By SIMON HENDERY
The problem:
Last November's Government auction of two new Auckland frequencies was a double-edged sword for the country's two heavyweight radio broadcasters.
The Radio Network (TRN) and CanWest both needed to secure one of the expensive frequencies to retain their existing market share in the cluttered Auckland airwaves.
When the hammers
finally fell, TRN found itself the owner of 105.4 FM for $6.5 million. Rival CanWest had paid $6.3 million for 100.6 FM.
The next question was what to do with the frequencies.
CanWest has previously said it would bring its easy-listening The Breeze format to Auckland, although it said this week that decision was not set in concrete.
TRN has been quicker off the blocks. This week it launched its 100th station, Coast, on the new frequency.
The research:
Coast is aimed at the high-spending baby-boomer generation, and its format was decided only after the most extensive pre-launch research TRN has undertaken, the company said.
That research involved quizzing hundreds of people in focus groups to gauge not only their musical tastes, but also their likes, dislikes and lifestyle preferences.
"Coast fills the last gap in radio listening, catering for the 45-59 age group with 'timeless' music," said TRN's Auckland general manager, Grant Lee.
"Other stations have formats which are either geared to a particular music genre such as rock, or to a theme such as Classic Hits.
"We also researched the US market and surprisingly did not find a similar format.
"It is a product that TRN has developed and it is seen as having significant potential internationally as radio audiences become more segmented."
Baby boomers are becoming this country's most influential and affluent generation and are as likely to switch brands as their children.
The point of difference:
Coast is trumpeting its low advertising ratio - presently restricted to no more than two consecutive advertisements and a maximum of six minutes an hour of ads at peak time, reducing to four or five minutes an hour at other times.
Lee said the company's research showed support for this lower-than-normal advertising concept.
The lessons:
One of the key findings of TRN's research prior to launching Coast was "baby boomers know what they like, what they want and what they don't want", said Lee.
However, "they don't like being told what they like or want".
For that reason, Coast would avoid too many on-air self-promotional statements.
