place), among the top 20 players.
Three big cable networks posted lower-end results: MSNBC did the best (47.4%, 11th place); CNN (46.1%, 14th place); and Fox News Channel (44.7%, 17th place). BBC News America grabbed the best results for a U.S.-based cable TV network, 55.2%.

The good news is that while the top 20 were deem more “trustworthy,” the Simmons poll also recognized some even lower -- a 25% score for the six least-trusted organizations -- far-left and far-right news sources.

Polls -- nothing but polls. But what about actual readership and that always mysterious “engagement” marketers love to talk about?  That may tell another story, an even more complicated one.

The NAB has filed comments with the FCC regarding the Commission’s upcoming Communications Marketplace Report to Congress. In those comments, the NAB says the report “should reflect the proliferation of audio content providers and the vast options now available for consumers and advertisers in today’s audio marketplace.” An example the NAB uses to describe a fragmented advertising marketplace is one company it says lost accounts totaling over $100,000.

The NAB says that money formerly spent with radio and other traditional media are now being split with – or diverted to – multiple additional platforms. And the NAB says that money is moving to digital and that includes small markets. “Midwest Communications reported the loss of local advertising accounts worth over $100,000 each in several markets (including Duluth, MN, Fargo, ND, Wausau-Stevens Point, WI and Hibbing, MN) to digital services such as Pandora and Google AdWords. Through interviews with advertisers and ad agencies, Townsquare Media found that most advertisers across a range of markets now have, on average, three times the number of companies calling on them wanting to sell advertising time/space as they did a decade ago.”

The NAB says given the emergence and rapid growth of competing advertising platforms over the past decade, it is unsurprising that the radio industry has struggled to regain the total level of advertising revenue it achieved prior to the Great Recession.

Why Great Ideas Always Win For Radio

Why Great Ideas Always Win For Radio

By

 Radio Ink

 -

October 8, 2018

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Our thanks to Kate Lattimer-Maguire, Senior Account Executive for Alpha Media in Lincoln, for sharing this advertiser success story with us this week. Creative ideas Kate put in front of a client have resulted in a lucrative annual partnership for that client and for Kate’s station.

by Kate Lattimer-MaguirePaws 4 Fun is an indoor dog park and boarding facility that opened in Lincoln, spring of 2017. As this was a totally new concept to our market, the client needed awareness and education. He had mentioned at our initial meeting that if he could just get people to see his state-of-the-art facility and speak with the staff, he felt confident they would become long-term customers. My goal was not only on-air components, but ideas to drive even more listeners to his facility.

The ideal target was women/moms 25-54. I came up with an annual plan on our Top 40 station, 106.3 KFRX, that greatly serves that demo. In addition to a high frequency monthly commercial schedule that the client recorded with a jingle, I also included non-traditional elements, many that were customized.

Success stories sponsored by System 21...the nation's most respected sales training curriculum!

For the grand opening we did a “Business of the Week” campaign where we highlighted the new business on-air, online, as well as on-site during a week-long campaign, along with gift card giveaways. We then followed up a couple months later as a lead sponsor of our popular 30th annual kids run, The Mayor’s Run on KFRX. Again, getting exposure with additional mentions as well as a coupon in the packet that went to all kids, in turn essentially the moms.

A few months after that, we did the “Pic a Pet” photo contest on KFRX, encouraging our listeners on-air and online to upload their furry kids. Every entry had a bounce back offer and I was able to capture all emails for the client. The overall winner of the photo contest received a $100 gift card to Paws 4 Fun.

The final custom promotion we utilized was in the fall, called “Bark at the Moon, Doggie Trick-Or-Treating.” This was a HUGE success for the client! We (him and I) both sold “booths” to local vendors. Anyone from dog-related businesses to gyms, health care, retail, etc. We ran station promos, as well as social postings to promote the event as well as a live broadcast day-of.

The event generated over 300 dogs in costume and well over 1,000 humans, again whose emails were all captured for the client’s database. We did a “Costume Photo Contest” where we uploaded all photos of the dogs to his Facebook page and asked attendees to like, share, and encourage friends to like their pet to win. His social exploded.

