Reduced format changes and shifts from large operators?

[Radiopaw]

Hey all,

Wanted to discuss if we believe the Bay has seen a reduced shift in format changes or shifts. 92.7, was a sale from a very unique situation, so I'm not counting it too heavy into a proper analysis.

I came across two possible reasons

1) The market has largely settled. Both ratings sources (PPM and 5+ ratings) indicate a stable network outside of a potential few outliers.

2) The market is more matured then others, our market is more tech savvy and is also terrain challenged so the product quality is worse. The market has a lower saturation of viewed, so there’s less concern about optimization of signals format.

What’s your thoughts?

 

[TheBigA]

This topic came up earlier. My response is here.

https://radiodiscussions.com/threads/format-changes.772477/

Here's my take: Format changes are expensive. When you do them, you're starting from scratch. From what I can see, people don't scan the dial looking for new formats or something different. They have their favorites, and they stick with them. When you change formats, you piss off the former station's fan base, with no guarantee of attracting a new fan base. That's a big chance to take.

 

[Radiopaw]

This topic came up earlier. My response is here.

https://radiodiscussions.com/threads/format-changes.772477/

Surely, but we see format changes happening all across the nation right now. SF seems to have slowed down.

 

[TheBigA]

Surely, but we see format changes happening all across the nation right now. SF seems to have slowed down.

As I said in that thread:

Two examples stick out in my mind on this subject. The first is KPNW in Seattle. They flipped from country to AAA, spent millions on a consultant who planed the flip, and hiring heritage talent. They barely got a 1 share. They flipped back to country, and it's been slow going to win that audience back.

The second is KEGL in Dallas. It was a heritage rock station that flipped to guy talk. They once again spent a lot hiring heritage talent, people who were well known in the market. It was also a failure. So they flipped back to rock, kind of repositioned themselves in between classic rock and alternative, and after a couple months, have a 2 share. That's not bad. But look at all they lost by flipping. They could have saved a lot on money by just tweaking the music.

There's a lot of wisdom in that thread from a lot of other people around the country.

 

[lanceventa]

Surely, but we see format changes happening all across the nation right now. SF seems to have slowed down.

This is a national issue, not just local. The amount of format changes are down massively since 2018-19.

 

[davideduardo]

This is a national issue, not just local. The amount of format changes are down massively since 2018-19.

Many blame "consolidation" yet we are approaching the 30th anniversary of the change in ownership limits.

I believe the two major factors are lower radio listening levels and much lower radio billing levels.

Today, radio bills about 35% of the inflation adjusted dollars it did in Y2K. Today, radio listing levels are at about 30% of the Y2K numbers.

Oh, year, there is that pesky little thing called the Internet. Make that three factors. But the third one has caused the first and second items. Talk about a vicious circle!

Together, this makes it hard to change formats. There is no free money for promotion. There is no money for talent outside of drive times. There is no money for contests and incentives. And advertisers react much more slowly to new formats than ever before. So it may be better to limp along with a smaller profit than to bet the ranch on a new format improving the numbers and generating enough future money to make up for all that was lost in the 6 months to a year following a format change.