Strategy To Fit The Mold

Michael Hedges August 5, 2016 Follow on Twitter

Broadcasters have different brand strategies, each suiting a particular customer. Audience reach is obvious but often just a means to an end. Complex strategies can be tricky, confusing the customer very risky. Atop everything shareholder’s needs and interests must be satisfied. The meetings can seem endless.

Commercial radio broadcasters in the UK had much to crow about with the release of the Q2 2016 RAJAR audience estimates. For the three month period completed at the end of June aggregate weekly reach share for national and local commercial channels and stations rose to 44.5% from 44.4% year on year and the highest in a dozen years. The “gap” between commercial and BBC radio narrowed to 7.0%, the aggregate BBC radio reach share dropping to 52.2% from 53.0%.

Overall estimated listening in the UK was the biggest ever, 48.687 million folks, 90.1% of the population. Commercial channels designated as national, now including more than a dozen brands new in the last year, scored 15.8% reach share, up from 14.5% one year on. The reach share for local commercial stations dropped to 29.4% from 29.8%. Reach share estimates for commercial broadcasters rose, on aggregate, among persons 15 to 44 years and folks over 45 years.

Aggregate reach share for BBC national radio channels was slightly down at 45.2%, lowest in nine years, from 45.5% year on year. Combined listening to BBC local stations fell to the lowest reach share ever, 7.0% from 7.5% one year on. Weekly reach share for BBC national channels and local stations dropped among both age groups.

Reach share losses for BBC national channels came, largely, in two places. Top rated Radio 2 fell to 17.2% from 17.6% year on year. In Q1 2016 Radio 2 posted its historic high reach share of 18.6%. The morning show of host chris Evans was off about 2%, some UK radio watchers speculating audience fatigue as he co-hosted the re-born Top Gear motor-head TV show.

The ever-more youthful BBC Radio 1 continued to shed listeners, 5.7% reach share and 4th place nationally from 6.4% and 3rd place one year on. “Our listeners should be seen alongside increases on our YouTube channel as it goes past 1 billion views and our growing social media platforms with over 8.5 million users,” said Radio 1 controller Ben Cooper in a statement. “To focus solely on Rajars is similar to looking at how many newspapers have been sold without lookingat their online presence or national influence.” Strategy for the BBC, which has not added a new radio channel in several years, appears to include keeping a low profile for certain brands.

BBC Radio 4 scored an additional million listeners over the same period last year. With – perhaps because of – the increase in overall listening during Q2 Radio 4 kept 2nd place nationally, 11.9% reach share up from 11.7%. Iconic morning news show Today attracted 7.3 million weekly listeners, up year on year from 6.7 million. Local observers generally credit piqued interest during the run-up to the EU referendum and related political squabbling.

All-sports BBC Radio Five Live also gained significantly, 3.9% reach share from 3.5% one year on. All-digital 6Music continued its climb, 2.1% reach share from 1.8%. Other BBC national channels were up a little, down a little of unchanged.

The Heart commercial radio broad was off slightly, 6.0% reach share from 6.2% and swapped ranking with BBC Radio 1. Several national commercial brands posted increases: Capital to 5th place with 4.1%, Smooth, Classic FM, Magic and LBC all up. The newly minted Radio X, formerly XFM, was the biggest gainer among national commercial brands.

The new Rajar estimates showed the continued growth of digital platforms, now 45.3% of all UK listening, up from 26.9% five years ago. A slew of new commercial brands – and, notably, brand extensions – have popped onto the charts. Bauer Media has Magic Chilled and Mellow Magic. Global Radio created Smooth Extra. Wireless Group, soon to be part of publisher News UK, added TalkRadio and Virgin Radio as well as TalkSport2. The possibilities for media buyers are endless.

News UK, subsidiary of News Corporation, entering the UK radio market, announced at the end of June, fits a slightly different strategic mold. “If you think about TalkSport and the Sun, the audiences are perfectly matched,” said chief executive Rebekah Brooks, quoted by campaign.co.uk (July 1). “The other opportunities in TalkRadio and Virgin Radio mean we can emulate the success of sports in other areas like news, business and entertainment.” Fortunately, News Corporation co-executive chairman Lachlan Murdoch has experience with radio broadcasting as owner, separately, of Australia’s Nova Entertainment.

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