LISTENERS, RESEARCH MAKE IT CLEAR: CLEAR CHANNEL RADIO INITIATIVE A SUCCESS Listeners Confirm Value, Effectiveness of Key "Less is More" Elements in Two Independent Studies Clear Channel Radio today announced broad early support for key elements of the company's "Less is More" listenership and programming initiative. Two independent listenership studies confirm the value and effectiveness of fewer programming interruptions and shorter commercial breaks to listeners. "Our stations sound better now than at any other time -- our shorter stop sets have created a more compelling environment for listeners and a better environment for advertisers," said John Hogan, CEO of Clear Channel Radio. "We're now in discussions with a number of advertisers who have never used radio before. There's definitely an interest in the choices now offered under Less Is More. This level of interest, so early in the initiative, exceeds our expectations." In one of the largest programming improvements in radio history, more than 1200 Clear Channel Radio stations put the final elements of the company's Less is More programming and listenership initiative into effect on December 15, 2004. Announced in July, the program reduces interruptions, shortens commercial lengths, and makes a broad array of creative resources available to advertisers and agencies to help them create compelling commercial spots. Clear Channel Radio stations have been actively promoting the benefits to listeners for the past 30 days. Listeners Love It Two independent studies released last week found that listeners love the longer programming blocks, actively noticing fewer commercials, shorter commercial breaks and more music. The studies also found that listeners are retaining advertising content better in the improved listening environment. Both studies confirm that "Less is More" listeners noticed fewer commercials, shorter commercial breaks and more music. In addition, the study found that 30 and 15-second spots provide advertisers with a very effective means to reach listeners. In fact, results suggest that a compelling message can be recalled and retained no matter what the length. (There had been debate in the radio industry whether the traditional 60-second commercial remains the most effective way to engage radio listeners. Other broadcast mediums, most notably television and radio stations in countries other than the U.S., moved away from the dominant use of 60-second commercials several years ago.) The first, a national study commissioned by Clear Channel Radio from Burke Inc., a premiere international research and consulting firm, also found that creative, compelling commercials are effective at any length. Among the specific conclusions: -- Over time, fewer commercials and more music are likely to improve listener loyalty. -- A commercial's effectiveness is not dependent on length. -- Creative, well-executed, relevant spots generate strong recall. -- A significant number of 30- and 15-second commercials had recall scores equal to or greater than many 60-second commercials, suggesting that recall and impact relate to things other than commercial length. "We are seeing advertisers from virtually every size market and category opt for shorter length spots," continued Hogan. "We have hundreds of success stories." The Burke study was conducted across nine geographically diverse markets including, Atlanta, Birmingham, Cincinnati, Chicago, Denver, Nashville, Philadelphia, Phoenix and San Diego. The study also varied by format, including Rock/Alternative, Top 40, Classic Rock, Soft Rock and Country formats. Commercials tested were from a wide-range of sectors, including telecommunications, retail, automotive, beverage, insurance and home improvement, among others. The second study, from Atlanta-based media and market intelligence company Navigauge, measures audience behavior during and around commercial breaks. The Navigauge study examined more than 46,000 stop-sets and more than 127,000 commercials over a three-month period. An Arbitron competitor, Navigauge passively measures actual in-car listening. Among this study's findings: -- A first-position, 30-second spot retained more audience than a first-position, 60-second spot, no matter how many spots are in the break. -- With shorter commercial breaks (i.e., those having four or fewer ads), roughly 80% of the qualified audience is still listening after the second commercial, and roughly 70% are still listening after the third spot. In addition to these studies, TNS Media Intelligence issued positive predictions for advertising spending on radio in 2005. The TNS Media Intelligence forecast released last week notes that spending on radio should grow 5.1% this year signaling an improvement over 2004, and growth that is in line with all ad-driven media. |
