Regional Report Spring 2010 REGIONAL REPS CORP. MEDIA SALES REPRESENTATIVES Daniel Anstandig, President, McVay New Media is one of the brightest young people in our business today. In 2001, he was named the #1 Young Entrepreneur by Young Entrepreneur Magazine, in recognition of an internet-Radio company he founded. Recently honored by Billboard as one of the top five innovators in media, Daniel is a two-time recipient of Edison Media Research’s “30 Under 30” award. Recently, Daniel outlined an intriguing strategy for forward thinking Radio stations. With his permission, I’m pleased to share an abridged version with you. Stuart J. Sharpe SJSharpe@regionalreps.com Radio’s “Blue Ocean” Opportunity The international bestseller Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne has given companies around the world a framework for transforming their future. We use the book to spark conversations on business-development among our clients. The premise of the book is a distinction between strategic “red oceans” and “blue oceans.” Red Ocean Strategy Most of the Radio industry is working harder than ever to achieve the same results they did five years ago -- operating in what would be characterized as a “red ocean.” For example, selling 30s and 60s is “red ocean.” “Red Ocean Strategy” means that you: • Compete in existing market space • Beat the competition • Exploit existing demand The “Hit Budget, Beat Market, Grow Share” mentality fits into this archetype. “If the business model isn’t working, try harder.” “Blue Ocean Strategy” means that you: • Create uncontested market space • Make the competition irrelevant • Create and capture new demand Cirque du Soleil is an example of a company established with a “blue ocean strategy.” In 1984, the company was founded as a competitor to Barnum and Bailey -- traditional circus operators. Their aim was to reinvent the circus business, eliminating the animal shows, star performers, aisle concession sales, and multiple show arenas that would have positioned them to compete for the same demographics and psychographics of traditional circus attendees. Instead, they created themed performances, a refined environment, and focus on blending opera and ballet with the circus format. Their shift in strategy led their version of the circus to an entirely new customer base, including executives and corporate events. Other examples of companies achieving success in blue oceans include Netjets, Southwest Airlines, Curves, Home Depot, and Dyson. Their case studies are cited in Kim and Mauborgne’s book. At McVay New Media, our “Blue Ocean Strategy,” a strategic plan for Radio looks like this: Eliminate: iPod programming mentality. As Rockie Thomas, Interactive Consultant at McVay New Media says, “The best way to beat an iPod is to not be one.” Create unique programming that cannot be replicated with an “iShuffle.” That means artistic integration of personalities and promotions, Radio’s durable competitive advantage. Tired Positioning. The next three sentences will save you $5000 in focus groups. We find repeatedly no one believes positioning statements like: “#1;” “Best;” or “Most.” There are simply too many entertainment options in the world (Radio, television, internet-radio, mobile audio, on-demand, iPods); no one can gain mileage through “biggest and best” positioning. Instead, sell what makes you different and special. Reduce: Predictability. Consistency is the cornerstone of good programming, but when our stations become overly predictable and tediously repetitive, we lose emotional impact with our audience. Fear. As Einstein said, “The single most important decision any of us will ever make is whether or not to believe that the universe is friendly.” Celebrate the small successes, and get the feeling of “winning” in your hallways. “Reactionism.” Take a proactive and visionary outlook on Radio’s future. Rather than reacting nervously to the changing world of media consumption, we can be proactive in observing trends and planning for our audience to enjoy our work beyond AM and FM. Create: Integrated Sponsorship Opportunities: Combine on-air and online touch-points in campaigns you offer advertisers. Create heightened interest in their products through on-air spots, online sampling, video, and e-mail database/direct marketing. Offer unique marketing opportunities to clients taking them beyond the typical “spot” advertiser. Music Discovery/Instant Purchasing: Radio sells a lot of records -- for other companies! Create music purchasing opportunities, and opportunities for listeners to discover new artists on your websites. Miles of new exciting “blue ocean” awaits Radio. This is the year for Radio to leapfrog into the future. You can contact Daniel Anstandig at dan@daer.com. The original version of this article is available at Radio–info.com (http://tinyurl.com/ygk3dty). Colleague Spotlight: