socalguy said:
In short DavidEduardo, you're out of your league in this particulay discussion. I've seen the contracts, I've seen the payments, I've posted the billing
The Kings paid Clear Channel, kept most of the in game inventory to sell themselves and KLAC sold the rest..
I stand corrected. Sort of. In other words, the deal for the Kings was a barter with a guarantee. Station gives, cash, gets inventory in games. Team pays cash, gets inventory. Station still pays for the rights in inventory, but in trade for a sales opportunity and some cash.
What, of course, that means is that the Kings are about as interesting a radio proposition as the deal I had at KWIZ in '94, where we took money to run the Mighty Ducks... because the Ducks wanted to have explosure to the Hispanic market ("It's soccer with a weapon") and nobody would, in their right mind, pay for the rights.
My point in mentioning this regarding KTLK was the flexibility this gives CC and KLAC in scheduling conflicts and in picking up lesser franchises willing to pay for clearance. Added revenue and cume...what's not to like?
For one, the audience loss. Of course, if you have no audience to lose, the point is kinda' moot.
Radio stations due use all audience figures to "Sell" including cume. Craig Rossi's cume growth analysis for Valentine and Lisa Foxx in yesterdays laradio.com piece is a prime example. We both know radio is bought by either cost per point primarily and occasionally on a cost per thousand basis and that the Average Quarter Hour number along with the accompanying rating point(s) are the primary currency.
CPP and CPM are the same thing, expressed differently... just as AQH persons, Share and Rating are exactly the same thing expressed in three different ways.
The AQH number is a quantity of people that a quantity of ratings points represents. A rating point in LA today represents 102,700 people.
Cume may be a nice embelishment to a sale, but there is no way to quantify the reach of each spot with cume; cume is only useful to determine, along with the rating, the reach and frequency of a bunch of spots. The reach for a single spot is the same as the AQH persons at that time; reach increases withevery additonal weekly spot, but not in a linear fashion.
And come next year and PPM it's all about huge cumes and lower AQH. So whatever cume sports brings to KTLK is then converted to AQH based on the TSL and increases their daypart and total week audience figures.
PPM shows higher cumes but much lower TSL, and the PUR is down 40% in Houston and over 50% in Philly. So what you have is bigger cume, but much less overall listening. The top station in TSL in the top 10 in Houston has a TSL of just 4:15; in the diary survey there were top 10 stations with over 10 hours TSL.
Advertisers will still price spots based on CPP, but they will have to adjust the CPP to the lower "real" listening levels.
And to think that Emmis and now Old Saul are the best country can do in LA you're really naive. And as you know full well, PPM will change the rules and the AQH shares dramatically.
AQH is one thing and Share is another: one is the percentage of people who are listening to radio who are listening to a station, and the other is the number of people the share (or rating) represent.
With the PPM, the individual station shares are a little different than in the diary survey... but essentially all stations lose AQH. In one of the PPM markets, the diary #1 had 38 thousand AQH persons... in the PPM, the #1 had 31,000. #2 had 38 thousand AQH persons as well in the diary, but #2 in the PPM has 24,000 (in both cases, the stations were not the same). Oh, and the AQH for country IS up... by all of 4% from the diary.
The fact is, no matter who runs a local country station in LA, there are not more than 2 share points for it today; over 70% of the market is ethnic / immigrant representing groups with practically no heritage or interest in country. So that leaves less than 30% from which to extract country partisans... a 2 share overall would represent over a 6 share of the non-Hispanic white and non-immigrant (Russians, Persians, etc) white group that might like country.