NUDs (Non Urban Dictates)

[bigirl]

NUD (Non Urban Dictate)

Tom Joyner wants this information to reach his listeners.....

You have probably heard of "NUD" as a result of the Tom Joyner morning show related to CompUSA. NUD is the acronym for a very subtle and little-known marketing term specifically directed toward people of color.

NUD stands for Non Urban Dictate. These three words essentially mean that a company is not interested in the Black consumer. A NUD label means that a company does not want their marketing and advertising materials placed in media that claim an urban audience(black folks)as their main target. There are legitimate reasons for companies not using urban radio.

It may be that Blacks don't index high in certain categories or that a company's strategy is to market to the Black consumer down the road after they have established a strong position in their primary target.

But NUD usually means that a company is not interested in the Black consumer. Companies evade discrimination liability by embracing it as theory rather than policy.

As a service to Black consumers, the Urban Institute will list all companies that have a NUD policy. Armed with this information, we feel that Black consumers will be able to make informed buying decisions.

Companies with NUD policies:

a.. Starbucks
b.. Jos. A Bank
c.. CompUSA
d.. Weight Watchers
e.. Keebler
f.. Life Savers
g. Continental Airlines
h.. Northwest Airlines
i.. America West Airlines
j.. HBO - Apollo Series
k.. Paternal Importers
l.. Calico Corners
m.. OM Scott
n.. Pepperidge Farms
o.. Ethan Allen
p.. Busy Body Fitness
q.. Mondavi Wines
r.. Builders Square
s.. Don Pablo
t.. Lexus
u.. Aruba Tourism
v.. Ciba Vision
w.. [Removed by BreakTheChain.org at Company's Request]
x.. Grady Restaurant
y.. Eddie Bauer

Please forward this information on to any other consumer that you consider a friend and advise them to do likewise. Remember, we can't act wisely unless we are informed wisely.

 

[bigirl]

Advertising is about more than just black and white
Houston Business Journal - by Crystal C. Brown Special to Houston Business Journal

A new study from the University of Georgia concludes that Hispanic spending power will surpass African-American buying power in 2007; marking the first year that Hispanics control more disposable personal income than any other U.S. minority group. This conclusion leads me to question the motive behind the research and the social consequences if Hispanics and blacks buy into the competitive research. Will corporate America pit the two groups against each other when disbursing advertising dollars to their respective ad agencies?

The business case for diversity in corporate advertising has been a solid one for decades. Corporations have slowly realized the importance of advertising to ethnic markets and the results of such efforts to their bottom line. Despite the recent projections, African-American consumers continue to be a powerful force in the U.S. economy.

Ethnic spending power is vital to the U.S. economy. The vast majority of states continue to see blacks as the nation's strongest ethnic market because the concentration of the Hispanic population is limited to a few key geographical areas. Hispanics are expected to have buying power of $863.1 billion in 2007, compared to $847 billion for blacks.

Despite this collective buying power, minority consumers are still greeted with suspicion about their intentions and with skepticism about their ability to pay. Many companies still function under a non-urban dictate when working with ad agencies. A non-urban dictate means that a company does not want their marketing and advertising materials placed in media that claim an urban audience as their main target.

Hispanics are the largest and fastest-growing ethnic group and will comprise 8.5 percent of the nation's total consumer market next year. Rosa Rosales, president of the League of United Latin American Citizens, says that she hopes the study will get the attention of companies that have ignored the Hispanic consumer.

I find it hard to believe that the Hispanic consumer has been ignored given the tremendous success of Hispanic-owned advertising agencies. Maybe it's time that African-American consumers themselves take a stronger stand by taking their dollars to companies that advertise directly to them. Not only will this send a large economic message to companies that engage in discriminatory practices, such as non-urban dictates, it will also send a strong message to all other companies that consumer discrimination will not be tolerated.

Imagine a pep rally where all of the ethnic groups competed for the top spending power chanting "We spend more! Yes, we do! We spend more! How about you?"

