Few radio station managers would change format by flipping a coin, but a new analysis of format changes between 2000 and 2006 in top markets suggests that radio stations are essentially doing just that. Of the 120 format changes analyzed by Harker Research, 51% of the stations that changed format ended up flat or behind their pre-change ratings. Only half of the stations that changed format ended up benefiting from the change. This does not take into account the financial costs of changing format. If we consider lost revenue and additional marketing costs, it is likely that significantly less than half of the stations that changed format ended up financially ahead.
Radio stations too often become frustrated by their lack of success, and switch formats hoping that the new format will change their fortunes. The problem is that poor ratings often result from a poor understanding of how to do the format correctly. Even the best formats can fail if poorly executed. A station that fails at one format due to poor execution is likely to execute the new format as poorly. So instead of solving a ratings problem, a format change just worsens it.
Before giving up on a format, make sure that every possible explanation has been explored to account for the station’s poor performance. Do not assume poor ratings are an indication that listeners don’t like the format. Assume that listeners don’t like the way you are doing the format, and try to figure out how to do it better.
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