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Thursday, September 23, 2010

Talk Radio’s A Hit In Nasty Political Climate

Ad sales are rising for Premiere Radio Networks

The nastiest political climate the United States has seen in 40-plus years isn’t negative for everyone. For hosts of conservative talk shows in particular, as well as for the companies that syndicate their programs, things couldn’t be better.

“People ask me, ‘What happens when Rush [Limbaugh] says something very controversial about [President Barack] Obama?’ They say, ‘Well, people are going to tune out,’” said Len Klatt, senior vice president and director of research at Premiere Radio Networks. “No, they’re not. Because he’s talking to his people; they’re not going to tune out at all.”

Premiere Radio Networks, the syndicator of the top three talk-radio shows — hosted by Limbaugh, Sean Hannity and Glenn Beck — are on pace to see advertising sales increase for those programs by 10% to 40% from last year, the company told David B. Wilkerson at MarketWatch.com.

The ad increases are led by “a broad range of direct marketers,” pitched by the show’s hosts themselves, said Dan Metter, senior vice president and director of talk-radio sales at Premiere. These advertisers include Administaff, Carbonite, LegalZoom, LifeLock, Provide Commerce, Select Comfort and Vermont Teddy Bear.

Ratings for the Limbaugh, Hannity and Beck shows are expected to climb. “We always enjoy a 15% to 20% perk for those shows in the fall [Arbitron ratings] book,” said Klatt. “When there’s a presidential election, it’s even higher. 2008 was monstrous for these three shows. We think we’re probably going to get … pretty darn close to presidential levels.

“With the tea-party movement and the way those hosts are talking about it,” he elaborated, “I think you’re going to see 85% of the presidential levels.”

Even veteran radio consultants caution that in the current political climate there’s some risk the rhetoric can be taken too far, especially now that Arbitron has rolled out a more precise way to measure listenership: the Portable People Meter, or PPM. The system uses a device about the size of a small cell phone to track exactly when and where participants listen to radio — replacing the traditional diary method, in which people wrote down what they listen to. As a result, the meters can offer a much more accurate assessment of when people tune in and out of a given station.

“There is a baked-in negativity with the messages of Glenn Beck, Rush Limbaugh and Sean Hannity, which has a fatigue factor.” said Holland Cooke, a consultant to talk stations based in Block Island, R.I. “These people are angry about the status quo, and there’s a relentlessness to it.”

Premiere’s Klatt countered: “It’s only negative if you disagree with it.”

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