The response from Clear Channel
A spokesperson for Clear Channel Radio from its PR firm, Brainerd Communicators, has contacted RBR with this response to the Comments by John Lund that ran in the first issue of this year (1/3/07 RBR #1):
There were many inaccuracies in the piece and Clear Channel Radio has reached out directly to them to clarify and correct them. But we also wanted you to know that there are multiple questions about the Lund groups' source data and the following has also been shared with them...
* The issue addressed by Less is More was never the number of units -- it was always the number of minutes. Anyone saying that the objective was to reduce the number of units is mistaken.
* The ratings spikes and surges in 2005 were documented in Arbitron ratings books and, in some cases, publicized by the company via press release. We're happy to share that information with you directly. Bottom line: For persons 12+, Clear Channel Radio's three best books in three years were in 2005; for persons, 25-54, Clear Channel's best book in at least three years was in 2005 and all four books beat their 2004 counterpart. The same is true for persons 12+. If you look at yearly averages, 2005 is the best.
* Listeners do not leave radio for iPods. On the contrary, independent research shows that listeners actually consumer more radio approximately six months after heavy usage of an iPod.
* Clear Channel Radio has not abandoned any aspect of its package of improvements, which included the reduction in commercial / promotion minutes popularly referred to as "Less is More".
* Clear Channel Radio's data on the stations cited in the letter does not agree with the Lund groups'. For example, they say that WLTM ran 19 units in the 7am hour and that nine were :60s. The station pulled its actual clock reports and that data shows that the station was compliant with the 12-minute talk clock (they even checked multiple days), and they found a maximum of eight :60s.
* Clear Channel Radio's revenue has grown.
* There is no conclusive ratings data to show that the reduction in commercial / promotional minutes has either helped or hurt ratings on a sustained basis -- the reason is that the reductions now exist in a larger context. Other radio groups improved their listening environments over the past two years; Clear Channel announced programming and other improvements during the past two years that also contribute to ratings gains; and so on. The authenticity of the initial ratings spikes and surges, however, is absolute and well-documented.
* Clear Channel has, and continues to see, gains in yield-per-minute. Any blanket statements made about the radio industry, while they may be accurate for other companies, are not accurate for Clear Channel Radio.
Hope this is helpful.
With Regards,
Clear Channel Radio
