Radio Ink  reported on a recent study by Adelaide, a consumer attentiveness measurement firm.  Adelaide uses a metric called the “Attention Unit” to rate the effectiveness of advertisements.  As reported in Radio Ink , the study found:  “Every day, radio sellers battle an ever-growing litany of digital media platforms for advertising dollars. Yet as brands shift ad spend to social media in an attempt to generate buzz, they could receive 2.6 times the attention per dollar by relying on AM/FM instead.” As reported, the study went on to quantify the impact: “For example, Adelaide’s study reveals that to achieve the same level of attentiveness that $1,000 spent on AM/FM radio advertising provides, significantly higher investments would be necessary on platforms like display digital ads and various social media channels. This can range from $1,313 on X/Twitter to a whopping $2,635 on Facebook.” This is an interesting fact that should be brought to the attention of your clients. You can see the analysis in Radio Ink   here . You can see the complete analysis on the Westwood One  website here .

The New York Federal Reserve released its August business activity report for the service sector in New York.  The “NY Fed” prepares an economic activity report for New York monthly.  The top-line conclusion for August: “Business activity held steady in the region’s service sector in August, according to firms responding to the Federal Reserve Bank of New York’s Business Leaders Survey. The survey’s headline business activity index moved up six points to 1.8. The business climate index was little changed at -25.0, suggesting the business climate remains worse than normal. Employment expanded, albeit at a slower pace than in recent months, and wages increased at about the same pace as in recent months. Supply availability improved slightly. Input and selling price increases were little changed. Capital spending grew a touch after declining for the prior two months. Looking ahead, firms were not very optimistic that conditions would improve in the months ahead.” The monthly report contains valuable business-related information and is worth a quick read. YOU can access the New York Federal Reserve’s Report here .

The Federal Trade Commission recently enacted a final rule regarding the purchase and sale of fake testimonials concerning products or services. The FTC will consider these fake testimonials as an unfair act or practice. The final rule prohibits: Fake or False Consumer Reviews, Consumer Testimonials, and Celebrity Testimonials:  The final rule addresses reviews and testimonials that misrepresent that they are by someone who does not exist, such as AI-generated fake reviews, or who did not have actual experience with the business or its products or services, or that misrepresent the experience of the person giving it. It prohibits businesses from creating or selling such reviews or testimonials. It also prohibits them from buying such reviews, procuring them from company insiders, or disseminating such testimonials when the business knew or should have known that the reviews or testimonials were fake or false. Buying Positive or Negative Reviews:  The final rule prohibits businesses from providing compensation or other incentives conditioned on the writing of consumer reviews expressing a particular sentiment, either positive or negative. It clarifies that the conditional nature of the offer of compensation or incentive may be expressly or implicitly conveyed. Insider Reviews and Consumer Testimonials:  The final rule prohibits certain reviews and testimonials written by company insiders that fail to clearly and conspicuously disclose the giver’s material connection to the business. It prohibits such reviews and testimonials given by officers or managers. It also prohibits a business from disseminating such a testimonial that the business should have known by an officer, manager, employee, or agent. Finally, it imposes requirements when officers or managers solicit consumer reviews from their own immediate relatives or from employees or agents – or when they tell employees or agents to solicit reviews from relatives and such solicitations result in reviews by immediate relatives of the employees or agents. Company-Controlled Review Websites:  The final rule prohibits a business from misrepresenting that a website or entity it controls provides independent reviews or opinions about a category of products or services that includes its own products or services. Review Suppression:  The final rule prohibits a business from using unfounded or groundless legal threats, physical threats, intimidation, or certain false public accusations to prevent or remove a negative consumer review. The final rule also bars a business from misrepresenting that the reviews on a review portion of its website represent all or most of the reviews submitted when reviews have been suppressed based on their ratings or negative sentiment. Misuse of Fake Social Media Indicators:  The final rule prohibits anyone from selling or buying fake indicators of social media influence, such as followers or views generated by a bot or hijacked account. This prohibition is limited to situations in which the buyer knew or should have known that the indicators were fake and misrepresent the buyer’s influence or importance for a commercial purpose. This issue was raised in 2022 when the FTC fined Google and a large radio broadcaster for broadcasting testimonials about a Pixel phone, where those persons providing testimonials did not use the phone.  With the new rule, stations should use caution when airing ads with testimonials. You can find more information about the FTC decision here . You can access the text of the  FTC rule here .

