Saturday, January 13, 2007

"We cannot separate the special importance of the visual apparatus of man from his unique ability to imagine, to make plans, and to do all the other things which are generally included in the catchall phrase 'free will.' What we really mean by free will, of course, is the visualizing of alternatives and making a choice between them. In my view, which not everyone shares, the central problem of human consciousness depends on this ability to imagine." Jacob Bronowski

"Perspective is worth ten IQ points" Gary Hamel

Using audience estimates and revenue numbers here is a different pov on the performance of Chicago radio stations - revenue per listener.

  1. WGN $55.31
  2. WSCR $47.30
  3. WOJO $47.14
  4. WTMX $45.53
  5. WXRT $45.19
  6. WCKG $44.85
  7. WLEY $41.92
  8. WUSN $40.16
  9. WBBM-AM $37.53
  10. WVAZ $36.64
  11. WLS $35.13
  12. WLIT $29.96
  13. WMVP $29.24
  14. WGCI $29.23
  15. WDRV $28.23
  16. WPPN $23.81
  17. WLUP $23.18
  18. WJMK $22.97
  19. WKQX $22.33
  20. WILV $20.48
  21. WNUA $19.86
  22. WBBM-FM $17.23
  23. WKSC $13.26
  24. WZZN $10.17
WGN and WSCR significantly outperform in converting audience into revenue. WTMX and WXRT are delivering excellent conversion ratios. WGCI's performance serves to remind us that some ethnic-targeted formats still do not enjoy the same "general market" status as others. WGCI holds a commanding 25-54 market lead, yet is ranked as #4 biller and #14 in rev per listener. Similarly, the ethnic compositions of WVAZ and WNUA would seem to be moderating their conversion. Conversely, WOJO and WLEY, both targeting Latino audiences, appear to do very well, perhaps the result of now vogue Latino marketing initiatives or simply more effective marketing and sales efforts. The same can not be said for WPPN, not able to explain what is happening there. WBBM-FM and WKSC each deliver over one million weekly listeners, those large cumes, characteristic of the format, tend to depress performance in what some working in the CHR format may argue is too simplistic a metric. The inverse, a low cume, is at work in the WCKG arithmetic; WCKG's approx 250k cume drives an anomalously robust revenue per listener number. Finally, this analysis would seem to suggest significant upside potentials for WZZN, WILV, WLIT, WDRV, WLUP and WJMK.

In a formal analysis I would prefer the benefit of additional measures. Revenue per associate and revenue per sales associate would provide good insights. Further, a calculation of the cost of creating an avail is often a meaningful measure especially as a component in pricing models and other econometrics.


Anonymous said...


Thank you! Very interesting analysis. Sales managers take the ratings we get and are required to make the most of them, a reality (and fact of life) many fail to comprehend. I salute you for offering a fresh and important point of view on converting ratings into revenues.
ps Enjoyed your presentation at the BAC Radio Day last year.