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... e stations appealing primarily to 18 to 34 or 25 to 54 year old men and / or women, the demographic groups most sought after by advertisers. '; OUTDOOR ADVERTISING Chancellor is the fifth largest outdoor advertising company in the United States. Chancellor Media owns over 42, 500 billboards and outdoor displays in 38 states. MEDIA REPRESENTATION 'Katz is a full-service media representation firm that sells national spot advertising time for its clients in the radio and television industries throughout the United States. Katz is retained on an exclusive basis by radio and television stations in over 200 designated market areas (DMA's), including at least one radio or television station in each of the 50 largest DMA's. Katz is the exclusive representation firm for over 2, 200 radio stations, including radio stations owned and operated by the company, Jacob Communications, Inc. , CBS Radio, Inc. , Capstar, Cox Radio, Inc, and Hotel Broadcasting Corporation, among others.
Katz is also the exclusive representation firm for over 365 television stations, including television stations owned and operated by Paramount Communications, Inc. , Hearst Argyle Television, Inc. , The E. W. Scripps Company, Clear Channel Communications, Inc. , All britton Communications Company, and Sinclair Broadcast Group, Inc. , among others. '; CORPORATE TIMELINE Evergreen Media was founded in 1988 with 6 radio stations, half of which were in the top ten markets and 90 % of which were concentrated in Chicago. In 1989, Evergreen purchased KFAC-FM (later renamed KKBT) in Los Angeles; changing the formatting from classical to urban contemporary and thereby increasing the ratings from last to first. 'In 1992 the FCC relaxed radio station ownership regulations to allow broadcasters to increase both the total number of radio stations they could own nationwide and the number they could own in a single market, paving the way for the advent of duopolies. Evergreen Media continued to build its presence in major markets with station acquisitions in Washington, D.
C. , and San Francisco. '; In 1993 Hicks, Muse, Tate & Furst along with Steven Diet formed Chancellor Broadcasting. 1993 proved to be a monumental year for Evergreen as well. Not only did Evergreen Media finalize its initial public offering, but they also became the first radio broadcasting company in the United States to form a duopoly. 'In 1994 Chancellor Broadcasting completed its first station acquisition by purchasing two stations from American media Group for $ 150 million. '; In 1995 Evergreen Media purchased Pyramid Communications for $ 316 million and Broadcasting Partners for $ 259 million, gaining a total of 23 stations. 1996 also proved to be a monumental year. 'The Telecommunications Act of 1996 passed, allowing for unlimited levels of national ownership and dramatically higher levels of ownership in the nation's top radio markets. '; Also in 1996, Chancellor Broadcasting acquired 12 stations from Colfax Communications for $ 365 million, 8 stations from Omni America Group for $ 178 million, and 19 stations from Shamrock Broadcasting for $ 395 million; these acquisitions more than doubled the size of Chancellor's portfolio from 14 to 33 stations. In the same year, Evergreen Media acquired twelve independent stations, 'strategically enhancing its presence in major markets. '; Thus, Chancellor Media Corporation was more or less created by the Telecommunications Act of 1996. 'In 1997, Evergreen Media and Chancellor Broadcasting merged in a transaction valued at $ 1. 5 billion. The new entity, Chancellor Media Corporation, was initially comprised of 99 stations in 21 markets, representing stations previously owned by Evergreen and Chancellor, stations acquired from Viacom and Gannett, and other stations acquired subsequent to the merger announcement. Chancellor media emerged as the nation's largest pure radio company with stations in each of the country's top ten radio markets and super duopolies in nine. '; 'Citing the increasing importance of national advertising to radio, Evergreen Media and Chancellor Broadcasting jointly agreed to purchase'; Katz Media for $ 373 million. Katz is 'the only full-service media representation firm in the United States with leading market shares across multiple types of electronic media. '; 1998 proved to be a year of growth for Chancellor.
Chancellor launched AMFM Radio Networks, which broadcasts advertising and syndicated programming to a national audience of approximately 66 million listeners. AMFM controls syndication's such as American Top 40 with Casey Kate, Rockline, The Dave Koz Show, The Bob and Tom Morning Show, and special events such as the Kentucky Derby. Chancellor also acquired representation firms, outdoor groups, network television stations, and radio conglomerates in 1998. The acquisition of Petry Media, a spot television rep firm that owns subsidiaries Petry Television, Blair Television, and Fox Television Sales, enhanced Chancellor's television representation portfolio.
The acquisition of Martin Media and White Outdoor Advertising, made Chancellor the nations' fifth largest outdoor advertising company with over 42, 500 display faces in 38 states. The acquisition of LIN Television, a promising company owning eight network-affiliated stations, brought Chancellor into a new medium. And, the acquisition of Primedia Broadcast Group, Puerto Rico's premiere radio broadcaster, six Cleveland radio stations, and Capstar Broadcasting, the nation's leading broadcaster in medium-sized markets, launched Chancellor to the top of the radio charts. Chancellor was, and is now, the largest radio conglomerate, ranking first nationally in revenue, broadcast cash flow, and station count and listenership. The Spring 1998 Arbitron survey reaffirmed Chancellor as the most successful radio broadcasting company in America. These acquisitions required Chancellor to create three primary operating divisions, an outdoor group, a television group, and a radio group.
STRATEGY The core purpose of Chancellor Media is not unlike that of any other public institution& # 61630; to maximize shareholder value. Chancellor intends to achieve this through a number of strategies. Chancellor's overall company strategy is to 'create a leading diversified media company with a significant overlapping presence in radio and outdoor advertising markets. '; Chancellor Media aims to: (1) build a diversified portfolio of media assets in order to deliver more options and greater value to its clients, (2) integrate station cluster groups in order to reduce expenses and maximize cash flow in each market, (3) maximize operating performance through market research, programming, and marketing campaigns, (4) expand its national radio network, AMFM, (5) create a leading national representation firm, and (6) increase its market share and improve its national sales effort. MARKETING MIX Chancellor Media offers competitively priced media packages that combine advertising airtime with billboard space& # 61630; creating growth opportunities and synergies through cross selling, cross promotion, and cost savings.
Chancellor's goal is to market and sell their radio airtime with their billboard space, thereby using economies of scale to create increased value for their customers and shareholders alike. Chancellor also uses its outdoor division to promote its' own radio stations in markets where billboards are present. COMPETITORS Chancellor Media competes not only for audience and advertiser dollars, but for acquisition opportunities as well. In radio, popular program formats and on-air talent lure a strong listener base. Increased listeners drive up ratings, which in turn, appeal to advertisers. Ratings are measured by multiplying the share (percent of homes listening to a particular radio station) by the PUR (persons in the market who listen to, or use, the radio).
A rating signifies the number of people in a designated market area (DMA) that are listening to a particular radio station. Success in drawing a large share of advertising dollars is dependent upon attracting a strong listener base. Chancellor competes for advertiser dollars in eac...
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Research essay sample on Building A Radio Empire Chancellor Media
