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Tried-and-true personality endorsement campaigns take a new digital twist. Endorsement ads have long been one of radio’s most reliable and sought-after offerings. Advertisers place a high value on a high-profile celebrity talking naturally about their experience with a product. Now interactive capabilities are enabling stations to offer digital upgrades to their endorsement campaigns. The additional touch points are music to advertisers’ ears. “The local DJ is a local celebrity and we’ve been partnering with them for years and they help us create native content that flows into their drive-time shows,” Pepsi head of digital engagement & integrated media Chad Stubbs said last week during Advertising Week in New York. “It used to be tied to drive-time but now there are all the tools and the digital assets [for making] the connection.” Agency buyers report growing demand for digitally enhanced endorsements. “Integrating social and digital media into endorsement campaigns has been a big push for all of our advertisers,” says Marshall Williams, CEO of AdResults, an agency that specializes in endorsement ads for radio. Beasley Broadcast Group AC WJBR-FM, Wilmington, DE (99.5) general sales manager Katie Loizeaux says she’s getting more requests from clients about digital extensions. “An advertiser will say, ‘Since they’re endorsing my product, can I get a Facebook post about it?’” In addition to social media, digital upgrades can include streaming audio ads, video pre-rolls, blogs and other components. Loizeaux says she’s building a new menu of endorsement packages for 2014 and expects them to “add a lot of value” to client endorsement campaigns. “If we’re having our jocks endorse products on the air and we’re not using all the asserts that we have available to us, then we’re not doing our job in promoting their products,” she says.

Streaming audio ads and social media mentions top endorsement client wish lists. Buyers and sellers say digital upgrades to endorsement packages are still in their infancy. So far, the most in-demand upgrade is a companion flight of streaming audio spots, they say. Those typically involve slightly different creative that takes advantage of the digital environment, letting listeners click to call or click directly to the client’s site. “Streaming endorsement ads should have a display ad that links to a piece of content that the personality is doing to help drive that product,” digital sales consultant Kathleen Bricketto says. For a personality selling a weight loss program, a display ad could lead visitors to the jock’s blog, where they chronicle their own weight loss struggles and achievements. “They’re P1s and they get to have a face-to-face with them, which extends the brand of the person,” Bricketto says. After that, social media mentions are No. 2 on client wish lists. A personality endorsing a mobile carrier might post a photo she took with the carrier’s phone and tweet about it. Endorsement ad specialists say the key is making it natural and organic, not gratuitous. A jock could tweet that he sent his wife flowers from a client florist for Valentine’s Day, for example. “What we look for are natural extensions of our personalities into their digital and social spaces,” AdResults CEO Marshall Williams says. “Whether they tweet or post items on Facebook or produce custom video content is determined by the station and personality, depending on what seems to fit best.” Targeted video pre-rolls that stream during the endorsing personality’s radio show are also seen as highly effective. After getting customer feedback that its product was difficult to install, a windshield wiper blades company had a personality team film a casual video of them demonstrating how it’s done, shot on a camera phone. On the air, the talent urged listeners to go to their site to watch the video. “If they love the morning show, when they get to work and log into the stream on their computer, there’s a pre-roll of their favorite personality who has an opportunity to advance the listeners into that brand that they’re representing,” Bricketto says.

Stations try a tiered approach to endorsement campaigns. To get the ball rolling on integrating social and digital media into endorsement campaigns, experts say sales managers should first meet with their program directors to determine the number

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of endorsement avails they have. Digital sales consultant Kathleen Bricketto advises stations develop tiered endorsement packages. For example, the highest tired package would include video pre-rolls, which are in high demand but have inventory limitations. For existing endorsement campaigns, the challenge is upselling the client into a digital extension. “In that upgrade, you want to extend the brand of that personality into the digital space, and then take that endorsement into the extension,” Bricketto says. Upselling an endorsement campaign requires showing clients the value of integrated marketing. Sellers can also use the strength of the new digitally-enhanced packages to persuade clients to buy more frequency or a longer flight or to write up new business. Digital components should be priced separately with the goal of getting a bigger piece of the client’s budget, sellers say. When properly targeted, digital upgrades can command premium pricing. “With online content you can count unique active sessions and page views and stuff like that and price it based on impressions,” AdResults CEO Marshall Williams says. “It’s accretive because it’s an addition to what they’re getting from the terrestrial broadcast.”