Michael F. Kordel Regional Reps congratulates our friends among this year’s 2010 NAB Crystal Award Finalists: KBHP-FM Bemidji, MN WBEX-AM Chillicothe, OH WCDK-FM Weirton, WV WCMT-AM Martin, TN KIKV-FM Alexandria, MN WDSN-FM DuBois, PA WIKY-FM Evansville, IN KNDE-FM College Station, TX Michael Kordel joined Regional Reps as our account coordinator in November of 2009. He works primarily with the sales and account management teams, as well as with our station and agency clients on account related projects. He is working out of the Cleveland, OH headquarters. WKDZ-FM Cadiz, KY WLEN-FM Adrian, MI WTAW-AM College Station, TX WZRV-FM Front Royal, VA Mike is a recent graduate of The Ohio State University, with a bachelor’s degree in Strategic Communications. While at Ohio State, Mike had a lot of relevant coursework, including creating a media plan for Coca-Cola, a persuasive media campaign aimed at energy conservation, and a strategic communications plan for the Columbus Parks & Recreation System. Mike was also a varsity swimmer at OSU. Mike Kordel • mkordel@regionalreps.com • 216-535-3966 — Page 2 — Atlanta So far so good…or at least better…for the start of 2010. Speaking for the southeast region, spot Radio seems to be improving over the start of last year. Many categories appear to be up and we are seeing some new advertisers tread into small market Radio. Although there are some bright spots, I must admit I owe many thanks to our core clients that have continued to support small market Radio through late 2008 into 2009 and 2010. Their loyalty has made it a little easier for us to weather the storm…that we hope has finally passed. Honda is very close to availing for 2010. Please keep in mind their fiscal year started April1. We were very happy to see them use local Radio for the first time in a few years during 2009. The feedback long has been positive in regards to their use of spot Radio, so I do expect they will continue in our direction with their 2010 budget. O’Reilly’s Auto Parts continues to be a great client and strong supporter of small market Radio. We expect to see some slight increases in their spending during 2010. One area that has been of interest is advertising within local race coverage. In most cases network Radio has been able to meet this need, but we have had some luck selling local Radio to fill voids in coverage where network delivery falls short. Georgia Lottery continues to spend and sales remain strong. With the addition of Powerball, Georgians have many opportunities to win big. As we wrap-up the Lottery’s fiscal year, June 30, I will be curious to see just what the addition of Powerball has added to their revenue stream and what, if any, new strategies they may look to execute. Georgia Meth Awareness recently placed a campaign to address the serious issue of methamphetamine addiction. This has been a problem in the state of Georgia for a number of years and rural towns and small communities are not immune. The campaign targets metro Atlanta and some outlying counties in the Atlanta DMA, communicating the consequences of addiction. Buffalo Wild Wings continues to plan ahead. First quarter is behind us and they are looking to place the rest of the year. As I have mentioned before, the bulk of BW3 activity takes place during third and fourth quarters. If they stay true to form, and at this point I believe they will, Buffalo Wild Wings will have considerable on-air activity during the political window. Please be aware of this when we contact you regarding any opportunities for BW3. Although they may not be expanding as rapidly as a few years ago, we still see some new store openings, so opportunities still exist. I do expect to see a small uptick in their overall spending for 2010. I am pleased to report we were able to break some new spot Radio business for BASF agricultural products, and there are additional opportunities with other BASF products in the second half of this year. The client still looks to ag networks as a way to maximize efficiencies, but once again small market Radio has been able to fill in coverage and provide exposure where network Radio may not meet all of the client’s needs. I will be meeting this month with two agencies that handle various products for BASF to discuss third and fourth quarter opportunities. The Home Depot Lawn and Garden campaign for 2010 has been launched. Budgets appear to be flat from 2009. From time to time we do see activity for additional pieces of business in various parts of the country. We have seen prospects for another piece of business supporting tractor sales in second quarter. As the year progresses, we will let you know if Home Depot is looking to support additional campaigns and what opportunities might develop for our stations. For the remaining few stations receiving Alltel business, it appears to be wrapping up. As of this writing we are