MarketingProfs

MediaBuyerPlanner: In Los Angeles last week, KFI-AM (640) finished first in overall ratings, the first time an AM station in Southern California has done that in twenty years, writes the LA Times. And, though it was a first in Southern California, other major market cities such as Philadelphia, Chicago, San Francisco and San Diego have AM stations that are ranked either No. 1 or are in the top 5.
In other words, AM radio is a vital, vibrant and profitable force in the universe of audio entertainment, despite battling both outside competitors – FM radio, satellite and iPods – and internal foes such as too many commercials and too much talk, according to the article. That’s because when AM was pushed out of the music-playing business in most markets back in the late eighties and early nineties, it adapted by adopting a new mixture of local news, talk, sports and other niche programming.
Last week’s quarterly Arbitron ratings should serve as a reminder that the battle is not simply between XM and Sirius satellite, but that AM is also battling FM and, in some cases, winning.
But some media analysts point out that AM may be battling FM in the talk arena in coming years, as FM is forced to look at new formats in the face of competition from satellite radio, iPods and other music-playing technologies. Other analysts believe that AM radio is well-positioned to weather the storm.