A recent edition of TVNewsCheck  contained an interesting article by Dustin Block.  In the article, he argues that broadcasters must move away from our traditional linear metrics and embrace a “total” audience approach.  He noted: “The future of local broadcasting lies in its ability to evolve beyond the traditional linear model and tap into new audience segments. By embracing a total audience approach, we ensure that our stories reach the widest possible audience, including those who may never tune into a traditional broadcast.” Embracing this approach is complex and not easy.  Block noted that   “ While a perfect solution for measuring total audience doesn’t exist yet, we can’t afford to wait.”  He made the following recommendations: “Audit your current metrics:  Take stock of all the data you’re currently collecting across platforms. Look for insights about audience segments you might not be reaching through linear broadcast. Invest in integration tools:  Look into analytics platforms that can help aggregate data from multiple sources. Tools like Chartbeat or Parse.ly can be a good starting point for understanding your diverse audience. Experiment and learn:  Use your aggregated data to experiment with different content types and distribution strategies. Pay special attention to what engages audiences on platforms outside of traditional broadcast. Foster a data-driven culture:  Encourage your team to think beyond traditional metrics and audience segments. Make total audience reach and new audience acquisition key performance indicators. Collaborate and share:  Reach out to industry peers. Share your experiences in reaching new audiences and learn from theirs. We’re all navigating this new landscape together.” You can see the complete analysis in TVNewsCheck   here .

As you know, stations are required to pay regulatory fees on an annual basis.   When the required payment is received late or is incomplete, the Commission must assess a penalty equal to 25% of the amount of the fee which was not paid in a timely manner.  The Commission recently issued an Order to Pay to Show Cause  to a station in Mississippi for not paying its regulatory fees on time and also for not paying the penalties that were assessed for late payment. This occurred over a period of years from 2013 to 2023.  If payment is not received within 60 days, the FCC proposes to revoke the station’s license. The bottom line is to pay your regulatory fees on time. If you are late and assessed a late penalty, you must pay that as well. You can see the FCC’s decision here .

On October 10, the National Association of Broadcasters Leadership Foundation (NABLF) will host a Career Fair from 10 AM to 2 PM at the Javits Center. This is part of the NAB New York Show, which runs from October 8-10.   As a member service, NYSBA will subsidize the job fair registration costs ($500) for stations willing to participate in the NABLF job fair. To receive a subsidy, participating stations must be NYSBA members in good standing. Space is limited (only 12-15 spots) so we urge you to register ASAP.   If your station wants to participate, please contact Trevor at telmendorf@nysbroadcasters.org . You can find more information about the Career Fair here .

At its meeting last week, the FCC adopted a new Emergency Alerts Service event code for persons who are missing or abducted. The traditional AMBER Alert applies to persons under 18 years of age. According to the FCC, this leaves out a lot of missing people. “According to the National Crime Information Center (NCIC), during 2023, roughly 563,000 persons were entered into its missing persons database. Of these entries, approximately 188,000 were 18 or older. As of December 31, 2023, there were 96,955 active missing person records, of which roughly 68,000 were 18 or older.” As a result, the FCC voted to adopt a new event code that will apply to missing individuals who are 18 years of age or older: “We therefore revise our Emergency Alert System (EAS) and Wireless Emergency Alert (WEA) rules to adopt and implement the three-character code “MEP” as a new EAS event code.  This will facilitate the delivery of alerts for missing and endangered person, including “Ashanti Alerts,” “Silver Alerts,” and other state-enacted alerts, such as “Feather Alerts,” over the EAS and WEA system.5 In so doing, we again promote public safety—similar to our efforts with AMBER Alerts—by providing law enforcement, EAS Participants, and WEA providers “with a means to quickly disseminate information pertaining to serious” missing and endangered persons cases.” Importantly, the FCC established a 12-month phase-in period which begins when the FCC’s decision is published in the federal register.  Also, the use of the new “MEP” code will depend on law enforcement. In New York, all AMBER alerts are triggered by the NY State Police. One of the key issues is the overuse of the EAS system. We will be working with the NY State Police to coordinate the implementation of this new alert code.  You can access the FCC’s decision here .