waiting to see if the brand will be supported at some level in second quarter. At this point much of the company has moved to Verizon and AT&T, and a third bidder has agreed to buy the few remaining markets. It appears to be just a matter of the last few regulatory hurdles before the Alltel brand is laid to rest. RIP to a great small market Radio customer. Recently I started to build a relationship with a buying group that plans and executes Radio advertising to support the retail chain Family Dollar Stores. This company has an aggressive plan to open new locations all throughout the remainder of 2010. Often the client likes to book a Radio remote and small schedule to support the grand openings. If a location is coming to your town, let me know early so I can start the ball rolling in your behalf. If I have not addressed a specific account that has appeared in past newsletters or has been a topic of discussion with any member of Regional Reps Corp. please contact me. Accounts come to the southeast and some go. As always I will do my best to follow the business, tell the story for small market Radio, and produce results that will benefit all parties. Thank you for your support. Have a great second quarter! Kevin B. Bennett • KBennett@regionalreps.com • 404-504-7030 Heather L. Karban • HKarban@regionalreps.com • 216-535-3962 Chicago In addition to digging around Chicago for new opportunities, I’m excited Regional Reps has set me loose on two brand new cities to cover. I’m spending some time in Madison and Milwaukee as well! I’ve already begun tracking down leads in Milwaukee and scheduled some great appointments for this quarter. I’m happy to report that there is much happening for the Chicago office…so here goes! Instead of placing one quarter at a time, the agency for US Cellular decided to go ahead and place second through fourth quarter buys, locking in the entire year! As reported in the last newsletter, some markets had spending increases where others had slightly lower budgets, and it appears this trend will continue through the end of the year. However, the rumored Q3 incremental buy is still out there, with all indications it will come about in September. I’ll keep you posted on that. Cricket Communications, an affordable pre-paid cellular brand, came through with some brand new spending in Radio! They are typically active in metros and we were able to wrestle some dollars out of them for our Hispanic stations in Laredo, Texas. Spending for second quarter buys already locked in, we look for them to add the rest of the year later in the quarter. — Page 3 — In my previous newsletter, I reported one of my Chicago agencies picked up Advance Auto Parts. I met with the media director on the account in January and learned the client is happy doing network Radio, so they will continue with that strategy. In a nutshell…no spot Radio for Advance Auto. There was an indication there could be some activity for grand openings, however, so if you see one being built in your market please let me know! I also met with the new agency handling NAPA Auto Parts to find the strategy going in the same direction…network Radio. Although there was a small buy in March for some holes in the network, it doesn’t appear it will be incredibly consistent. Again, if there is rumor of a NAPA store going up in your market, keep me in the loop. I’ve got the contacts and I’ll track down (or create!) the opportunities. We were able to deliver Famous Footwear to stations in Grand Island and Fredericksburg in 2009. Activity for this account should pick back up in later this year however, it’s been reported to me that Fredericksburg will not be an active market in 2010. We also submitted for a grand opening in Alexandria, Minnesota, but as I write this, it is still pending. The agency has a complex equation in determining market selection as nearly every market has a store. Sales play a large part of the equation, but there are other factors; although you may have a Famous Footwear in your market, it may not be getting Radio support. Radio has been successful for Jimmy John’s and they are going to be quite active in 2010. Recently, we secured an avail for our stations in Sheboygan. If you have a Jimmy John’s in your market, and don’t have it on your air, please let me know! One of my agencies picked up Panera Bread and championed Radio as part of their advertising campaign. Radio is new for Panera! We were able to turn around a small first quarter buy for our stations in La Crosse, Lafayette and Sioux City. Buys for the rest of the year are expected, with increased spending. The Q1 Honda buys for northern Minnesota and Sheboygan will be ending soon; I’ve been checking in with the agency about additional activity for the year. When I checked in with them in February, they had not yet received specs from the client but I suspect their spending will