Some advertisers bridle as format changes approach at Clear Channel.

Clear Channel Communications Inc.'s eight local radio stations are about to implement a long-awaited reduction in their hourly ad count as part of a companywide effort to boost both program time and ad rates.

Clear Channel, which has made no secret that it expects higher demand for reduced advertising time to result in higher rates, is gambling that it won't lose revenue as advertisers move to competing stations with lower prices. The anticipation is that advertisers will view fewer spots as more valuable and that listeners will be better able to distinguish among them.

As negotiations for contracts for the first quarter of 2005 began, some advertisers were unhappy that more 30-second spots than 60-seconds were available and that the rates had risen. Half-minute ads will cost about 75 percent of what 60-second ads now cost.

"Some advertisers agree with the philosophy (of less clutter) but they're not necessarily thrilled with the fact they have to take a 30-second rather than a 60-second spot," said Greg Ashlock, regional vice president of Clear Channel Radio, whose holdings include four of the market's Top 10 stations: No. 3-rated KFI-AM (640), No. 5 KIIS-FM (102.7), No. 8 KOST-FM (103.5) and KHHT-FM (92.3), No. 9.

The new structure, which will be in effect by Dec. 15, will reduce the number of spots per hour by about 25 percent. Initially lauded by advertisers and even competing AM stations as a solution to "ad clutter," some attitudes have shifted.

"Some smaller advertisers don't have 30-second ads, perhaps because they have too much disclaimer information, or are just resistant to 30-second spots," Ashlock said.

Clear Channel will be offering 35 percent fewer 60-second ads, which are considered the premium spots by advertisers. To address the difficulty some advertisers have with 30-second spots, particularly smaller agencies without their own creative departments, Clear Channel started a creative services section at its San Antonio, Texas headquarters to create the ads on spec for free--even if time isn't purchased on a Clear Channel station.

"The million-dollar question is if it will affect revenue," Ashlock said. "Our expectation is that it will lead to growth. We've already had early successes for the first quarter. On our January budget, we had 200 clients convert to 30-second spots (nationwide)."

Advertisers had long been critical of AM radio "ad clutter," in which stations book lots of commercials in a row, driving away listeners and diluting the distinction between ads. Programmers at AM stations, which run more ads per hour than their FM counterparts, were glad that Clear Channel's move would clear the way to reduce their clutter without hurting their competitive position by making a first move.

"We certainly support Clear Channel's efforts," said Joe Davis, executive vice president of radio at Camarillo-based Salem Communications Corp. "In fact, we instituted an ad clutter reduction program at some of our stations. We're not taking the same approach. We're keeping our ad rates consistent."

Infinity Broadcasting Corp., a unit of Viacom Inc., also reduced the number of spots per hour on all of its stations last spring, including seven in the Los Angeles market.