Media Giants Streamline Ad Sales Efforts.

Advertisers looking to launch a multimedia blitz in years past had to make appointments with several different media salespeople from a number of different companies. Today, a number of media conglomerates are looking to simplify that media-buying process by offering themselves as one-stop shops.

Of course, it requires owning a massive asset base to pull it off.

One of the companies that fits the bill is Clear Channel Communications Inc. It owns 1,170 radio stations (more than any other U.S. company), Eller Media (the nation's largest billboard company), SEX (the largest U.S. live entertainment group), Premiere Radio Networks, 18 television stations and an Internet division.

And one salesperson can now sell an advertiser access to the whole shebang in a single shot.

"What we have done is streamline the process," said Roy Laughlin, market president for Clear Channel in Los Angeles. "A particular advertiser can now go to one individual and create the advertising package they want."

The "streamlining" is being handled out of Clear Channel's New York-based sales division, which was formed last November.

"It's something that is attractive to advertisers who in the past had shied away from radio and outdoor advertising," said Jake Balzer, a media industry analyst with Edward Jones. "In the past, it was difficult for large advertisers to buy time on a station-to-station basis or deal with outdoor companies. Those advertisers can now go to Clear Channel and buy those media."

Besides Clear Channel, other media giants pushing the "streamlined media buying" concept to advertisers are the Walt Disney Co., whose ABC Radio Division owns 54 radio stations (including four in Los Angeles), and Viacom Inc.'s Infinity Broadcasting Corp., which owns seven stations in L.A.

Analyst Balzer confirmed that the media giants (and especially their radio divisions) are puffing a much more formidable advertising package together, which should over time provide tough competition for other media outlets.

"Both radio and outdoor have been gaining market share on television and newspapers," he said. "This is a great opportunity to accelerate that market growth."

At Infinity, for example, advertisers can purchase spots on all-news radio stations KNX-AM (1070) and KFWB-AM (980), as well as billboards.

"It's a major challenge for all of us in this market," said Bob Koontz, director of sales for ABC Radio in Los Angeles. "Our four stations attract a male-dominated audience, making it an attractive fit for an advertiser looking to reach men 18 to 49."

Effectiveness unproven

Clear Channel has sent more than two dozen sale executives into the field to meet with advertising agencies, but the efforts so far have met with mixed results.

Kim Davis, media supervisor with Culver City-based ad agency Kovel/Fuller, said her firm, which had reached a group deal with Clear Channel several months ago, was forced to pull a $1.6 million dollar Jiffy Lube radio campaign two weeks ago.

"We pulled the campaign after our expectations weren't met," said Davis. "From our perspective, while Clear Channel had someone in place to go out and make the sale, they didn't have the back-end staff to support the campaign."

After several months without any promotions in other media to support Jiffy Lube's campaign, the commercials were pulled. Davis said she expects that Clear Channel would be able to correct its problems by the end of the year.

Clear Channel officials declined to comment on Jiffy Lube puffing its ads.

Despite such occasional scenarios of media buyer dissatisfaction, Craig Faretra, a radio buyer at Zenith Media, said it's definitely become more of a sellers' market.

"With Clear Channel accumulating all these radio stations, it's become a sellers' market because buyers have fewer outlets to go to," Faretra said. "The company is also allowing only limited inventory on each of its stations."

Excluding Jiffy Lube, Clear Channel has closed four deals, valued at between $200,000 and $1 million apiece. One advertiser, which Laughlin declined to identify, is launching a campaign that will include sponsorship of the KIIS-FM's (102.7) "Wango Tango" concert at Dodger Stadium in June.

An integrated-media campaign will mean that the company will have its name on billboards, the Internet and mentioned during promotional announcements on all eight Clear Channel Los Angeles stations, he said.

"All of our stations will be involved in promoting the (Wango Tango) event," said Laughlin. "With the Bee Gees participating, we will run spots on KOST (FM 103.5), and with Aerosmith taking part we will also air spots on Star (KYSR-FM 98.7). It creates an opportunity to cross-sell the event on a number of stations with different formats."