Rajar Q4 2013: Industry reaction

For a while now, I’ve been telling anyone who will listen – and there aren’t many of these people – that the UK’s push towards digital radio is more likely to be driven by online listening, rather than DAB or DTV.

That radio apps such as RadioPlayer are free, smartphones and tablets are booming, domestic internet strength increasing and 3G evolving into 4G just make it a more obvious alternative to the DAB set.

Today, RAJAR’s quarter 4 2013 radio audience results are upon us and, while not exactly a seismic shift, there are some interesting signs which are indicating that we are turning more towards online and apps for our radio listening.

One of the first numbers I look for when the fieldwork is complete and data processed, are the platform splits. This time around, at the end of 2013, the weekly reach of all digital platforms is 52%, an increase of 1.5% points on the previous quarter and around 4% points against the final quarter of 2012.

Growth in the share of listening hours is slightly more modest at 3% and 0.4%, comparing the same periods, and now stands at 36%. Overall by platform, AM/FM reach is 58%, DAB 23%, DTV 5% and Online/Apps 6%.

This is all well and good and the chipping away at the notional target of 50% share continues, but it’s the trends under the surface which offer some real insight into possible changing habits.

Most noticeably, the platform of listening amongst sub-sections of the RAJAR sample has changed quite dramatically – in particular listening amongst the 15-24 year old ‘Millennial Generation’ or ‘Tomorrow’s Listener’ – whatever you want to call them.

What is clear (and probably quite obvious by now) is they are more interested mobile devices, and more in the smartphone sphere than tablets.

When looking at listening by platform among 15-24s, the splits are markedly different. The platforms for listening are far closer in terms of the percentage of people listening on each device – this shows that they are far more diverse in how they listen.

There is a higher portion of listening on AM/FM than on the overall population – 71%. The point that interests me most though is the online figure – 28%! That’s nearly one third of 15-24s listening online or on an app. To reiterate, that compares to 6% for all adults.

What’s more, it’s overtaken DAB amongst this age group – 27% of 15-24s listen on a DAB – still higher than the overall 23%, but what this shows is that online listening is more popular amongst 15-24 year old radio listeners.

This has happened once before, a year ago when the percentage reach was the same on both platforms (26%) and a marginally higher number of listeners tuned in online. DAB, however, came back over 2013 and managed to keep a couple of percentage points ahead.

This time I just think a preference of online listening over DAB might be sustained and has more potential to grow. DAB listening is likely to stay at the same level, after all the hardware is in place. However, we are another year on – smartphones and tablets in particular have continued to strengthen their grip on the nation’s younger generation.

By the end of 2013, 81% of males and 80% of females aged 15-24 owned a smartphone while 28% and 26% owned a tablet of some description. This is a significant increase compared to the end of 2012 – particularly for tablet ownership which has nearly trebled over the last 12 months (at the end of 2012 Ipsos MediaCT research was showing that 71% of males and 76% of females owned smartphones and just 13% and 10% owned a tablet).

2014 will also see RadioPlayer partnering up with Ford and their new SYNC AppLink technology to allow more online listening in cars. The price of tablets has come down significantly and what you get for your money has increased. With such ubiquity of connected devices and means to access the radio, I do think that online listening stands a good chance of remaining the platform of choice for the next generation of radio listeners.

Agency View

Michael Williamson, head of radio, Carat

Today’s radio results are a great story for advertisers. Within an increasingly digital and competitive market, radio listening is thriving. It’s great to see that commercial radio’s growth in reach year on year is outperforming the BBC’s growth for both the 15-44’s and 45+ markets.

Shrewd investment into brand extensions is giving listeners greater choice. This continues to be the trend with Capital Xtra and Kisstory increasing their audiences. If this trend continues and further brand extensions are lined up, this gives a greater case for a 2nd national digital multiplex.

There are also great results in this quarter from the established stations such as talkSPORT & Classic FM.

talkSPORT has seen its audience grow across all daytime shows including a 9% year on year increase for Colin Murray’s mid morning show – which is great news for our client Wickes who sponsor Colin’s show.

talkSPORT is now in a great position as we build up to their exclusive commercial rights to the FIFA World Cup this summer.

Capital leads the field both nationally and in London. But with the changes going on at Global Radio following its acquisition of GMG Radio, we expect Heart to increase its audience through a few of the Real Radio stations changing over to the Heart brand, and surpass Capital in the next Rajar period.

Media Owner View

Steve Parkinson, managing director, Bauer Radio London

It’s been another great quarter for radio as a whole, with both commercial and BBC radio increasing their reach year-on-year and quarter-on-quarter. Commercial radio is leading the charge, up 4.2% for reach year-on-year.

It’s also been a positive quarter for digital listening, with 52% of the population now tuning in via a digital platform each week, up 10% year-on-year. Digital listening hours are also up 9% from a year ago. This is great news for the industry and backs up our belief at Bauer that DAB will be at the heart of radio’s digital future.

Congratulations goes to BBC Radio 6 Music, which is the most listened to digital-only station, recording its highest ever audience of almost 2 million listeners (1.96 million).

From a Bauer side, our programming teams are also rightly celebrating having four of the most popular digital commercial stations in the UK, with Absolute Radio 80s, Planet Rock, Kisstory and The Hits Radio.

For Bauer, breaking the 16 million listener mark is a great moment for us, as we welcome Absolute into the Bauer family. Christian O’Connell celebrates his second highest audience reach of 1.4 million listeners.

Kiss too plays a big part in this headline number, with new channels Kisstory and Kiss Fresh performing strongly. It’s also been a strong Rajar for our Place Portfolio, with Key 103 and Metro Radio putting in good performances amongst others. Special mention to Wave 105 on the south coast which has posted its best figures since launch.

These Bauer figures demonstrate that a balanced portfolio of local and national radio services offer great opportunities for both consumers and advertisers alike.

Elsewhere, Capital continues to do well, with #1 position in London, with Kiss 100 hot on its heels at #2 with a reach of 1.8 million listeners – Kiss also remains the market-leader for both 15-24 and 15-34 year olds.

Overall, it’s a good book for most to kick the year off with – so bring on the rest of 2014.