We are currently right in the process of getting the 2nd annual Bark at the Moon event underway. We have doubled our vendor booths, noting that everyone from last year couldn’t wait to sign up again! The growth they have experienced in our market and from radio has let them be able to explore a location in Omaha, Nebraska, which they are currently in the process of with hopes to someday franchise!

This is now an annual partnership event. The revenue my client receives from a day of signing people up for memberships and what he sees immediately afterwards is incredible!

Radio Ink: Tell us what the first call on the client was like.
Kate: You know when you first meet someone and you just know you’ll be friends beyond just a professional relationship? That’s what it was like for myself and Leon Kilmer, owner of Paws 4 Fun. We just clicked. I was a veterinary technician for many years of my life so just being able to connect over our love for dogs was immediate; plus we have similar personalities. The first meeting ideas started flying, including my desire to start a huge annual dog trick-or-treating event in our community. Pretty sure we closed the first meeting not even knowing logistics!

Radio Ink: Why/how does the jingle make the client stand out?
Kate: I am so lucky to have an incredible production team. We were able to find an awesome music bed that had a “dog jingle” at the beginning and even a quick one again about 20 seconds in. It makes you know it’s Paws 4 Fun every time his commercials come on, plus it was no charge to the client, which he was thrilled about.

Radio Ink: How did you come up with the out-of-the-box ideas for the client?
Kate: Being a dog (and cat) owner myself, I know how much people love their pets and that my camera is filled with pictures of them. I really wanted to have fun with many concepts by connecting to those emotions pet owners have and include the client in so much more than just commercials on-air. We really are reaching people in all areas of their life by being on-air, online, and on-site, by doing pre-roll videos of his facility, quarterly social contesting/pics and fun events at his location with our personalities and community, or them on-site with us — as well as everyday continued branding and awareness on our top station on-air and streaming.

Radio Ink: How do you know the client is satisfied?
Kate: Since Leon and I and so many of my other clients have such an open form of communication, we are very good about discussing expectations, results, new concepts, etc. I would never take all the credit for a business’ success because it is so much more than just effective marketing. It’s them day in and day out making sure when people do act on their marketing efforts, that they as well as their pets have a great experience and want to go back, which the staff at Paws are fantastic about. I have seen their growth and loyalty of their customers, and knowing that they are already looking to grow and expand makes me so happy.

Radio Ink: What advice to you have for other salespeople to think about more than spots?
Kate: I know we all hear it everyday, but it is so true: we need to be more than just a “salesperson” selling radio air time. The most fun part of this career is collaborating with local clients like Paws 4 Fun and just having fun with marketing by thinking outside the box and coming up with great ideas across all your platforms with great content.

How Empathy Drives Marketing Communications

• by Larissa Faw , October 4, 2018

In a rare panel during Advertising Week New York, four women took to the stage on Wednesday not to discuss #MeToo or Time's Up, but rather the gender-agnostic issue of how to use technology to understand the human behind the computer -- and how to communicate that understanding, or empathy, in marketing messages.

"I like to say the era of the consumer is over,” says Abigail Posner, head of strategy, Brand Unit Google. “By calling people consumers it implies we are only thinking of them as people who consume our product, but we all know they are much more nuanced on that. And technology can help us understand that nuance and holistic view of people."

The differential for pharmaceutical company Lilly is to step away from the actual product to instead support what the product does. Psoriasis advertising, for instance, became about the journey and release from the disease rather than functional benefits of its treatment, says Lina Shields, senior director of consumer marketing, Lilly.

For Norwegian Cruises, the travel company's challenge is that its guests expect it to know them very well and market accordingly. "How do we meet their expectations and not mess it up when we introduce technology?" said Meg Lee, CMO, Norwegian Cruises, adding that Norwegian needed to accomplish this on a reasonable budget.  

"Social media is word-of-mouth on steroids," says Lee. Norwegian started off just having a conversation with its travelers using these channels, but now Lee says it is the number-one driver of consideration and purchase.

