As of today, Clear Channel Communications station 92.5 KZPS FM will no longer run traditional spot advertisements. Instead, they're trying something completely different in an attempt to compete with other commercial-free alternatives like satellite radio and iPods.Instead of the regular 30 or 60-second spots, advertisers can now sponsor an hour of programming during which the DJ will promote a product conversationally in what Clear Channel calls "integration."
This integration technique will account for about two minutes of chatty product-placement throughout the hour, as opposed to the regular 12 to 16 minutes of commercials that most stations broadcast each hour. Advertisers will not just have the hour to themselves, but also their own unique categories. For example, Southwest Airlines, AT&T, Coors Brewing and Guitar Center; all will enjoy product placementwithout competing sponsorship from other airlines, phone companies, breweries or musical instrument stores on that station.
Whether or not the technique works is still unknown. In 2005, three stations on Long Island experimented with a similar model but eventually returned to conventional commercials. Either way, this indicates that Clear Channel is seeing commercial-free audio sources has competitive threats, and is experimenting with their own competitive response.
As they should, because according to Arbitron KZPS slipped to 17th place in the fall of 2006, from 7th in the fall of 2000 when Clear Channel acquired it.
"People are not as willing to listen to the commercials, and soon we’ll have the Internet streaming directly into cars," said Robert Unmacht, a Nashville-based radio consultant.
Thankfully, Clear Channel has over 1,100 stations nationwide that they can experiment with.
[New York Times]
But i thought "free" radio doesnt compete with Sat?? wink
Gee, sounds like what they've been doing on Kiss and Mix.
Wow, clear channel calls it "integration."
Hello Clear Channel, meet advertising. Nothing new in the market but somehow they will mess it up.
Maybe the mays brothers watched the Truman Show movie recently. :)
Ok so they are going from having the income of 12 to 16 30 second spots per hour to 2 minutes per hour from one company? How much money are they going to loose doing this?
Sounds like they are going to lose alot of money unless they are going to charge an outrageous amount of money for this little spot. Which they probably would lose money anyway. But by doing that it's proof they are completeing with XM/Sirius. Don't want the merger though. I like being a daul subcriber with over 300 channels.
Isn't that the market where O and A got fired recently, because of the 0.0?
Isn't that the market where O and A got fired recently, because of the 0.0?