Sounds ridiculous doesn't it? Pitting two ethnic groups against each other is nothing to cheer about it. Inclusion is about engaging everyone. Separation is about keeping things apart.

Which team are you on? Which team are you rooting for?

Crystal C. Brown is president of Crystal Clear Communications, a Houston-based advertising agency and public relations firm.

http://houston.bizjournals.com/houst...ditorial3.html

 

[bigirl]

No Urban Dictates, Advertisers instruct agencies not to buy airtime on black or spanish radio
Published on January 9th, 2008


“No Urban” and “No Spanish” Dictates are instructions given by advertisers, instructing their ad agencies not to buy airtime on Black or Spanish radio. The FCC held a hearing on this subject in 1984. The National Association of Black Owned Broadcasters (NABOB) and others asked the FCC to ban discrimination in advertising. The FCC bumped the matter to the Federal Trade Commission, which in turn decided that it was an FCC issue. So nothing was done.

In 1996, the “Katz Memo” was leaked to civil rights leaders from a “rep firm” (a company that helps local radio stations secure national advertising). The (draft) memo asked advertisers to consider the “more important ‘white’ audience” and infamously asked the advertisers to go after “prospects, not suspects.” Although there was a public furor, the FCC didn’t do anything.

After four attempts to persuade the FCC to ban advertising discrimination, the Minority Media and Telecommunications Council (MMTC) — the leading civil rights organization in the media and telecom industries — finally succeeded in getting the FCC to ban racial discrimination in the sale of broadcast advertising. The FCC awarded MMTC this victory on December 18, 2007 in a unanimous 5-0 ruling. (On the same day, the FCC, also 5-0, granted MMTC’s petition to ban racial discrimination in the sale of a broadcasting station.)

Here’s how much money is involved in no-urban dictates: the radio industry generates about $19B in annual gross revenues. Black radio gets about 7% of that, or about $1.33B. MMTC has conservatively estimated that no urban dictates deprive Black radio about 5-10% of the revenues they would have earned if the Black radio stations collected the money that represents what Black consumers are really worth to advertisers. Using the midpoint of that estimate (i.e., a 7.5% revenue hit against Black radio from no urban dictates), it follows that the economic loss incurred annually by Black radio from no-urban dictates is on the order of $100,000,000. How much money is $100,000,000 a year? It’s enough, every year, to pay for the average tuition and fees of 10,000 Black students in college – roughly the entire student body of Howard University.
http://xm169thepower.com/blog/thetru...rban-dictates/

 

[bigirl]

Quiznos pulls ads on 'urban' radio stations
Written By: Elizabeth Green

http://www.washingtontimes.com/business/20040805-104634-2167r.htm

Quiznos Subs, hoping to show off its toasty alternative to Subway, started off the year by purchasing ads on radio stations across the country, including many that are "urban" — a format that specializes in hip-hop and R&B and whose listeners and disc jockeys are often black.
It was a routine purchase for a company that targets adults 25 to 49. Urban radio stations often rank at the top of their markets, and about half of urban listeners fall into Quiznos' target age bracket, Arbitron numbers indicate.

