AM finds a new voice

A startling new development is taking place in Canadian radio circles. While listenership to AM has been decreasing for some time now, it seems that the AM band is suddenly becoming revitalised. In the midst of mergers, format flips and media fragmentation, AM has found a new voice.

At the same time that FM revenues and station values have been flourishing, some ownership groups have struggled with the question of what to do with their AM properties. The key is, at the very least, to keep losses to a minimum in the short run while holding on to licenses which will ultimately appreciate in value.

It is important to remember that every station in Canada has a DAB (Digital Audio Broadcasting) assignment waiting for it with the CRTC. I am privy to extremely positive information concerning DAB which will be announced in the fall. The financial consequences of these factors are very significant. When DAB takes hold, the value of AM stations on their digital frequency will skyrocket in keeping with their FM siblings.

This, along with other factors, makes the effort being put into reinvigorating AM worthwhile.

One of the most interesting offshoots of corporate consolidation and multiple station ownership in individual markets is better station positioning. Niche targeting is becoming an ever more important factor. Owners can zero in on a very specific niche which is complimentary to those targeted by their other stations. Even independent owners are seeing the value of dominating and marketing a niche as opposed to slugging it out in the competitive Female 25-54 arena.

There are a number of examples of AM stations finding a new and vibrant voice. Where music has been losing ground, talk is gaining a solid foothold. Moreover, distinctive talk formats are being launched with the goal of attracting well-defined sectors. The recently launched Toronto's Mojo on AM640 is a striking example. Defining itself as "talk for guys" they are pushing the envelope in terms of language, attitude, topics (sex-oriented) and in-your-face, male-skewed marketing. No apologies as far as sexism is concerned. This jives neatly with Corus' other stations in the market, namely classic rocker Q107 and new music station The Edge, both male-skewed. The opportunity to market males with a certain lifestyle to advertisers is readily apparent.

In a well-planned and publicised move, CHUM has created Canada's first Sports Talk Network. With the sense that oldies music on AM had a limited future, they put together an outstanding line-up of sports talent and programming with affiliates in 9 key centres: Toronto, Montreal, Vancouver, Ottawa, Kingston, Kitchener, Peterborough, Winnipeg and Halifax. Through networking, costs can be applied over a broad market list, affording the sort of programming which might normally be cost prohibitive for an individual market. From a sales perspective you have a well-defined niche in terms of sex and lifestyle. This can be marketed on both a local and national basis.

At the top end of the demographic spectrum is the ingenious launch of AM740 delivering Adult Standards for a target of A55+. Michael Caine's bold move was to playlist music at a time when everyone else was moving to talk. The reason that the strategy paid off so handsomely in terms of audience was the fact that older adults have retained their loyalty to the AM band and are more than happy to find their music there. The initial audience figures in the Spring 2001 BBM are startling. The share of hours tuned for A12+ is a very impressive 5.6 per cent. The share of hours tuned for Adults 55+ is a mind-boggling 16.9 per cent.

While the seniors market doesn't command the largest share of ad dollars, having a strong foothold with this distinctive target gives the station a definite advantage. This is certainly better than trying to get on the buy as the #6 station on a F25-54 demo buy.

Another example of innovative AM positioning is the flipping of Vancouver's CKLG to CJNW, adopting a news talk format which trades on the formidable heritage of sister station CKNW.

These are but a few examples of a revitalized AM band. Just as the music was beginning to fade, new voices are emerging which are giving the industry new life.