Gathering insights about customers and prospects has always been a key marketing objective, but empathy “tells you what you should do,” says Kristen Colonna, chief strategy officer, OMD. Understanding this difference lets marketers become more relevant and profitable. “You need to deliver what the consumer needs, not what is disposable,” says Colonna. 

Panelists agree that there’s no such thing as too much empathy -- but just like superheroes, you have to wield your power carefully. "People give us a lot of information and there are some details we don't leverage," says Lee, explaining they know everything that goes on during a cruise aboard ship, including medical and personal habits. "We focus on leveraging the right data," she says.

Empathy is a big ambition to deliver, says Colonna. For OMD, it requires the merging of different data sets and agency divisions to work as one holistic hub. It isn't a one-step solution. The path to purchase is more obvious, whereas true empathy reveals the untapped opportunities.

Recognizing the difference is how new startups transform into billion-dollar brands. Netflix and AirBnb are perfect examples because they saw a need in the marketplace that wasn't fulfilled and figured out a better way to meet consumer needs.

Now let's understand how you communicate to a local-direct potential advertiser on your station who has seen many reps in your market with packages of the month to see by a certain time and you walk in in the midst of it all and tell the decision maker you are doing a no-charge consumer needs analysis your media company is offering to help grow local businesses' revenue for the company year. How will you present yourself and your company as different and more valuable than the package sellers whom the retail community sees every month or hears by phone weekly?

Gen Z 'More Receptive' To Advertising Than Older Generations

• by Alex Weprin , October 4, 2018

A funny thing is happening with “Gen Z,” the generation growing up in the wake of millennials. Whereas millennials are often thought to shun advertising, Gen Z appears willing to embrace it.

That is one takeaway from a discussion between Hulu CMO Kelly Campbell and Vice CEO Nancy Dubuc, held during Advertising Week New York Thursday.

Campbell revealed research that Hulu conducted, specifically looking at Gen Z, which the company defines as around 15-25 years old.

"We offer choice, we offer different versions of our products, including our ad-supported model, which is our lowest price point,” Campbell said. “What we find with Gen Z is that they understand the value trade-off — and are actually more receptive to advertising.”

“We did research recently that showed Gen Z-ers are 39% more likely than the base population to watch an ad, and 29% more likely to actually pay attention to it,” she added.

Of course, that doesn’t mean evolution isn’t needed in the advertising space. Consumption habits for younger viewers are quite different than older viewers, with a heavier emphasis on mobile, and according  to Campbell a desire to stream order shows from start to finish.

“They don’t think of television as channels or networks; they think of it as shows, galleries of shows,” Campbell said. “They are also more likely to want to binge. They want to watch an entire library, from the pilot to the final episode of the final season. We see more and more interest in slightly older content, slightly less interest in newer content.”

When it comes to advertising, that also means rethinking what an ad is, and what it looks like.

“Brands need to figure out how to tell stories about their products. Especially in a world where the premium version of Hulu and the premium version of Netflix are only going to grow. Ad avoidance is only going to become more of an issue,” Dubuc said. “The traditional 30- second, or 15- second or 60- second spot is going to evolve.

"Brands need new ways to get their message and their product and their worthiness across.” Content and storytelling is going to be the way that happens, whether it is integrated into other stories or stands on its own.

TV’s Place To Promote New Shows: Radio

By

 Adam Jacobson

 -

October 1, 2018

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How did three of the big four broadcast TV networks push out the promotion of new and returning shows as the new TV season begins? One used The New York Times. But all used AM and FM radio, showing that the power of audio can serve as a strong audience driver for visual media’s over-the-air players.

It’s a remarkable statement about the power of broadcast radio. On Thursday (Sept. 27), CBS placed an advertisement for one top prime-time program in the Times; interestingly it was an ad directed to viewers of WCBS-2 in New York and not a national CBS ad.

That wasn’t all CBS did. With no O&O radio stations at its disposal, CBS spent some cash by paying for more than 23,000 spot plays across the stations tracked by Media Monitors for the week ending Sept. 30 (yes, the graphic below incorrectly states that there are 31 days in September).

