Commercial Radio Must Be Upwardly Mobile, Says Billetts

Commercial Radio needs to face up to “serious issues” if it is to raise its profile in the UK, according to a new report from media consultants, Billetts.

In a review of the industry, commissioned for JP Morgan, it is acknowledged that radio experienced significant growth during the 1990s and its share of display advertising now stands at 7%. The sector experienced a downturn during 2001, although the RAB recently issued figures which showed that advertising revenue for the first three months of 2002 was £135.7 million, up 0.5% on the same period last year.

Nonetheless, despite the launch of new stations and the advent of the digital era, Billetts indicates that commercial radio will struggle to increase its influence unless it develops new targeting strategies.

Radio has always been popular with young people and according to the report, the medium currently reaches about 80% of 16-34s in a given week. However, it is suggested that commercial stations are generally regarded as downmarket alongside BBC programming and that there is a need to establish a greater foothold amongst ABC1 consumers.

Billetts claims that radio’s growth “has occurred through the increasing popularity of mixed-media campaigns” and agencies have been reluctant to use it as a primary advertising tool. As a result, average monthly spend remains relatively low when compared with other media.

The report concludes that radio needs to “develop services that attract more unique audiences and occasional listeners” if it is to compete with the likes of commercial television in the mixed-media planning process.

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