Clear Channel Changes Its Tune On Radio Strategy

CLEAR CHANNEL CHANGES ITS TUNE ON RADIO STRATEGY
[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride sarah.mcbride@wsj.com]
In 2004, Clear Channel Communications Inc. introduced a program called "Less Is More" to boost its flagging ad sales. The goal was to generate more revenue by selling shorter ads at a higher price. The company also hoped more listeners would tune in to its radio stations, attracted by the shorter ad breaks. But earlier this month, Clear Channel's radio chief, John Hogan, told a roomful of radio buyers that the three-year effort had "served its purpose" and was "yesterday's news." While Clear Channel is continuing the program, it appears that less has turned out to be less. When it was launched, radio revenue at Clear Channel was $3.75 billion, but it has never reached that level again. Radio revenue for 2007, to be announced today, is expected to shrink about 1% on a like-for-like basis, says RBC Capital Markets analyst David Bank.
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