HD Radio Alliance Adds More Marketing Mu$cle
October 15, 2007 at 5:23 AM (PT)
The HD Digital Radio Alliance has added $230 million to its marketing funds for 2008 in its effort to create and build interest in HD Digital Radio. The new ad dollars raise the overall marketing kitty to $680 million. Furthermore, the simplified format selection will give stations new opportunities to generate revenue.
The renewed Alliance charter will drive ongoing growth and broadcaster engagement. A portion of the weekly advertising time is being given back to local stations to promote their HD2 content, local partnerships, events and promotions for their HD radio stations.
The process of format selection is also simplified; stations will be able to change their HD2 formats without Alliance review, provided that the new format is not currently on the air in the local market on either analog or HD2. Each station must still secure approval from its parent company prior to any change.
What's more, the HD Digital Radio Alliance revised its two-year ad-free policy to allow companies the opportunity to monetize their HD2 stations on a limited basis. HD2 stations can now accept "name-in-title" sponsorships and limited sponsor mentions per hour.
"Our renewed charter shines the spotlight on local markets and the unique content offered on the new HD2 radio stations," said HD Digital Radio Alliance Pres./CEO PETER FERRARA. "Now is the time for each local Market Manager, Program Director and Sales Manager to step up and make HD Radio a part of their business objectives for 2008. Their support, commitment and enthusiasm are the active ingredient in taking HD Radio to the next level."
"The Alliance is dedicated in ‘08 to doing even more to empower local broadcasters to continue driving the success and momentum of HD Digital Radio, said CLEAR CHANNEL CEO MARK MAYS. "Radio’s greatest value proposition for listeners is its unique ability to deliver content tailored to the needs and tastes of local audiences. The new charter creates additional ways for our local stations to pump up the volume on promoting the fresh, free formats and choices available on their HD and HD2 channels."
CBS RADIO Pres./CEO DAN MASON stated, "A key driver of commitment for local broadcasters is having flexibility in selecting the HD2 formats that in their judgment will best serve their listeners, as well as being able to monetize that content through their relationships with local advertisers. The new charter amplifies support to our local stations as they recognize and embrace their crucial role in helping consumers discover HD Radio."