For Immediate Release:

Monday, January 24, 2005

News Radio Los Angeles: No Passion

Bridge Ratings has combined traditional audience measurement with behavior analysis resulting in far more effective radio consumer research on the various conditions of the radio industry and its audiences.

While we have been measuring audience attrition around commercial breaks and erosion of our audiences to digital media, Bridge Ratings has been conducting its usual measurement in Los Angeles. Several different types of studies are on-going, one of which is yielding some fascinating answers to the continuing mystery of newsradio and why in a major markets, specifically Los Angeles, can two major all-news stations not capture more than a 3.0 to 3.5 12+ Arbitron share.

The answers coming out of a year-long study are multi-layered and at the heart of the problem, that is, in and of itself, a major explanation. By the way, some of the issues we uncovered in Los Angeles news radio listener behavior are now beginning to be expressed in other major markets where news radio competes with re-tooled Talk radio stations.

Here are some initial behavioral reasons why news radio in Los Angeles can't move the needle to increase Arbitron average quarter hour:

1. Bridge Ratings has no confidence in average-quarter-hour measurement nor its cousin time-spent-listening. The convoluted calculation required to generate such numbers raises the margin of error for such estimates beyond reliability. At Bridge Ratings more confident estimates rest with CUME and FAVORITENESS. Favoriteness simply seeks listenering behavior related to the station audiences listen to most often. Years of studies tell us that a listener devotes between 66 and 80 percent of their weekly listening to their favorite station. This statistic represents loyalty and when combined with cume reflects a station's ability to convert its cume to favoritness. News radio/LA problem number 1: no loyalty.

Favoriteness shares in an of themselves do not typically predict Arbitron's AQH but favoriteness trends do predict Arbitron AQH and TSL; favoriteness is simply a more reliable number. Since the departure of George Nicholaw and the arrival of programmer David G. Hall, loyalty to LA's two news stations has actually diminished. What has improved, is the stations' ability to attract new cume.

2. Reasons for non-loyalty. Whatever loyalty News radio/LA enjoys is coming from their older demographics. Bridge Ratings' studies show that there is no motivation for young listeners to spend much time with either KNX or KFWB because they are getting their news fix elsewhere. On the radio dial in LA, when 18-24 year olds listen, they get their news served up in ways more palatable for their lifestyles: KROQ, Indie 103, KLSX and KPWR are the only radio stations mentioned when this demographic is asked about their radio news sources. Not an AM station on the list.

What is more interesting is that the behavior of this demographic underscores the general lack of real interest by this lifegroup in what's going on in the world and in their city. When they are seeking this information, they are likely getting more of it from other electronic sources such as the Internet, MTV and word of mouth from friends and parents. There tends to be not one dependable source for this group. As is the case with music radio for this generation, there is so little being offered on traditional radio that appeals to them or is presented properly, that they seek and find it with other media.

Thus, traditional AM news radio is not attracting any new cume on the younger end. The on-air approach just doesn't interest them

Other reasons for non-loyalty to news radio include improved news presentation on other AM stations such as KFI, KABC, KLAX and KLVE and on the lifestyle approach taken by the FM stations previously mentioned.

The broadness of the all news approach cannot sustain loyalty under fire from specialists. The AM all-news stations have lost significant news image to their AM news/talk brothers. KFI and KABC especially, have retooled their news approach to satisfy the lifestyles of the available audience. KNX and KFWB simply have not kept up with the times in significant areas such as story selection, writing, presentation and relevance. Listeners we have interviewed cite consistently these four areas where they are getting a more fulfilling newscast on other radio outlets than on the traditional news stations.

When asked "When you want to know about world and local news information, where do you go?" the following chart shows:

Traditional radio continues to face the challenge of retooling its product for the under 35's.

Following is a chart derived from Bridge Ratings' audience measurement in Los Angeles. Chart reflects of all stations/formats listeners consider for 'favoriteness", where does news radio stand?

How to read: Listener favoriteness for news-specific radio stations across all demographics with the exception of 65+ has declined since March 2004.

• News radio trend

While favoriteness diminishes, news radio’s ability to attract more individual listeners is improving over the nine months’ studied. The improvement is fueled by all demographics 18+ but is primarily impacted by a significant “Tune-in model” for adults 40+:

An interesting note: daily (cume) tune in to news radio has increased more significantly under 35’s vs. 35+. The reason may lie with the potential for growth among young listeners.

With 35+ cume and tune in a relatively healthy state, and with the “quick fix” behavior of tune in by the under 35 year olds, news radio has potential to grab and hold these listeners for increased loyalty, favoriteness and cume to favoriteness conversion. The solution, we believe, rests with a more defined understanding of the lifestyles of the news radio audience.

For additional information, contact Dave Van Dyke at 818.291.6420.

Results reflect listener behavior between March and November 2004.