But in the spring, Quiznos backed out, pulling ads from urban stations across the country because an internal study showed that the company should not advertise on those stations, said several sources who spoke on the condition of anonymity.
Industry insiders said such decisions, called "no-urban dictates," are common, issued by companies who associate urban listeners with a lifestyle that they are trying to avoid.
"This goes on every day in America," said Brian Knox, senior vice president and director of corporate diversity at Katz Media, a media-representation firm in New York. "It's basically from soup to nuts."
Quiznos would not comment on the policy, but issued a statement that indicated that budgetary concerns were behind any changes in advertising.
"At Quiznos, we value all customers," the company said. "We use our current media budget to reach as many of our 25- to 49-year-old customers as possible. This media plan cuts across as broad of a range of these customers as our current budget permits."
The dictates have angered executives at Radio One Inc., who are considering taking action against Quiznos, sources familiar with the situation said. Radio One owns 68 stations in 22 urban markets in the United States.
Mario Christino, director for sales and marketing at the Lanham company, would not comment on the Quiznos decision, but he did say that he is "in discussion with" at least one company with a no-urban policy, although he would not name the company.
He added that when discussions with a company fail to spark a policy change, his company does not back down.
"We go back and say, 'Would you consider us?' And then if they still say no, then we decide what we would do after that. We would pursue other avenues," he said.
Mr. Christino would not be specific about the "other avenues." He said no-urban dictates are unfair but would not comment on whether they constitute discrimination.
His company has never brought a lawsuit against businesses with no-urban dictates, and he said it has never "pursued other avenues."
"Not yet," he added.
Mr. Knox and Sherman Kizart, senior vice president and director of urban marketing at Interep, an urban marketing firm, advocate urban radio. They said businesses from airline companies to beverage manufacturers, fast-food vendors to automotive giants, yard-care services to department stores and hotels to supermarkets have issued the dictates, but they would not mention any by name.
The men said the policies are troubling because the companies avoid all urban radio without attention to specific demographics.
"Marketers have the perception that African-Americans aren't consumers of upscale products," Mr. Kizart said. "How upscale do you have to be to buy a $2 sandwich?"
As well as Radio One stations, Quiznos pulled out of ads on two urban stations owned by Crawford Broadcasting. Joe Mackay, national sales manager for the Chicago-based stations, said Quiznos agency informed him that it was no longer buying time on urban stations.
Although Mr. Mackay said he disagreed with Quiznos' decision, calling the company's thinking "outdated," he said he respects the company's right to buy airtime where it pleases.
"It's just like anything," he said. "Any person that owns a business has the right to do what they want to do with their advertising dollars," he said.
Mr. Christino said other broadcasting companies avoid the problem by giving their urban programming a different name.
Local stations WKYS-FM 93.9 and WPGC-FM 95.5 illustrate the point, he said.
The stations' list of most-played songs for one week in July overlapped for 26 of 40 tracks. They also attract nearly identical audiences.
WPGC calls its programming "rhythmic contemporary hit radio," or "rhythmic CHR," while WKYS officially is listed as "urban contemporary."
Sales directors at Radio One say this difference is aimed at winning advertising from companies who might not advertise on an urban station but don't mind the rhythmic CHR label.
"[WPGC is] urban when they want to be, but to everybody else, they're hiding," Mr. Christino said. "They don't want people to know they're urban because then they won't get bought."
Sam Rogers, vice president and general manager of WPGC, agreed that urban stations face some advertiser discrimination, but he said the rhythmic CHR label is not an escape.
"WPGC plays the hits for Washington, D.C.," he said. "It just so happens that the contemporary hits for Washington, D.C., are urban."
Even if the station did want to avoid the no-urban bias, changing its format type is not an effective way to do that, he said.
"If an advertiser will not buy a station because of what they call themselves, that's a poor sales job," he said. "In my opinion, it doesn't matter what you call yourself, it matters how you present yourself."

 

[SinaminDelite]

Great info. This is new to me. I have to send this to some people that own small businesses. They will definitely like to know about this.

 

[bigirl]

Minority Ownership

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When media companies consolidate in the hands of fewer and fewer owners, the diversity of viewpoints, cultures and voices to which we're exposed can dramatically decrease.

Ethnic minorities make up about one-third of America's population but own fewer than 4% of America's broadcast licenses. Fewer minority media owners engenders fewer newspaper stories, television shows, and radio programs that educate, entertain and challenge all Americans with the concerns, culture and knowledge of people of color.

