John Hogan Discusses L.I.M., PPM And More
May 25, 2007 at 5:33 AM (PT)
The current issue of FORBES has an interview with CLEAR CHANNEL RADIO CEO JOHN HOGAN, conducted by LOUIS HAU. In the interview, HOGAN talked about what CLEAR CHANNEL is doing to revitalize station formats, downplayed concerns among some radio executives about GOOGLE's entry into radio advertising, and argued that "there certainly isn't much variety" on satellite radio.
When asked about bringing listeners back to "traditional" radio, HOGAN said, "We've taken what I think are some pretty important steps to re-engage consumers with radio. A little over three years ago, we made a commitment throughout the company to become listener-centric. Unfortunately, we had become broadcaster-centric. We were programming radio stations as if they were listened to by a lot of program directors, not by consumers. We have strongly encouraged our program directors to first and foremost recognize that consumers do have a lot more choices today. We have to be that much more interesting, we have to be that much more engaging."
I question the methodology. I question the way they assemble a [listener] panel, I question their ability to accurately reflect black and Hispanic listening.
In discussing "Less Is More," HOGAN commented, "It has progressed unbelievably well for us. When we launched L.I.M., we were selling an idea that was very innovative for the radio industry. Sixty-second commercials had been the currency for a long, long time. There were a lot of people who didn't understand what we were doing or how it would work. Not only are we selling [30-second spots], we're also selling 15s, fives and one-second spots called 'blinks.' What I think is really interesting about that is that the one- and five-second blinks were not something that we came up with. They were in response to requests from advertisers. Roughly 40% of our inventory is now sold in spot lengths less than 60 seconds. It continues to grow. A year ago, it was around 35%. Two years ago, it was around 20% to 25%."
And regarding ARBITRON's PPM, HOGAN said, "We continue to have concerns about the PPM methodology and reliability, as well as the price. We are a very, very strong proponent of electronic measurement, [but] it's baffling why in this instance, technology is making things more expensive, rather than less expensive. We continue to talk with ARBITRON, and we've shared these same concerns with them. I'm not particularly impressed with it thus far. They're showing an increase in the number of listeners and a significant decrease in the amount of time people are spending with radio. I question the methodology. I question the way they assemble a [listener] panel, I question their ability to accurately reflect black and Hispanic listening."
Read the full interview here.