Summary
Article in the WSJ points out that small market radio stations are outperforming large market stations in terms of growing their markets.
Analysis
Small market stations are about the only area of the radio industry that is performing positively in the current environment, according to recent BIA data reported in the Wall Street Journal. The article points out that small market stations--and groups such as Saga Communications--are performing better that large market groups such as Clear Channel and Citadel.
Aside from the fact that small market groups/stations are not buried in debt, the article doesn't address the main reason why these stations are having success. The fact is small market stations are deeply involved in their communities--they focus on localism.
Travel across small markets and listen to radio stations, and you will hear local news, high school sports, farm and agriculture reports (where appropriate), discussion of community events, and other things you won't hear among big groups in big markets who focus on boring and repetitive playlists followed by several minutes of commercial "stop sets" as the industry refers to them. They don't have any news or much traffic and weather infomation aside from drive time and do little to engage the local audiences. It's one of the main reasons why younger audiences gave up on radio years ago and switched to iPods and Internet radio.
The bigger groups could learn a lot about small market radio and serving their audience. Its one of the main reasons why the radio industry is in trouble, and many of the big groups are facing bankruptcy.
