:60s vs. :30s: The pros and cons of
"shortening the standard" - - Part 4
As a key element of its "Less is More" initiative, Clear Channel Radio is trying to migrate advertisers from 60-second spots to 30s. Is it fair play to ask radio advertisers to pay more money for less than what they've been getting in :60s? Will they pay?
"Fortunately or not, 'fair' has very little to do with it," adds Matthew Warnecke, VP Mgr Network & Local Radio, MediaCom. "We all operate in the media marketplace and fair is often not a word that anybody uses. Which is not to say that we're all stabbing each other in the back, but we operate in a marketplace daily, and if you can get what you want for less because the marketplace allows it, great. But it doesn't always happen that way because the marketplace doesn't allow it. And that's really what I've been saying to buyers who've expressed uncertainty about what this means. We're still operating in a marketplace that requires negotiation, and it's incumbent upon local stations who are part of the Less is More program to demonstrate that value. We understand what the 'Less' is - - they've need to be able to demonstrate the 'More'. What's the advantage to an advertiser in paying 25% more for 50% less in that :30 versus :60 scenario? OK, first pod position? That's something that might have value."
He adds, "The fact that there are fewer commercials on this radio station as compared to the others in the marketplace that serve a given demographic - - that also has some value. Those are soft differentiators. But radio buyers have been differentiating stations based on those sort of qualifications for a long time. This is not TV where early fringe does a 3.5 in Wheel and Jeopardy and that's all she wrote. Radio requires, frankly, a much more savvy negotiation."
This article appears in its entirety in the November issue of RBR Solutions magazine. To subscribe to the all new January debut issue of Radio and Television Business Report - The Real Business Magazine, see below to receive it - - or call April McLynn here to get your free copy: 703-492-8191.
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