resemble 2009. We’re hoping to get an update soon. Unlike a lot of other automotive brands, Mercedes spent some advertising dollars, although small, on one of our Bowling Green stations during first quarter and we just received an avail for a similar buy for Lafayette, Indiana. The agency keeps spending information pretty close to the chest and only discloses information about activity when an avail comes down. By the summer Regional Report I should have more information. A huge Radio pitch for Sears was submitted to the agency and is definitely bearing fruit! We have received approval for numerous small/medium markets in several states for April and May activity! No word yet about whether it will continue into third and/or fourth quarters, but I’ll keep you posted. Radio may be on the horizon for Gordman’s, a department store chain in many western, midwestern and Great Plains states. In the past, this client had done little to no Radio. However, the media responsibilities have been awarded to one of my agencies in Chicago, and we’re hoping to change all that! Although Gordman’s is in larger metro markets, we may have opportunities for our stations in Lafayette, La Crosse and Lincoln-Hastings-Kearney. Cotton States Insurance was active on 33 of our Radio stations in Georgia during January and February. There has been positive indication of future activity but as of this writing, I have not received approval. Country Financial will continue spending in 2010! We were able to help the agency increase its reach by adding some small markets in Illinois and Missouri for 2010. I anticipate them being back on the stations bought in 2009 and adding more markets throughout the year. American Family Insurance has grown for us this year with the addition of Ottumwa-Kirksville and some outlying markets near Springfield, Missouri. A big “thank you” to our friends in these markets for working with me on this business. Spending continues through December in Butler, Missouri, and La Crosse, so those buys are all locked in for the year. For those of you who have been on the Wells Fargo Radio campaign, there is still no word about any 2010 activity. I continually follow up with the agency to find that there has been no approval on moving forward at this time. The new business for Culver’s Better Burgers & Frozen Custard we tracked down in first quarter will be back in Q2 with some spending. So far only Effingham, Illinois, Evansville, Brainerd, Minnesota and Lafayette have been availed this year. We expect the list of our markets will grow as Radio starts working its magic! Douglas Trostler • DTrostler@regionalreps.com • 216-535-3964 Linley Grande • LGrande@regionalreps.com • 216-535-3967 Cincinnati Southeast Community Capital is expected to launch operations in Tennessee this quarter. We’ve prepared a statewide proposal covering non-metro markets throughout the state, and are working toward client approval by the end of April. We are working on opportunities with several casual dining restaurant chains. Famous Dave’s is planning for its 2010 annual Radio campaign, and some markets started up in March. TGI Friday’s is looking at Radio for this quarter in several markets throughout Iowa, Wisconsin, Nebraska and Minnesota. There’s nothing firm to report yet, but we’ve been invited into planning for Cracker Barrel. On the fast food front, as reported last month, we’re moving forward with our Radio proposals for Kentucky Fried Chicken. We’re hoping to secure second and third quarter budgets for the Chattanooga, Knoxville, Tri-Cities and Beckley-Bluefield DMAs. We anticipate activity for the Memphis, Shreveport and Columbus-Montgomery DMAs as well. McDonald’s/INCO and Kentuckiana co-ops have been placed for the year however we’re hopeful some new product launches will offer additional opportunities. Papa John’s Pizza activity is expected to pick up this quarter. We have most markets in the Indianapolis, Louisville and Lexington DMAs in line for April business. We secured Q3 flights as well in several markets that will run through August. Later this month, the Arby’s Lexington and Louisville co-ops will be holding their group meetings to vote on several issues including advertising. We’ve been told there’s a possibility of some summer Radio, so keep your fingers crossed! At this writing we’re waiting to hear if Farm Credit Services Midwest has approved a budget returning to spot Radio in 2010 for the consumer division. Our last newsletter reported a change in strategy for FCS as they were planning to combine their consumer and farm divisions in hopes of cutting marketing — Page 4 — and advertising expenses. Our proposal still is pending, but we’re hopeful we’ll hear good news. On the ag side of this account, we were excited to win finally a spot budget for several markets in Ohio, Kentucky and Tennessee. Past Radio dollars were consumed