A recent report by Samba TV called “The State of Viewership” was summarized in TV Technology last week. According to the article: “A new study from Samba TV analyzing 45 billion hours of linear and streaming viewing in the first half of 2024 has found that OTT viewing continues to set new records while linear TV viewing has fallen to levels not seen since the pre-pandemic. Samba TV’s State of Viewership Report for the first half of 2024 found that OTT viewing grew by 40% while linear TV viewing declined by 1%, dropping to levels not seen since pre-pandemic.  The study also found that less than half of U.S. households now watch linear TV each day, according to Samba TV.” Of course, a number of station groups have rolled out FAST channels. Nonetheless, the study does show the growth of OTT in the marketplace. You can see the article in TV Technology summarizing the SAMBA report here .

Last week, the FCC proposed a $14,000 fine against a radio station group owner for failing to conduct a contest properly. Under section 73.1216 of the Commission’s rules, broadcast licensees must “fully and accurately disclose the material terms” of a licensee-conducted contest and conduct it “substantially as announced or advertised. In its decision, the FCC’s Enforcement Bureau noted: “Here, the Licensee’s announced contest terms (Contest Terms) specified when winners would be selected and when winners would be notified of their selection.  Despite being required by its own Contest Terms to (i) select winners on or about the next business day following each contest day, and (ii) notify winners within 72 business hours of being selected, the Licensee frequently failed to adhere to those deadlines. In proposing this penalty, we reiterate the Commission’s longstanding commitment to protecting the public from deceptive broadcast contests.” This was a nationwide contest, and the licensee failed to notify 50 out of 297 winners in time. Bottom line, if you establish contest rules, you must follow them.   You can see the FCC Enforcement Bureau’s Notice of Apparent Liability here .

Back by popular demand, Derron Steenbergen will be conducting our live, in-person upstate training session.  He spoke to our stations several years ago. Derron Steenbergen is the President and Founder of the Swagger Institute. The Swagger Institute specializes in sales and leadership training, motivational speaking, and business and nonprofit consulting. Derron is the founder and partner of The Ten-Minute Trainer Network, the industry’s leader in broadcast training.   Derron’s training will focus on “The Habits of Successful Sellers.”  He will discuss the relationship between new sales technology and the need to maintain personal contact with your clients.  Expect a dynamic and informative session.   All training sessions will run from 10 AM to 12 noon at the following locations:   Buffalo  –  Aloft Buffalo Downtown , 500 Pearl Street | Monday,  September 23rd (training and luncheon) Rochester  –  The Strathallan Hotel , 550 East Avenue| Tuesday,  September 24th (training and luncheon) Syracuse  –  Embassy Suites by Hilton Syracuse Destiny USA , 311 Hiawatha Blvd.| Wednesday,  September 25th (training and luncheon) Binghamton  –  DoubleTree Hotel  225 Water Street| Thursday,  September 26th (training and luncheon) Albany  –  Wolfert’s Roost Country Club , 120 Van Rensselaer Blvd. | Friday,  September 27th (training and luncheon)   Those attending training are also invited to the luncheon immediately following the training session. The training and luncheon are provided free of charge to NYSBA members in good standing.   You must register in advance. You can register for training (and/or the luncheon) here .