Meanwhile, ABC and FOX each invested heavily in radio spots to promote key shows with listeners. This put ABC at No. 4 and FOX at No. 5.

Of course, you can’t watch TV without a television set … right?

Well, smartphones are quickly grabbing viewer attention, and many channels can be viewed on a hand-held device just as they can on a TV.

Enter the Samsung Galaxy, one of the top Android-powered devices. Ads for this smartphone totaled 21,579, landing the brand in this week’s No. 10 slot.

• The Wall Street Journal

FCC Moves to Free Up More Airwaves

Regulators are proposing to open up airwaves for unlicensed uses such as Wi-Fi

FCC Chairman Ajit Pai speaking during a news conference at the National Press Club in Washington, DC, on Monday. PHOTO: MARK WILSON/GETTY IMAGES

By 

John D. McKinnon and 

Drew FitzGerald

Oct. 1, 2018 3:34 p.m. ET

WASHINGTON—Federal regulators are proposing to free up a broad swath of underused airwaves for Wi-Fi and broadband, as part of their efforts to deploy next-generation 5G wireless technology around the U.S., officials said.

The move will open up airwaves now used by a range of industries including communications companies, utilities and broadcasters for unlicensed uses such as Wi-Fi, to help alleviate the growing wireless traffic crunch.

The proposed changes are a part of the federal government’s broader plan to foster more shared uses of the nation’s increasingly crowded airwaves.

The proposal—to be voted on by the Federal Communications Commission later this month—would encourage more unlicensed radio traffic, easing the burden on licensed spectrum traditionally used by big carriers such as Verizon Communications Inc. and AT&TInc., an FCC official said.

The move would improve download speeds for the next generation of Wi-Fi devices and improve conditions for wireless internet-service providers. Their service, often called “fixed wireless,” can provide broadband access to an area’s homes and businesses through radio waves rather than cables. It is viewed as a potential solution for hard-to-serve rural areas that often lack sufficient broadband access.

The airwaves being freed up are used in certain areas for cellphone towers to link back to the internet and for public safety radio channels. The plan under consideration would allow more companies to share the road with those existing users, the official said.

Other users in this chunk of airwaves include mobile users such as broadcast news services. Officials also are developing new standards to allow some low-power uses such as indoor Wi-Fi to use these airwaves without interfering with the existing users.

 

The FCC’s move will likely please technology companies and device makers that have grumbled about the broad swaths of spectrum the agency plans to auction off under license.

Cellphone companies tend to dominate those auctions by spending hundreds of millions of dollars apiece for frequencies that they can reserve for their customers.

The first of two auctions scheduled to start Nov. 14 will sell off more high-frequency spectrum that companies such as Verizon Communications are already using to beam broadband service into homes and businesses as an alternative to cable.

The commission is also laying the groundwork to let wireless companies use airwaves currently reserved for satellite companies.

Wi-Fi service, meanwhile, has become so popular that service is degraded in many crowded areas, such as at airports or shopping malls. The new spectrum would allow newer phones, laptops and other devices to use a third chunk of spectrum from about 5.9 GHz to 7.1 GHz, relieving pressure on two existing ranges around 2.4 GHz and 5 GHz.

In an interview, FCC Chairman Ajit Pai on Monday said he hopes the plan to open up such a vast amount of spectrum for unlicensed uses will help people make even more use of Wi-Fi and potentially lead to new apps and services.

It also could lead to more opportunities for fixed wireless service, which he regards as “increasingly critical” to promoting broadband service for communities on the wrong side of the so-called digital divide in rural areas.

More broadly, he said he hopes the move will “help drive American leadership” in the rollout of 5G, particularly in the so-called midband spectrum that is increasingly viewed as vital to the next-generation service, which promises far faster speeds than the current 4G LTE wireless.

Some experts worry that the U.S. is slipping behind rivals such as China in developing the engineering and technologies that will dominate in 5G.

In a blog post on Monday explaining the change, Mr. Pai said: “My proposal would promote efficient use of spectrum that may otherwise not be used at all—and it could make over 1 gigahertz of new unlicensed spectrum available.”