The Group nurtures a close relationship with The RadioCentre, the Radio Advertising Bureau and audience measurement body RAJAR, observing often urging media owners to be more accountable.
Consolidation is as ever in the air and the Group continues to keep an eye on Global Radio’s increasing dominance of the medium and the impact of pushing radio investment towards their branded networks.
Digital Radio Switchover
The Government’s Digital Britain plan commits the country to switching off all analogue (ie AM and FM stations) once 50% of radio listening becomes digital and at least 9/10 homes can receive digital broadcasts.
Digital switchover is potentially good for commercial radio overall as it will have a natural 75% share of the frequencies, whereas the BBC has a legacy 50% share of analogue radio. However, Digital Britain remains contentious within the commercial radio sphere, the larger stations and groups welcoming it and the smaller players fearing for their future livelihoods.
There has been continuous doubt that local DAB will achieve nationwide coverage due to last year's BBC licence fee settlement that only made provision for national, not local, DAB transmission. However, in April 2011, a provisional agreement to split the funding for the rollout of local DAB coverage three ways between the government, commercial radio and the BBC had been reached following high-level discussions that included Culture Secretary, Jeremy Hunt and BBC’s Director General, Mark Thompson.
RAJAR
Digital developments have prompted changes at RAJAR, including taking part of the survey online. This will serve to improve respondent representation and achieve more detailed platform listening data. Respondents will continue to be canvassed, door to door, but option to report online will be available.
As audio streaming is growing, RAJAR will be working with the industry to create standards in measurement and reporting for streaming statistics. RAJAR’s CEO, Jerry Hill (JH), who presented to RAG members in May 2011, believes that the addition of an online diary will improve its demographic representation and the offer of an online version is expected to extend its appeal to people who might have been put off by having to fill out a paper diary.
For the first three quarters, July to September and October to December 2011 and January to March 2012, the online diary will be used by one sixth, or 16.7%, of all respondents. Should the rollout prove successful, from Q2 half of all respondents will use the online version.
Ipsos MediaCT is working towards capturing encoded broadcast on smart phone and tablet devices. In September 2011, Jim Ford, Development Director, Ipsos MediaCT, updated RAG members on the concept of their latest project, MediaCell, which uses real time signal encoding capable of detection by smartphone application software.
The technology will capture smartphone activity, such as audio levels, movement/rotation and patterns of text messages and calls. Moreover, the software uses ‘early reflections’ – sound that is inaudible to humans ear, but audible to devices – to capture coded sets of data that can determine listening data.
Ipsos MediaCT is launching its London panel, with a sample of 375, in Q4 2011. Data will be available from Q1 2012 on a weekly basis. There is potential to make the data available immediately providing ‘live ratings’. As well as Radio, the technology has the potential to capture encoded data on TV and the internet, presenting the opportunity to evaluate cross media audiences.
Radioplayer
The BBC and commercial radio have joined forces to create a single website called ‘Radioplayer’ which allows listeners to access live streaming and on-demand content from around 250 different UK Radio stations in one place for the first time.
Radioplayer, which launched 31st March 2011, is embedded onto each radio station's website as a pop-up player, enabling live and on demand audio streaming, webcams and click to buy service. It will also offer synchronised visual material. Search will be possible by song, sports highlights and musical genres, with storable favourite presets.
Initially, it is only available through computers, but mobile applications for the iPhone and iPad are expected to follow by the end of this 2011.
Radioplayer has attracted 5.7 million unique users over a four-week period (April to May 2011), generating 22.5 million listening sessions. Total listening hours have been boosted by a 52% increase in the number of stations included on the service since it formed, from 157 to 238 stations. Before the Radioplayer's launch, internet radio attracted around 4.5 million listeners a week.
The industry hopes presenting the majority of UK radio in one place, with the same search interface apparent across all individual stations’ sites, will provide a significant boost to internet listening. The Radio Action Group is keeping a close eye on developments, which could have positive implications for advertisers. Not only will it facilitate listening, but it could enable multimedia, cross-promotional and transactional activity.
Ofcom Broadcasting Code / New Product Placement Rules
After several rounds of consultation, the previous administration passed legislation to permit paid product placement on broadcast media during the legislative ‘wash-up’ which preceded the dissolution of Parliament before the General Election.
