Survey Proves Audience Knows What They Like, Pays Attention

Michael Hedges May 17, 2012 Follow on Twitter

Industry strategies often have unpredictable effects. Designs for improved market share or profits are easily tangled by competitive complications or the demands of pesky consumers. The dynamics can yield unintended consequences.

In the UK, for example, commercial radio broadcasters began to shun local origination and branding in 2008 when Global Radio acquired GCap and homogenized the Heart brand across much of the country. When media regulator OFCOM officially relaxed rules in 2010 – after considerable lobbying - other commercial broadcasters followed suit. The advantages are obvious: lower costs of production and sales. It was a bandwagon nobody wanted to miss.

By consequence, the aggregate market share for local commercial radio in the UK has fallen to 30.3%, as reported by industry measurement service Radio Joint Audience Research (RAJAR) (May 17), the lowest in a decade. National commercial channels – now including the quasi-national brands – now have an aggregated market share of 12.0%, highest in forever. There are three licensed national commercial channels – Classic FM, TalkSport and Absolute Radio – and five years ago (Q1-2007) they took 71% of the national commercial market share. In Q1-2012 it’s 54%. The remaining – and growing – market shares have been scrapped up by a combination of the newly created quasi-national radio brands and, of course, a scattering of digital channels.

None of the national commercial channels – quasi or otherwise – showed major gains in the Q1 national survey. The Heart network was up a slice to 5.0%, the top rated national commercial channel. The 18 month-old Capital network was flat at 4.2% market share. Classic FM was down (again) to 3.5% from 3.9% year on year. Smooth, Magic and Kiss were all up but a tad.

The other side of the UK radio market – the BBC – has seen something of a reversal of fortunes as the combined market share for BBC local stations climbed to 9.4%, the highest in three years. The 40 BBC local stations are facing substantial budget cuts – to the joy of lobbying newspaper owners – but the BBC Trust, after an amplified public consultation, decided (May 16) to roll back much of it. “Although lower in financial terms than for many other parts of the BBC,” said the BBC Trust statement, proposed cuts to BBC local radio “was disproportionate to the value of these services to their audience.”

Market share for BBC network channels fell to 45.9% from 46.2% one year on. BBC Radio 2 turned its best showing in two years, since high-profile host Terry Wogan retired. Gains across the schedule gave Radio 2 a 16.8% market share, up from 16.0% one year on. Other BBC national channels fared less well; Radio 4 dropped to 11.9% market share in the national survey from 12.3%, Radio 1 dropped to 8.2% - lowest in six years, Five Live was down a pinch to 4.4% and Radio 3 was lower at 1.1%. The ‘gap’ between the BBC and commercial stations, typically greatest in the Q1 survey period, stands at 13.1%.

The digital radio market has long been a conversation starter when the quarterly RAJAR’s are released. With the current survey it could be a conversation ender. Listening to all digital platforms has risen nationally to 29.2%, up from 26.5% year on year. Quarter-to-quarter the increase was, well, marginal. The share of listening for the Digital Audio Broadcasting (DAB) platform dropped to 19.1% from Q4 2011 but up from 16.7% one year on. BBC channels have a marked advantage over commercial channels in digital platform shares; 29.6% for BBC channels and 28.4% for commercial channels. On DAB the BBC platform share is 21.7% against 16.1% for commercial radio.  The BBC’s mainly DAB channels 6Music and Radio 4 Extra showed market share gains. Commercial stations seem to have a slight competitive advantage with non-DAB digital platforms showing gains in Web and set-top box listening.

See also in ftmKnowledge

Europe’s Radio – Northern Europe

Northern Europe’s radio has a very digital sound. And change is in the air. Economic challenges abound for both public and commercial broadcasters. The ftm Knowledge file reports on Denmark, Estonia, Finland, Iceland, Ireland, Latvia, Lithuania, Norway, Sweden and the UK. 101 pages PDF includes Resources (February 2011)

Order here

Digital Radio - Possibilities and Probabilities

Digital radio has many platforms. From broadcast platforms to internet radio and rapidly emerging smartphone platforms, listeners and broadcasters have choices galore and decisions to make. Some regulators have made up their minds, others not, some hedging their bets. This ftm Knowledge file details the possibilities for digital broadcasting and the probabilities for success. Includes Resources 110 pages PDF (August 2010)

Order here