Arbitron becomes Nielsen Audio as deal closes. Nielsen today closed on its $1.26 billion deal to buy Arbitron. Arbitron is being rebranded Nielsen Audio, and it will become part of Nielsen’s U.S. Watch business segment that also includes the TV ratings business. “This is a great day for Nielsen and a natural step in our evolution,” said Nielsen CEO David Calhoun says. Barring any unforeseen last minute hitch, Nielsen is scheduled to close on its $1.26 billion acquisition of Arbitron today. The final Arbitron stock trades were made on Friday, and by close of business today the Arbitron name will be history. Nielsen has said it has no intention of keeping the nearly 50 year-old brand name alive. Today’s closing ends a courtship that began nearly one year ago to the day. It was last October 1 that then-COO/CFO Sean Creamer received a call from Nielsen CFO Brian West expressing the measurement behemoth’s interest in potentially rolling up the two companies. Arbitron had already begun the process of shopping itself and by mid-October Calhoun reached out to former Arbitron CEO Bill Kerr to discuss “strategic opportunities.” In regulatory filings Arbitron says Nielsen had “strong interest” and nine days after that CEO face-to-face, an offer was in hand. Nielsen’s first offer of $45 per share was countered by Arbitron at $50 — ultimately the $48 figure was settled on. Arbitron staff members say in the meetings they’ve had with Nielsen representatives during the past few weeks that their new owners asked more questions than offered answers of what may change. But they did make it clear that it was an acquisition, not a merger. Nielsen has had plenty of time to consider how it wants to integrate its long-time rival media research company, and staff was told to expect to see most of the changes implemented by year’s end. In a call with analysts last week, Calhoun said Nielsen plans to implement a “restructuring,” saying he believes the company will find $20 million in cost synergies within a few months. “We can’t wait to close and then get in to take a look under the hood,” he said.

Court sides with FCC as broadcasters fight for auction fee refunds. A federal court in Washington has rejected an attempt by a group broadcasters to force the FCC to pay them refunds of filing fees in connection with spectrum auctions between 2000 and 2011. The legal hurdle was high, and although broadcasters lost their case, the court required the FCC to respond to their petition. That could be the nudge the station owners need. The broadcasters claimed FCC regulations specifically say a high bidder in a federal auction doesn’t need to submit an additional filing fee with their long-form application. In the case of the 14 companies petitioning the court, all were high-bidders — and in each case the FCC demanded they submit a fee. They asked the agency for refunds, but got no response, so they went to the U.S. Court of Appeals. But a three-judge panel has ruled that their mandamus petition — a legal maneuver that skips a full judicial process — didn’t meet the very high bar set by the courts. The judges said the broadcasters’ petition “may not be used as a substitute for appeal even if hardship may result from delay.” In this case, that delay is no response from the FCC on their refunds. Had the court ordered the agency to return the money, it could have opened the FCC to giving back more than $2 million collected during the 11-year period when more than 800 permits were sold at auction. The broadcasters’ attorney, Harry Cole, says that although it’s a disappointing outcome he notes the court didn’t reject the petition out of hand but instead required the FCC to respond. “The fact that the court did ask for a response in our case indicated to me, at least, that the court sensed that some intervention might be appropriate,” he says. The radio groups’ quest for a refund of a combined $82,150 now moves back to the FCC where each has already asked the agency to take a second look at earlier decisions rejecting their refund requests. But patience may be needed. Cole says there’s no law dictating how long the FCC has to make a decision.

