As a medium, it has more or less reached saturation point and listener loyalty is not what it used to be. Radio is also competing against the likes of iPods, cell phones and even two-dimensional bar coding (QR codes). With 2010 only three years away, radio stations need to harness the power of new trends in media and technology if it wants to hold onto its share of the growing pie. Now is the time to act!
National, regional and community categorisations are neat, convenient marketing terms to define competitive station sets - but are they unrealistic? It is not mirrored by listeners who have no interest in labelling their station of choice. Relevance is all that counts, as all stations are the same distance away from the listeners - within arm's reach!
Mirroring the changes in society, there is a growing trend in radio away from being language and culturally based to being format, community and lifestyle sensitive.
We are also seeing an increase in the number of stations people are tuning into. This means dropping loyalty levels as listeners become more discerning in their programme selection. No surprise there. We see this trend in other electronic mediums as well.
The trend is for the consumer to have more control over the media he or she invites into their space - this control extends to time, content and platforms for delivery. Mass media is now able to connect with consumer one-on-one and has become more personal, permission-based manner.
Radio is at saturation point in terms of listeners - there is no further listener growth potential. The battle for audience is now internally focused within the medium. Stations are becoming increasingly desperate as new stations enter the market, hungry for a piece of the pie. Differentiation of brand values will become key, as will retention of existing listeners through innovative radio products. Growth, in advertising terms, will come from fragmentation and the attraction of competitive pricing.
We are also seeing a growing number of stations - particularly community stations. But these community broadcasters are caught between a rock and a hard place, as they generally lack the skills to market themselves competitively. More often than not, their revenue expectations are unrealistic and funding is weak.
In the more established media groups; station initiatives have been undermined by poor leadership, lack of creativity to deliver and performance.
Radio should deliver more engagement and activation opportunities, rather than simply being an exposure medium. The quality and quantity of advertising representation within the medium has declined from its glory days of 10 years ago.
Coupled to this, the changing media landscape means that the role of the media planner has changed. Media agencies realise it's not as easy to reach specific audiences as it used to be. The lack of relevant local case studies hasn't helped, and there is little to back the claims of radio's power.
Further the role of the radio sales houses have been undermined by increasing direct station sales efforts which have created un-necessary competition and clutter.
The continued comparison of radio to television is a flawed argument - they're different! We should build on radio's strength - not its weaknesses. The confusion that exists within our industry in terms of creativity and commercial effectiveness also needs to be addressed and resolved.
Television and radio are not comparable; alternative methods to measure radio's effectiveness are long overdue. It is also time for planning methodology to move into the new era and away from being station specific to audience related. As technology and audiences evolve, so too must the way we track and plan for these changes.
In my opinion, the medium needs to become more insight based. It needs to dig deeper for added value. Innovation is what will keep it fresh, relevant and plugged into a new media universe. Those capable of converting exposure into engagement opportunities for clients and advertisers will be the winners.
Without question, the medium will become more programme-orientated than station orientated. Programme performance shares will become the new measurement of efficacy for the medium.
Content invasion is becoming key as consumers now have abilities to screen out commercials. At the same time, consumers want to add their own personal content to the radio station, not only by calling in but through online options. This touch point can be used to engage the listeners and market to them, providing the messages are relevant and innovative.
There will be an increasing use of CGM (consumer-generated messaging) as media consumers increasingly have a stake in the station they listen to and take ownership of a brand. We have seen this with the success some of the Kagiso brands have had with blogging in recent months. Furthermore, I predict that real time messaging opportunities will grow in the next three years.
With the 2010 FIFA World Cup breathing down our necks, radio needs to aggressively hold onto its share of the advertising, as it is unlikely in my opinion to increase it during the run-up. If it doesn't, how will it regain its position after 2010 as the other hyped media crash into an Oriental Plaza-type price war?