A recent analysis released by Edison Research and Nielsen indicates that AM/FM radio still commands the ear of the audio market.  According to the most recent analysis: “The updated data shows that of all average daily audio time spent by adults in the U.S. with ad-supported audio, 67% is spent with AM/FM, 19% with podcasts, 11% with ad-supported streaming audio, and 3% with ad-supported satellite radio channels.”    During the second quarter of 2024, Americans spent almost 20% of every day with audio, which amounts to 4 hours and five minutes per day. This includes listening across all audio platforms.    You can see a more complete summary of the Edison Research/Nielsen study here .

Last week, the FCC announced that beginning August 20th, it will accept channel change applications for Class A, LPTV and TV translator stations. In making the announcement, the FCC said: “The Media Bureau has announced that beginning August 20, 2024, the Commission will lift its current freeze on major modification applications and permit all Class A television (Class A), low power television (LPTV), and television translator stations (TV translator) stations, on a nationwide basis, to file major change applications in order to change their existing channel, subject to certain limitations. Applications will be processed on a first-come/first-served basis.  In anticipation of this filing opportunity, we announce that the Commission’s Licensing and Management System (LMS) has been updated to make available for access major change applications for Class A, LPTV, and TV translator stations – FCC Form 2100, Schedule C (LPTV and TV translator stations) and FCC Form 2100, Schedule E (Class A stations)”   You can access the FCC’s Public Notice here .

BIA Advisory issued a recent analysis looking at retransmission consent revenues and local television. In 2023, local stations are expected to receive $15.1 billion in retransmission consent fees. However, cord cutting and new online services may be changing this amount in the future. BIA noted: "Looking ahead beyond 2023, the local TV industry has come to rely on these distribution revenues, but the dynamics are in flux. BIA’s calculation and forecasts of retransmission fees are based on the overall and expected growth in: Audience ratings Television households Cable penetration rates Fees local stations are receiving from cable and satellite delivery systems. Fees local stations are paying parent networks for their share of these revenues. Amounts received by non-top four affiliates (CW, MY, and Univision).   In a world with growing segments of homes that are cord-cutters and cord-nevers with a transition to CTV/OTT streaming video services, the economics of retransmission consent are changing as MVPDs see video subscriber losses along with the associated revenues from which distribution fees can be paid."   You can see BIA’s analysis here .

For years, stations in upstate New York have looked at the possibility of securing Canadian investment. However, federal law generally capped foreign investment at 25%. Of course, this was never a hard statutory cap. The FCC has the authority to waive the requirement.   Last week, the Media Bureau paved the way for foreign investment by allowing a Canadian company to own up to 100% equity and/or voting interests in the parent company of a Seattle Radio station. “In this Declaratory Ruling (Declaratory Ruling), the Media Bureau (Bureau) grants a petition for a declaratory ruling (Petition) filed by BAAZ Broadcasting Corporation (BAAZ or Petitioner).  BAAZ is the licensee of KNTS(AM), Seattle, Washington (Facility ID No. 87153).  The Petition asks the Commission to exercise its discretion to permit indirect foreign ownership of Amar Broadcasting, Inc. (Amar Broadcasting), the proposed controlling U.S. parent of BAAZ, to exceed the 25% benchmarks established in section 310(b)(4) of the Communications Act of 1934, as amended, (the Act) and sections 1.5000 et seq. of the Commission’s rules.  As discussed below, the Petition seeks authority for up to 100% aggregate foreign investment (voting and equity) in Amar Broadcasting, the proposed controlling U.S. parent of BAAZ and specific approval for Sukhdev S. Dhillon, a citizen of Canada, to hold 100% of the equity and voting ownership in Amar Broadcasting....  No comments or oppositions were filed in response to the Petition.  As discussed below, and consistent with the input received from the National Telecommunications and Information Administration (NTIA) on behalf of the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector (Committee), we find that it will serve the public interest to grant the Petition, subject to the conditions specified below.” As noted in the decision, there are some compliance requirements. Also, the multilevel review takes a considerable amount of time to process. Nonetheless, the decision is a positive step for New York stations looking to obtain investments from Canadian investors. You can see the Media Bureau’s Declaratory ruling here .  For more information, you can go to communications attorney David Oxenford’s communications blog here and here .

