‘Less Is More’ Working as Ratings, Prices Rise

Media buyers are saying that two 30-second spots are more costly than one 60-second unit on Clear Channel stations, which is just what Clear Channel had hoped when it implemented its Less is More initiative. And in addition to prices trending upwards, ratings are, too, with Clear Channel outperforming the average radio station among adults 25-54 in New York, Los Angeles, and Chicago, according to an analysis of Arbitron ratings by Bear Stearns, Media Life reports.

Clear Channel’s average rating rose 2.8 percent in New York from the summer and 3 percent in Los Angeles, while the average stations in those cities declined 7.1 percent and 4.1 percent respectively. In Chicago, Clear Channel’s average rating was up 2.7 percent, compared to an average station growth of 2.1 percent.

Analysts attribute the upward rating trend to Clear Channel’s Less is More, which was meant to reduce the ad clutter on most stations by 20 percent, with fewer running every hour and back to back, making listening more attractive to listeners and driving up ratings. It would also, of course, reduce inventory, which would push up ad prices.

Less is More has taken awhile to prove itself, and Clear Channel saw ad revenue sink 6.2 percent in Q2, with analysts saying advertisers wouldn’t be pushed into 30-second spots.

But now that Less is More is proving out, other radio networks are following suit: CBS Radio’s inventory in the 10 largest markets was down 4.6 percent from last year, according to Harris Nesbitt analyst Lee Westerfield, and ratings have improved year over year in New York and Los Angeles.

Westerfield is expecting radio ad spend to grow by 6.9 percent in 2006.