Minority Owners Face Challenges
Minority media owners face similar challenges as do other small or independent programmers, and producers, but the challenges are exacerbated by the persistent effects of institutional discrimination. Obstacles which have a disproportionate impact on minority media owners include:

Lack of funding: A key challenge facing minority media owners is a lack of access to sufficient funds to make ownership opportunities possible. James, Winston, Executive Director of the national Association of Black-owned Broadcasters (NABOB), discussed this in a RadioInk article. This is also the purpose of the Minority Media Telecommunications Council’s (MMTC) annual Access to Capital Conference, which aims to bring together funders and minority entrepreneurs.
Advertising: In its 2001 report, the Minority Telecommunications Development Program (MTDP), part of the National Telecommunications and Information Administration at the Department of Commerce, found that minorities are often cut off from a critical source of media funding: advertising dollars. Evidence suggests that at least one major reason for this is the role that misinformation and discriminatory practices impact the value of minority advertising. Reed Bunzel, editor-in-chief of RadioInk, explained it this way: "Another lingering problem, despite concerted efforts to change it, is the ongoing problem of 'no-Urban' dictates, as when advertising agencies communicate to nation rep firms that they don't want to place their advertising on Urban-formatted (i.e., African-American) radio stations."
Media concentration: Consolidation has a particularly onerous impact on minority owners – 61% of whom are single-station operators – because investors want to put their money into large group owners. Because it is nearly impossible for small players to compete with large companies, the cases where concentration has benefited a minority owners, as in the case of RadioOne, are rare. Annette Walker discusses this in an article summarizing the work of scholar Kofi Ofori.
The impact of media concentration on minority media owners plays out even in cable, where the industry points to diversity success stories like BET, TV One and Oxygen. The reality is that none of these channels is minority-owned, using the government's own definition of slightly more than 50% minority ownership.

BET is owned by Viacom; Comcast holds a substantial ownership in TV One; and a big interest in Oxygen belongs to Time-Warner. In fact, the only cable network that meets the MTDP "minority-owned" definition is Univision, the most popular Spanish-speaking channel in the country. All of the other "minority stations" that the industry points to are in fact owned by large media conglomerates. For a guide to who owns what in the media, see the Columbia Journalism Review's Who Owns What or the Center for Public Integrity's Media Tracker.

Limited Employment: Numerous studies show that minority employment in the media industry does not reflect the diversity of our country. The Radio and Television News Directors Association’s 2005 report on Women and Minorities in Broadcast News shows that minority employment is down in both television and radio. The John S. and James L. Knight Foundation’s newsroom diversity survey reported that, of survey respondents, "374 of the nation's newspapers have all-white staffs (i.e. no employees of black, Hispanic, Asian or Native American descent in any job as a newsroom supervisor, reporter, copy editor, photographer or artist)."
UNITY: Journalists of Color and the University of Maryland's Philip Merrill College of Journalism found that fewer than 10.5 percent (60 out of 574) of the reporters, correspondents, columnists, editors, and bureau chiefs in the Washington daily newspaper press corps are journalists of color.

Studies show that poor representation in programming occurs when minorities are unable to gain access to ownership and employment within the media industry. For example, Consumers Union prepared an executive summary (PDF) on behalf of the Leadership Conference on Civil Rights addressing the link between media content that misrepresents people of color and policy decisions that impact all Americans. And the National Association of Hispanic Journalists, in their "Network Brownout" study (PDF) found that, "of the estimated 16,000 stories that aired on ABC, CBS, CNN and NBC in 2004, only 115, or 0.72 percent, were exclusively about Latinos."

A Step Backward?
It is disheartening to note that in recent years there has been a scaling-back of government efforts to increase the number of media properties owned by people of color. One of the most successful tools in the struggle to increase minority media ownership was the Tax Certificate Program, which allowed companies that sold to minorities to defer capital gains taxes. This program no longer exists.

David Honig, of the Minority Media & Telecommunications Council (MMTC), stated that 50% of minority-owned stations owe their origins to the Tax Certificate Program, which was terminated in 1995. Industry watchers like Erwin G. Krasnow and Lisa M. Fowlkes believe the cancellation was in large part meant to prevent a deal that would have resulted in Viacom's cable systems being sold to an African-American group.

