HD Digital Radio Ad Campaign Continues

December 4, 2006

Orlando, FL - Dec 4, 2006 - The HD Digital Radio Alliance, a consortium of U.S. radio companies that came together one year ago to accelerate the rollout of HD Radio, has announced a renewed plan to promote the technology. The Alliance's marketing plan includes a commitment for the participants to devote $250 million in advertising. This is an increase of $50 million from the announcement made last year.

The press release from the Alliance states that "next year's marketing campaigns will continue to support the success of a rapidly growing list of retail, receiver and automotive partners in the HD Radio marketplace."

Alliance member companies will continue to promote HD Radio and its FM multicast channels with manufacturing, retail and automotive receiver manufacturers. Currently, more than 1,000 U.S. radio stations transmit an HD Radio signal to reach 81 percent of the population. More than 500 of those FM stations are providing multicast services.

The HD Digital Radio Alliance members include ABC Radio in Los Angeles and Minneapolis, Beasley Broadcast Group, Bonneville International, CBS Radio, Citadel Broadcasting, Clear Channel Radio, Cumulus, Emmis Communications, Entercom, Greater Media and independent owner Jerry Lee.

Observation from Radio magazine: While the news from the Alliance is packed with glowing praise of the efforts of it members, the advertising campaign and its whopping dollar figure is still a marketing push that does not extend beyond terrestrial radio. The money allocated to the campaign is in the form of stations over-the-air inventory. No money is changing hands, and no promotion is being made on other forms of media.

Compare the HD Radio marketing push to satellite radio, satellite TV and media players, which have all used TV, print, movie theaters and online as part of their marketing efforts. These other emerging digital technologies have actually invested money into reaching a new audience.

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