Thread: IBOC Article
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Old March 11th 06, 11:16 PM posted to rec.radio.shortwave
David Eduardo
 
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Default IBOC Article


"Eric F. Richards" wrote in message
...
"David Eduardo" wrote:

We are looking for listening in our home market. I am with a station that
is
#1 in LA, and is top 5 in Riverside. Riverside is a separate market, and
we
do not make a cent off it.


I'm sure that if you cared to track it, you would find that you made
quite a bit of money there. But you don't because your model tells
you that the world ends at the edge of LA.


We make no money and never have. The Inland Empire is bought as a separate
market. As such, advertisers buy in-market stations at a tiny fraction
(about 10% to 15%) of LA rates to target the IE specifically. They do not
buy LA stations to cover the IE as nearly all have imperfect coverage of the
area, and do not offer support, like remotes, promotions and other in-market
marketing.

The ad world does end at the edges of the LA MSA, whch consists of LA and
Orange Counties. You get a nice, "yes, sure2 when you point out that they
are getting the IE for "free" with the buy, but advertisers till want
promotions and presence int he LA market and will not pay extra for IE
coverage.

By the way, we have had at least 2 staitons in the top 3 25-54 (the sales
demo) in LA for the last 11 years, and currently have three of the top 5.
We get no money from fringe markets, never have, never will.

It doesn't, though, and a
smart advertiser would take advantage of that even if you are
stubbornly unwilling to accept that radio waves go beyond LA and that
people beyond LA -- in your own words,


Advertisers buy "by the market" and the IE is a separate market from LA.
There are no "smart advertisers" as the customers know that out of market
stations, even with ratings, are seldom as effective as in market stations
that offer value added in the market. And an LA station is not going to go
into the Inland Empire to sell at $120 a spot when they sell at $2,000 in
LA.

even though we are a
top 5 station out there


they just might spend money on products you advertise.


I don't advertise any products. We run ads for other people with products.
None of whom care an iota abut out of metro coverage as it comes with no
promotional and in-market support.

Hallicrafters went broke. this is because long distance reception is not
of
interest any more, especially on AM medium wave.


Hallicrafters went broke because Japan out-thought and outsold the
U.S. in the 70s when it came to shortwave markets. Perhaps you'll
tell me that ICOM, Sony, Kenwood, Yaesu, Degen, et. al. all don't
exist now?


Drake abandoned general coverage receivers, and there has been an on-again,
off agian chatter about ICOM leaving the GC sector.

In any case, we are discussing distant MW reception, and the main reason the
Hallicrafters and Hammarlunds and Drakes and Galaxys of the US left the
market is that there is low demand... partly because there is limited
interest in distant MW reception compared with the 50's and 60's.

Your view of your listening community will do more to destroy american
radio than anything else. You and Peter can insist that "that's the
way it is," but the truth is "that's the way your model sees it."


The biggest fact you are ignoring, among many, is that radio listening in
daytime is on average about 22% of all people at any given time. In
evenings, after 7 PM, it drops by 11 PM to about 2%. Advertisers
specifically exclude nights and overnights from ad buys. So out of market
coverage is irrelevant. Most Ams do not have any our of market coverage, as
they are daytimers or directional or lower powered and on congested
channels.

The few AMs that do have fairly borad night signals do not get listening in
enough quantity out of market to make anything of. Advertisers do not buy at
night, and stations generally have no ratings outside of the groundwave
area. Add to that the fact that most of the former 1 A stations are very
localized, with lots of city-specific traffic reports and local news and
local events that they are of no interest 500 miles away. They win big in
the metro by being local and relevant. There is no money for out of metro
advertising and such big stations are not going to sacrifice local for a
couple of C.C. Crane PI spots.

Fine. Ignore your real customers. Insult them even and tell them
they don't exist. It's *your* career path, not mine. Enjoy the ride
all the way into the ground.


My ride is just fine, based on localism. Having 3 of the top 5 in the
largest ad market in America is hardly riding into the ground. And we are
doing fine in our other 16 markets, too, with the same model. And we have a
number of 50 kw AMs. They serve the local community, well, and only.