Two years ago, Emmis Broadcasting made a format change on its Los Angeles radio station that many people considered a "stupid" and risky move. As it turned out, the company couldn't have made a wiser decision. In just eight months, the new format boosted the station's ratings from the mid-20s to No. 1 in the market. The impetus to take the risk resulted from the company's market research studies. According to Dr. James Riggs, president of Emmis Research, Indianapolis, a division of Emmis Broadcasting Corp., research showed a huge hole in the Los Angeles radio market for a coalition of listeners that consisted of "hip" whites, blacks and Hispanics. Says Riggs, "They were telling us they didn't like what they were hearing on other radio stations and they had a preference for the kind of music and format we would offer." Moreover, research showed a gap in the radio market for this target audience and music format "was so big, you could drive a semi-trailer through it," says Riggs.

"POWER 106"

What Emmis Broadcasting has been offering its listeners on station KPWR 105.9 FM, "POWER 106," is contemporary music with a heavy dance beat. This format features singers like George Michael, Teddy Pendergrass, Melba Moore, Jody Watley, Prince and Michael Jackson. Its target audience, teens to 34-year-olds, is made up of 40% Hispanics, 40% whites and 20% blacks. The station has yet to deviate from these figures by 2-3%, notes Riggs.

When Emmis Broadcasting bought the station in 1984, it was KMGG, "MAGIC 106." MAGIC 106, an adult contemporary (AC) format that appealed to 18-34 year-olds, played music by Neil Diamond, Barry Manilow and Barbara Streisand. MAGIC 106 was making a "tidy little profit" with yearly advertising sales of $7 million out of the $300 million total that is spent on radio advertising in the Los Angeles market. The company thought POWER 106 could do better. It did. In no time, advertising sales soared to $30 million and since its purchase, the station has increased in value eight times.

Riggs says a lot of research was behind the change and many factors were taken into consideration: the competitive environment, the amount of money spent on advertising, whether or not to stop the AC format, and whether or not the contemporary/dance theme was the format to pursue.

Research techniques

Three research techniques confirmed POWER 106 was the format to pursue.

The first technique was a format study among 12-44 year-olds in the Los Angeles area. For this, a random-digit-dial telephone survey was conducted among 800 persons in the Los Angeles area. Participants had to be 44 years of age or younger and listen to the radio for at least one hour a day.

The respondents were questioned about the radio formats and programs to which they were currently listening. Emmis Broadcasting found out how well they liked these stations' music, traffic reports, opportunities to win money and prizes and morning show formats. Samples of the contemporary music/ dance format were also played and respondents were asked if they would listen to them if they were played on the radio. In general, respondents liked the music/ dance format and said they would listen.

Next, auditorium music tests were conducted in a Los Angeles hotel. Respondents listened to seven seconds of 350 songs in one hour and 40 minutes and were asked if they recognized the songs. If they did, the respondents were then asked to rate the songs on how well they liked them. A total of 700 song titles were tested among approximately 700 persons ages 15-34. Each respondent attended one of six testing evenings. Two were conducted among Hispanics, two among whites and two among blacks.

Instant success

Out of the songs tested, 150 were selected to start up POWER 106 which went on the air Jan. 11, 1986. It was literally an instant success, Riggs recalls excitedly. "Knowledge of the station swept across the city like wild-fire. Boutiques and department stores were carrying the station's music over their intercoms the first week it was on the air."

After the station had been on the air a month and a half, a perception study was conducted among 800 people to find out the station's level of awareness, its strengths and weaknesses and the strengths and weaknesses of its competitors. Respondents were 15-34 years-old and had to be listeners of POWER 106 and its competitors.

While respondents were enthusiastic in general about POWER 106, they suggested it add a lively morning show they could listen to on the way to work. For over a year, POWER 106 has featured Jay Thomas - who also stars as Carla's husband on the television show, "Cheers" - in morning drive. He has proved to be very popular with the target audience.

Research is critical

Research hasn't leveled off despite POWER 106's success. "We still do quarterly auditorium music tests, and twice a year we do perception studies," says Riggs.

For the radio industry, research is critical. "Radio station loyalty is very superficial. Listeners will stay with you as long as you are doing what they like, whatever that may be. The 'trick' is to know what they like, and that is the role of our research. As soon as listeners hit the button on the radio dial, you know you have a marketing problem," notes Riggs.

To prevent that from happening, "we never let up," adds Riggs. "Research is an investment to us, not an expense. We do whatever must be done to serve the needs of our listeners because research has a significant impact on the financial future of our business."