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AM Radio Still Has Challenges Despite Ford’s Reversal

An AM tuner in every car is good, but a new law won’t fix the underlying problems.

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Ever since Ford’s announcement that they would cease including AM radio in most of their vehicles (commercial vehicles excepted) starting in 2024, it’s become de rigueur to comment and come to the defense of amplitude modulation. 

While Tesla, Polestar, and a few BMWs don’t have AM radios, when a large mainstream OEM like Ford made that announcement, the radio industry stood up and took notice. Even though Ford has now rescinded that decision, it’s not that anyone in the radio industry wasn’t aware that AM was in decline. 

The initial Ford bombshell was enough to sound the alarms and fight for the survival of AM radio even as the industry has tacitly given up on the band. A telling statistic is that in 1990, there were approximately 1,850 FM translators on the air. By 2021, that number had increased to 8,521. That’s strong evidence it’s a popular move to rebroadcast your AM station on an FM translator, even if the translator can’t exceed 250 watts of ERP. 

Nonetheless, the initial Ford news prompted several lawmakers to introduce a bill (The AM in Every Vehicle Act) that would require the National Highway Traffic Safety Administration to issue a rule mandating AM radio in every vehicle sold in the United States. This being a research column, I’ll offer some background on how you can evaluate AM listening today.

If you’ve read my first few columns, you know that as an old guy, I enjoy history. Reading about The AM in Every Vehicle Act, I immediately thought of the All Channel Receiver Act of 1962, which required that the FCC mandate UHF receivers in all new televisions sold in the US. 

In the early days of TV, while channels 2-83 were originally assigned for television broadcasting, most sets could receive only VHF (analog channels 2-13). Unless you were in an all-UHF market (there were a handful such as Youngstown and Peoria), there wasn’t much incentive to buy a set with UHF or to get a UHF converter. 

From a personal standpoint, I had to borrow a neighbor’s 9-inch GE portable TV that had UHF to see Our World, the first multinational live program, in June 1967. The US participant was National Educational Television, the forerunner of PBS, and Rochester’s “educational” station (WXXI) was on channel 21. Why borrow a set? My family’s console Zenith didn’t have UHF and The Beatles were part of the show, performing “All You Need is Love” for the first time. I couldn’t miss that. 

Even with a federal law, UHF stations took decades to catch up with VHF channels. I presented a paper at an academic conference in 1986 entitled “The UHF Affiliate in the ‘80s: More Travels Down Parity Road” using regression analysis to show that, based on Nielsen data, UHF still lagged many years after the Act was implemented.

Pierre Bouvard, one of the best people in the business, recently put out a piece claiming 82 million people cume AM in a month. Like just about everyone else in the business, I love Pierre, but at least one-quarter hour in a four-week period doesn’t mean much and that number is subject to certain caveats regarding Nielsen edit rules as I’ll explain. 

During my time at the NAB in the late ‘80s, I put together a similar piece using RADAR, the Nielsen national radio network service. If memory serves, AM had a weekly P12+ national cume of around 90 million people. At that time, there was a lot of talk about the death of AM, but it had a weekly circulation that was bigger than US newspapers. Rush Limbaugh had just started his meteoric rise and with him, the rise of news/talk on AM. Streaming didn’t exist and translators couldn’t be used to rebroadcast an AM outlet. Now, we have a (likely inflated) figure that’s smaller, using a four-week instead of a one-week estimate.

It’s 2023 and while there are still some great AM stations out there, many outlets are programmed for religious audiences or people who primarily speak other languages, and usage of AM is low.

As a researcher who’s been looking at ratings for 40+ years, I’d place a small bet that if you were to run the persons 25-54 combined AM share in Nielsen for Monday-Friday 6 AM-7 PM in the 48 PPM markets, most markets would have trouble getting much past a 10-15 share, in other words, FM and other encoded listening would have the rest. 

And I’d place another bet that the market-level AM cume ratings for that demo/daypart combination would generally be in single digits. The same numbers for the diary markets would likely be a little higher and P55+ would look better, but keep in mind that FM translators cannot originate more than 30 seconds an hour of “programming” which means any listening to an AM station that simulcasts on an FM translator will be credited by Nielsen to the AM parent, in other words, inflating the AM listening percentage. 

