Hot AC - Where Does It Stand

Why the Concern?

Beginning four years ago, some very successful Hot AC's experienced rating dips and there were a lot of frayed nerves over the longevity of the format. This dip in ratings was primarily due to tightening purse strings for marketing and research as well as attacks from the 80's format. Even so, Hot AC has survived quite well until now, but the advent of the Jack/Bob format has caused more ratings damage. Add to that the dwindling amount of adult, female appeal, Rock-based current music, and many in our industry have become nervous about Hot AC again.

Why is there concern over Hot AC when according to Miller Kaplan its #2 behind News/Talk with a 1.65 power ratio in the 2004 survey? While most Hot AC's are at least Top 10 in their market a great many are Top 5 and even more are top 5 25-54 adults. Yet around 25% of America's radio markets don't have a Hot AC. Why is this?? Fear of the Jack format; danger signs laid out from industry "wise men," or not really understanding the strong return on investment that is possible from this remarkable format? My partner and I, Mark St John, just finished the first phase of our Fall road trip to visit ZAPOLEON MEDIA STRATEGIES Hot AC clients KSTP/Minneapolis, WBNS/Columbus, WTIC/Hartford, WWMX/Baltimore, KSRZ/Omaha, KZPT/Tucson, WMYU/Knoxville, and I listen daily to WBMX/Boston in my hometown. These stations are very strong Hot AC's that continue to show ratings strength, many doing very well with 25-54 adults. All are successful because they understand the need to support the programming and marketing needs of their stations. Hot AC's will be successful long term, but you have to invest in the product and in marketing for this to happen. It's a very simple proposition -- do the 3 M's well (music, mornings and marketing) with the latter being based on what your competition is doing and what the norm is for the market.

What is the Perfect Mix?

As radio fights to survive vs. satellite and the internet, successful stations will be about a lot more than music. They will depend on their talent, production, entertainment value and promotions to remain successful. Those who didn't invest in the other 2 M's (marketing and mornings) and expected the music to carry them are either out of the format or are at the bottom of their market ratings when the well of Pop Alternative hits went dry. By the very nature of Hot AC's core target 25-39 females, their interests open up a world of opportunity to create compelling content for the format. A great Hot AC - in addition to hit music for the target - must provide entertainment and lifestyle news that makes a woman feel in touch with what is going on in the world, delivered by compelling personalities.

Hot AC = Mercedes Benz

I've always said Hot AC is a Mercedes Benz, and the car must receive the best care and maintenance by trained professionals to keep running top of form. The same is true of Hot AC - it must be nurtured by people who understand the format, must have a solid marketing and branding strategy, and hire the best programmers and talent to create the best possible on air content.

We are blessed to have some great clients who understand how special their Hot AC's are!

Ginny Morris of Hubbard Broadcasting funds this exceptional team: GM Dave Bestler; PD Leighton Peck and MD Jill Roen; with the very best tools - including marketing (Image TV & the Birthday Game), research and consulting to make KSTP-FM, KS95 one of America's consistently most successful Hot ACs book in and book out. KSTP-FM is also a great champion of causes for the Twin Cities and has been awarded the Marconi Award for Station of the Year.

The Journal Broadcast Group has assembled a fantastic team led by GM Steve Wexler, OM Tom Land and PD Darla Thomas to create a dominant Hot AC in a very competitive market with an 80's format that recently flipped to Bob. A commitment to product development, talent development, marketing, and contesting has allowed KSRZ to flourish so much so that their long-time AC competitor threw in the towel and flipped to 80's Pop Rock-based "The Brew."

WBNS came out of the box and went to #1 25-54 Adults, beating legendary WNCI in Columbus. GM Dave Van Stone and PD Jeff Ballentine have pulled out all the stops to make Mix 97.1 competitive in a heated 25-54 Adult arena.

Infinity's WBMX under Mark Hannon, Barbara Jean Scannell, Greg Strassell, Jerry McKenna and Mike Mullaney have brought back the Hot AC perennial powerhouse to the #3 in the Summer '05 Arbitron ratings with great tactics (Whatever Weekend, No Repeat Workday) and strong marketing support, all the while blocking the new Adult Hits station in Boston. Infinity's WWMX/Baltimore team of Bob Philips, Dave Labrozzi and Josh Medlock, continue to make one of America's first Hot AC Mix Stations, Mix 106.5, successful by staying focused on the 3 M's.