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Mark Gray renews Katz contract. Following the death of Stu Olds in December 2010, Clear Channel left the chief executive role at Katz Media Group vacant until earlier this month, when it filled the position with the hiring of Mark Rosenthal. His arrival won’t change who is at the helm of Katz Radio Group, as the rep firm announces Mark Gray has signed a contract extension. “We are thrilled to have Mark Gray continuing in his role,” Rosenthal says in a statement, adding, “Mark extending his commitment to KRG solidifies the company’s further growth and intensified effort to create unsurpassed media solutions for clients.” Gray began his Katz tenure in 1988 as a sales rep, rising to KRG president in 2006. Gray says he’s excited to be continuing in his current role. “I look forward to leading our sales force and working with our broadcast partners to strengthen radio’s perception within the advertising community,” he says. If you missed The Inside Radio Q&A with Mark Rosenthal, read it online HERE.

While still small, programmatic buying likely to play bigger role in radio buying in 2014. Very few radio ad dollars pass ad through agency programmatic buying systems today — what little is done is mostly for digital streaming spot buys. But that’s likely to change in the coming year as the biggest national media agencies say they’re committed to using automation technology to make their buying processes more efficient. Magna Global SVP of programmatic Paul Brunick told an Advertising Week panel last week that 5 to 7 cents per dollar placed by his agency today are done through an automated channel. “We’ve been very vocal about this and strongly believe by 2015 we are going to have that number at 50%,” Brunick said, conceding it’ll help bring higher margins on media buys. GroupM has created Xaxis, with a dedicated Xaxis Radio product. Xaxis SVP Paul Dolan said of the $90 billion of ad buys placed by parent WPP, “slightly less” than 5% are currently placed programmatically. But within the next two years Dolan expects that to increase to 7%-10%. Havas Media chief media officer Adam Kasper predicted its programmatic team, which is just down the hall from media buyers, will be processing 15% of traditional ad buys within two years. Josh Jacobs, president of Omnicom’s trading desk Accuen, said the reason media shops are pushing the idea isn’t just for efficiency sake. “There’s a much larger opportunity when we start applying data to the things that we are buying and make them perform,” he said. Jacobs says conversations with advertisers quickly move beyond whether the correct ad is hitting the targeted consumer or frequency. “There’s a tremendous amount we can do with data and programmatic automation to make every dollar in media work much harder than it is,” he said. For radio the challenge will be making sure the data is available for buyers. But Clear Channel president of national sales Tim Castelli told an Advertising Week crowd he thinks progress is being made. “We’re getting better at real data logging and how to do that,” he said. “We know if you are running across our broadcast stations at a certain daypart, using certain personalities, you’ll yield a certain result.”

Congress eyes ad tax as part of rewrite of tax code. The potential government shutdown may have Washington’s attention today, but there’s a much bigger effort to rewrite the tax code that has the potential to impact advertisers and the media they buy, including radio. House Ways and Means Committee Chairman Dave Camp (R-MI) is expected to propose the tax deduction for advertising be abolished or sharply scaled back. “If that’s the case then it would remove a substantial benefit that advertisers currently enjoy which is to recognize advertising as a reasonable business expense for building brands and building businesses,” Association of National Advertisers president Bob Liodice says in a video message to members. The ANA is spearheading efforts among various media and advertising trade groups to convince lawmakers an advertising exception is worth keeping, with a failed 1989 attempt by Florida to do on a state level what Congress is considering doing nationally. “Many will argue that if we go to a simple tax code there will be other incentives and benefits for corporations, but we’ll believe it when we see it,” Liodice says. “For now we have to fight, and fight hard.” Over the past year the ANA has worked with state broadcaster associations to help defeat ad tax proposals in Louisiana, Minnesota and Ohio. An ANA-commissioned study found that every $1 million spent on advertising supports 69 American jobs.

