What a busy week for radio, and a good one too.
Whether it was rival stations uniting to deliver a synchronised message over mental health; witnessing a packed Tuning In Conference; seeing the Government open a review into the future of the sector; sinking our teeth into new research over the power of contextual radio ads; watching Zoe Ball defy the cynics; or just reading healthy Rajar figures, it’s true to say everyone loves a bit of audio.
With an obvious spring in its step, the sector has even packaged it all up under the banner of Radio Audio Week for the second year running. And in any given week a consistent 89% of us in the UK tune in to our favourite shows – and we do so across both the BBC and commercial stations, proving there’s plenty of space for both.
It might even come as a surprise that 1.7m more people now listen to commercial radio stations than the BBC radio networks combined – its biggest ever lead over the Corporation.
But don’t for a moment think the BBC is in any danger – its listening figures are still colossal.
However, with BBC veterans such as Chris Evans and Simon Mayo moving over to the commercial side, it seems a safe bet to assume that lead will continue to grow, thus proving radio remains a dynamic media well into the 21st Century.
So that’s the good news, particularly if you’re interested in radio advertising. But what are the challenges and threats to the market?
We note a few on the horizon.
The problem of choice
First, just like the fragmentation in TV – which is now split into linear, BVOD and subscription – the audio market is also starting to look complicated.
Aled Schell, senior planner at The Specialist Works, says advertisers are beginning to struggle with the addition of linear radio, podcasts and digital audio.
“But the growth of audio on-demand isn’t killing radio; it’s a good thing for the consumer, giving them the chance to engage with more audio in more places than ever before,” he says, adding that although fragmentation makes planning “inherently more complicated”, it also offers up opportunities for audio to work harder by allowing it to be more targeted and more accountable.
Pesky demographic differences
Recent figures from Midas show that linear radio only accounts for 47% of total listenership in the 16-24 target audience against 74% for all adults.
In contrast, digital audio takes a 39% share of listenership for all adults. Speak to a planner, and they’ll tell you this means it is now essential to integrate digital audio into plans to ensure campaigns deliver significant reach.
Reach is also a potential issue for in-car listening of linear radio. Car manufacturers have made it easy to connect smartphones and so drivers are increasingly using apps like Spotify or Apple Music for entertainment. Radio brands must find a way to keep listeners engaged too or risk losing share.
One way they might do this is through Radioplayer, which allows listeners to catch-up with radio shows and podcasts as well as listen live.
Crucially, it gives users the choice they crave, but also represents radio brands in a meaningful way.
Alexa, are you going to be a headache?
Another issue is the threat from the big US tech firms, who have thus far enabled the market to grow through the launch of devices such as Google Home and Alexa.
This has been good for radio brands – but as the market opens up, the likes of Amazon and Google might happily take control and decide it’s time to eat the lunch of yet another medium.
The issue here is that traditionally most radio has been broadcast – via FM and DAB – and although this will continue to be the case, IP listening will also grow.
With the rise of smart speakers this makes Amazon and Google the gatekeepers for UK radio content, and it could – just like in other sectors – cause all sorts of headaches.
Because of that, you can expect the Government to look into it as part of its aforementioned review of the sector.
In the meantime, it’s hats off to radio for embracing innovation and making the medium work hard for advertisers. We’re now off to listen to our favourite station (BBC Radio 6 Music, always and forever).
