Spotloads Down 13% in Top 10 Markets

Clear Channel's less is more initiative to reduce spotloads 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 has decreased by 13 percent in the top 10 markets from October to January. The study, which Harris Nesbitt intends to conduct monthly, also found that the frequency of 30 second spots versus 60 second spots has increased by about 20 percent.

Among the top 10 markets, the biggest spotload reductions were in San Francisco (down 25 percent), and Houston (down 19 percent.)

The driving force behind the current reduction in radio spotloads, Clear Channel executed its plan Dec. 15. By January, Clear Channel reduced time on its stations in the top 10 markets by 25 percent to 8.7 minutes per hour. In December, Clear Channel stations on average aired 10.5 minutes per hour.

Other groups have also reduced spotloads. Emmis Communications, which owns and operates stations in the top three markets (New York, Los Angeles and Chicago) reduced its spotloads by 12 percent.

Although Viacom's Infinity Broadcasting runs the highest overall spotloads averaging 12.3 minutes per hour, it too, reduced spotloads by 6 percent, focusing on key markets such as Washington, D.C., Philadelphia and Houston. Part of the reason Infinity has higher spotloads is due to a large number of News/Talk stations that can tolerate larger spotloads, such as WINS-AM and WCBS-AM in New York, which have spotloads of 17 and 16 minutes per hour each, versus Infinity's music stations, which average 11.5 minutes each.

"Radio revenue will be impaired in the near term, as radio pricing power cannot eclipse reduced spotloads," said Lee Westerfield, managing director of Harris Nesbitt. "But overall, this is healthy."