Radio One, Inc. West Virginia University Jasmine Hood IMC 618
Radio One, Inc.
West Virginia University
Jasmine Hood
IMC 618
Hood 2
Contents
1. Executive Summary……………………………………………………..
……………………………………….3
2. Background…………………......
………………………………………………………………….……………….3
3. Situation
Analysis…………………………………………………………………………………………
……...8
4. Core Problem
Statement……………………………………………………………………...
……………….9
5. Key Public: End-Users – Primary and Secondary Messages……………..
…….……………….9
6. Key Public: Advertisers – Primary and Secondary Messages..…………...
………..…………11
7. Key Public: Shareholders – Primary and Secondary Messages..
…………...………..………12
8. Campaign Goal…...……………………..
………………………………………………………………………..13
9. Campaign
Objectives……………………………………………………………………….
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………………….14
10. Campaign Strategies and Public Relations
Tactics…………………………….………………….15
11. Calendar of PR
Activities…………………………………………………………………………..……......19
12. Budget……………………….
………………………………………………………………………………………22
13. Evaluation Plan…………,
……………………………………………………………………………………....24
14. Personal Assessment….
………………………………………………………………………………………25
15. References…………..…..
…………………………………………………………………………………………27
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Executive Summary
With a projected buying power of $1.1 trillion by 2012, targeting African
American consumers is a no brainer (Dodson 2007). Reaching this unique
segment, like any other group, in today’s market must be efficient and cost-
effective. Radio One, Inc. provides the perfect amalgamation of media that
reaches over 82 percent of African American households through multiple
media channels. Imagine being able to touch people in their cars, homes, on
their computers, cell phones, email, at newsstands, and in their mailbox.
Media connects individuals to the world around them, and circularly, the
world is built on these individual connections. Radio One and its subsidiaries
provide unmatched access for key publics to conveniently connect to the
content and people that are relevant and essential to them personally and
financially across radio, television, online, and print platforms.
Background
From its humble beginning at WOL-AM on Howard University’s Washington
D.C. campus, founder Cathy Hughes has built the steady empire of Radio
One, Inc. with urban market radio stations across the US. Radio One is one
of the largest radio broadcasting companies in the U.S. and is the largest
radio broadcasting company that primarily targets African-American and
urban listeners. It currently owns and/or operates 52 radio stations located
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in 16 major markets, as well as Magazine One dba Giant Magazine, interests
in TV One, LLC, Interactive One, the Tom Joyner Morning Show, and Reach
Media, Inc. (www.blackamericaweb.com). They have also recently added
Community Connect Inc., an online social networking company to their
Interactive One portfolio.
Radio One’s exclusive position as the largest broadcaster among African
American audiences makes it #1 in its target market. Its stations offer an
assortment of formats, including Urban, Adult Contemporary, Contemporary
Inspiration, Gospel, and News Talk radio. In conjunction with Reach Media,
Radio One owns Syndication One, which develops African American targeted
talk show programming. The featured shows include The Al Sharpton Show,
The Warren Ballentine Show, and 2 Live Stews, offering audiences relevant
information and analysis from an African American perspective.
TV One is a lifestyle and entertainment cable network that focuses on the
adult African American community. Original and acquired programming is
featured on the network that is distributed across the country on most cable
and satellite service providers, particularly where there is a high African
American population segment.
Interactive One was launched in 2007 to round out the Radio One media
family. It has quickly become the #1 online platform for African Americans.
The acquisition of Community Connect, Inc. has now expanded the
Interactive One offering to span 10 websites, including BlackPlanet.com, the
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largest African American online social network. Radio One expects the
integrated online experience to grow to over 60 websites in the next year as
it brings content from its 52 stations online.
Magazine One (dba Giant Magazine) is an urban entertainment lifestyle
magazine that targets young, upwardly mobile readers with a multicultural
appeal. The bi-monthly magazine is distributed nationally and features
articles and advertisements centered on the worlds of music, film, fashion
and style.
With such extraordinary success in less than three decades, Radio One
began to publicly offer common stock on May 6, 1999, making Hughes the
first African American chairwoman of a publicly traded company.
