On yesterday’s 2Q Earning conference call, respected media analyst Marci Ryvicker of Wells Fargo Security brought up iHeartRadio. She asked about the monetization of iHeartRadio. Specifically she wanted to know if “we can see (monetization) materially over time, or is it already instrumental and contributing to the threshold radio growth?
Robert W. Pittman - Executive Chairman jumped in with the answer:
It is -- iHeartRadio is really a major part of the digital offering of CCME and it's the fastest-growing segment. I think we, as I had said, double-digit revenue growth. And -- but I think the way you think about the monetization is yes, we'll sell in stream spots.
Yes, we'll sell display ads. But it also is, iHeartRadio, it is the station website, it is the broadcast station, it is events, it is promotions, traffic. And as much as we can, we're trying to build those into multi-platform offerings, so when we talk to advertisers increasingly, we're not talking about a bunch of spots, but we're talking about helping them achieve a goal.
And we have all of these assets that we can use for their benefit. And to me, that's the new way people sell, is you get an assignment not a buy. And as you look at the national sales marketing and promotion platforms, which John Hogan set up, which Tim Caseli has, that's one of the goals of doing it, is to have one organization that can pull it all together and have those kinds of conversations.
And it's been happening in other sectors besides radio, and we're now bringing out the exact kind of sophistication to the radio business, which we look at as being one of the important upsides.
And clearly, digital plays an important role in that. But certainly, iHeartRadio with its tremendous growth, it is really one of the stars of that.