If the station is total line only, streamed listening is included as well. You can run this in PPM Analysis Tool or Tapscan. RADAR allows you to look at national AM listening alone and the cume will be an impressive number of persons, but again, Nielsen edit rules will push some FM and online listening into the AM column, so a deflator is warranted.

Like many of you, I grew up on AM.  In Rochester, the big top 40 station was WBBF (950 AM) which later on had competition from WAXC (1460 AM) with The Greaseman at night and a young Tom Birch. Nighttime listening to clear channel AMs on “the skip” was fun with music stations like WABC, WLS, WCFL, CKLW, and others. 

I’d wake up in the middle of the night and spend a couple of quarter hours with Larry Glick on WBZ who was incredibly entertaining. That was the 1960s and early 1970s, but will requiring AM in cars in the mid-2020s mean much of anything when smartphone penetration is nearly 87 percent (per Statista) and almost any radio station or song a listener wants is available in excellent fidelity on demand? 

Further, a frightening number of people don’t own a radio in their homes. If you subscribe to Nielsen in a PPM metro, look at the latest quarterly panel characteristics report. Nielsen reports the number of radios in the household by demo. If you’ve never seen that particular statistic, you’ll want to have a stiff drink available before you look at your market or your company’s markets. Living in Kentucky, state law requires me to suggest bourbon.

The obvious question is “Are we trying to close the barn door after the horse has escaped?” Sticking with the equine theme (another Kentucky requirement), we can lead the horse (listeners) to water (AM), but we can’t make them drink (listen). 

An AM tuner in every car is good, but a new law won’t fix the underlying problems.

Let’s meet again next week.

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With Nielsen, Is There Life After 54?

If the industry truly believes that Nielsen should offer more demos, it’s time to ask the relevant questions and get the answers.

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A photo of a laptop displaying the Nielsen logo

There’s been some discussion of late about whether it’s time to change the standard demos that Nielsen uses for reporting radio audiences. 

Dan Mason began the debate a couple of months back with an argument for three demos: 12-19, 20-40, and 41-64. Steve Allan at Research Director has added his thoughts with the suggestion that Nielsen drop persons 6-11 and 80+. Beyond the lack of buyer interest in these demos, he sees it as a backdoor way to increase the PPM sample. Perhaps because more discussion is a good thing, I’ll offer my two cents.

There is likely no way that Nielsen will ever remove the 6-11 and 80+ PPM panelists even though the data are essentially meaningless for radio. PPM is now used for both audio and video. In the latter, PPM measures out-of-home audiences for local TV in the metro areas of DMAs. Remember that TV measures down to the age of two and while Arbitron never dropped that low (can you imagine a three-year-old with a PPM?), the design was that PPM would measure both radio and television. Because video likes a big number, the 80+ issue is probably off the table as well.

Let’s move on to Dan Mason’s suggestions. Radio has been battling with the “you’re dead at 55” issue for decades. In the late ‘70s and early ‘80s, I was the operations manager of WSPA-FM in Spartanburg, South Carolina which ran the beautiful music/easy listening format. I clearly remember Ted Dorf at WGAY in Washington (same format) starting a 35-64 committee, the goal of which was to show the value of the older audience and bring dollars into that demo. That was more than 40 years ago and nothing much has changed. 

Even with the lack of dollars for older demos despite the incredible spending power of the boomer generation, why can’t Nielsen offer more “standard” demos? In the “old days”, there were limitations based on processing software and even the size of the printed ratings report (remember the horizontal Arbitron books?). Today, the E-book is barely used and processing power is essentially unlimited. 

The limitation may reside in the systems used by Nielsen to process the local markets. The old Arbitron processing systems were somewhat limited and rebuilding the system was usually behind other priorities. I do not know if Nielsen has updated the processing system, but if they have, it shouldn’t be hard to offer more “standard” demos, whether Dan Mason’s suggestions or others. If Nielsen has not updated the systems in the decade since the Arbitron acquisition, then we’re back to my recent column asking the paraphrased Ronald Reagan question of whether you’re better off now than you were ten years ago.

What about the third-party processors: other companies that use the Nielsen data, for example, agency buying systems? Nielsen can require certain data to be made available as part of the future licensing agreements for data access. Still, the companies would also have to make software changes that will take time.