In February 2011, product placement (also referred to as brand integration) was officially introduced in the UK, allowing media owners to access a new source of revenue. Ofcom has outlined the regulations that are to govern the practice with the publication of its new Broadcasting Code rules with respect to Commercial references in television and radio programming.
News, current affairs and religious content are not to incorporate brands in such a way, a restriction similarly applying to material specifically targeted at children.
Alcoholic drinks, tobacco, medicine, baby milk, unhealthy foods and gambling are among the categories prohibited from utilising this strategy.
A new Code Section Ten (Radio) on commercial communications in radio programming requires:
Appropriate signalling of commercial arrangements affecting programming, so as to ensure that the commercial arrangement is transparent to listeners
Clear separation of spot advertisements and programming
Prohibitions of commercial arrangements in relation to:
Commercial references in and around news broadcasts
Integrated commercial references within children's programming
The selection and rotation of music
The application of the BCAP Code to commercial references in programming
The retention of rules concerning:
Premium rate services
Charity appeals
Appeals for funds for programming or services
Financial promotions and investment recommendations
Ofcom proposes to keep a watching brief on the implementation of the new Radio rule set and, within two years, will decide whether to consult on any further rule changes.
Global Radio Dominance
Between June and September 2010, Global Radio merged a vast majority of the Heart stations to create a smaller network of local & regional stations, in line with new OFCOM guidelines on local output requirements.
In March 2011, Richard Park, Group Executive Director and Nick Hirst, Sales Development Manager, Global Radio, presented to Radio Action Group members, providing an update from a programming and content perspective.
Global Radio's Capital FM has gone nationwide across Britain, establishing the UK's first national commercial pop music station. Under the relaunch plans, Capital replaced Global's six-strong pop music stations under the Galaxy stable, as well as the Red Dragon, Trent, RAM and Leicester Sound networks. The new enlarged network is expected to reach an audience of around 6.5m people every week across the UK.
Global Radio and TalkSport-owner UTV Media were involved in a review of Absolute Radio - the radio station and music and entertainment company - and held discussions with investment bank, Jefferies. Radio Action Group members expressed concern at Global’s increasing dominance of the medium, but agreed that no action was required until a bid had formally been placed.
Subsequently, Global pulled out of the Absolute Radio sales review process after Jefferies asked the group to up its bid for the assets. UTV Media, which owns a number of local stations alongside TalkSport, and Virgin Radio International, are among the remaining bidders in the process, although it is understood that there is only interest if the price is right.
Bauer Realign Radio Stations to Offer Customised Ad Deals
Karen Stacey, Director of Broadcast Sales and Brand Solutions, and Derek Hewitt, Director of Radio Sales updated Radio Action Group members on radio developments at Bauer Media.
Bauer has restructured its radio stations into two different packages for advertisers based around either location (‘place’ portfolio) or emotional connection with a station (‘passion’ portfolio). The strategy switch reflects audience research that shows some Bauer listeners are motivated by relevant local programming, while others have an emotional connection with a station's music format.
Bauer Media's national broadcast sales team will continue to be structured into agency hubs and the packages are flexible so agencies and advertisers can buy separate stations or smaller groups of stations, should they prefer to.
Karen Stacey also reported on the development of Bauer Access - a cross-platform service for Bauer Media's commercial partners, designed to encourage better communications between Bauer's brands and its clients, providing greater access to Bauer’s editorial insight and creative talent.
New RAB Research: Media & the Mood of the Nation
The Radio Advertising Bureau (RAB) has published a new study, showing that people who use media are happier and more energetic than people not using media. The research, carried out by Sparkler Research for the RAB, surveyed 1000 consumers via their smart phones, asking what media, if any, they were consuming and to rate aspects of their mood.
The results of the study were used as a basis to establish if media can exert a positive influence on the way people feel, how this happens and how does this affect engagement with advertising – especially on radio.
A separate lab-based investigation was carried out using electroencephalogram (EEG) brain scan techniques to establish if the moods created by radio editorial extended to radio advertising. The scans confirmed that when radio ads are preceded by radio editorial, levels of positive engagement were sustained throughout the ad break, up by 30 per cent, when compared against ads played in isolation.