Unfortunately, after years of unprecedented growth and success, the current
national economic conditions have hurt Radio One like many other media
broadcasting companies. On October 22, 2008, NASDAQ notified Radio One
(NASDAQ: ROIAK and ROI) that for 30 consecutive days prior to October 16,
2008 the bid price of Radio One’s Class D common stock had closed below
the minimum $1.00 per share required to list on NASDAQ. In light of the
economic crisis and the unprecedented condition of the market NASDAQ
granted moratorium for the Company, with the rules to go back into effect
January 19, 2009. From that time through July 20, 2009, Radio One must
close at $1.00 per share or more for at least 10 consecutive business days to
achieve compliance. The Company sold 20 of its stations in 2007 to reduce
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operating expenses. Third quarter results were reported on September 30,
2008, showing net revenue $86.2 million, down 2 percent from the same
period last year.
In the fourth quarter of 2008, Radio One faces a new day in media and the
world. The U.S. political and economic climate is both in favor and against
the largest African American broadcasting company. The first African
American president, Barack Obama, has been elected and the stock market
is in shambles. On election night, thousands of viewers tuned in to TV One,
Radio One’s cable network, to watch live coverage of the historic presidential
election returns. While the network was proud to carry such a momentous
event, parent company Radio One faces unprecedented challenges in the
national market. Despite increased listenership, media buyers have had to
cut advertising budgets across the broadcasting industry (Hampp 2007).
The history of commercial radio dates back to 1920, when Pittsburgh's KDKA
broadcast election returns. In two short years, there were more than 200
stations crowding the available airwaves (Bloomquist 2008). Today, there
are approximately 11,000 commercial stations in the $20 billion radio
broadcasting industry (the Industry) that compete in local markets across the
country. Radio One is ranked number 10 of the top radio broadcasting
companies in the U.S. The industry leader is Clear Channel Communications,
which owns or operates 1,000 stations- three times as many as its closest
competitor Cumulus Media. As a result of the Telecommunications Act of
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1996, there has been much consolidation in the Industry with giant radio
companies owning up to eight stations in large markets. These large
companies operate in clusters to reduce administrative and sales costs, but
allow the individual stations to target different audience segments through
programming.
Currently, the Industry’s greatest challenge is the national economy.
National advertisers have trimmed ad spending due to the economic
slowdown and the lack of optimal metrics. Until recently, stations measured
their share of listeners by Arbitron’s diaries that have been criticized for
having three-month delays in results and were often inaccurate. In 2007,
Arbitron introduced their electronic Portable People Meters (PPM), to
promptly produce more measurable results, much like Nielsen ratings in the
television industry.
With the rapid technology changes in the Industry companies have begun to
face the issue of Internet advertising. Many broadcasters have expanded
their brand to online content, generating three to five percent of the
industry’s revenue from online ad sales (McClellan 2007). Internet radio,
satellite radio, and mp3 players have steadily begun to take a chip out of the
traditional medium’s core base. The technological advancement of high
definition (HD) radio signals may possibly prove advantageous to radio
broadcasting ad sales. Digital radio offers better sound quality and no
subscription is necessary.
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In the radio broadcast industry, Radio One is nowhere near its competition
and, in conversely, its competition is nowhere near it. Clear Channel is the
industry leader, with over 1,000 stations across the country. Other top
competitors include Ciatdel Broadcast, CBS Radio, as well as Cumulus Media,
Emmis Communications, and Cox Radio. However, Radio One’s focus on the
African American niche market is unrivaled by any other broadcasting
company.
TV One’s competition is limited, with its largest and main competitor being
BET. Although both networks focus on African American viewers, they have
different target demographics- BET targets a young 18-34 demo, while TV
One targets an older 18-49 demo. By 2006, three years from its launch, TV
One had attained 40 million subscribers, compared to the 30-year old BET’s
85 million subscribers (Goetzl 2007). Another competitor that TV One has
managed to outpace was the Black Family Channel, which found it difficult to
gain distribution. In May 2007, the network was sold to the Gospel Music
Channel and is rumored to re-launch sometime this year.
Radio One’s newly acquired Community Connect, under the Interactive One
brand, has placed the company in the new age world of social networking.
The largest of Interactive One’s sites is, by far, BlackPlanet.com. In 2007
BlackPlanet.com ranked No.4 in Hitwise's Top U.S. Social Networking Sites
Report, behind MySpace, Facebook and Bebo (Hitwise 2008).
