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Public Relations Plan

Nov 08, 2014





Radio One, Inc.

West Virginia University Jasmine Hood IMC 618

Hood 2





.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


Hood 3 .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....


Hood 4 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 todays market must be efficient and costeffective. 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 Universitys 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

Hood 5 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. ( They have also recently added Community Connect Inc., an online social networking company to their Interactive One portfolio. Radio Ones 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, the

Hood 6 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 Ones 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

Hood 7 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 Ones 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

Hood 8 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 Industrys 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 Arbitrons 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 industrys 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 mediums 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.

Hood 9 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 Ones focus on the African American niche market is unrivaled by any other broadcasting company. TV Ones 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 BETs 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 Ones 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 Ones sites is, by far, In 2007 ranked No.4 in Hitwise's Top U.S. Social Networking Sites Report, behind MySpace, Facebook and Bebo (Hitwise 2008). Magazine Ones Giant Magazine has the advantage of being linked to a

Hood 10 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 Eb