We have significantly upgraded our Hall of Fame website. The upgraded website will allow you to look up all members now in the Hall of Fame. Each inductee will have a separate webpage that will include a bio and video of the inductee’s acceptance speech. It will allow you to search for members by name, medium (radio/TV), and the year of admission. In addition, the website contains materials for nominating new members. It also contains a direct link for purchasing tickets to our annual Hall of Fame gala luncheon at the famous Rainbow Room. This year’s luncheon will take place on Wednesday, October 23, 2024. A special thank you to our Director of Communications, Trevor Elmendorf, who did a fantastic job updating and completely revising our Hall of Fame website. You can access the new Hall of Fame web through the New York State Broadcasters website by going to the Hall of Fame drop-down and clicking on to the Hall of Fame website button. You can access the Hall of Fame website directly here .

The FCC requires stations to submit an EAS Emergency Test Reporting System (ETRS) Form One on an annual basis. Last week, the Public Safety and Homeland Security Bureau issued a public notice stating that October 4th will be the deadline for submitting Form One. “By this Public Notice, the Public Safety and Homeland Security Bureau (Bureau) announces that the Emergency Alert System (EAS) Test Reporting System (ETRS) is available for receipt of filings and directs EAS Participants to submit their annual ETRS Form One for calendar year 2024 by no later than October 4, 2024.  ETRS is an online filing system by which EAS Participants submit their Form One information, which includes identifying and background information such as EAS designation, EAS monitoring assignments, facility location, equipment type, contact information, and other relevant data.” ETRS Login and Weblinks Filers can access ETRS by visiting the ETRS page of the Commission’s website here . You can access the FCC’s Public Notice here .

Every year, NYSBA celebrates local broadcasters’ commitment to serving their communities. We also honor the public service groups that work with local stations to improve the quality of life in communities throughout the Empire State. We recognize commercial, non-commercial, and college stations for their efforts. Honorees receive the famous NYSBA Crystal Bowl. To receive an award, stations should: Submit a brief paragraph describing the campaign The campaign may be on the air (PSA) or an off-air project It may be a digital or traditional broadcast Events or broadcast must have occurred between September 1, 2023, and September 4, 2024 Provide the name of the public service group with which you worked Provide a station logo and any photos Provide the names of individuals attending the luncheon Stations are encouraged to invite a public interest group with whom they worked during the past year. Attending representatives of your invited public interest groups will also be presented with an award.   We will present the “Serving New York” award at our regional awards luncheons this fall in:   New York City – Manhatta , 21 Liberty Street| Thursday, September 12th Long Island – Blackstone Steakhouse , 10 Pinelawn Road| Friday, September 13th Buffalo – Aloft Buffalo Downtown , 500 Pearl Street | Monday, September 23rd Rochester – The Strathallan Hotel , 550 East Avenue| Tuesday, September 24th Syracuse – Embassy Suites by Hilton Syracuse Destiny USA , 311 Hiawatha Blvd.| Wednesday, September 25th Binghamton – DoubleTree Hotel , 225 Water Street| Thursday, September 26th Albany – Wolfert’s Roost Country Club , 120 Van Rensselaer Blvd. | Friday, September 27th   ​ Note: These awards are different from the Excellence in Broadcasting Awards. All stations submitting a public service campaign will be recognized at the luncheon. We will present both the Serving New York and the Excellence in Broadcasting Awards at the luncheons. Stations must be present at the luncheon to receive a Serving New York award!   THE DEADLINE FOR SUBMITTING “SERVING NEW YORK AWARDS” IS THURSDAY, SEPTEMBER 5, 2024 .   YOU MUST SUBMIT YOUR “SERVING NEW YORK AWARD” ENTRY ONLINE HERE .   REGISTRATION FOR THE LUNCHEON IS SEPARATE. CLICK HERE TO REGISTER FOR LUNCHEON