Magazine One’s Giant Magazine has the advantage of being linked to a
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company that reaches 82 percent of African Americans across television,
radio, online, and print platforms. This is something its main competitors,
Vibe Magazine, the Source, XXL, as well as veterans Ebony and Essence,
can’t claim.
Situation Analysis
Radio One has garnered the number one position in media broadcasting for
the African American community. The company’s multimedia brands reach
over 82 percent of African American homes through radio, television, online,
and print. Current national economic conditions have adversely affected
Radio One along with the entire radio broadcasting industry. The media
giant must find new and innovative ways to attract end users to ultimately
attract advertisers.
This diversification of the Radio One properties shows the commitment to
providing advertisers with integrated marketing access into the homes and
lives of consumers. According to a statement made by Barry Mayo,
President of the Radio Division, “[Radio One is] no longer in the radio
business, we are in the 'audio entertainment business' and we need to
leverage our products well beyond the terrestrial signals we are licensed to
operate.” Currently, there is a limited amount of PR communication and
marketing strategies that establishes the company’s stance on being a
leading provider for urban and African American entertainment and news
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content.
Core Problem
To brand itself as an integrated multimedia conglomerate, Radio One must
efficiently link its print, television, radio, and online platforms to engage key
publics (end-users and advertisers) in the total brand package.
Key Publics
Advertisers
Advertisers have a self-interest as a primary public of Radio One. Radio
One’s success in reaching consumers directly relates to an advertiser’s
ability to reach the target segments that Radio One offers. Advertisers
utilize Radio One’s dominance in African American multimedia outlets to
promote their products and services. The added value of Radio multimedia
properties is that African American consumers can be reached consistently
and repeatedly when engaged with Radio One. If Radio One loses or misses
out on potential members of the target audience (end-users) due to
disconnected public relations and marketing, advertisers are subsequently
affected as well. This public needs to be sure that end-users are
participating across all of Radio One’s platforms so that they can feel
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confident in spending across platforms.
Primary Message:
• Radio One is the leading media company for African American
entertainment and news content.
Secondary Message:
• Giant Magazine has national distribution with a 250,000 Rate-
base/362,090 Total Paid Circulation.
• Interactive One is composed of a variety of sites, including
NewsOne, TheUrbanDaily, and HelloBeautiful, as well as the
Community Connect, Inc. family of social networking sites.
BlackPlanet.com has over 15MM registered members, 5MM Unique
Visitors/month, and approximately 500mm Page Views/month.
• TV One is seen in 208 markets, across 39 states and nationwide on
DIRECTV.
• Radio One stations are located in 53 stations in 16 urban markets.
Primary Message:
• Radio One is a media conglomerate that cross-markets and shares
content and resources.
Secondary Message:
• The Radio One online networks GIANTmag.com, Blackplanet.com,
AllHipHop.com, The Urban Daily and other targeted verticals.
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• One media buy allows you create custom campaigns across multiple
websites.
• Interactive One is the leading online network serving the African-
American community through social network, news, information, and
entertainment.
• Advertising on Radio One stations, the TV One network, in Giant
Magazine, on Giantmag.com, or any of the Interactive One networks
provides access to 9 million African-Americans per month.
End-Users
Although end-users do not necessarily invest direct dollars into the broadcast
company’s revenue, they are an essential public for Radio One. End-users
include listeners, viewers, subscribers, and readers that attract advertisers to
spend with Radio One and trust that they are the best source for reaching
specific audiences. If end-users are dissatisfied or unfulfilled (due to lack of
awareness) with Radio One’s offerings they can voice their displeasure by
quietly ceasing participation in one or more of Radio One’s multimedia
platforms. Does Radio One have the information or content that is relevant
to me? How easy is it to access this information and how can I enjoy more
than one medium? These are all questions that end-users may consider
when choosing to engage in Radio One media.
Primary Message:
• Radio One is the multimedia authority on convenient and reliable
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African American entertainment and news content.
Secondary Message:
• GIANT is an urban entertainment lifestyle magazine that celebrates the
best of music, film, fashion and style.
• Radio One is the largest radio broadcasting company that primarily
targets African-American and urban listeners, with stations in 53
stations in 16 urban markets.
