March 31, 2000
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From the San Francisco Chronicle: "Corporate America spent 2.1 percent of its total advertising dollars on Web banner ads last year, indicating that the Internet is gaining steam as an ad medium despite its inherent limitations.

"Some $1.9 billion was spent on Web banners in 1999, an 85.9 percent increase from 1998, when just 1.3 percent of ad dollars were devoted to banner ads, according to Competitive Media Reporting, a New York media research firm.

"Across all media, cash-flush companies from dot-com startups to blue chips pushed ad spending up 10.3 percent last year to a record $87.5 billion. Network television attracted the most ad dollars, $18 billion or 20.6 percent of the total. Local and regional newspapers came in second, with $17.6 billion, or 20.2 percent...

"Banner ads are the small promotional boxes that appear at the top of Web pages. Their tiny size limits their visual impact and the amount of information they can convey...

"Banners account for about 55 percent of the dollars spent on Web marketing, according to the Internet Advertising Bureau, a trade association. Sponsorships account for 27 percent and interstitials, which are full-page, interactive ads, accounted for 4 percent..."

Read the full story
in the San Francisco Chronicle here. (And note that this is essentially before audio ads begin running.)


From Radio Business Report: "BMI to launch Internet-based reporting system: Beginning this month, BMI is rolling out it new Electronic Music Reporting (EMR) system, which allows reporting stations to use their existing digital automation systems’ playlist management software to upload reports directly to BMI over the net.

"Stations have long complained about the time and effort of generating, checking and mailing the logs on paper. EMR will be made available to all BMI reporting stations by Q2.

Read Radio Business Report here.




From the Cleveland Plain Dealer: "First came the Buzzard -- now comes the Crow. The new bird in town partly answers the often-asked question of what programming guru John Gorman has been up to since he left Cleveland radio, or radio began to leave him.

"Gorman is the guy who programmed WMMS-FM/100.7 in its years of dominance as "the Buzzard," from 1973 to 1986. He also engineered its short-lived, well-remembered modern-rock revival in the mid-1990s, then gave WMJI-FM/105.7 the oldies format that made it the market’s top station in the state in terms of advertising billing.

"Now, instead of programming a radio station, Gorman is programming for the World Wide Web. His new venture, Radio Crow International, is an Internet portal linking users to about 1,000 carefully selected audio and video sites from around the world. A version aimed beyond the Cleveland market will be launched soon.

"The locally tailored startup can be reached at www.cleveradio.com Click it and you’re greeted by the raffish Crow mascot and a big red radio whose flashing dial highlights a few of the formats, from alternative rock and big band to news and foreign-language programming...

"The fun-to-use free site, updated daily, offers the ability to download 14 media players, to button-push like a car radio between genres and links, and to access a virtual clinic from Gorman on the state of radio today..."

The story from last weekend's Cleveland Plain Dealer is here, although when I looked at it, the link to page 2 of the story was broken.

One of the most interesting parts of the site is a long and comprehensive historical essay reflecting, I assume, Gorman's views on state of radio today.

"Consolidation in an atmosphere of limited resources," the essay says, "results in mediocrity. With fewer corporate giants controlling American media, programming decisions are being dictated corporately by financial managers...

"Attention to detail? You must be kidding. When one slashes operating costs, inferior goods and services are created. A virtual monopoly makes quality control irrelevant. It is not surprising that overall radio listening has dropped 35% in just three years!"

Although I don't believe that "35%" statistic is technically correct, the essay is a combination of an interesting radio history lesson and a fascinating diatribe.

Also included is a great chart showing how the consolidation has collapsed eighty broadcast groups into two.

The essay is here. The chart, as seen in a thumbnail above, is here.

Gorman's site's essay concludes, "The Internet has liberated one from being limited to the standard fare of the local radio band. Now, one can listen to hundreds of formats, both commercial and commercial-free, from all over the world. It's the reason you're reading this."


(Want to recommend a station as RAIN's next Internet Radio Site of the Day? Use the feedback form here.)



More RAIN content coming this weekend, including a "RAIN Viral Marketing Contest, Phase Two" contest update.




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