As far back as anyone can remember, at least since television began in 1956, Radio’s share of the national advertising dollar has languished at around 7%. Over 50 years, successive regimes of industry peak bodies have argued, harangued and cajoled those who buy advertising about Radio’s unique qualities – intimacy, portability and affordability among others – but have failed to nudge the medium’s revenue share into the eights.
At last Friday’s industry conference Austereo’s plain talking chairman, Peter Harvie, like Shakespeare’s Henry V, summoned the troops, “Once more unto the breach” to fight the good fight and get Radio’s share up to 8%. Can it be done?
It’s a big call. According to Zenith’s Belinda Rowe, “Radio ad share has been declining world wide since 2006.” But adds, “Except in Australia.”
Online portals, Social Media in particular, have become the new darling of the hip young media buyers that determine where much of the money goes. And if the do buy Radio, then as John Singleton once famously said “They only buy the stations they listen to.”
On top of that, fragmentation has meant that limited ad budgets have to be more thinly spread. Yet while some media such as newspapers are seriously feeling the pinch, Radio, at least in this country, has remained remarkably resilient.
Yet Peter Harvie insists the industry must unite to get radio’s ad share up beyond 8%. But how? “We must make better use of our precious air time asset. Where other media are losing audience, Radio is gaining,” he says.
Actually, time spent listening (TSL) has fallen, but Radio’s reach has increased significantly through online and (slowly but surely) digital DAB+ outlets. That’s why says, Mr Harvie, “We must cover every platform.”
He admits that he was an ‘online sceptic’ when the concept of moving into digital was first floated by his senior executives, “I was against online and have been proved wrong. I now understand that it works well with radio. In fact, 30% of Austereo’s campaigns are now integrated, cross platform.”
Mr Harvie believes that for digital radio to be viable it must get into cars, and it won’t get into cars until regional stations go digital.
To reach 8%, says Mr Harvie, “Radio must sell and resell itself every day.”
What do you think? Has the time come for Radio to finally get the share of revenue it deserves, or does it already.