Despite being marketed as 'London's biggest conversation', the talk-based station is losing listeners, writes Jeremy Lee.

Granted a licence by the government in response to the success of pirate radio, LBC was Britain's first legally available commercial and independent local station when it started broadcasting in 1973. However, longevity counts for little in broadcasting, and much like Capital Radio, which launched just a week after LBC, London's talk and information station has struggled to attract listeners.

According to the latest Rajar figures, LBC's share of listeners fell from 4.5% to 2.7% in the second quarter of 2008, while its reach fell by 15% to 594,000. Given that LBC was acquired only last year by Global Radio, which later went on to purchase Capital as part of a wave of consolidation aimed at strengthening the sector, there might be concern that it has failed to live up to expectations. This is not the first time that LBC, which in 1989 launched a rolling-news service alongside its talk-based offering, has suffered a stuttering performance. The station's history is perhaps best described as turbulent.

Originally owned by Canadian group Selkirk Communications, the London Broadcasting Company, as it was originally known, has endured several reincarnations over the past three decades. In 1987, it was bought by Crown Communications, which sold the station to Chelverton Investments. The company later failed to have its broadcasting licence renewed by the Radio Authority. LBC was rescued by London News Radio, but the brand disappeared in the mid-90s and was resurrected only when a conglomerate that included Reuters bought LNR in 1996. In 2002, LBC changed ownership again when it was bought by Chrysalis. The company had big plans for it, promising to attract at least 1m listeners, but despite a cast of presenters that included Boy George and Sandi Toksvig, this number could not be reached. Last year's marketing campaign, using the current slogan 'London's biggest conversation', was, therefore, somewhat misleading.

Following Chrysalis' acquisition by Global Radio, former London mayor Ken Livingstone joined an LBC roll call that includes the straight-talking Nick Ferrari - but there has been little, if no, positive impact. So where now for LBC? We asked Stuart Whitwell, joint managing director of Intangible Business, and Howard Bareham, head of radio at MindShare, for their advice.

DIAGNOSIS 1 - STUART WHITWELL JOINT MANAGING DIRECTOR, INTANGIBLE BUSINESS

LBC is filled with uninspiring, homogeneous and largely unknown presenters, most of whom are approaching veteran status. Only four are women, and two of them have a male co-host. Where's the variety, fun, allure and controversy? LBC was launched with the colourful combo of Paul Callan and Janet Street-Porter with their 'cut-glass' and 'cut-froat' accents. But where are the characters now? Ken Livingstone is a lively and controversial figure, but probably turns more people off than on. The station has failed to capitalise on its national coverage and on London's international status. It alienates the young and has an unnecessary bias toward men. There is little discernable difference in its schedule, with one programme blurring into the next. Even its ads sound like they're from parochial radio. However, LBC has a good platform for growth under Global Radio's stewardship and a virtual monopoly on talk radio. It just needs to broaden its appeal and more tightly define its content.

REMEDY

• Recruit more women presenters.
• Segment content with more themed programmes other than just James Max on business and property. Shows specialising in political, social, health, current affairs and international issues, perhaps.
• Increase national relevance, capitalising on London's international importance, and experiment with shows for young people.
• LBC may never be Howard Stern, but should at least be a bit controversial.

DIAGNOSIS 2 - HOWARD BAREHAM INVESTMENT DIRECTOR, RADIO, MINDSHARE

It's Nick Ferrari's personality that adds some theatrics to LBC, and no other presenter comes close. That needs to be addressed to win over audiences and get them tuning in. Ken Livingstone may eventually rectify this situation, depending on his pull with the listeners, but for now LBC seems to be a one-man show. The network - both the talk-based station and its rolling-news service - almost stands alone in the commercial talk-radio market, if one excludes talkSPORT, creating a niche offering for listeners and advertisers. However, both stations face the BBC in the talk-based market, and this is a formidable challenge for any commercial radio broadcaster. LBC needs to invest in more presenters with personality, and should increase its marketing spend. Bauer plans to spend a reported £10m on promoting its radio brands, and Virgin Radio is gearing up for a relaunch. Up against that, and the spending might of the BBC, LBC has a big challenge on its hands.

REMEDY

• Employ more presenters with personality who will make listeners want to tune in specifically to hear them.
• Increase marketing spend to fight against the promotional campaigns from other radio stations.
• Create marketing partnerships with like-minded media, such as the capital's freesheets thelondonpaper and London Lite, or their paid-for rival the Evening Standard.