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July 20, 2004
Ads Are "Clutter," Better to Have Less Clear Channel, in an attempt to increase the prices it can charge for ads, is reducing the number that its radio stations can play in any given hour. According to the Wall Street Journal, "Under its new rules no station can run more than 15 minutes of advertising in a single hour. In addition, no commercial break will run longer than four minutes or contain more than six commercials." "In many markets that would represent a significant cut. A recent study from J.P. Morgan showed that some shows, particularly news talk shows during the morning and afternoon consumer drives, cram in as much as 22 minutes of advertising an hour. Radio averages 15 minutes of advertising an hour, compared with 12.5 minutes for television." The Washington Post quotes Clear Channel saying that fewer ads means an improvement in "the value of radio to listeners and advertisers." Fair enough. But check out this quote--John Hogan, Chief Executive of the Radio Unit said, "Clutter is a major issue in our industry, and our decision to limit the amount of commercial time and length of breaks while reducing promotional interruptions will benefit listeners, advertisers and the industry as a whole," he said. I suspect they'll just charge more for less, whittling out and keeping only the larger mass marketers. In many ways, it's like more market concentration even in advertising. Posted by: at July 22, 2004 12:59 AMPost a comment
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