Thursday, March 15, 2012

Public Radio and Cluster Analysis





What if Public Radio used cluster analysis? Commercial stations use it to enhance the size of their share. For some potential underwriting clients size matters. NPR uses the Halo effect to sell underwriting. But, it also touts the size of its audience. 26 million listeners is pretty impressive. In the Hartford Market there are three group owners. Here's their Cluster Analysis figures for January according to Arbitron.




Cluster Analysis
CBS Radio, Inc. (36.1)
Clear Channel Media & Entertainment (22.6)
Buckley Broadcasting (8.3)

Take another look at the chart on top. The shares of the public radio stations that serve the Hartford Market are represented by the bars except for the bar on the far right. That's public radio's cluster analysis. Which share may seem more appealing to a client that wants to reach our highly motivated and intelligent audience? Would a 7.7% share be more appealing than a 1.0% share?

Of course, the five stations represented in the chart would need to create a marketing partnership. And, they would need to agree on how to share the revenue. If the idea worked it would mean that the stations with a smaller audience would have some underwriting revenue.

In order for the idea to work the bigger stations would need to buy into the idea that it is important that the smaller stations in their market survive. I'm not sure this concept is important to my colleagues. So...is it? What about in markets or states where state funding is being cut off? Would this attempt at creating revenue be helpful?




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