• BlackPlanet.com connects audience with a mix of community tools,
information, entertainment and personal service based on their
interests.
• TV One is a cable/satellite television network, programming primarily
to African American adults, that offers a broad range of lifestyle and
entertainment-oriented programming that respects their values and
reflects their intellectual and cultural diversity.
Shareholders
During the past few years Radio One shareholders have had to endure the
slowdown of the national economy and the effects it has had on the radio
broadcasting industry, and Radio One specifically. Incessantly falling stock
prices and recent warnings from NASDAQ can leave shareholders feeling
uneasy about the security of their investments. As an internal public,
shareholders are personally affected by the marketing strategies of the
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company. This public needs to know the value of all Radio One enterprises
and how they are positioned to create additional revenue.
Primary Message:
• Radio One is seeking to build a media conglomeration of enterprises
that appeals to key publics and increases revenues.
Secondary Message:
• Consistent branding will attract consumers (end-users) to utilize all of
Radio One’s platforms, increasing the reach available to advertisers.
• Advertisers will be able to buy into a cohesive media company whose
brand is bigger than the parts.
Campaign Goal
Radio One is to build its overall brand position and increase revenues by
integrating its marketing and public relations tactics for both end-users and
advertisers to fully utilize the company’s reach.
The current vision statement on Radio One’s website is outdated and only
refers to its prior strategy of expanding its radio market shares amongst
African Americans. However, in recent statements from CEO Alfred C.
Liggins III, Radio One is seeking to build the media company into an
“Univision-like conglomeration of media enterprises that cross-market and
share content and resources” (Huslin 2007). To accomplish this, Radio One
must develop a consistent brand that markets all of its multimedia elements.
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VP of Integrated Marketing – One Solution, Peggy Byrd Mazard, recognizes
this need for an integrated marketing and public relations approach. “As
[Radio One] becomes a key media brand in the marketplace, we are excited
about making sure our identity and value proposition are clear, articulated,
enhanced, and differentiated,” she stated (Mazard 2008, p. 11). Radio One
will need to issue a new mission statement that reflects the direction and
goals that the company is trying to achieve.
Campaign Objectives
1. Develop a recognizable brand name and logo that encompasses all of
Radio One’s media platforms and coincides with its current slogan. (Ex.
One Media, Inc. – The Urban Media Specialist). Marketing material
should reflect this unified image and be introduced by 2nd Qtr FY 09.
2. Announce press release for campaign launch across all Radio One
platforms- Radio One, TV One, Giant Magazine, BlackPlanet.com on
April 01, 2009.
3. Move all media websites to employ BlackPlanet.com as the host server
(Ex. www.giant.blackplanet.com). Link BlackPlanet memberships to all
other platform websites. (Ex. Signing in under a BlackPlanet login
allows member to access information on their local radio station’s
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webpage or leave comments on Giant Magazine’s website).
Integration should be complete by May 2009.
4. Foster awareness amongst end-users of the connected media
properties of Radio One. Through survey research obtain an 80
percent level of end-user awareness of all Radio One brands by January
2010.
5. Present One Media as an integrated opportunity for advertisers to gain
multi-channel access into consumer’s homes. Packaged partnerships
should include media buys in more than one medium, highlight level of
end-user participation across platforms, and convey One Media as an
expert in the African American media experience.
Strategies and Tactics
Currently, Radio One has not announced any specific strategies aimed at
branding itself as an integrated multimedia conglomerate. The following
suggested strategies and tactics are intended to efficiently link its print,
television, radio, and online platforms to engage key publics (end-users and
advertisers) in the total brand package.
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Advertisers
Strategy One:
• Develop and present a recognizable brand name and logo that
encompasses all of Radio One’s media platforms and coincides with its
current slogan.
Tactics:
• One Media, Inc. is to be established as the company umbrella in which
advertisers can reach target audiences across platforms. (One Media,
Inc. – The Urban Media Specialist)
• One Solution must be presented as an advertising package that
includes media buys across One Media and conveys One Media as an
expert in the African American media experience.
Strategy Two:
• Announce campaign launch across all One Media platforms and other
various media.
Tactics:
• Issue a press release to the appropriate trade magazines, newspapers,
and ad agencies announcing unique opportunities to reach African
American audiences through One Media’s new image and structure.
