Radio Advertisers Want More Of 'Less,' Short Ad Formats Gain

Radio ad sales firm Interep says demand for short-form radio spots is booming--although overall numbers remain low, as measured by billing figures. According to Interep, the number of 10- to-15-second spots it sold and placed jumped 400% in 2006 compared to 2005, while 30-second spots grew a remarkable 1000%, for a total rise of 680%. Still, these short-form spots represented only about 10% of total ad billing, but 30-second spots take the lion's share of that--about 7%.

Kirk Combs, general manager of Interep's D&R Radio, said: "Clearly, we are going to see more and more business availed in 2007 requesting shorter-form commercials. The Interep numbers, as well as supporting industry data, speak for themselves."

Although Interep's report made no mention of industry giant Clear Channel Radio, the national radio owner's concerted push to reduce ad clutter, with its "Less Is More" initiative, doubtless played a role in the move to shorter spots.

All Clear Channel stations participated in the "Less Is More" campaign beginning in December 2004. Clear Channel controls 11% of the country's radio stations. The campaign wrapped up in January 2007 with an internal memo from Clear Channel Radio boss John Hogan declaring victory.

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Clear Channel maintained the push in the face of widespread skepticism.

In 2005, for example, revenue was down 6% from the previous year, raising investor eyebrows and prompting Clear Channel Communications CFO and President Randall Mays to reassure investors that an improved ad environment "always results in better radio. That will, in turn, provide us better cash flow."

Subsequent results seemed to bear this out: In the first quarter of 2006, Clear Channel revenue was up 5% on a year-over-year basis, second quarter was up 6%, and third quarter was up 5%. Fourth-quarter results haven't been made available. For comparison, according to the Radio Advertising Bureau (RAB), total revenue remained flat, with 0% growth for January-November 2006, compared to the same period last year.

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