EXCLUSIVE: CC EXPECTS RATINGS BUMP FROM LIM Paul Heine – Billboard John Hogan is confident Less Is More will cause a ratings increase for Clear Channel stations, perhaps as soon as the Winter '05 survey. "Once they see our ratings go up, the rest of the industry will follow," he tells Billboard Radio Monitor.
Though its clutter reduction campaign has caused "some short-term pain," Clear Channel Radio president and CEO John Hogan says reducing commercial inventory is driving up the company's ad rates. CC is selling more 30-second spots than before its Less Is More initiative began, he says, and 15-second commercials are the company's fastest growing revenue stream of the past two years.
Hogan is confident Less Is More will cause a ratings increase for CC stations, perhaps as soon as the Winter '05 survey. "Once they see Clear Channel's ratings go up, the rest of the industry will follow," Hogan tells Billboard Radio Monitor.
Clear Channel is positioning itself as "moving first and fast" compared to its competitors, and as "pulling away from the pack." In discussions with advertisers, investors and a select group of journalists (including Billboard Radio Monitor), Hogan is backing up those claims by pointing to some of the company's recent (and often controversial) moves: Ending relationships with independent promoters. Creating a Responsible Broadcasting Initiative. Embracing high growth formats like Hispanic and "progressive talk." Upgrading station signals and equipment. Forming a national Creative Services Group to improve commercial quality. And investing in new inventory management and audience targeting systems and emerging delivery vehicles, such as XM and iBiquity.
The company is making moves to develop new content delivery systems,including cell phones, online music and radio, podcasts and HD radio. While he supports the portable people meter, Hogan characterizes Arbitron's slow moving foray into electronic audience measurement as "too little, too late" and says he supports other avenues for gaining audience intelligence.
Since 2000, Clear Channel's radio division has generated $18.5 million in pro forma revenues, Hogan says. The division's profit margin last year was 42%.
"Radio is tremendously undervalued," Hogan says. "It's time to create a new urgency for listeners and advertisers." |