HC at the NAB: More Than Spots, Less Than Clutter
By Holland Cooke
Consultant
Radio sells advertisers our listeners’ attention. For a hundred years, our inventory has largely been commercials. Now, as our wandering audience leads us to more revenue channels, are we hooked on spots?
“We’re still in the same business. What’s changed is the tool box.”
Salem Media Group EVP, operations and revenue development Linnae Young was among panelists exploring “The Local Advertising Buying Landscape: What are Clients Buying, and how are Radio Sellers Succeeding or Missing Out?” Her laser-like focus is on the client’s need: “The HVAC company has two trucks and wants six.”
Ditto from session moderator Mike Hulvey, the Radio Advertising Bureau’s president & CEO. He called pitching a multi-store McDonald’s franchisee, who heard-him-out, then asked “Will that idea sell a hamburger?”
We sure have ideas. Researcher Gordon Borrell reckons that “the biggest mistake radio stations are making is underestimating the potential [of digital].” Many now sell video advertising. Prospects “don’t have any questions about radio, other than ‘Can you lower the price?’ They have lots of questions about digital.” Be their guide.
And obsess on outcomes. “Stop with the tactics,” urges Marketron senior director of digital strategy Dustin Wilson. “It’s all about solutions-based selling.”
“As radio has encountered increased pressure on revenue, it has often increased spot loads.”
Ad nauseam, in the view of Edison Research co-founder & president Larry Rosin, whose Ted Talk-type session “Considering Spot Loads” was plainspoken.
Radio has violated what Larry calls “The Commercial Broadcast Bargain” – the unspoken deal that content is worth the time spent listening to ads. “We’ve tilted the bargain in an unfair way,” he said, pointing to “fewer, but much longer breaks; and many, many [music] stations now loading all their spots into two interminable breaks per hour.”
Rosin’s team has long tracked listening habits through its Infinite Dial series, and the trend is clear: Radio’s “Share of Ear” never fully recovered after the pandemic; and commercial loads went up during that time.
“The real problem” is not understanding how ‘Infinite’ today’s ‘Dial’ is, “ignoring the fact that there are other things to listen to.” Ad loads tend to be shorter in podcasts and in non-paid streams. These ad-supported competitors never run more than two spots back-to-back. And increasingly, Americans are paying for ad-free content, via SiriusXM, Spotify, YouTube Premium, and others.
Solutions? Larry was clear: “What I’m NOT saying: ‘cut the load and charge more’ in today’s low-demand environment.”
— Even if you can’t lower total inventory, consider more shorter breaks. “Listeners have, or at least had, an internal clock: song (3 minutes) – song (3 minutes) – song (3 minutes) – break (3 minutes). When you ask music radio consumers, a break should be the length of a song. The two long breaks clock simply can’t be the best we can do for advertisers.”
— Bonus on Rating, not Share, which would “reorient radio programmers to consider ALL competitors, not just other local stations. Radio’s insular world hurts it.”
— Don’t demonize commercials – “a disservice to advertisers” – the way we seem to when we call the stop set “a break;” or tout commercial-free hours to pump-up a daypart (then overdose the load in adjacent hours).
— Improve the quality of commercials.
Holland Cooke (HollandCooke.com) is a consultant working the intersection of broadcasting and the Internet. Follow HC on Twitter @HollandCooke and connect on LinkedIn
driving business development. Salem Surround VP and general manager Jon Latzer comments, “Christian Kligora is a generational find and will help Salem Surround achieve both revenue growth and help with operational efficiencies. We are excited to have him join our expanding team while leading our Western Region to new heights of success.” Kligora states, “I’m excited to join the fantastic team at Salem Media. Joining Salem represents a unique opportunity to contribute to a media landscape that values integrity, innovation, and impact. I am eager to partner with our linear/digital sales teams to explore innovative ways to connect with our audience.”
WFAN And Yankees Extend Their Partnership. A multi-year extension is announced between Audacy New York sports talk WFAN-FM & WFAN-AM and MLB’s American League East New York Yankees. English-language broadcasts will continue to be heard on WFAN and streamed digitally on the Audacy app for those within the team’s 
broadcast territory. WFAN will also continue to produce the Spanish-language broadcasts for local radio affiliates, as well as for the Audacy app. Audacy New York market president Chris Oliviero declares, “The New York Yankees are the city’s premier sports franchise and WFAN is the city’s premier sports platform. Together, we form a potent combination for fans and client partners. [This – 2022] is our 21st consecutive season of broadcasting the ‘Bronx Bombers.’ We look forward to continuing to have the honor of being the soundtrack to more memorable and historic pinstripe moments.” New York Yankees chief operating officer Lonn Trost notes, “The Yankees are excited to extend our longstanding relationship with WFAN and Audacy. WFAN has been our flagship station for over two decades, and we look forward to fans continuing to enjoy Yankees baseball over its airways and on the Audacy app.” From 2002 to 2014, Yankees games were heard on WFAN’s sister station, all-news WCBS-AM (currently the flagship of the New York Mets); WFAN has served as the Yankees flagship since 2014. John Sterling, (class of 2022 Radio Hall of Fame inductee) Suzyn Waldman and Sweeny Murti are the English-language broadcasters, while Spanish-language broadcasts will be handled by Rickie Ricardo, Francisco Rivera and Rene Luna. As part of Audacy’s MLB partnership, WFAN and the Yankees will produce co-branded podcasts.
