Radio 'remains beacon of strength for advertisers'

By Brendan Coyne & Amy Kellow | 24 September 2013
 
2DayFM presenters Kyle and Jackie O.

Music streaming and online music across mobile channels is no threat to radio. Audiences remain strong and integration is taking the format far beyond the single dimension. It's no longer about spots and dots, but integration, digital and social. Content is the only constant.

That's the view of senior radio executives off the back of the latest radio ratings from Nielsen.

Guy Dobson, chief content officer of Southern Cross Austereo, said the firm was happy with the performance of its stations. "Eight out of ten had increased share", he said, but admitted that the company would have to "look at the ingredients of Fox" which dropped off in Melbourne.

Dobson said that streaming was "essentially music [whereas] we are content guys that deal in audience. If Spotify or Pandora hired Hamish and Andy exclusively and in between content you got to hear the music you wanted, that would keep me up at night."

As it stands, the company has hedged its bets and invested in Songl. "We are learning about that space all the time. A the end of the day it is just a URL and a way of delivering music and content and we are specialists in that field."

From an advertising perspective, he said radio was no longer about spots and dots and straddled newer media channels.

"Radio was one-dimensional for 70 years or so. Now we have publishing, social media and digital dimensions and they are paying dividend. About 30-40% of our business is not about selling radio spots, but social, online and digital plays as well."

Group programme director at DMG Radio Paul Jackson, noting strong performance across Nova and Smooth, agreed that streaming was “complimentary" to radio and that the different ways that people listen to music across different devices, “should not affect radio as long as we continue to deliver compelling content.”

In terms of the biggest threats facing radio he said that the company was focused on continuing to improve its products and “can't focus too heavily on competitors.”

Duncan Campbell, national content director at Australian Radio Network, said that overall he was pleased with the performance of ARN stations, especially the ground Gold had gained on Fox in Melbourne. But admitted he was disappointed with WSFM in Sydney.

“It's a bit of a hit... But I've been around long enough to hear people making big statements about individual surveys only for it not to amount to much.” That result was “inconsistent” said Campbell and said WSFM would regain the losses. “It might take a couple of books. It's not consistent to what we've seen before so we will not react to it.”

Streaming and the role of mobile in radio “was a real focus for us,” said Campbell. “The role of mobile is becoming clearer and clearer. iHeartRadio (which launched in August) ramps up innovation. It is one of the fastest growing music services in the world and reinforces live listening plus access to custom radio. That is very complimentary. It enhances music listening and radio in general.”

Campbell said that while “people for the last 20 years have been saying 'the end is nigh' for radio,” audiences are not declining and revenue remains strong. “So in the new [media] world, underestimate radio at your peril.”

The ratings - Sydney:

2GB and 2DayFM remain Sydney's top AM and FM radio dogs despite the former shedding 0.5 percentage points.

Macquarie Radio Network's 2GB continued to lead the Sydney market with 13% share, despite falling by half a percentage point from the previous period. Triple M, WSFM and ABC702 each shed one percentage point, marking the biggest declines in Sydney.

Conversely, DMG's easy listening station SmoothFM enjoyed the biggest increase, rising by 1.3 points to 6.8% share. Nova 96.9, Triple J, and Southern Cross Austereo's 2DayFM also rose. 2DayFM once again led the FM stations with 8.1% share.

Melbourne:

The increases outweighed the declines in Melbourne, with only five out of a possible 14 stations losing share. Mix101.1 reported the biggest increase, 0.5 points, with Triple M, Nova 100 and SmoothFM also following suit with smaller gains.

However, Triple J and SCA's FoxFM fell by 0.7%. FoxFM - the equivalent of 2DayFM in Sydney - dropped to 8.2% share, allowing Australian Radio Network's GoldFM, which rose by 0.4 points to 8.2%, to catch up to the popular stations.

Fairfax's 3AW reported no change and continued to lead the AM market with 13.% share. Grant Broadcaster's MagicFM was also steady.

Brisbane:

Brisbane also reported five declines, led by 4BC's 1.5 point loss. 4RN shed 0.9 percentage points, followed by Nova 106.9 with 0.5 points.

The biggest increases went to Triple J and and 4KQ with 0.9 and 0.7 points respectively. 97.3FM, which increased by 0.3 points, led the market with 13.3% share.

Adelaide:

Majority of the stations in Adelaide increased their market share, led by SCA's SaFM and ABC891 rising by 0.6 points. Nova 91.9 and ABCFM jumped by 0.5 percentage points.

Mix102.3 remained the top station but shed 1.5 percentage points, cutting its market share to 14.4%. ARN's Cruise1323 also lost 0.9 points.

Perth:

Perth seemed to be the most volatile of all. Triple J lost 1.8 percentage points, 6PR shed 0.9 points and 6PN declined by 0.4 points. Nova 93.7 increased by 0.8 points, ABC702 gained 0.5 points, while NewsSR lifted by 0.4 points.

The figures are from Nielsen's 6th Metropolitan Radio Ratings Survey for 2013.

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