Looking Ahead
There are plenty of people who refuse to accept defeat and are working hard to improve opportunities for people of color:

Last year, MMTC issued a list of initiatives that could improve minority ownership
The National Hispanic Media Coalition has filed more than 100 petitions with the FCC to deny radio and TV licenses to broadcasters who fail to properly employ and portray Hispanics
Senator John McCain has introduced legislation to bring back a tax certificate program
Free Press, the Center for Digital Democracy and Media Access Project, among others, provide additional information on the status of minority media ownership
The FCC Advisory Committee on Diversity for Communications in the Digital Age included recommendations (PDF) regarding equal employment opportunity and workplace diversity in their press release this year
The National Asian American Telecommunications Association funds, produces and distributes films, videos and programs that portray the richness and diversity of Asian culture
The interfaith World Association for Christian Communication regularly publishes a global Media and Gender Monitor
Consumers Union’s Minority Media project focuses on improving outreach to minority groups and developing legislative/market-based proposals to improve minority media ownership.
The Leadership Committee on Civil Rights (LCCR) was among the groups that filed comments with the FCC during their media ownership rules review. LCCR took the position that media concentration poses risks to minority ownership, viewpoint diversity and access to information
Minority programmers, producers and distributors continue to create, and seek outlets for, high-quality programming, for example:
Peggy Dobson of the Urban Broadcasting Network (UBC) "is committed to helping change the negative images that have often stereotyped people of color"
Rev. Glenn Plummer, the African-American CEO of the Christian TV Network, testified before Congress about cable channel choice. During the question and answer period, he said that Comcast demanded a stake in his company in order to air his network.
The mission of CoLours TV is to use telecommunications to promote positive images and programming by and for people of color, to foster greater understanding and harmony in today's diverse world
Brian P. Woolfolk, of Mattox Woolfolk, LLC, provides pro bono representation for minority programmers who have been frustrated in attempts to gain carriage for their programming.

 

[AristotlesOwn]

NUD's are in any store where the employees follow you around closely. That list is way too short.

Bill Gates, Michael Bloomberg, Warren Buffet, Sumner Redstone and Ted Turner own everything in this country pertaining to television (and most other things).

Great information here BG.

.

 

[LeroyDibiase]

This is dumb. The only reason Tom Joyner mad is because its ad dollars out HIS pocket. What he wants Life Savers to have those ******-coon ads that McDonald's has that are targeted at Blacks???

 

[bigirl]

This is dumb. The only reason Tom Joyner mad is because its ad dollars out HIS pocket. What he wants Life Savers to have those ******-coon ads that McDonald's has that are targeted at Blacks???

I posted the simplest and first article first. If you read the others you will see that it goes alot deeper than that. Black("urban") radio and tv stations can barely survive due to lack of advertisers. Thats one side of the coin. the other is lack of quality goods and services in so called "urban" areas and lower quality stuff at ridiculously overinflated prices being all that is available.

The white people can get the best quality line of whatever it is and cheaper prices than we can get the lowest quality line. All this is a part of NUDs.

 

[Mo-Better]

This is dumb. The only reason Tom Joyner mad is because its ad dollars out HIS pocket. What he wants Life Savers to have those ******-coon ads that McDonald's has that are targeted at Blacks???

Your totally missing the point. If these companies don't want to advertise to the black population. In essesce they saying they don't want support from the black community. That being the case we should make every effort to not spend our money on their products.

I'm surprised Tom Joyner has suddenly become so socially aware.

BTW Great info Bigirl.

 

[bigirl]

Your totally missing the point. If these companies don't want to advertise to the black population. In essesce they saying they don't want support from the black community. That being the case we should make every effort to not spend our money on their products.

I'm surprised Tom Joyner has suddenly become so socially aware.

BTW Great info Bigirl.

The first Tom Joyner post is actually quite old already. This is true. yet NUDs still are in full effect.

 

[LeroyDibiase]

I posted the simplest and first article first. If you read the others you will see that it goes alot deeper than that. Black("urban") radio and tv stations can barely survive due to lack of advertisers. Thats one side of the coin.

You assume that all, or even most, Black people listen to so-called urban stations. They struggle because their market is niche. That's called free-market economy.

the other is lack of quality goods and services in so called "urban" areas and lower quality stuff at ridiculously overinflated prices being all that is available.