totally by ag networks. Most of the Great Clips Radio has been wrapped up for the year, however we’re still picking up additional new markets one and two at a time. As this client leans heavier on the agency for lower media costs and better added value opportunities, it is critical that we come through on the “Great Seats” promotion commitment. Station “Great Seats” promotions are reviewed each year by the agency and presented to the client. Those that fall short of the criteria may miss out on additional spending. We’ve already experienced losing dollars to a station with much lower ratings this year because of a weak promotion and lack of follow up and reporting from 2009. If you’re stuck on ideas for your station’s promotion and need help, let us know and we’ll work with you to put it together. More Tractor Supply Company stores are scheduled to open up this quarter. We’re waiting on the next list of markets, but if you know a store is going up in your town let us know so we can get a jump on it. So far we’ve been unsuccessful getting TSC to put dollars into anything other than grand openings, but if you have something that may be a good fit (other than spots) let’s talk about it and we’ll get it in front of the right folks. We’re working on a few markets for Mosaic Company in Ohio and Indiana. A couple of markets started last month running during morning market reports and other farm programming adjacencies. Syngenta is another ag account we’re working on, covering several markets in Iowa and Indiana. If your station is planning a special farm event that would be a good fit for either of these accounts please pass along your information, so we can get them started throughout the sales process. We have some possible political opportunities coming up in Indiana, Tennessee, South Dakota and Texas. We had some activity earlier in Texas and have proposals pending in the other states. If you have questions about political advertising, visit our web site. Get all of your political info, including primary dates, NAB form and more. St. Thomas Hospital in Nashville operates health clinics in several Kentucky counties. We’ve submitted a proposal covering non-metro areas outside the reach of Nashville media and expect a budget decision by the end of the month. The first quarter Meadowview Hospital campaign never got off the ground as the client continued to push back the start date. Now we’re looking at a start up this quarter in several Ohio and Kentucky markets. Last newsletter we reported on our progress on the Teach Tennessee account. What started out as a possible statewide Radio plan was pared down to just the western part of the state, then finally a metro only buy for Nashville, Knoxville and Chattanooga. We’re picking up a few market-by-market opportunities for Kentucky Farm Bureau Insurance, most recently in the Louisville DMA. Utilization of our “Emergency Radio Network” was not necessary this past winter so we’ll put it back on the shelf until later this year. Bicycle Indiana will be promoting the annual “Bike to Work Day” coming up in May. Several cities and communities throughout the state will be participating, including South Bend, Evansville, and Ft. Wayne to name a few. We’re pitching organizers to add Radio to support this event. As soon as we get some budget information we’ll know what markets might be. Joe Hearn • JHearn@regionalreps.com • 859-292-3311 Mandee S. Kalinowski • MKalinowski@regionalreps.com • 216-535-3974 Cleveland Ohio’s primary is in early May. Despite what the press is writing regarding spending, it’s been unusually quiet, although we still anticipate activity from the Republican side. The GOP field is crowded with candidates seeking statewide office, while Democrats in these races can focus on trying to win in November. Republicans will battle in the primary for attorney general, state auditor and secretary of state. It’s likely Radio in our markets probably will be part of the mix for the John Husted for Secretary of State and David Yost for State Auditor campaigns. Outside of these statewide races there are two ballot issues. Issue 1, a bond issue to authorize the state to fund Ohio’s Third Frontier program, and Issue 2, a constitutional amendment that would change the proposed location in Columbus of a yet to be built casino. In the face of budget cuts in the metro markets, McDonald’s NEO and Dayton coops held steady in the non-metro markets. In a few markets we were able to increase buys through small budget or rate increases. Your relationship with the local owner/operator makes this possible. Thank you for the support. For the first time in many years the agency that handles Aspen Dental came to us for help with a new location in the Chicago DMA. We secured a healthy buy which ran January through March, so we’re on the lookout for more grand openings. If you learn of an Aspen Dental