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November  Briefing        2007                             HighwayRadio NV CA AZ logo  

Mobil 4 

 Mobil Trak Unit Captures Radio Stations listened to on
 
 I-15

  Highway Headlines...

 

    OCTOBER TRAFFIC SHOWS  IMPROVEMENT 

 

   HIGH DESERT ECONOMY SHOWS 
   STRONG GROWTH   

 

   BEST TIME FOR ADVERTISERS
   TO WORK WITH RADIO

  HIGHWAY RADIO STARTS AUDIENCE MEASUREMENT

Highway Radio has signed a contract with Mobil Trak and has installed two monitors on I-15.  These monitors measure the emissions from FM radio tuners and detect what stations are actually being heard in the cars.  The sampling is far more accurate and gives a much larger sample than is provided by the Arbitron Diary method. Preliminary results are already available and detailed ratings will be available in January.  Contact your Highway Radio rep at 702-737-9899 for full details.

  Turkey                            TRAFFIC REPORT - OCTOBER 2007  

 I-15 at Stateline/Primm

OCTOBER TRAFFIC SHOWS IMPROVEMENT

Weekend traffic (Saturday-Sunday) was up 1.04% as measured at Stateline/Primm by the Nevada Department of Transportation (NDOT).  Weekday traffic was off 0.26%. Average Daily Traffic for the month was up 0.65%.  The weekend gain was actually better since this year there were four Saturday/Sunday weekends and in 2006 there were a total of five Saturday/Sunday weekends. Year-to-date total is up 0.5%.  See chart below.   Northbound traffic on I-15 on the four October weekends showed increases on three of the four weekends (Friday, the 5th and Saturday the 6th up 7%; 12th and 13th -1%; 19th and 20th up 4%; 26th and 27th up 2%.)  As is the usual pattern, Sunday is the heaviest day for traffic in both directions, followed by Friday, Saturday, Monday and Thursday.  Tuesday and Wednesday were the lightest days

  Laughlin, Nevada (SR163, Davis Dam Road) and U.S. 95 (Searchlight, .5 miles north of SR 164, Nipton Road)

Traffic counts in both directions on these two routes continued to show drops, with Average Daily Traffic on Davis Dam Road extending east from U.S. 95 into Laughlin down 6.5%, Weekdays off 6.1% and Weekends down 7.3% according to the NDOT. On U.S. 95, measured north of Nipton Road, Average Daily Traffic was off 4.4%, Weekday off 3.5% and Weekend off 5%. See chart below.  The hotels in Laughlin report auto traffic remains robust and business is good.  Conjecture in Laughlin is that more and more travelers are using the recently improved River Road, or Needles Highway that extends from I-40 north into Laughlin. California and Nevada expanded portions of almost all the highway to four lanes, making a much easier drive.  Unfortunately, neither Nevada nor California measures traffic on this route.

  Mesquite, Nevada (I-15 at the Arizona/California state line)

Repairs are still being done on the highway and the magnetic counters are out of commission so no statistics are available on this route.   

 

 GAMING REVENUE REPORT -
SEPTEMBER 2007 

  All of the venues in Clark County, as well as the State, showed healthy increases in September gaming win.  Downtown led the parade with an impressive 12.5% increase garnering a 5.1% share (percentage of statewide revenue) vs. 4.8% last September. The win Downtown is up 6.5% in the trailing twelve months.  The Strip was up 6.9%, with share down slightly to 52.2% from 52.4% last year. Win on the Strip in the trailing twelve months now is up 5.4%.  Laughlin  was up 1.2% for the month, with share down slightly to 4.6% from 4.8% last year and win is up 6.6% in the trailing twelve months. Statewide  was up 7.5% in September and is up 4.5% in the trailing 12 months.   An analysis of the win components in Clark County, as reported by the Gaming Control Board, shows some patterns in the differences in gaming preferences of players at each location. The table below shows the components of gaming win in the trailing months from slots and table games in Laughlin, Downtown, the Strip, and Clark County.  While the Strip shows an almost 50/50 balance between slots and table games, Laughlin and Downtown rely heavily on slots, balancing out the averages for Clark County at 63.35.  The balance comes from race and sports books. 

 
LOCATION   SLOTS    TABLE GAMES
Laughlin     87%     12%
Downtown     74%     24%
Strip     51%     47%
Clark County     63%     45%

  McCARRAN AIRPORT REPORT- SEPTEMBER 2007 

  Total arriving and departing passengers year-to-date (YTD) is up 4.6% with September counts up 2.4%.  In an interesting shift among the top five scheduled carriers, Delta showed the best improvement in September, up 8.2% for a 6.7% YTD. Southwest was second up 7.5% and a 4.9% improvement YTD.  American showed a .4% increase, is off 8.2% YTD.  Two airlines among the top five showed passenger drops in September.  U.S. Airways off 16.3%, but still holding to a 6.6% gain YTD and United off 4.5%, down 4.4% YTD. 

   

  For all scheduled carriers out of Terminal #1, passenger counts were up 2.3% for a 4.6% improvement YTD.  Scheduled carriers out of Terminal #2 are up 14.4% YTD but are a relatively small portion of the total scheduled traffic.  These scheduled carriers have had 1.6 million arrivals and departures compared with 32.6 million for the scheduled carriers out of Terminal #1. 

