Posted by chicagomedia.org on November 06, 2009 at 10:25:22:
AM, and How! Not All Stations on the Senior Band Are Struggling
by Randy J. Stine
11.05.2009
This is one in a series of articles about AM radio, its challenges and successes. The first, "Is AM Radio Still Relevant?," appeared in the Sept. 1 issue.
Not all AM radio stations are struggling.
Arbitron ratings from some of the largest markets in the United States reveal that some AM radio stations in the largest markets are very highly rated. Financial data from BIA/Kelsey, a financial and strategic advisory service, suggest that some are very profitable, too.
Similarly, the same can be said for some small- and medium-market AMs, where local high school sports and agricultural news bring in a lot of local ad dollars.
Certainly, this is not the first time some radio broadcast observers have spoken of AM radio's demise. FM's success in the 1970s changed the radio business landscape, but AM survived. Satellite radio, MP3 players and Internet radio are just the latest technologies trying to topple AM, defenders say.
Without exception, successful AM broadcasters interviewed for this story say they focus on localism and connecting with their communities. Voice-tracking is limited, with local programming favored over syndicated national shows.
An examination by RW of Arbitron ratings of the top 10 radio markets in this country showed that AMs were the top-rated stations for listeners age 6+ in three of the markets, Los Angeles, Chicago and San Francisco, and came in a close second in Atlanta and Boston.
Several large broadcast groups said AM remains profitable for them, even though AMs typically are more expensive to operate than FM broadcast stations.
"I'd encourage people to look across the country at the large number of successful and profitable AM radio stations people are listening to every day," said Rick Feinblatt, vice president of radio for Greater Media, which operates four AM and 19 FM stations. "I think people tend to focus on only the ones that are not doing well."
Feinblatt points to the group's WBT(AM) in Charlotte, N.C., which is solid in the ratings and a profitable station.
"It's considered the voice of Charlotte, 88 years in format, 50,000 watts that can be heard from Canada to Cuba, and it is focused on localism."
Bruce Beasely, president and chief operating officer of the Beasely Broadcast Group, said, "Given the many successful news, talk and sports stations across the country and the benefits derived from HD broadcasts, we firmly believe that AM has its place on the dial."
AM is morphing
His company, which operates 16 AM stations, continues to make prudent, return-focused investments in its AM stations, he said. "We believe those stations still represent an excellent complement to our FM operations."
WGN(AM) in Chicago is a ratings and revenue juggernaut, according to Arbitron and BIA/Kelsey. The station, which has a 5.6 share for persons 6+ in the Arbitron PPM analysis released in August, is at the top of Chicago radio ratings. BIA Financial Network estimates WGN, a 50,000-watt AM, had revenues of $44.5 million from 2008.
"We all know AM is certainly not a growing medium, but it is morphing into a multimedia tool. AM is what it is. There are limitations to AM, but we deliver the best local content we can, with local expertise and local talent," said Tom Langmyer, vice president and general manager of WGN, which is owned by the Tribune Company.
Langmyer contends the future success of AM radio stations depends on reinvention of the product.
"It's great content on as many platforms as possible. Most great broadcasters realize that. It's podcasts, it's social media, the Internet. We use those tools to extend the WGN brand, which just happens to originate on the AM radio dial," Langmyer said.
WGN, which he said turned off its HD Radio earlier this year because of concerns it was causing interference, broadcasts the Chicago Cubs and Chicago Blackhawks, further identifying with this sports crazy city, Langmyer said.
(RadioWorld)