The white people can get the best quality line of whatever it is and cheaper prices than we can get the lowest quality line. All this is a part of NUDs.

People sell what the consumers wants to buy, plain and simple. There's a reason the higher grade cuts of meat aren't available in poor areas and it ain't race. It's MONEY. Why ship top grade cuts of meat, if it ain't gonna get sold in urban Newark??? It makes no sense. It has nothing to do with race. It's economical. I have no problem finding good quality stuff in my area which has a higher than norm minority population, yet is at a higher income bracket than most.

As someone who knows someone who owns 2 urban "corner stores", it ain't the companies that sell them the inferior products and it ain't the companies that mark up the price. It's the owners of the store. And the owners of the store know that they can charge that because the niggas ain't gonna go nowhere else because the real store is not in walking distance, so you gotta buy a loaf of bread for 2.29. That's economics.

 

[bigirl]

You assume that all, or even most, Black people listen to so-called urban stations. They struggle because their market is niche. That's called free-market economy.



People sell what the consumers wants to buy, plain and simple. There's a reason the higher grade cuts of meat aren't available in poor areas and it ain't race. It's MONEY. Why ship top grade cuts of meat, if it ain't gonna get sold in urban Newark??? It makes no sense. It has nothing to do with race. It's economical. I have no problem finding good quality stuff in my area which has a higher than norm minority population, yet is at a higher income bracket than most.

I am in the neighborhood with the highest concentration of Black multi millionaires in the country. Not a thing to do with economics. Danny Glover, Spike Lee, Chris Rock and all the rest of us want the good stuff. They won't give it to us because our neighborhood still labeled Black even though its been recently invaded by crackas and its only since that invasion that better stuff started to come. Rich Black people been here for decades.

 

[LeroyDibiase]

Your totally missing the point. If these companies don't want to advertise to the black population. In essesce they saying they don't want support from the black community. That being the case we should make every effort to not spend our money on their products.

If you have an advertising budget, you advertise where the money is. And you advertise to the biggest audience. You realize that Blacks are <13 percent of the population. Take away the ones under 18 and the ones over 65. Then factor in who listens to radio, then factor in who listens to urban radio. You're reaching a niche market. If you're gonna spend money on radio ads, you wanna reach as many potential customers as possible. If you had a business and was planning an advertising budget, would you advertising on BET or MTV?? It's not that they don't want to, it's that they don't, there's a difference. On a personal note, I'm glad most don't, have you heard those commercials that pander to Blacks??? THAT is the true racism.

 

[LeroyDibiase]

I am in the neighborhood with the highest concentration of Black multi millionaires in the country. Not a thing to do with economics. Danny Glover, Spike Lee, Chris Rock and all the rest of us want the good stuff. They won't give it to us because our neighborhood still labeled Black even though its been recently invaded by crackas and its only since that invasion that better stuff started to come. Rich Black people been here for decades.

Hats off to your ONE neighborhood.

 

[bigirl]

Hats off to your ONE neighborhood.

There are plenty others too.

 

[Mo-Better]

If you have an advertising budget, you advertise where the money is. And you advertise to the biggest audience. You realize that Blacks are <13 percent of the population. Take away the ones under 18 and the ones over 65. Then factor in who listens to radio, then factor in who listens to urban radio. You're reaching a niche market. If you're gonna spend money on radio ads, you wanna reach as many potential customers as possible. If you had a business and was planning an advertising budget, would you advertising on BET or MTV?? It's not that they don't want to, it's that they don't, there's a difference. On a personal note, I'm glad most don't, have you heard those commercials that pander to Blacks??? THAT is the true racism.

I would go along with your explanation except the former CEO of CompUSA made it very clear like 10 years ago that they didn't want blacks in their stores. Now I know all the companies named haven't expressed their feelings in such a manner but one must wonder why these companies don't advertise in major markets like New York City/Newark, NJ, Atlanta, DC, Chicago etc. The black populations in these regions more than justify the cost.