  ACCIDENT CLOSES I-15 FOR OVER
 20 HOURS  

 An oil spill from an overturned semi truck caused the closure on Wednesday, October 31st at about 7:00 a.m. The roadway reopened at 3:51 a.m. Thursday morning.   Traffic backed up about 15 miles south of the state line.  A detour approved by the California Highway Patrol rerouted northbound traffic on back roads.   The Highway Radio Traffic Hotline (1-800-231-9899) recorded a steady stream of calls through the entire closure and, of course, emergency liners carried on the station every ten minutes.  The California and Nevada Highway Patrols kept feeding updated information to the stations, relying on them to notify the public of the situation.  Needless to say, listenership was high.

  KELLOGG SAYS "WE WANT TO SELL MORE SO WE'LL ADVERTISE MORE"  

 Faced with rising commodity costs the Battlecreek, Michigan Cereal Company has announced that it is planning double digit percentage rise in advertising in the fourth quarter as a way to encourage consumers to buy more of its products.  This follows a similar advertising increase in the third quarter, which followed with a third quarter revenue rise of 6.4%.   This philosophy is contrary to some companies, who faced with rising costs and lower profits, cut their advertising.  Maybe that is why Kellogg is still one of the leading grocery brands after more than 100 years in the business.

                 Turkey with Hat

              

 

 HIGH DESERT ECONOMY CONTINUES TO GROW  

 Taxable retail sales in the High Desert region topped $3 billion in 2005, the latest year for which figures are available from the State Board of Equalization.  This is a growth rate of 66% in the trailing five years.  Barstow and Victorville, the two cities on the High Desert that straddle I-15 account for 75% of total taxable retail sales.  The growth in these High Desert cities makes them a key target for Nevada resort casinos, particularly those at State Line and Laughlin.  

 BEST TIME FOR ADVERTISERS TO WORK WITH RADIO

Sixty-three percent of all radio listeners find that the ads did not get in the way of their enjoyment, according to a study by the Radio Advertising Effectiveness Lab done in 2006.  This compares with 50% of the listeners who are annoyed by TV ads and 57% disliking on-line ads.   At a second annual New York Radio Forum, David Goodman, President/Marketing for CBS Radio said, "This is the single best time frame in the history of radio for advertisers to be working with radio.    The commercials on Highway Radio fit directly with the lifestyle, destination, wants, needs and desires of the listening audience, that's why, as stated above, 80% of the people who listen to radio on the highway tune to the Highway Radio Stations.  

  ARE MORE SLOTS COMING TO CALIFORNIA?

  Four Native American tribes in California plan to add 17,000 new slots, splitting the additional revenue with the State of California.  The compact should generate $9 billion over the two decades for California, which is now facing a $10 billion deficit next year.  The compacts could double the amount of slots that the four tribes operate.  The compacts were set to take effect January 1st, but now they will go on the February ballot and both sides expect heavy spending.  Opposing are several coalitions of unions, two racetracks and two of the tribes that are excluded from the deal.  At this time none of the Nevada casinos have weighed in in opposition to the compacts.  The impact on Nevada from these additional slots in California has not been calculated.   

 

  

AUTOMOTIVE ADVERTISERS SHIFT BACK TO TRADITIONAL MEDIA  Domestic auto makers, notably GM, have shifted hundreds of millions of dollars to the internet.  Online ad spending was up 62% the first three quarters of 2007, according to Nielsen ONLINE AD RELEVANCE.  The trade publication Media Economy Newsletter reports   that "buyers note the big three aren't seeing any improvement in sales by going on-line, so many buyers suspect the auto makers will beef up traditional media budgets."  

 

  RADIO HOLDS ITS AUDIENCE   A nation wide survey done by America Media Services (AMS) found that 63% of adults listen to radio one or more times a day.  This was consistent with two previous AMS polls over the last year.  Respondents said that they are listening to the radio as much or more than they did five years ago.  Listening was strongest within the key age group 25-34; with nearly eight out of ten saying they listen to the radio at least once a day.

  

  SATTELITE RADIO SALES CONTINUE TO DROP  Retail sales of XM and Sirius receivers were down 30% in September, according to NPD Data.  XM unit sales were down 35% year over year in September and Sirius sales dropped 26%.  Bank of America analyst Jonathan Jacoby told clients he is also less optimist than most of Wall Street about the likelihood of the proposed XM/Sirius merger clearing regulatory hurdles.

 

 

             
NEVADA DEPARTMENT OF TRANSPORTATION OCTOBER 2007 TRAFFIC SUMMARY

 

AVERAGE DAILY TRAFFIC1

WEEKDAY 2

WEEKEND 3

I-15 NEV/CA STATELINE

(PRIMM, NEVADA)

0.65%

-0.26%

1%

 

I-15 MESQUITE

N/A

N/A

N/A

SR 163 LAUGHLIN - Davis Dam Rd.

-6.5%

-6.1%

-7.3%

US 95 AT SEARCHLIGHT

(SR 164)

-4.4%

-3.5%

-5%

 

1.  Percentage increase (decrease) in average daily traffic northbound and southbound divided by the total number of days of the month.

2.  Percentage increase (decrease) in total traffic northbound and southbound Monday through Thursday divided by the   number of days of the month.

3.  Percentage increase (decrease) in total traffic northbound and southbound for Saturday and Sunday divided by the number of days of the month

 

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