Newsmax, Verizon Sign Multi-Year Carriage Agreement. The deal between Newsmax and Verizon extends distribution of news channel in HD on Verizon Fios. Newsmax Media chief executive officer Christopher Ruddy remarks, “Verizon has carried Newsmax for many years. We are delighted to be extending our distribution through the Fios platform. We have found them to be outstanding partners who have demonstrated a strong commitment to the presentation of diverse, independent voices through their programming. We’re glad that we are continuing with this new agreement.” Newsmax will retain its broad distribution on the Verizon platform, which reaches approximately 3.5 million subscribers in the northeast and mid-Atlantic regions.
net income declined from $433 million to $292 million (11 to 7 cents/basic share, 10 to 7 cents/diluted share). Adjusted EBITDA was off 3% to $679 million. SiriusXM chief executive officer Jennifer Witz notes, “We are pleased with our results in the second quarter, and while we continue to navigate an uncertain economic environment, we delivered strong financial performance and continued to make strategic investments in our business that will set us up for an exciting new era. We remain committed to creating compelling experiences for our listeners by investing in innovative technologies to deliver best-in-class, curated, comprehensive audio entertainment. Most recently, [we expanded] our relationship with the NFL to deliver the most extensive sports lineup in audio entertainment; we will continue to enhance our platform to ensure broad appeal.” Executive vice president/chief financial officer Sean Sullivan adds, “[Our] churn was steady at approximately 1.5% in the quarter, underscoring the strength of our business, products, and loyalty of our customers. In the second quarter, we delivered focused expansion in key streaming offerings and maintained a strong balance sheet. This quarter, we returned over $300 million in capital to stockholders, comprising $217 million in common stock repurchases and $86 million in dividends, and ended the quarter with net debt to adjusted EBITDA of 3.6 times.” Self-pay subscribers increased by 23,000 and paid promotional subscribers increased by 54,000. Satellite and streaming division totaled 34 million subscribers at the end of the quarter; self-pay churn was flat at 1.5%. The division’s revenue rose 5% to $1.7 billion, and gross profit rose 6% to $1.1 billion.
Marketron Releases Political Advertising Toolbox. Per BIA Advisory Services, political advertising will raise $8.6 billion for local media companies. Marketron’s collection of online resources combines all the political advertising content the company has developed at a single location for companies interested in increasing their share of political advertising. Marketron senior vice president/client success Christian Kligora opines that, “Political advertising is an important category for local media. It’s much different than any other and that requires a unique approach. We’ve been developing content on the topic all year long with a focus on how to support media sellers. Bringing it together in one spot makes it easier to learn from and access.” Each resource will reportedly provide media salespeople with tips, strategies, and insights for political advertising. Included are specialized considerations such as the “overall trends in the advertising ecosystem; the need to reach different demographics; the objective of persuading people to vote; and the regulatory compliance requirements” for how media companies price/offer inventory to candidates.
Inquirer columnist Mike Sielski co-hosting weekend shows with Glenn Macnow. McDonald will partner with Macnow on Sundays (10:00 am – 1:00 pm), while Sielski joins Macnow in the same time slot each Saturday. According to Macnow, “I have a comfort level with Jody. He’s the guy I broke in with [and] the guy our listeners heard me with from 28 years ago. Working with Jody is like an old pair of shoes – it’s easy and I like it. The Saturday show will now be me and the best damn sports columnist in town, Mike Sielski.” … Former Baltimore Ravens defensive back Rod Woodson will join play-
by-play voice Gerry Sandusky this season on the NFL team’s broadcasts on Hearst Baltimore news/talk WBAL “News Radio 1090 AM & 101.5 FM.” According to Sandusky, “Rod brings the unique perspective of someone who has both played and coached at the highest level of the game. He does it in a down-to-earth way that is approachable, likable and just plain fun. It’s a privilege to work with a broadcast partner like Rod.” Woodson states that, “Being a part of the Ravens’ gameday broadcast team is a blessing. To be back with the team that I won my only Super Bowl with will be fun.” … After eleven years with Nashville’s WPRT-FM, midday co-host Darren McFarland departs the Cromwell Radio Group sports 
talk outlet. Program director Chase McCabe confirms to The Tennessean that “Sports Radio 102.5 The Game” decided to part ways with McFarland, who formerly worked at Cumulus Media’s cross-town/similarly-formatted WGFX “104.5 The Zone.” McCabe, Willy Daunic, and Derrick Mason continue in middays on “The Game.” … Effective August 22,
Cheddar News Washington bureau chief Megan Pratz will join NPR as political editor. In addition, NPR promotes congressional correspondent Sue Davis to political correspondent and interim congressional correspondent Dierdre Walsh gets to remove “interim” from the title. … Skyview Networks’ sports talk program “OutKick 360” picks up three Withers Broadcasting-owned affiliates: KYRK, Marble Hill, Missouri; WGKY, Wickliffe, Kentucky; and WFRX, West Frankfort, Illinois. Skyview Networks is the exclusive distributor, affiliate sales representative and network sales partner of Jonathan Hutton, Chad Withrow & Paul Kuharsky-hosted “OutKick 360.”