Michael Stephenson
Michael Stephenson, the newly anointed CEO of ARN Media, has revealed his strategy for the broadcaster as the network evolves from a radio brand to an all-round entertainment company.
“I’m going to share with everybody my bold vision, if you like, for the future of our company,” said Stephenson, formerly chief of sales at Nine Entertainment.
“Which builds on the history and the heritage. And we’re really proud of where we’ve been and what we’ve done.”
Stephenson joined ARN in March as chief operating officer and this month took over as CEO from Ciaran Davis, who left the company after 16 years.
“Of course ARN has always been the leader and always been the innovator and Ciaran has a lot to take credit for," Stephenson said.
“Whilst we are proud of our history, it can’t define our future.”
The broadcaster has simplified its operating model, with a restructured sales team, already stripping out $35 million of $40 million in planned costs and 240 going from headcount.
In the half year update, ARN’s digital audio revenue was up 21% to $15.4 million, representing 9% of revenue and the company wants more.
ARN’s strategy for next year, with a firm switch to digital audio from radio, is spearheaded by content, data and technology.
“Our ability to position ARN as an entertainment company - audio, video, social and in real life experiences,” Stephenson said.
Stephenson recognises ARN’s current position in the audio streaming markets as it adds new radio and podcasting opportunities.
ARN will take “two really strong metro brands” and simplify it by creating two national networks, KIIS and GOLD, and rebranding some stations.
“We have the leading free audio streaming platform in the world in iHeart and we’ve got 50 regional radio stations that literally are our superpowers. They are a competitive advantage and differentiate us from everyone else,” he said.
ARN will adopt a multi-channel approach and introduce new entertainment offerings including radio and podcast shows and formats, original video content, podcast opportunities for brands and interactive live events.
As part of its strategy to deliver content-led solutions, placing brands at the centre of cultural conversations and directly in-front of audiences, four content events have been announced including, Save Our Pub (renovation), Run Club Rave (social), Kiised At Sea (dating) and The Zone (competition prize show).
ARN’s iHeartLIVE will also host 20 live music events across the country with opportunities for advertisers through integrated brand partnerships.
Stephenson doubled down on ARN’s “real life experiences”, reaching audiences in a more direct engagement that brands can maximise through integrations.
“We are audio, video, social and in real life experiences,” said Stephenson.
ARN has not only strengthened its partnership with iHeart in the US through these new iHeart-powered brand events but also through its digital portfolio.
“I can’t underestimate the importance of having a relationship with iHeart in this market,” he said.
“We get access to global development teams. We get access to global products. We get access to global brands. We represent their product here in Australia. They’re excellent partners and we have a long-term relationship.”
Access to global products includes a redesigned iHeart radio app which launches in Australia today and provides users with the experience of old school radio with optimised content delivery through presets, a station scan button, a live radio dial, iHeart trending and rankers and lyrics.
iHeart will give advertisers new opportunities to reach audiences through long-form, native content through the launch of iHeartMedia’s branded content studio Ruby in Australia.
“The average ad receives less than three seconds of attention,” said Corey Layton, ARN’s head of digital audio.
“What stories would you tell if you had 30 minutes with your audience? With unmatched audience recall, deeper emotional connections, and higher engagement when compared to other mediums, audio offers brands the opportunity to make a lasting impact in a crowded advertising landscape.”
Stephenson said the partnership is important to this next phase of the ARN business with digital offering dynamic ways to create fresh, engaging content that puts brands at the centre.
“The transition of our company of being a radio business to being an entertainment company and of course to do that you must transition and transform to becoming increasingly more digital and at the very, very heart of that is iHeart,” said Stephenson.
Ben Campbell, chief digital and technology officer at ARN, also shared how new data partnerships will transform audience reach and insight.
“This year is really going to be a transformative shift in our first party data strategy,” he said.
A “new scaled identity spine” has been developed which expands listener addressability across the iHeart network. A next-generation data lakehouse on Azure Databricks and Microsoft Fabric will be introduced alongside a customer data platform for advanced audience building.
Two new partnerships with Westpac DataX and Experian have also been announced.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.