This morning (Tuesday, July 30th), we hosted a webinar explaining the new revised Political AI law in New York.  As we reported earlier, NYSBA successfully lobbied to change the law that was originally passed as part of the Governor’s budget in April.  The new, revised law is more favorable for broadcasters.    To comply with New York Law, stations will be required to adopt a policy stating they will not accept paid political content containing materially deceptive images or the voice of a candidate. We discussed this requirement in detail.   We have archived the materials from this morning’s webinar. You can access the following materials by clicking below:   ·          NYSBA’s Model Political AI Disclaimer Policy ·         Webinar Slide Deck (pdf) ·         Webinar video link   If you have any questions contact David Donovan at ddonovan@nysbroadcasters.org   You can see a text of the legislation that passed (A10402A) here .

Inside Radio  has an interesting article on BIA’s Mid-Year local advertising report.  According to the article BIA noted: “There are a lot of positives in terms of what’s going on with radio over the air,” BIA VP Forecasting and Analysis Nicole Ovadia says, noting that its forecast places it fifth among the biggest-spending media in 2024, at an estimated $10.7 billion, or 6.2% of total local spend. The 2.4% increase in compound annual growth rate from 2020’s $9.7 billion, is, she says, “nothing to sneeze at. That shows health.” As for the verticals driving that local ad spend, political, of course, dominates AM/FM radio for 2024 at $561.2 million, followed by investment and retirement advice ($428.3 million), quick-serve restaurants/fast food ($400.4 million), commercial banking ($363.8 million), and supermarkets/grocery stores ($350.1 million). The article is worth reading.  You can see BIA’s analysis as reported by Inside Radio here .

Last week, the FCC, on a 3-2 party-line vote,  released a Notice of Proposed Rulemaking regarding the need to include labels on political advertising containing “AI.” Issuing a Notice of Proposed Rulemaking is the first step in the regulatory process. The proposed rules do not become effective until a final order is adopted by the FCC. It is likely that public comments will not be due until September and Reply Comments in October. Bottom line, it is unlikely that any new FCC political AI rules will become effective before the November election.  Thus, during this election cycle, stations should continue to operate under the existing FCC regulations. Nonetheless, the proposed FCC rules would place additional burdens on broadcasters. "We initiate this Notice of Proposed Rulemaking (NPRM) to provide greater transparency regarding the use of AI-generated content in political advertising. Specifically, we propose to require radio and television broadcast stations, cable operators.......to provide an on-air announcement for all political ads that include AI-generated content disclosing the use of such content in the ad. We also propose to require these licensees and regulatees to include a notice in their online political files for all political ads that include AI-generated content disclosing that the ad contains such content. To be clear, we are not proposing to ban or otherwise restrict the use of AI generated content in political ads. Rather, we are simply seeking to ensure that listeners and viewers are informed when political ads include such content so that the public can evaluate such ads for themselves." The FCC is proposing that stations include such labels immediately before or during paid political advertising. While the commission is soliciting comments on the label’s language. It suggests the following label: “The following message contains information generated in whole or in part by artificial intelligence." Of note, the FCC has historically precluded stations from editing and/or adding labels to political ads purchased by a candidate or an authorized candidate’s campaign committee. The Commission is now proposing that the proposed political AI label could be placed in or right before an advertisement purchased by a candidate or the candidate’s authorized campaign committee. This is a significant change in policy.  If adopted, it would treat such candidate ads the same as issue ads and ads purchased by third parties. The commission is also proposing that stations include in their online political files a notice disclosing the use of AI-generated content for each political ad that contains such content. It is proposing to use the standardized label mentioned above. One critical question is how the FCC’s proposal will fit with the New York political AI law. The FCC is proposing that stations place a label on political ads that include Artificial Intelligence. New York Law will require stations to include labels on ads that contain materially deceptive media made with AI. While New York's Political “AI” Law defers to Federal Law, the FCC’s notice does not address this issue. Stations need not worry about this problem at this point, as it is unlikely the FCC’s new rules will become effective before the November election.         We will keep you informed as the FCC moves forward. You can see the FCC’s proposed AI Rule here .