coming to your market please let us know so we can get a leg up going after dollars for you. From everything we’re reading and even more accurately, from what our contacts in Washington who are on the front lines are telling us, this will be a huge political year for a variety of reasons. There are states all over the country where incumbents like Blanche Lincoln (D-AR) thought she would only have to take on the winner of a fierce primary campaign among 11 Republicans. Now she has a formidable challenger from within her own party. Situations like that mean heavy spending. The majority of issue money will come from PAC’s and 527 organizations mostly fronting issues on health care, the economy and energy. Altogether, we’ve submitted planning proposals for campaigns in over 40 states and saw first quarter spending activity for our stations in Alabama, Colorado, Kentucky, Maine and Nevada. More avails and buys are being pursued daily!! Please be sure to have your political rates established and ready to publish when your state window opens. If you have questions about political, please contact us or go to our website for political FAQ’s. Needless to say, automotive activity is barely causing a ripple in our business at this point. We keep getting calls from broadcasters asking about all the money Chrysler, for example, is reported to be spending in Radio nationwide. That money needs to trickle down though the national and network media before it gets to our local dealer associations. The more they advertise nationally the more people will go to the local dealers and buy cars. The more cars that are sold, the more money that dealer is putting into the dealer association marketing fund. Those are the spot dollars we have access to, so it takes a little while for it to get to us. Be patient. The most important thing you can do to help us help you is stay as close as you can to your local dealer. Continually ask him about — Page 5 — his dealer association activity. That information along with what we know at the agency will put us in a position to put your station on the table when the association starts to use local Radio. UPS Store continues to increase its presence in local Radio, so we keep adding markets to our activity lists. The cooperation of our stations in doing promotions has not gone unnoticed at the corporate level; we think that’s one of the reasons UPS Store stay active in our size markets. Over a handful of our Ohio stations enjoyed a late 2009 to early 2010 buy for Ohio Health, specifically for Riverside Methodist Hospital. We’ve checked in with the agency to see if there will be activity moving forward but they have no specs from the client yet. We will keep you posted on Riverside Methodist Hospital. We submitted an avail for Huntington Bank; the agency was interested in specific regions of the Midwest. We put together a proposal for our stations in northwest Ohio, southeast Ohio (specifically the Ohio Valley), western Michigan and western Pennsylvania. Although it wasn’t a huge push, it was new business for Radio and definitely needed in February! The agency is optimistic about future activity but has not received confirmation from the client to move forward just yet. A small avail for Certified Oil to cover the area between Columbus and Zanesville came through at the end of January. The agency for this client was looking to promote a campaign for listeners to text in to receive a valuable coupon on their cell phones. The main objective was to drive people into the stores to buy food and beverage items. The agency has not yet received approval from the client to move forward with the campaign. Douglas Trostler • DTrostler@regionalreps.com • 216-535-3964 Kirk Bogos • KBogos@regionalreps.com • 216-535-3965 Kevin Miller • KMiller@regionalreps.com • 216-535-3963 Dallas 2010 is promising to be a strong year -- and it’s not just political either. Rumor has it even in some of the top 100 markets, March was nearly sold out by the end of the first week. So far, the Dallas office has not seen political dollars, though we handled a project for Wyoming (nothing placed yet). This could change before the end of the year as Austin has a handful of political agencies that could pick up a candidate or two. There has been a lot of recent account movement among agencies. Harrah’s and Golfsmith now are with a big agency in Austin and of course Chrysler/ Dodge moved to the large conglomerate UMWW, that has offices around the country (not just in Dallas). Marshall’s Hispanic recently was picked up by an Austin agency. For all these new account actions, I’ve seen very little activity so far -- but I’m sure the media planners are busy! Gander Mountain has placed its fiscal first quarter through April in the same 90 markets as last year. So far the only difference seems to be the push for sports has been dropped in 2010. Peebles