andrew harrison, radio advertising bureau – “the future of commercial radio”
TRANSCRIPT
The future of UK Commercial Radioand what it means for advertising customers
Andrew Harrison – CEO, RadioCentre
The future of UK Commercial Radio
• RadioCentre – objectives & strategy
• The current status of Commercial Radio
• Catalysts for change
• The vision for UK Commercial Radio
RadioCentre
Revenue
Audience
Digital
Influence
Organisation
Our purpose
The RadioCentre leads a dynamic and thriving Commercial Radio Industry, helping our members grow revenues and audience year-on-year.
Our purpose
The RadioCentre is “the voice” of
Commercial Radio
R-A-D-I-O
R - Revenue
A - Audience
D - Digital
I - Influence
O - Organisation
The future of UK Commercial Radio
• RadioCentre – objectives & strategy
• The current status of Commercial Radio
• Catalysts for change
• The vision for UK Commercial Radio
Audiences are holding up brilliantly despite huge growth in new media
0
20
40
60
80
100
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008(Q2)
All radio Commercial Radio
Weekly reach (% of adults 15+)
Source: RAJAR
Radio continues to recruit listeners amongst 15-24 Digital Natives
6,400
6,500
6,600
6,700
6,800
6,900
7,000
7,100
7,200
7,300
Q201
Q301
Q401
Q102
Q202
Q302
Q402
Q103
Q203
Q303
Q403
Q104
Q204
Q304
Q404
Q105
Q205
Q305
Q405
Q106
Q206
Q306
Q406
Q107
Q207
Q307
Q407
Q108
Q208
TI ME
Reac
h (0
00s)
Weekly reach of 15-24 year olds by quarter for all radioSource: RAJAR
Commercial Radio is strongest for younger audiences
Commercial Radio BBC Radio
55+
55+
45-54
45-5435-44
35-4425-34
25-3415-24
15-24
Proportion of total hours listened by age groupSource: RAJAR Q1 2008
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
28%
14%
49%
5% 1% 6%5%
40%
25%
13%
2%9%
% of time spent with each medium on average day
Base: All adults 15+ Source: Touchpoints 2
Radio is an important medium in consumers’ livesRadio remains under invested-in relation to its share of consumers’ time% share of display revenue
Source : NMR 2007
R-A-D-I-O
R - Revenue
A - Audience
D - Digital
I - Influence
O - Organisation
R - Revenue
Quarterly Commercial Radio industry growth (%)
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008
Source : RadioCentre
-7.3%
-9.5%
-1.6%
+0.8%
+5.4%+7.1% +6.7%
RadioCentre Certificate of Excellence
RAB – driving revenue growth
Not Always AnEasy Sell
A Medium I Know
& Like
Hooper Galton qualitative research, Dec 2007
Lots Of OtherOptions
The challenge radio faces
BENIGN NEGLECT
RAB activity
4. Agency events3. Strategy Consultants
2. Reports1. Trade events
Reach/frequency
Audio
Dayparts
Intimate
Online
Re-allocate some of your media budget to radio and you will get more overall effect for the same investment
A – Audience
D – Digital
A digital media world complements not competes with radio
Digital platforms are extending radio’s distribution
18.4%
9.0%
4.5%
1.8%
DTV DAB Internet Total Digital
Digital radio now accounts for 18% of all Commercial Radio listening
Commercial radio: Share of Listening Hours
% listening via platform
Source: RAJAR Q2 08
www.radiocentre.org/player
New RCP graphic
I– Influence
Create optimal environment for Commercial Radio to grow
Achieving a level playing field with the BBC
Local Video
The current status of Commercial Radio
• Radio is important for consumers
• Huge radio audience is holding up despite plethora of new media choices
• Digital platforms will help enhance radio’s relevance & listening
The future of UK Commercial Radio
• RadioCentre – objectives & strategy
• The current status of Commercial Radio
• Catalysts for change
• The vision for UK Commercial Radio
Marketplace change
The Times, 30 June 08
The Telegraph, 15 June 08
BBC News Online, 13 Sept 07
RAB response
EVENT:
A new vision for UK Commercial Radio
18th September
Ownership change
Digital change - DRWG
Digital future
DAB & Broadband• UK broadcast• FREE• MOBILE• PROPRIETARY• ROBUST• Audience data• More national CR stations• Low level interaction
• Global online• Worldwide choice• Return path• Alternative revenue streams• Links to station websites
The future of UK Commercial Radio
• RadioCentre – objectives & strategy
• The current status of Commercial Radio
• Catalysts for change
• The vision for UK Commercial Radio
The vision for UK Commercial Radio
LISTENERS ADVERTISERS
COLLECTIVELY Take the game to the BBC and build share of listening
Easier access to the whole CR listener & online community
COMPETITIVELY Deliver optimum choice for listeners
Deliver optimum value for advertisers
Universal McCann immersion week
28 July MondayStarts with a Classic FM Breakfast
9:30am Andrew Harrison, RadioCentre“The Future of Commercial Radio”3:00pm David Meliveo, Autoglass“How radio has built Autoglass”
29 July TuesdayStarts with an LBC Breakfast
9:30am Simon Cole & John Quinn, UBC Media“Radio as a retailer”12:30pm Moz Dee, talkSPORT“Commercial Radio vs the BBC”4:30pm Andria Vidler & Dee Ford, BauerRadio“How UK brands are evolving in the digital age”
30 July WednesdayStarts with a talkSPORT Breakfast
10:00am Don Thomson, Global Radio“Global Radio’s vision for the future”11:30pm David Muniz, Gaydar Radio“The power of discrete, targeted radio brands”1:00pm John McGeough & SimonDaglish, GCap Media“Fresh thinking with GCap”3:30pm Steve Ackerman, Somethin’ Else“Branded content on Commercial Radio”
31 July Thursday9:30am Julian Carter, Paul Fairburn & JohnMyers, GMG Radio“Taking on the BBC”11:30am Martin Stiksel, Last FM“The growing role of personalised online radio”4:30pm Donnach O’Driscoll & Nick Hewat,Virgin Radio“Meet the new owners of Virgin Radio”From 7pm join us for the Heart music quizwith Toby Anstis
1 Aug FridayStarts with a Kiss Breakfast
10:30am Jonathan Arendt, NME Radio“NME Radio and their new proposition”12:30pm DJ Q&AWith special guests, inc. Christian O’Connell, Ricky & Melvin4pm onwards Kiss FM host Agency DJ of the year