Infinity's WTIC-FM, under GM Suzanne McDonald, PD Steve Salhany and APD Jeannine Jersey has been the one of the most consistent Hot AC performers 25-54 Adults, Spring and Fall over the past 10 years. This WTIC-FM team has always understood the value of balancing Pop Rock with Pop Music when others ventured into the Modern AC arena. WTIC-FM led the way in understanding the value of having great talent in mornings (Craig & Company) as well as afternoons (Damon Scott).

Because of the care and attention paid to their programming and marketing departments, these Hot AC's have thrived when they've been challenged in a very competitive radio environment, unlike other Hot AC's around the country that when attacked have withered and died.

Hometown Hero

Part of the model for the first Hot AC, KHMX/Houston, was being an active and integral part of the community that always championed causes. Mix was a personal friend to the listener and the city of Houston, whether it was to raise money for a fallen policeman's family with a free concert at the Compaq Center, sponsoring some of the first Susan G. Komen runs for breast cancer or having the morning show bring out water and supplies to families overcome by the floods in Houston back in '91.

Great Hot AC's understand the importance of having that close, personal connection to the listener and getting them involved in causes -- helping them make a difference. Whether it's (as many stations have done) helping the victims of Hurricanes Katrina and Rita or on-air charity events like the Children's Miracle Network, turning your Hot AC over to a community event that raises money for an important national or local cause makes this all important connection - and that means your station is an integral part of your listeners' lives.

The Evolution of Hot AC Music

Since its creation at KHMX/Houston in 1990, Hot AC's core target has always been a transitioning 25-39 female. The music mix has always been about Rock based styles (Pop Rock Pop Alternative, Rock ballads). Back then this age group loved current music and music from the past 10 to 12 years that sounded like what they grew up with - Rock-based acts like Eagles, Fleetwood Mac, Bruce Springsteen and the Rolling Stones. There was no station playing that music mix in Houston in 1990. This recipe changed in the mid 90's to early 00's when the core sound, while still rock based, evolved into Pop Alternative groups and Lilith Fair ladies. Today the younger half of this target is into what they grew up with in the late 80's early 90's. There is a lot more Pop and Pop-Rhythm both in gold and currents than with the previous generation of 25-32 females. These music styles have been an exception rather than the rule on Hot AC's across the country. Hot AC has always been dependent on Top 40 to help break new music, and the hits of today on Top 40 are decidedly Pop and Pop-Rhythm. But who's to say that Hot AC has to be all about Rock-based music now? The format has always been about reflecting music tastes of 25-39 Top 40 listeners. The key to success is playing the biggest hits of today that have 25-39 female appeal, and these must be the most popular mass appeal songs, not only songs they can only hear on Hot AC. Hot AC is about variety -- a variety of old and new and a variety of different styles as well. When stations understand that, they are successful. When they don't, they are like Modern AC (a Hot AC variation) that was entirely Pop Alternative-based and more contemporary than traditional Hot AC. Because of that narrow focus these stations have no real variety. In order to remain viable to the new 25-34 female, Hot AC's music mix must transition as well. So what you'll be seeing with Hot AC music in the near future is that Pop Rock/Pop Alternative music will be less of a dominant part of the current/gold universe and Pop & Rhythm will be playing a much more significant role in the music mix.

The Jack Attack

Who's afraid of the big bad Jack? Hot AC stations should be afraid if they aren't providing the musical variety that they have been boasting about. When a Jack/Bob station debuts, Hot ACs that have run tight and/or highly contemporary playlists without strong outside marketing campaigns found themselves with a big chunk taken out of their ratings. KDMX/Dallas was cut in half by one of the first Jack stations in America. That being said, quite a few Hot ACs have withstood the Jack onslaught by adding more depth to their library -- creating tactics to highlight their variety with "no repeat workdays" and "whatever weekends." They are really living up to the "variety" promise they make. Add to that what we've described as essential for a Hot AC -- outside marketing and strong personalities -- and most Hot AC's will survive the Jack Attack.

The Future

Hot AC has a long bright future ahead of it regardless of what Pop competitors do around it. Top 40 will always need to protect its 16-24 female flank, and Top 40 stations play a lot of music that is too young in appeal for Hot AC. Jack has primarily 35+ appeal and is mostly an Oldies format that often plays too many deeps cuts for the Hot AC fan. Mainstream AC is too old and soft for a Hot AC fan. So there will always be a hole for Hot AC - with women 25-39 who enjoy new hits mixed with songs they grew up with. Hot AC will always survive if it remembers to execute the 3 M's excellently, and to provide the fuel (outside marketing) that makes this Mercedes Benz run.