Field Sees 'Increasingly Positive' Story For Radio
BALA CYNWYD, PA -- February 24, 2009: Entercom President/CEO David Field acknowledged the tough economic climate on this morning's earnings conference call, noting that "a significant portion of our customer base has been adversely affected by the recession." But, he said, despite the difficult environment, Entercom saw "excellent results" in a few markets, naming Buffalo, Milwaukee, Denver, Norfolk, and Wichita.
Field said that "no ad medium has been immune to the impact on ad spending" and that Entercom is cutting costs, but added, "We are continuing to increase our investment in new technologies, new revenue initiatives, and in our sales and marketing capability in order to drive future growth."
'Radio's Future Is Quite Bright'
Field continued, "In addition, while we are all understandably focused on the gravity of the cyclical challenges facing virtually all businesses, we may be missing an increasingly positive emerging secular story." He noted that, while media usage has changed dramatically, radio posted an all-time record number of listeners in 2008 and "remains the most cost-effective major advertising medium."
Field pointed out that 235 million Americans 12 and over hear radio every week and said, "Radio remains a robust, vibrant medium serving listeners across the country, and radio is rapidly reinventing itself with aggressive investment in new digital technologies and capabilities, significantly enhancing the ways we interact with and engage our audiences."
He continued, "We are optimistic as we look to the future," saying radio's strong fundamentals and value proposition should let it gain share from other media. Field said, "Despite the current issues facing everyone in this economy, over the long haul, radio's future is quite bright."
In response to an analyst's question about pacings for Q1, Field said January was down 18 percent, but that he has "a certain degree of optimism" about the second half of the year, when comparisons will be easier. Later, in response to a question about expenses, he said the company will "look to significantly reduce our expenses over the course of the year" while maintaining growth in the areas that will "drive our success and our value creation for the long haul."
Asked about pricing trends, Field acknowledged that it's now a buyer's market, but reiterated, "What I take a lot of comfort from is the fact that radio is a low-cost provider relative to other media." That, he said, could make radio "extremely attractive" to advertisers compared to television and other media. Over time, he believes, more and more advertisers will gravitate to radio's lower prices and lower production costs.
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(2/25/2009 1:53:41 PM) Articles like these are extremely inspiring in today's tough economy. I work for Dell Sports Inc., who is a vendor of online interactive contests. Entercom has invested in our technology for their Boston, Kansas City, and Portland, OR markets. Entercom's use of our products shows their dedication to new revenue streams created with their websites. Thank you for your forward thinking, and your continued business! Josh Mullinix Dell Sports Inc. 704-676-4932 |
| - Josh Mullinix |
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(2/25/2009 1:42:58 PM) This article is just what I needed today. Especially meaningful to me as I work for Entercom, and have proudly done so for years. I believe in radio's bright future & am so grateful that I have the opportunity to work in this business. Linda |
| - Linda Smith |
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(2/25/2009 9:59:03 AM) It is definitely nice to see something positive. Thank you David. Beth, I too manage a group in Daytona Beach. You hit the nail on the head. Congrats on your record year. Stacey Knerler VP/Market Manager Black Crow Media, LLC WHOG, WKRO, WVYB, WNDB Daytona Beach, Florida |
| - Stacey Knerler |
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(2/25/2009 6:55:40 AM) It is so nice to wake up and read a headline that is positive about the radio industry. We have whined and cried about it long enough, and it's time to get back to the basics of what we know works. I'm celebrating 25 years in the industry this year. I am the Group Manager of 5 locally owned and operated stations in Western Kentucky that happen to be enjoying a record year. We're working harder than we have ever worked before. Why? We still believe in what we do, and we still understand that it is our honor and privilege to super-serve our communities. We concentrate on Main Street and rarely mention Wall Street. We decided not to participate in negative self-talk and to ignore this so-called recession. We're spending that same amount of energy looking for additional growth opportunities. It's a wonderful thing. Kudos to all of you who chosen to believe and to work as though "Failure is NOT an Option". |
| - Beth Mann |
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