AAAAs has big concerns about "Less is More"

While Clear Channel Radio's "Less is More" clutter-cutting initiative is a great step forward in solving some of radio's problems, if may have created a few new ones in the process. But hopefully nothing that can't be fixed or at least addressed.

According to a 11/18 memo to CC Radio CEO John Hogan from Kevin Gallagher, Chairman, AAAA Local TV/Radio Committee and SVP/Director of Local Investment Group, the advertising organization and its members have some real concerns on "Less is More." Hogan and Clear Channel have been making the round at the agencies introducing them to Less is More over the last few months. Could this memo be a sign they aren't believers yet? Bottom line is the media agencies are more and more being challenged on accountability for what they're spending from the clients. The clients are also more and more auditing their work. The concerns voiced by Gallagher are real. If client dollars are to stay in radio, Less is More and the new questions and problems it may bring need to be ironed out ASAP. Read below and you will see what we mean.

The agencies have to fight hard enough to keep their clients and they don't need anything that will bring doubt or confusion into their media recommendations.

The memo reads [VIEW THE ACTUAL MEMO]:

"Dear John,

Thank you for meeting with the AAAA Local Television/Radio Committee on November 9, 2004.

On behalf of the committee, I am writing to confirm that members of the Committee raised three major concerns regarding the "Less is More" initiative. We feel that these issues should be addressed and resolved in the immediate future, since they are important for determining how clients will choose to value Clear Channel radio stations as we move forward:

* Lack of Research. Currently, there is little or no research that documents either the potentially higher recall of either the first pod position, or a stand-alone "island" position. Therefore, it is difficult to recommend to clients that they pay a premium for either of these positions. We are eagerly awaiting the findings of the independent research you have commissioned on this subject. We ask that you share the findings as soon as possible.

* Availability of First Pod Position. Our understanding is that only :30 advertisers will have the opportunity to run in the first pod position. We feel that :60 advertisers should have equal opportunity to run in the first pod position and ask that you re-evaluate the Less is More model to accommodate our clients who chose to run :60 spots.

* Accountability/Reporting. In the event that the first pod position is a negotiated term of sale, we are concerned that current electronic invoicing processes do not capture pod position information. With the growing number of client audits and increased accountability measures, the lack of an electronic reporting format to validate this information presents a serious audit issue. We hope that Clear Channel will work closely with a Task Force of this Committee in order to ensure that electronic invoicing standards are actionable.

We look forward to your prompt response.

Sincerely,

Kevin Gallagher"