is starting out the year strong as well! You may remember that effective Q4 last year, Peebles started placing Radio in several new markets that previously were either 100% newspaper or 100% television. We love it when that happens! I’m now traveling to Los Angeles and uncovering many new opportunities! We are just beginning to see results from my first trip in mid-February. Boot Barn/Hispanic, new Home Depot markets and Farmers Insurance to name a few. Regional Reps was tapped again this year to provide a 10- second spot ‘unwired’ network for IHOP, to help the client reach areas not covered by the traffic networks (Metro Traffic, Clear Channel Traffic, etc). We like this because these are not regular spot dollars; they’re network dollars becoming local. It’s like a whole new revenue source for local stations! We are also starting to see more requests from the agency that handles McDonalds; there is a good Kentucky project on the table right now. We may know more by the time you’re reading this Regional Report. There are several statewide campaigns out of an Oklahoma shop. We secured first quarter schedules for Kansas Oil & Gas Research Fund (KOGRF); we hope they will be back. Energy Advances New Mexico (EANM) was back on the air in January and February, but is on hiatus for the moment. Two Oklahoma campaigns (OERB, OHSO) are expected later this quarter. Tracfone has been active though several of the schedules placed had to be cancelled due to performance issues. The agency has station DJs record their spot and they only buy Monday through Friday, 7-9am. Centerpoint Energy is expected to come back this quarter with a Customer Communications campaign. Deb Murphy • DMurphy@regionalreps.com • 214-734-5046 Mandee S. Kalinowski • MKalinowski@regionalreps.com • 216-535-3974 New Business Development This section should be called “Business Development and Bribery.” You might end up with some loot! Join our Social Media Webinar, “Brand Your Business Using Social Media.” Friday, April 23rd, 2:00pm-3:15pm Eastern time, with a question and answer session. $20 per registration, or $20 for the first from a station/group and $10 for each additional person. Email info@regionalreps.com to register, or for more information. First five registrants are free! Enough about me -- tell me about you. What is your “media company” (arguably the new paradigm for Radio station companies) doing in the digital realm? Have you sold any really cool digital or web packages you would like to share? Tried any ideas that didn’t work? Have some great ideas, but having trouble trying to implement them? I’d like to hear from you, and feature a few stations in the next newsletter. Everyone who responds is entered into a drawing for a $25 AMEX gift card. Winner will be drawn and notified on April 15th (at least you won’t forget the date, thanks to the IRS). I’ve seen some really good ideas so far. Cleveland Hopkins International Airport offered a $100 Continental Airlines Vacations voucher (with some restrictions) to people on Facebook who became a fan of the site and registered for the promotion. People who are fans also can print coupons good at businesses in the airport (If you’re traveling through Cleveland in the near future, check it out…the current coupon is a good one!) Even better, they supported the Facebook campaign with Radio! — Page 6 — In June I will be attending the Radio Ink Convergence (http://www.radioink.com/convergence), where “Media Worlds Collide.” I’ll share the highlights in the summer Regional Report. Until then, send me your digital successes, failures and “pie in the sky” ideas so we can get some dialogue going, and maybe figure out more and more profitable ways to leverage this digital media “thing.” I look forward to hearing from you, and “seeing” you on the webinar on April 23rd! Shayna N. Sharpe • Shayna@regionalreps.com • 216-535-3969 New York Well, first quarter flew by and it’s April already! I have completed my fifth month at Regional Reps and, in that time, have met with many media buyers, planners, supervisors, account people and directors. All seem to be in agreement second quarter will be similar to last quarter. Most New York agencies are following the economy closely and have indicated their clients are still somewhat hesitant to project long term spending, I am hearing “flat” in reference to budget goals versus 2009. That said, we’ve been busy! Jeep/Chrysler/Dodge switched agencies in late January. The new agency placed buys in several small/medium sized Radio markets for Feb/March with two three-week flights. Increased activity for Q2 is planned; however, at this writing, buys are for TV only. UPS is placing more of its business out of a trade shop in Manhattan. The Atlanta, Portland and Greenville/Spartanburg DMAs have been availed for April/ May start dates for three weeks against M25-54. This is new business