Let’s make the generous assumption that these changes will take place. Who wins? It seems that most radio formats would do well if at least one buying demo went up to age 64. And yes, I know 35-64 has been available for decades, but let’s consider Dan’s 41-64 for the moment. News/talk will be helped along with classic rock (how many classic rock songs were recorded after the mid-80s?). 

Those of us who are older don’t act like our parents (full disclosure: I do not fall in any of Dan Mason’s new demos) so I can see Adult Contemporary, Country, Urban AC, and other formats doing well. Public radio has also been aging so it may be easier to sell underwriting and their outside offerings that can carry spots. The various commercial Christian formats should look good, too.

Where does this leave us? If the industry truly believes that Nielsen should offer more demos, it’s time to ask the relevant questions and get the answers. Assuming Nielsen can make the software changes in a reasonable period of time, it’s up to the industry to convince agencies and advertisers of the value of these new demos over the ones they’ve used literally for generations. That will be no easy task, but making the data easily and readily available will help.

Let’s meet again next week.

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The Latest Example of How to Not Produce a Debate

If there is a blueprint on how not to put on a debate, it was Wednesday evening.

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A photo of the Nikki Haley, Ron DeSantis, and Vivek Ramaswamy in the 2nd debate
(Photo: Sachin José)

As if it couldn’t get any worse, it did. For the first time since it’s been my job to watch a Presidential debate for a living, I turned one off. After 82 minutes (9:22 p.m. CST, not that I was watching the clock or anything), I had enough. I couldn’t subject myself to the torture that became the second GOP Presidential debate on Wednesday night from the Reagan Library.

If there is a blueprint on how not to put on a debate, it was Wednesday evening, and there are multiple reasons why, beyond the usual bemoaning of “the candidates won’t stop talking over each other.”

Overproduced

The debate was overproduced. In the opening there were videos of Reagan (nice and well done, don’t get me wrong), each anchor had various lines they were reading between each other, which felt forced and unnatural, and as a result, it took over three minutes from the opening of a debate to a candidate finally speaking.

I understand TV isn’t radio, but in a PPM world, imagine taking three minutes to get to your content, when people are tuned in at that moment to consume the content you’ve been hyping up and promising for weeks. Time is a zero-sum game. Every minute a candidate is not speaking, because a moderator is, or a pre-produced piece is playing, can’t be gotten back.

Give people what they came for. A 15-second welcome, a 60-second introduction of the candidates, if that, and dive into the questions is a 90-second process. Keep these things moving and give the viewers what they came for. And that’s the candidates.

No Direction

The debate lacked direction and clarity. Anchors spent far too much time asking long-winded questions with ridiculous and unnecessary details. As a viewer, it came across like the anchors were trying to impress us, rather than asking a question, getting out of the way, and letting the candidates — you know, the people running for President — try to impress us. They’re the ones who I want to be impressed by because they’re the ones we’re being asked to vote for.

Also, the topic direction had little flow and was disjointed. On certain topics, only one to three candidates would get to answer questions on the issue. I’ve laid out the case for keeping the flow of a debate and moving it along, but only giving half the stage the chance to answer questions on the most pressing issues in the country is a disservice to the voter who is there to here what everyone had to say.

At one point in the debate, Chris Christie was asked about a looming government shutdown, which was followed by a childcare cost question to Tim Scott and then it was an immigration/dreamers question back to Chris Christie. And that was in a five to seven minute span. Huh?

Rather than finding the six to seven big topics and diving into them with each candidate, while letting the candidates then organically and respectfully spar, it was like watching an ADD-riddled teen try and bounce between topics with no clarity or purpose.

And Yes, the Candidates

Of course, there were plenty of these moments that typically derail debates, notably primary debates, where multiple people are talking over each other and no one is willing to give in to be the first one to shut up. Then, the debate begins to inevitably sound like Charlie Brown’s teacher and suddenly the obnoxious noise even makes your dog look at you and wonder what in the hell you’re watching.

There were too many candidates on stage and then the moderators also ended up losing control, like what happened last go around.

But as I wrote last month, this debate format is a broken system. But for some reason, we keep doing the same thing and expecting a different result. 

Ronald Reagan was rolling over in his grave watching that debacle last night. It’s too bad he’s not still here to try and help fix it. 

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3 Ideas to Turn CNN Max Into a Streaming News Juggernaut

The last thing CNN needs to do is to have CNN Max hiding in plain sight.