• Place a full-page ad in Giant Magazine, run 30-second spots on Radio
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One, run 30-second spots on TV One, place web banners on
BlackPlanet.com and other Interactive One networks emphasizing the
new brand name, logo, and all of its properties.
• Redesign company website and homepage of each One Media property
to present One Media as an integrated opportunity for advertisers to
gain multi-channel access into consumer’s homes.
End-Users
Strategy One:
• Ensure end-users are aware of One Media’s presence and the
integrated channels available through the redesigned media
conglomerate’s campaign launch.
Tactics:
• One Media, Inc. is to be established as the company umbrella in which
end-users can conveniently access news and entertainment content
through radio, television, print, and online platforms.
• Place a full-page ad in Giant Magazine, run 30-second spots on Radio
One, run 30-second spots on TV One, place web banners on
BlackPlanet.com and all Interactive One networks emphasizing the new
brand name, logo, and all of its properties.
• Send member messages to all BlackPlanet.com users announcing the
campaign launch.
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• Use One Media’s established Email Alerts to inform subscribers of the
campaign launch.
• Redesign company website and homepages of each One Media
property to present One Media as an integrated media company.
Strategy Two:
• Link BlackPlanet.com memberships to all other platform websites.
Tactics:
• Create a communications message through interactive participation.
Signing in under a BlackPlanet login allows members to access
information across all One Media platforms (ex. local Radio One
station, Giantmag.com, TV One, etc.)
Shareholders
Strategy One:
• Ensure shareholders are aware of the rebranding of Radio One/One
Media and its revenue potential.
Tactics:
• Issue a press release and announce during quarterly conference call
One Media’s new image and structure. Also, use One Media’s
established Email Alerts to inform subscribers of the campaign launch.
• Present the One Solution advertising package that includes added-
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value opportunities for advertisers to gain multi-channel access into
consumer’s homes through media buys across One Media.
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Calendar of PR Activities
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One Media Launch Campaign
Start Date: April 1, 2009
March 2Q - April May June 3Q - July August
Public: Advertisers
Strategy 1: Recognizable brand name and logo encompasses all Radio One’s media platformsTactic 1: Establish One Media, Inc. as umbrella company. Tactic 2: Present One Solution expert advertising package with media buys across company.
Strategy 1 Evaluation
Strategy 2: Announce campaign launch across all One Media platforms and other various media.Tactic 1: Notify appropriate trade magazines, newspapers, and ad agencies.Tactic 2: Emphasize new brand through ads in Giant Magazine, on Radio One and TV One, BlackPlanet.com and other Interactive One networks.Tactic 3: Redesign company website and homepage of each One Media property.
Strategy 2 Evaluation
Public: End-Users
Strategy 1: Ensure end-users are aware of One Media’s presence and the integrated channels.
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Budget
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Projected Cost
Discount or
Sponsorship
Actual Cost
Advertisers
Strategy One: Recognizable brand name and logo encompasses all Radio One’s media platforms
Tactic 1: Establish One Media, Inc. as umbrella company.
Create new logo and marketing materials.
$450,000
Tactic 2: Present One Solution expert advertising package with media buys across company.
Electronic and hard copy media kits.
$40,000
Strategy Two: Announce campaign launch across all One Media platforms and other various media.Tactic 1: Notify appropriate trade magazines, newspapers, and ad agencies.
Press Release $8,000
Tactic 2: Emphasize new brand through ads in Giant Magazine, on Radio One and TV One, BlackPlanet.com and other Interactive One networks.
Full page ad, 30-second radio spot, 30-second tv spot, online web banners.
Tactic 3: Redesign company website and homepage of each One Media property.
Integrated web design.
$100,000
Public: End-Users
Strategy One: Ensure end-users are aware of One Media’s presence and the integrated channels.Tactic 1: Establish One Media, Inc. as umbrella company umbrella for convenient access to content.
Create new logo and marketing materials
/
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(/= cost is already accounted for in a previous tactic)
Using several of the same tactics for more than one audience can help
alleviate costs. However, it is essential to remember the specific public
being targeted even if similar information or material is provided (ex. press
releases, emails, etc.).