Sandusky Radio is no more as Hubbard adds Seattle and Phoenix clusters. One of the biggest deals of the year has closed, and it’s increased the size of Hubbard Radio by a third. The company has closed on an $85.5 million buyout of

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Sandusky Radio. It brings Hubbard’s portfolio to 30 stations in seven markets. The integration of clusters in Seattle and Phoenix can now begin, and executives from both companies have said they expected the process to go smoothly due to the companies’ similar corporate cultures. Hubbard has said it expects no programming or personnel changes. The deal however does put several Hubbard executives back into Seattle and Phoenix — markets where they ran station clusters for Bonneville before it sold 17 stations to Hubbard in 2011. BIA/Kelsey says Hubbard is now the ninth-biggest radio group based on 2012 revenue, but it is now just $3.5 million behind No. 8 Radio One. Norman Rau has called the Sandusky decision to leave radio “bittersweet,” and said his family’s 134-year commitment to the newspaper business requires his full attention. “My brother and I felt that it was time with what is happening in the industry right now to either get big or to get out,” he said.

Crista Broadcasting renames itself to reflect digital focus. The number of radio companies that have tweaked their names to reflect the multimedia nature of broadcasting today has grown by one. Religious broadcaster Crista Broadcasting has become Crista Media, which the company says recognizes its influences beyond traditional FM/AM radio. VP/general manager Stan Mak says they’ve been steadily investing in digital platforms over the past five years. “Our digital capabilities include streaming, HD multicasting, websites, mobile, texting, geo-targeting, search engine optimization, e-auctions and e-business directories,” he says. Crista believes swapping the “broadcasting” brand for a more all-encompassing “media” will reflect that. Crista says its four stations in three markets — Seattle; Austin and Bellingham, WA — reaches a combined 970,000 listeners when digital use is included. “Broadcast radio is not going away,” Mak says. “Digital platforms allow radio stations to engage listeners in ways that weren’t possible before.”

Apple takes another bite out of celebrity-hosted stations. After launching iTunes Radio with some artist-hosted stations, including streams curated by Katy Perry, Diplo and Jared Leto, Apple is now putting football players behind the mic. The New York Giants’ Victor Cruz, the Philadelphia Eagles Jeremy Maclin and the Detroit Lions’ Matthew Stafford are among 16 NFL players moonlighting as iTunes Radio DJs in a partnership with Pepsi. “It’s what I listen to on a daily basis, before a game, when I’m in the car, going home from a victory,” Cruz told Mashable of his station. And there’s more evidence Apple intends to differentiate its online radio service from competitors: iTunes Radio offered a sneak peak of Justin Timberlake’s sequel to his blockbuster comeback album over the weekend. “The 20/20 Experience — 2 of 2” has been streaming exclusively on iTunes Radio ahead of its release today.

Inside Radio News Ticker…FCC ownership report window opens tomorrow… Every broadcaster must file a biennial Form 323 ownership report with the FCC by December 2. But in a move to encourage owners to file early, the Media Bureau extended the filing window 30 days and it will begin accepting 2013 reports tomorrow, October 1. All forms must be submitted electronically — the agency no longer accepts paper submissions. The Media Bureau has also created a special webpage to help broadcasters, including a list of the most common Form 323 errors. See it HERE…Cumulus raising $100 million… Cumulus Media has filed a prospectus with the Securities and Exchange Commission to sell common stock to raise $100 million. The company says it plans to use the cash for general corporate purposes, including repaying debt and financing possible business expansions and acquisitions. Cumulus has been actively making deals in 2013, including its $260 million acquisition of Dial Global/WestwoodOne and a non-cash deal to take a significant stake in streaming pureplay Rdio.

Talk gives way to Spanish on Washington station. Metro Radio has ditched the three-year old conservative talk format from “The Truth” WTNT, Washington (730, 102.9) and launched a Spanish CHR format branded “Somos La Capital,” or “we care the capital.” The station’s website says it will target Hispanics 24-50 years old with a mix of music and talk programming. It’s a return to a Spanish music format for the signal that was previously regional Mexican “Triple X” from 2000 until 2006 when it changed to a sports format for two years, followed by Spanish-language sports from 2008-2010. WTNT is effectively a daytime-only station with 8,000-watts day and 25-watts night. But in the most recent ratings the talk format failed to meet Arbitron’s minimum threshold for inclusion. Metro Radio also simulcasts the station on the Chantilly, VA-licensed translator W275BO at 102.9 FM. WTNT’s sister station is regional Mexican “La Ley” WKDV (1460, 106.3).

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