for the New York office that we developed last quarter. Popeye’s continues this quarter with its effort to reach Hispanic and African Americans against a target demo of A25-49. Three weeks were secured for our Laredo stations as well as other larger African American targeted metros. The agency that places this business is based in Austin and we work with out of home based buyers here. Back up for its annual fishing/outdoor event in Muscle Shoals, Alabama is ESPN Bassmasters. This is an annual event each May. L.L. Bean has gone into 10-15 large east coast markets for a spring clothing sale. We have been working with an agency in Connecticut for United Health Care. Several planning projects have resulted in business for Grand Junction for four weeks in April. We continue to deliver planning rankers, and station pitches against A25-54 and search for more Q2 business. T-Mobile is targeting upscale, high income earners who are good prospects to purchase a T-Mobile franchise. A campaign targeting the Atlanta DMA resulted in three weeks of business this quarter for three Regional Reps news/talk partners. The agency is planning further campaigns in the southeast for the remainder of the quarter. Cellular South has been quiet, but recently sent an avail request for a four week flight at the end of March for Greenwood, Mississippi. We are hopeful that this is a sign for additional markets in the future. Kohl’s has been very active against W25-54 in six Midwest markets resulting in business for the remainder of April and May. These are one week buys focusing on specific sales items, with, approximately 15-20 gross rating points per week in rated markets and 10-12 spots in non-rated. Earnings for the company were up and more business is expected in June. Old Navy has been opening locations throughout the country; we secured a grand opening for late April in the Laurel-Hattiesburg DMA. More are expected this quarter. If you know of a location opening in your area, please give me a call. Old Navy also has a Men’s Event flight pending for one week in June that we are pursuing for Flagstaff, Cookeville, Clarksville, Morgantown, Victor Valley, Wenatchee, and Concord. We obtained second quarter American Family buys for Sioux City, Grand Junction, Fargo, and Wichita DMA stations; target demo was A25-54. The account will be placing the rest of the year soon and expects to keep spending on par with 2009. A new agency in Manhattan has picked up the CMA Awards and we have several markets pending for a flight of 3/29-2 wks against A1849. RRC partners have been submitted for stations in Tennessee. Boston Activity One large agency has been investing money in top rated markets across the county for ADHD Studies. This took place throughout Q1, resulting in two orders for our Bowling Green partners and looks to be continuing at a steady pace into Q2. The general demo is W25-54 with children, depending on the study. These buys focus on a zip code location plus 30 miles so it’s a great way to pitch non-traditional metro stations. Wendy’s is pending for Bangor for Q2 against A18-49, spending will be flat from last year. TJ Maxx has had a good 2010 thus far, profits are up. The company has been opening up new locations, primarily in the Southeast. We just secured business for Cartersville, Georgia for a one week grand opening flight in March, and have one pending in Kill Devil Hills, North Carolina for April, target of W25-54. Thanks for your continued support and please feel free to call me with any questions. Patrice Davidow • pdavidow@regionalreps.com • 212-984-0622 Kevin Miller • KMiller@regionalreps.com • 216-535-3963 — Page 7 — Have A Question? Need Assistance? We’re Here to Help! Have an order from us, but no traffic (or vice-versa!) or other order-related questions? Contact Marsha R. Chapman, Office Coordinator/Sales Assistant 216-535-3961 • MChapman@regionalreps.com Have a question or need assistance regarding a commission invoice or statement? Contact Jeffrey T. Slivka, Manager/Finance 216-535-3970 • JSlivka@regionalreps.com Have questions about orders, revisions or a rate request? Contact Michael F. Kordel, Account Coordinator 216-535-3966 • MKordel@regionalreps.com Have a question about that check you received from us or a question about payment for a specific account? Contact Jasmine N. Adornetto, Accounting Coordinator 216-535-3972 • JAdornetto@regionalreps.com Need assistance with invoices or affidavits you sent to Regional Reps or Hometown Radio Network? Contact Angela M. Metcalf, Billing Coordinator 216-535-3968 • AMetcalf@regionalreps.com Have a question that doesn’t fit one of these categories, a complaint or suggestion? Contact Stuart J. Sharpe, President 216-781-0035, extension 200 • SJSharpe@regionalreps.com Regional Report is published by Regional Reps Corp. • 1100 Chester Avenue, Suite 100 • Cleveland, OH 44115-1410 — Page 8 —