Jessie Karangu

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A photo of the CNN Max logo

It is so easy to find a gamut of stories and opinion pieces within the past year or two criticizing many different aspects of CNN and the way it operates. Many of those evaluations have been absolutely fair. 

Now though, it is time to give CNN credit where it is due.

This week marked the launch of CNN Max and it has been as seamless as a fresh glazed donut coming straight out of the oven. The stream’s video quality is crisp. Commercials are inserted properly. Most of the exclusive programming feels exactly like something you would see on linear CNN.

But the most fascinating thing Warner Bros. Discovery has been able to pull off is the ability to stream most of the same programming that airs on domestic CNN via Max. It is a stroke of business genius and puts the company and network ahead of its counterparts when it comes to offering a quality streaming alternative. As has been mentioned in the past, the network has been able to bypass MVPDs and stream their primetime anchors without permission from cable operators because CNN Max is mostly a direct simulcast of CNN International which airs U.S. programming live overnight while Europeans are in bed. 

Despite the successful launch, there are still some tweaks that could improve the product exponentially. One major benefit would be to have replays of programs that viewers may have missed from earlier in the day. Each show on serves a specific purpose and although similar coverage of news is told throughout the day, each anchor has a unique way of stringing the narrative together. Viewers deserve to get the chance to see how a story develops throughout different parts of the day and see specific segments in its entirety that may not get clipped for social media.

Viewers also need a chance to fully sample CNN Max’s exclusive programming and at the moment, if you don’t watch it live you’ve missed it forever.

Speaking of clips, it’s important for highlights of the day to be available quickly within the Max ecosystem. On CNN Max’s first day, Kasie Hunt scored an exclusive interview with Sen. Joe Manchin that made headlines.

Unfortunately, the only way a viewer could see it if they missed it live was if they scoured the network’s website for it or waited for a clip that the social media team would eventually put out. Part of being a modern-day news organization requires accessibility to be at its best at any given time of the day.

If viewers have a difficult time finding out the major highlights of what’s been on air, it may be harder to convince them to try a new product.

Viewers also deserve the opportunity to subscribe to alerts. News breaks on a consistent basis and unless you’re scrolling through your social media feed all day 24/7, it is almost impossible to follow everything that’s happening. Max needs to provide an option for specific types of alerts dealing with breaking news or major storylines that have developed live on air on CNN Max with the option to tune in now or to see clips or full episodes that deal with a specific headline. Alerts will increase engagement and maintain a relationship with the consumer they may not be able to get at another major entertainment app that streams similar programming as Max.

Promotion within the app is also important. While Max did an awesome job of showcasing the various shows that are live at any point during the day, it used the same graphics of the same hosts with the same descriptions every day. Viewers who read promos on entertainment apps are used to seeing different plot lines and convincing pictures showcased once a week whenever a new episode of their favorite show is ready for viewing. Max needs to treat news stories in the same fashion.

As stories break throughout the day, Max needs to promote their live programming with information blurbs containing new developments and questions that viewers might get answered by tuning in. Show previews could also promote featured guests. Using the same stale graphic of a host, show name, and generic show description will eventually become stale and annoying for viewers. Viewers will unfortunately train their minds to ignore the static messaging.

Warner Bros. Discovery also needs to take advantage of CNN Max’s predecessor. CNN Plus was able to maintain a decent amount of followers on social media – at least 35,000 on Twitter. Turn that page into a promotion spot for CNN Max that aggregates clips, promos, and previews of what viewers can expect on Max or what they may have missed.

As the brand develops a presence on social media, it will also develop name recognition among future cord-cutters who are deciding between Max and other services. The last thing CNN needs to do is to have CNN Max hiding in plain sight. CNN Max can be additive to cable ratings if people have an understanding of where and how to access it. 

CNN Max is creating a direct relationship between the consumer and CNN. It’s a relationship that has always had a middleman. Unfortunately for the cable industry, the middleman is slowly dissipating away.

With this newfound bond, the network should take advantage of the digital real estate it has access to and create real interaction with viewers. Optional polls, factoids, written descriptions of stories on screen, or even biographies of the guests on air at any given time could provide viewers with an extra reason to stay tuned in. It keeps viewers occupied and helps elongate the amount of time viewers spend on the stream and the app as a whole. 

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