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I doubt the logo was changed with the express purpose of attracting the 21-54 demographic, but I'm sure that played a part. "Young people don't watch local television" is exactly the kind of thing they would be trying to change with a "hip" new logo/brand.
This isn't the first time this debate has come up about a TV station logo. I'm kind of getting tired of it. I don't think a lot of people on here understand the "usual" process that happens with this kind of change, especially when it comes to large markets and large broadcast companies like Scripps (who LOVES to research and focus group everything they can.) A logo change could stem from dozens of carefully researched problems a station is facing. If ratings are down, maybe it's time to conduct market research. Maybe the market research shows that the ol' reliable "classic" logo from 1973 isn't memorable after all amongst any age group. Maybe only senior citizens can remember what the "circle 5" logo means. Maybe they're even shown the old logo and a new logo next to each other, and asked: "which of these TV channels would you rather watch?"
I've seen (older) market research before, and it can even include showing people photos of talent and asking them who they are and what station they're on. It may shock you, but quite often people can't match a name to the face or a name/face to a station.
And then comes the focus groups. They might be shown the same news clips with different logos/bugs and, days later, asked which logo they remember seeing. People tend to remember more simple things, which is why most brand logos are pretty simple.
Market research is a science. There are big research companies that do this every day. Just because an old logo works on one station, doesn't mean that it's a universal fact that all viewers love classic logos. Changing the logo back to the Circle 5 is not going to make ratings skyrocket, and I doubt anyone tuned out because the logo changed. This is going to sound weird, especially after all I just said, but the vast majority of people don't care about a TV station's logo. The real goal is to make them remember the logo and remember the station and make the gears in their head turn when they're at work the next day, talking about something they saw on TV.
I will also argue that WISN has updated their logo several times over the years, changing the fonts and colors (and for a while, the angle) to keep up with the times.