Spot-loads Decrease Across Radio
By Katy Bachman
Thursday, February 3 2005
Thursday, February 3 2005
Published on AllBusiness.com
Clear Channel's less-is-more initiative to reduce spot-loads across its radio stations has led to an overall reduction in commercial time across radio stations in the top 10 markets. According to a Harris Nesbitt analysis released Thursday, commercial time on radio stations from October to January decreased by 13 percent in the top 10 markets.
The study, which Harris Nesbitt intends to conduct monthly, also found that the frequency of 30-second spots versus 60-second spots had increased by about 20 percent. Among the top 10 markets, the biggest spot-load reductions were in San Francisco (down 25 percent) and Houston (down 19 percent).
Clear Channel, which first executed its less-is-more plan Dec. 15, has been the driving force behind the reductions. By January, Clear Channel reduced ad time on its top-10 market stations by 25 percent to 8.7 minutes per hour. In December, Clear Channel stations on average aired 10.5 minutes of ads per hour.
Other groups have also reduced spot-loads. Emmis Communications--which owns and operates stations in the top three markets (New York, Los Angeles and Chicago)--reduced its spot-loads by 12 percent.
Although Viacom's Infinity Broadcasting runs the highest overall spot-loads (averaging 12.3 minutes per hour), it also reduced spot-loads by 6 percent, focusing on key markets such as Washington, D.C., Philadelphia and Houston.
Infinity has higher spot-loads in part due to its owning a large number of News/Talk stations that can tolerate larger spot-loads. Its WINS-AM and WCBS-AM stations in New York each have spot-loads of 17 and 16 minutes per hour, versus its music stations, which average 11.5 minutes each.
"Radio revenue will be impaired in the near term, as radio pricing power cannot eclipse reduced spot-loads," said Lee Westerfield, managing director of Harris Nesbitt. "But overall, this is healthy."
The study, which Harris Nesbitt intends to conduct monthly, also found that the frequency of 30-second spots versus 60-second spots had increased by about 20 percent. Among the top 10 markets, the biggest spot-load reductions were in San Francisco (down 25 percent) and Houston (down 19 percent).
Clear Channel, which first executed its less-is-more plan Dec. 15, has been the driving force behind the reductions. By January, Clear Channel reduced ad time on its top-10 market stations by 25 percent to 8.7 minutes per hour. In December, Clear Channel stations on average aired 10.5 minutes of ads per hour.
Other groups have also reduced spot-loads. Emmis Communications--which owns and operates stations in the top three markets (New York, Los Angeles and Chicago)--reduced its spot-loads by 12 percent.
Although Viacom's Infinity Broadcasting runs the highest overall spot-loads (averaging 12.3 minutes per hour), it also reduced spot-loads by 6 percent, focusing on key markets such as Washington, D.C., Philadelphia and Houston.
Infinity has higher spot-loads in part due to its owning a large number of News/Talk stations that can tolerate larger spot-loads. Its WINS-AM and WCBS-AM stations in New York each have spot-loads of 17 and 16 minutes per hour, versus its music stations, which average 11.5 minutes each.
"Radio revenue will be impaired in the near term, as radio pricing power cannot eclipse reduced spot-loads," said Lee Westerfield, managing director of Harris Nesbitt. "But overall, this is healthy."
