RAB Reports October Radio Revenues Plunge

[bigwoody]

Chalk it up to the lack of political spending or blame the ad market, but the RAB's OCTOBER revenue figures show a significant plunge from 2004's numbers. Overall radio ad revenues were off 7% year-to-year, with national off 19%, local off 2%, and non-spot revenue down 8%.

The RAB says that the dip can be traced to specific markets in states which served as battleground areas for the 2004 election. <P ID="signature">______________
Everyone is entitled to my opinion.</P>

 

[JohnnyMorganWXJX]

> Chalk it up to the lack of political spending or blame the
> ad market, but the RAB's OCTOBER revenue figures show a
> significant plunge from 2004's numbers. Overall radio ad
> revenues were off 7% year-to-year, with national off 19%,
> local off 2%, and non-spot revenue down 8%.
>
> The RAB says that the dip can be traced to specific markets
> in states which served as battleground areas for the 2004
> election.
>

Not a surprise.

But, how timely that second paragraph.

Conjecture here, but: Cleveland, Ohio doesn't get any more "specific market in a battleground state".

No wonder Meltzer got canned.

 

[bigwoody]

> > Chalk it up to the lack of political spending or blame the
>
> > ad market, but the RAB's OCTOBER revenue figures show a
> > significant plunge from 2004's numbers. Overall radio ad
> > revenues were off 7% year-to-year, with national off 19%,
> > local off 2%, and non-spot revenue down 8%.
> >
> > The RAB says that the dip can be traced to specific
> markets
> > in states which served as battleground areas for the 2004
> > election.
> >
>
> Not a surprise.
>
> But, how timely that second paragraph.
>
> Conjecture here, but: Cleveland, Ohio doesn't get any more
> "specific market in a battleground state".
>
> No wonder Meltzer got canned.
>

It's all about $$$. Only logical reason JM was cut loose. Watch the trades, you'll see more GM's, DOS's, etc, etc getting "freed". November is the annual "bloodletting" for Clear Channel and others...but mostly CC. Happy Holidaze!
<P ID="signature">______________
Everyone is entitled to my opinion.</P>

 

[HHH]

> > Chalk it up to the lack of political spending or blame the
>
> > ad market, but the RAB's OCTOBER revenue figures show a
> > significant plunge from 2004's numbers. Overall radio ad
> > revenues were off 7% year-to-year, with national off 19%,
> > local off 2%, and non-spot revenue down 8%.
> >
> > The RAB says that the dip can be traced to specific
> markets
> > in states which served as battleground areas for the 2004
> > election.
> >
>
> Not a surprise.
>
> But, how timely that second paragraph.
>
> Conjecture here, but: Cleveland, Ohio doesn't get any more> "specific market in a battleground state".
>
> No wonder Meltzer got canned.


Did those dopes think that they would GROW or even maintain revenue from the 2004 election year spike, especially in Ohio? Especially with stagnant ratings and falling year-on-year cumes?
<P ID="edit"><FONT class="small">Edited by HHH on 12/01/05 01:10 PM.</FONT></P>

 

[wscx200]

> > > Chalk it up to the lack of political spending or blame
> the
> >
> > > ad market, but the RAB's OCTOBER revenue figures show a
> > > significant plunge from 2004's numbers. Overall radio ad
>
> > > revenues were off 7% year-to-year, with national off
> 19%,
> > > local off 2%, and non-spot revenue down 8%.
> > >
> > > The RAB says that the dip can be traced to specific
> > markets
> > > in states which served as battleground areas for the
> 2004
> > > election.
> > >
> >
> > Not a surprise.
> >
> > But, how timely that second paragraph.
> >
> > Conjecture here, but: Cleveland, Ohio doesn't get any more
>
> > "specific market in a battleground state".
> >
> > No wonder Meltzer got canned.
> >
>
> It's all about $$$. Only logical reason JM was cut loose.
> Watch the trades, you'll see more GM's, DOS's, etc, etc
> getting "freed". November is the annual "bloodletting" for
> Clear Channel and others...but mostly CC. Happy Holidaze!
>
A lot if this has to do with Political being non-existent. If you had good ratings last year, you were rolling Kilo G with the Political. Another very important thing to note is that anyone that is removed from the sales process, be it managers, DOS's RVP's, etc are all idiots.

 

[JohnnyMorganWXJX]

> A lot if this has to do with Political being non-existent.
> If you had good ratings last year, you were rolling Kilo G
> with the Political.

I find it hard to believe that Clear Channel's entire corporate structure rests on selling radio political ads at the lowest unit rate (that's what McCain-Feingold requires).

Me thinks it's something more.

> Another very important thing to note is
> that anyone that is removed from the sales process, be it
> managers, DOS's RVP's, etc are all idiots.

Sales is king, huh? Tell that to your morning crew.

 

[wscx200]

> > A lot if this has to do with Political being non-existent.
>
> > If you had good ratings last year, you were rolling Kilo G
>
> > with the Political.
>
> I find it hard to believe that Clear Channel's entire
> corporate structure rests on selling radio political ads at
> the lowest unit rate (that's what McCain-Feingold requires).
>
> OK, I work in radio sales and have for several years. They were not getting lowest unit rate at Clear Channel. In Columbus they were getting at least $800 - $1,200 per :60. (WTVN and WCOL-FM) I guarantee it! Radio sales managers WILL take any dollar that is waved in their face and will rip anyone off..regardless of the long-term outcome. They are ONLY trying to cover their own asses. All these firings happen because the higher-ups don't know (or care) about what is really happening. They ONLY want $$$ and if they have to fire someone and use them as a scapegoat they will.

