Local broadcasters gain in ratings war

Northern Colorado radio stations appear to be winning a ratings war against the larger Denver stations — a trend that could prove lucrative to local operations as they seek to attract advertising revenue.

According to Arbitron, the national surveyor of radio markets, Northern Colorado listeners are increasingly turning ears to the local stations.

As of last fall — the last Arbitron ratings period — 69.5 percent of the Northern Colorado radio audience tunes into stations based within the Fort Collins-Greeley-Loveland market. That compares to a listener share of just 39.4 percent in 1998.

Industry insiders attribute the growing allegiance to local radio to a variety of factors:

” More radio stations. Since 1998, four new stations have set up operations in the Northern Colorado market.

” Improved operations. Station managers contend that the quality of local operations has gained ground against the Denver market.

” Variety. Partly due to those additional stations, listeners have more formats to pick from among the local stations, therefore less reason to choose Denver-based stations.

” Local content. Listeners want to stay in touch with local news, weather and sports, as well as entertainment information, which is not available on Denver radio.

Whatever the cause, the effect could be profitable.

With the new Arbitron numbers in hand — Arbitron released the fall 2003 ratings on Jan. 22 — Northern Colorado radio stations are in a better position to pitch their services to potential advertisers.

National or regional advertisers have historically eschewed the Northern Colorado stations because of the so-called “spill” effect gained with Denver stations.

For instance, if a fast-food chain bought time on a Denver station, it could also count on getting a bonus by reaching non-Denver listeners.

The Arbitron ratings show the spill into Northern Colorado has been reduced to a trickle, and may force such advertisers to shift some of their spending to the local stations.

“For advertisers like a beer company, it makes sense now to be advertising on local radio stations to reach Northern Colorado,´ said John Basila, senior account manager for Arbitron “Historically, you may have only had to budget for Denver and buy spill.”

“That was a good argument when 50 percent of the people were listening to Denver radio,” added Cal Hall, general manager for Regent Broadcasting’s four stations in Northern Colorado. “Now it’s not as smart a buy.”

Furthermore, stations in Northern Colorado are benefiting from a growing population base. Since 1997, the local market has grown from the 135th-ranked Arbitron zone to No. 126. Arbitron ranks nearly 300 markets

The combined evidence gives local stations more leverage when settling upon advertising rates with both local and national advertisers.

One local advertising executive agreed the Arbitron numbers would influence his advice to client companies.

“That would cause us to increase our recommendations to use local radio,´ said Mike Burns, president of Burns Marketing in Fort Collins.

The amount of revenue coming into local stations is closely guarded, but one operator acknowledged that he’s experienced significant growth. Stu Haskell, vice president and general manager of Clear Channel of Northern Colorado, said his stations increased sales 15 percent in 2003.

“Hopefully we can predict growth that’s pretty consistent to the growth that we’ve seen the last couple of years,´ said Haskell, who oversees five stations.

Arbitron’s track record

The Arbitron ratings have a short history in Northern Colorado. Before 1997, Northern Colorado was not a defined market, and any ratings achieved by local stations were a function of surveys conducted for the Denver or Cheyenne, Wyo., markets.

Abritron created the Northern Colorado market after local stations banded together to buy the Arbitron service.

The result has been a better understanding of listener habits — Arbritron reports overall ratings, but also breaks down ratings among demographics groups — and the ability to compare the strengths of local stations with Denver rivals.

And there are many.

Arbitron estimates 51 different stations, including the 17 licensed in Northern Colorado, broadcast into the local market.

That number of frequencies makes Northern Colorado one of the more competitive market areas per capita in the United States, said Scott James, program manager for Clear Channel of Northern Colorado.

While the Arbitron results portend advertising growth at local stations, they might also fan the flames of greater competition.

“You’re going to get more stations crop up,´ said Carl Marcucci, senior editor for Radio Business Reports, an industry trade magazine. “More broadcasters will be wanting to create licenses there.”

The latest competitor to jump into the Northern Colorado market is NRC Broadcasting, owned by Denver billionaire Phil Anschutz. Ancschutz recently acquired KKHI-FM of Laramie, Wyo., which he plans to move to Timnath.

The plus side?

Northern Colorado residents will have one more reason to keep the dials set closer to home.

on Facebook on LinkedIn