Evaluation Plan
PR Outtakes can be measured for short-term effects. The immediate goal is
to make key publics aware of the rebranding campaign launch. Media
Content Analysis can be used to research articles that feature or refer to the
campaign press release. Which publications ran the article or story and was
the campaign well received by the media? Public Opinion Polls can gauge
key audiences’ awareness of the campaign launch, all of (or a majority of)
the company’s properties, and also how the new branding of the company is
perceived. Were PR tactics and cooperative marketing tools effective in
informing the public?
PR Outcomes are evaluated for the long-term goal of making the new One
Media brand the premier media conglomerate for African American end-
users, and advertisers seeking them. To measure the awareness and
comprehension of the total rebranding of the company focus groups can be
utilized to determine qualitative measurement and mail, Internet, and email
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polls can be employed to quantify the number of key audience members who
“received, paid attention to and understood the messages directed at them”
(Davenport 2008). This will be crucial for Radio One’s long-term goal of being
recognized as the decisive Urban Media Specialist. Attitude and Preference
Measurements can be evaluated after the campaign launch. Have
advertisers’ attitudes about opportunities with the parent company (Radio
One) and its subsidiaries changed? Have end-users changed their primary
preference for entertainment and news content to the print, radio, television,
and online platforms of Radio One?
Personal Assessment
Throughout my research and findings of Radio One’s PR problems and
strategies I found very little public information on their plans for addressing
their current issues. Radio One has great potential to be the leading source
for African American target audiences to not only use and participate in the
media offerings, but also become available for advertisers to reach
consumers almost anywhere they consume media. The key to Radio One’s
success in the coming years is to go beyond simply acquiring and developing
innovative media offerings, but to present an integrated package to all key
publics. A single brand recognition would be the most efficient and effective
way to link all of Radio One and its subdivisions, so that when a person
recognizes the parent company they also recall its other brands.
During a time like this, when the market is in distress across the nation and
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ad-based industries are experiencing major setbacks, Radio One can utilize
what it already has and build a great corporation of multimedia offerings. To
incorporate consumer research, communication opportunities can be
facilitated to allow for user insight and suggestions.
Keeping up with the latest technologies, such as Twitter for example, opens
a two-way line of communication so that Radio One can send and control
messages to audience members, as well as receive dialogue to improve its
PR dealings.
Radio One needs to improve on its overall public relations engagement from
this point forward. Beyond the problems, goals, and objectives laid out
above, Radio One must add some transparency to its operations and
dealings. End-users, advertisers, and shareholders would likely have greater
faith and loyalty to the brand and company if its public image was more
controlled and informative. Employing basic PR tools, particularly with the
access of its own media sources, would allow information to be more readily
available and spark a stronger preference for the media offerings that Radio
One provides. Working toward unifying the Radio One “voice” through public
relations is the first step making the communications much more succinct.
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References
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http://cdn.giant.blackplanet.com/wp-content/uploads/2008/10/giant-magazine-2009-media-kit.pdf
Davenport, D. (2008). Lesson 4: The Publics of Public Relations. West Virginia University.
Dodson, D. Retrieved December 22, 2008 from http://www.terry.uga.edu/news/releases/2007/minority_buying_power_report.html
http://giant.blackplanet.com/about-us/
Goetzl, D. (2007, September 17). A Decent BET: New programs, more cash boost channel. Broadcasting & Cable, Retrieved November 7 2008, from http://www.broadcastingcable.com/article/CA6478750.html
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Huslin, Anita. (2008, February 22). Radio One's Losses Grow, Stock Declines. Washington Post, p. D01.
http://www.interactiveone.com/about.php
Mazard, P. B. (2008, November). The Powerful Advantage of One Solution. The Frequency, p. 11.
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Radio One, Business Wire. (2007, August 7). Radio One, Inc. Announces That
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Barry Mayo Has Been Named President of the Radio Division [Press release]. Retrieved from http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20070807006452&newsLang=en
Radio One, Business Wire. (2008, October 20). NASDAQ Notifies Radio One, Inc. Class D Shares Fall Below Minimum Bid Price [Press release]. Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=63747&p=irol-newsArticle&ID=1215938&highlight=
Retrieved on November 9, 2008 from http://www.targetmarketnews.com/storyid04140801.htm
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http://www.tvoneonline.com/inside%5Ftvone/