> Me thinks it's something more.
>
> > Another very important thing to note is
> > that anyone that is removed from the sales process, be it
> > managers, DOS's RVP's, etc are all idiots.
>
> Sales is king, huh? Tell that to your morning crew.
>

 

[JohnnyMorganWXJX]

CC's Political Ad Rates

> > I find it hard to believe that Clear Channel's entire
> > corporate structure rests on selling radio political ads
> at
> > the lowest unit rate (that's what McCain-Feingold
> requires).
> >
> > OK, I work in radio sales and have for several years. They
> were not getting lowest unit rate at Clear Channel. In
> Columbus they were getting at least $800 - $1,200 per :60.
> (WTVN and WCOL-FM) I guarantee it! Radio sales managers WILL
> take any dollar that is waved in their face and will rip
> anyone off..regardless of the long-term outcome. They are
> ONLY trying to cover their own asses. All these firings
> happen because the higher-ups don't know (or care) about
> what is really happening. They ONLY want $$$ and if they
> have to fire someone and use them as a scapegoat they will.

I agree with the second half of your statement, as I'm sure most people on this board do.

But let's go back to the first part. Were these federal candidates that CC was taking (charging?) the purported $800-1200 per :60? If so, tell me more. This is ground breaking and potentially "very interesting".

See 47 CFR 73.1942 Candidate Rates:

(a) Charges for use of stations. The charges, if any, made for the use of any broadcasting station by any person who is a legally qualified candidate for any public office in connection with his or her campaign for nomination for election, or election, to such office shall not exceed:

(1) During the 45 days preceding the date of a primary or primary runoff election and during the 60 days preceding the date of a general or special election in which such person is a candidate, the lowest unit charge of the station for the same class and amount of time for the same period.

(i) A candidate shall be charged no more per unit than the station charges its most favored commercial advertisers for the same classes and amounts of time for the same periods. Any station practices offered to commercial advertisers that enhance the value of advertising spots must be disclosed and made available to candidates on equal terms. Such practices include but are not limited to any discount privileges that affect the value of advertising, such as bonus spots, time-sensitive make goods, preemption priorities, or any other factors that enhance the value of the announcement.

See also, 47 USC 315, as amended by McCain-Feingold (Bipartisan Campaign Reform Act) sec. 305:

(b) Charges
(1) In general
The charges made for the use of any broadcasting station by any person who is a legally qualified candidate for any public office in connection with his campaign for nomination for election, or election, to such office shall not exceed—
(A) subject to paragraph (2), during the forty-five days preceding the date of a primary or primary runoff election and during the sixty days preceding the date of a general or special election in which such person is a candidate, the lowest unit charge of the station for the same class and amount of time for the same period; and
(B) at any other time, the charges made for comparable use of such station by other users thereof.


By the way--the Lowest Unit Rate (LUR) law has been on the books in one form or another since 1971.

 

[Joseph_Gallant]

Re: Falling Revenues

With falling revenues, get ready for more voicetracking, syndication, satellite-fed formats, and jockless formats like "Jack".

 

[gr8oldies]

Re: CC's Political Ad Rates

I don't know all the specifics of how the law works, but it would seem that CC could charge pretty close to regular rates, not the overnight rate for morning drive. A lot of that political advertising was from advocacy groups, which probably aren't covered by "lowest unit rate".<P ID="signature">______________
..from the Ball Park Franks sponsored gr8oldies keyboard...</P>

 

[JohnnyMorganWXJX]

Re: CC's Political Ad Rates

> I don't know all the specifics of how the law works, but it
> would seem that CC could charge pretty close to regular
> rates, not the overnight rate for morning drive. A lot of
> that political advertising was from advocacy groups, which
> probably aren't covered by "lowest unit rate".
>

Advocacy groups, like the immortal 527s, are not covered under McCain-Feingold, therefore they don't have the LUR restriction. That's one of the things McCain, et al. are trying to fix the second time around.

(For the record, I believed BCRA was unconstitutional, and still believe so. But the Court has spoken, and it's not.)

What the charge has to be, you're correct: CC doesn't have to charge overnight rates in AM drive. But, it MUST charge the lowest rate for AM drive. If Klaben Ford is getting a deal on spots at the rate of $20/spot, and that is CC's most favored ad rate--then it MUST charge, e.g., John Kerry for President, Inc. $20 per spot...no matter how many spots Kerry buys in AM drive. PM drive is different, as is middays, nights, etc.

But the law is not negotiable--even if Kerry wished to spend $800/spot, and offered that much, Clear Channel must still charge $20.

(More for the record--there's some out there who believe that political ads should be free. I disagree, on wholly economic levels, and on realistic levels. There's no way to limit that just to candidates and still be within First Amendment compliance. What about 527 advocacy groups? State issue sponsors? It's too wild a road.)

 

[network]

Re: Falling Revenues

> With falling revenues, get ready for more voicetracking,
> syndication, satellite-fed formats, and jockless formats
> like "Jack".

And since you haven't a clue what the Cleveland market is like, Joseph, may I suggest sticking to markets you actually have a knowledge of?