King of the Airwaves
Radio powerhouses Clear Channel Communications and AMFM Inc. (formerly Chancellor Media) announced a $56 billion merger that creates a true giant in the medium. The combined company will own 830 radio stations in 187 U.S. markets – not including the 125 stations it expects to sell off to gain regulatory approval for the deal.
The new conglomerate will also have equity interests in 240 radio stations overseas, 19 U.S. TV stations, and 425,000 outdoor-advertising displays in 64 U.S. and international markets.
Exactly how much of an effect the merger will have on Richmond, VA-based promotion agency Chancellor Marketing Group, a division of AMFM, was unclear. But if left to continue operating as a separate entity that can leverage the parent company’s media assets, Chancellor’s growth could be even more explosive than it has been: The agency’s net revenue jumped from $1.5 million to $23.4 million between 1996 and 1998 when it had promotional airtime on only 110 radio stations at its disposal.
“There’s almost nowhere that we can’t do a local promotion now,” says Chancellor Marketing ceo Alison Glander. In addition, the agency will be able to add billboards, TV, and international components to its offerings, she says. “We think it’s a great opportunity.”
Pizza Hut, Dallas, is paying $2.5 million to put a 30-foot-high version of its new logo on the side of a Russian Proton rocket that will launch the International Space Station this month. The Tricon Global Restaurants unit will use TV spots and P-O-P featuring space-age imagery to support the launch.
Goodyear Tire & Rubber Co., Akron, OH, signed a deal with newly retired National Hockey League great Wayne Gretzky to endorse the company’s new Ultra Grip winter tires. A national print ad broke last month as part of a $6 million effort that will include TV spots, a “Most Gripping Moments of the 20th Century” sweepstakes, a “Most Gripping Moment of My Life” essay contest, and P-O-P activity in 4,000 North American retail outlets.
Hollywood talent broker Creative Artists Agency, Beverly Hills, has entered a partnership with New York City-based communications consultant Shepardson Stern and Kaminsky to offer brand development services to cor-porate clients. CAA will take an equity stake in its partner as part of the deal. CAA boasts a client roster that includes Brad Pitt, Tom Hanks, Will Smith, Nicole Kidman, Stephen Speilberg, Madonna, and Shania Twain. The partnership is already working with Ameritech and Polo Ralph Lauren, both of which were Shepardson Stern and Kaminsky clients along with General Motors, CVS, and Liz Claiborne. Shepardson offers marketing, advertising, p.r., and market research services.
Canadian marketing services companies Genesis Media Inc. and The PEM Group have launched Voltage Promotional Marketing, a full-service shop offering sales promotion, event marketing, direct response, and p.r. The agency will have offices in Toronto and Vancouver. Voltage already has project work from clients including Deloitte & Touche and Volvo Canada.
