Rajar Q1 2018: Analysis
Rajar’s Q1 2018 report has unveiled some important milestones for the radio industry – here are the key take-outs
Commercial radio will be popping the champagne this week, having achieved its highest reach on record; market leaders Total Global Radio and Bauer Radio Total alone have acquired a shared reach of over 41 million listeners.
Global, top of the rankings, saw its weekly reach increase 2.1% on last quarter and 4.4% year-on-year. Bauer was less lucky as its reach declined -1.7% quarter-on-quarter; nevertheless, it also saw a healthy yearly increase of 3.2%.
Liz Duff, head of media and investment, Total Media, told Mediatel that commercial radio’s achievement this quarter is something worth getting excited about.
With legacy media collectively under threat as the Facebook/Google duopoly gobbles up its ad revenue, Duff says the new record for radio serves as “living proof” that traditional formats can use digital as an opportunity to innovate and evolve.
“This sends a clear message to advertisers that this medium is worth tuning in to,” she said.
Meanwhile digital listening – be it DAB, online or digital TV – also reached new heights, now amounting to the largest share of radio listening with a slim majority of 50.9%, following an overall growth of 7.8% year-on-year.
As DAB has become more widely available more digital stations have launched, providing listeners with much greater choice. Most of the UK now has access to over fifty DAB stations and some major cities over seventy.
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Duff says the digital shift – with over 3 in 5 adults in the UK listening to radio via a digital channel – has been more predictable. Nevertheless the figures are positive, she says, as it demonstrates that the commitment to digitalisation the radio industry has made is paying off.
The top digital-only stations, including BBC 6 Music, Kisstory and the recently launched Heart 80s, all achieved record-breaking audiences this quarter.
Meanwhile, Dino Myers-Lamptey, UK managing director, MullenLowe Mediahub, says the growth of digital radio and its impact on advertisers and brands will be substantial.
Digital radio, despite many predictions, has been slow to take off, however Myers-Lamptey interprets Rajar’s Q1 results as a sign that listeners are beginning to experience and value the benefits.
“Digital radio, after all, provides more than just a clarity of signal, but further reach and access to a much greater range of stations, allowing listeners to really listen to the station that suits their mood, energy levels or particular music taste,” he said.
“All of this is fantastic news for advertisers and brands, who are looking to gain a lasting connection with people in moments where they have their undivided attention.”
The rise of voice assistants – like Amazon’s Alexa and Google Home – is making it increasingly easy for listeners to switch on the radio and listen on their own terms. With this in mind, Myers-Lamptey says, the future success of digital radio is both loud and clear.
The question now is whether FM radio will make the full switch to digital, much like TV did in 2012. It will be up to the government to review how and when this happens.
Myers-Lamptey also went on to state that commercial radio’s success this quarter further points to the power of radio over music streaming services such as Spotify and Apple music.
“This clearly shows the appeal of curated, edited and presented shows where listeners build relationships with the presenters and are drawn in by the topicality and live formats intrinsic to broadcast radio.”
Of course it can’t be all good news, with just 2 of 11 national breakfast stations able to report an increase in listeners quarter-on-quarter.
But overall, Rajar’s Q1 figures exemplify the strengths and growth of radio in spite of an increasingly competitive entertainment market.
Mediatel’s full Rajar Q1 2018 round-up is available here.