RAJAR: An Analysts View – Is Radio Connecting?

Andrew Freeman, senior consultant, media research at Harris Interactive, takes a big picture view of the latest RAJAR figures and looks at the implications for both commercial and local radio…

This RAJAR, while many stations will be talking about increases in reach, fewer enjoy longer listening hours. Yet again, at a headline level only the BBC’s national network brands have grown both reach (more listeners) and hours (listening longer), while the BBC’s regional stations, and commercial radio (both national and local) enjoy modest increases in audience, but decline in hours.

It is a depressing picture for the commercial radio industry which is founded on heritage local stations serving communities defined by town or county. However, among the several hundred brands measured, there are other exceptions, and among these a more positive picture for radio emerges.

An interesting key lies among some of the DAB digital stations – seen by many as the commercial answer to the BBC’s national dominance. Despite industry uncertainties over DAB, among consumers they are popular and continue to grow (though they have yet to enjoy their ‘Freeview moment’). GCap’s theJazz may have shut now, but it went out on a high with record figures, while Planet Rock (still broadcasting) has grown yet again, along with brands like Mojo and Virgin Xtreme. And of the hybrid brands (semi-digital or quasi-national – take your pick), Choice FM, LBC and Sunrise all grow both reach and hours. These stations all represent more niche appeal – relying on a distinctive output that makes them less replaceable. And perhaps most encouraging of all, brands like ChoiceFM, or Galaxy, which also performed well, are targeted at younger audiences. In London too, Kiss FM also does well – leapfrogging Capital to become the third largest station behind Heart and Magic.

So, more listeners, and in particular, more younger listeners do tune in, and for longer, when the station offers something well targeted and distinctive. The challenge for the commercial radio industry is primarily down to their inherited structure of local stations serving geographical communities. In a market where national brands are strong, how can heritage local brands differentiate? Will Global’s decision to network more content allow it to compete more effectively with the BBC on quality? Is the question of localness even important when it comes to the mainstream? (Certainly, the performance of Radios 1 and 2 suggests it is less relevant than some may suggest).

It will be an interesting trade-off: audiences may grow, but will it be at the expense of a sense of local connection? And although that sense of connection may be a small driver to listening, it is an emotional connection with the station – a connection which differentiates a brand from a product – and makes it that bit more distinctive and differentiated among a broadening choice of competitors. The future for radio as a medium seems rosy – when stations get it right, they deliver real growth among valuable and engaged audiences. But for the media planner tasked with navigating a complex mass of different geographies, and different audiences, different modes of listening and different communities of interest, the future looks like it is just going to be full of more, and more difficult, choices.

Harris Interactive: www.harrisinteractive.com