Review2012_210sq_V11_RC 21/03/2013 16:46 Page 1 ANNUAL REVIEW2012 THE VOICE OF UK COMMERCIAL RADIO Review2012_210sq_V11_RC 21/03/2013 16:46 Page 2 Review2012_210sq_V11_RC 21/03/2013 16:47 Page 3 Contents BRITAIN LOVES RADIO 02 CHAIRMAN’S REVIEW 04 CEO’S REVIEW R A D I O 06 09 12 14 17 REVENUE AUDIENCE DIGITAL INFLUENCE ORGANISATION RadioCentre | Annual Review 2012 01 Review2012_210sq_V11_RC 21/03/2013 16:47 Page 4 // 2012 has seen the market consolidate and evolve, as well as the introduction of new ways of connecting with our listeners and advertisers. // Dianne Thompson CBE presenting the RadioCentre Chairman‘s Award 02 RadioCentre | Annual Review 2012 to Real Radio Scotland’s, Jay Crawford, at the Arqiva Commercial Radio Awards Review2012_210sq_V11_RC 21/03/2013 16:47 Page 5 Chairman’s BRITAIN Review LOVES RADIO Welcome to the RadioCentre Review of Absolute Radio continued to build on its When I meet with my colleagues on the 2012. The last 12 months have been “decades” stations, as well as running RadioCentre Board each quarter, we are another remarkable year for commercial Olympic programming in 2012. mindful of the need to balance both the radio. We have seen the market consolidate differing priorities of members, and work Radioplayer, the collaboration between and evolve, as well as the introduction of for a secure and prosperous future for the commercial radio and the BBC, celebrated new ways of connecting with our listeners sector. I hope that 2013 proves successful its first birthday in March, and in October and advertisers. for you and for everyone involved in our launched the first industry-backed app, industry. At the same time, our sector continues to putting UK radio in one place on a mobile innovate in the ways we engage with our device. The new free app offers a truly fluid, audience. While the overwhelming majority intuitive and simple user experience, with all of commercial radio output remains local, the benefits of Radioplayer’s online further brand extension was evident in platform, but on the move. Radioplayer has 2012. At the regional level, this included grown from 157 stations at launch, to over Dianne Thompson CBE Orion rebranding its stations to Free Radio 300 stations and over 7 million regular Chairman, RadioCentre at the start of 2012 and the continuing users. expansion of Celador’s Breeze stations. To enable this innovation and evolution of More recently, Kiss has taken space on the our industry, RadioCentre’s External Affairs D1 national multiplex. This trend has also team continues to work tirelessly to reduce meant a greater cross-platform presence regulation and costs facing the sector. nationally, with Bauer Media, home to the Whether it is holding the BBC to account; Magic and Kiss radio networks, launching lobbying on proposals to be included in the Heat TV in May and taking its number of TV forthcoming Communications Bill White channels to seven, and Global launching Paper, in order to achieve significant the both Capital TV and Heart TV in October. deregulation for stations; or negotiating the best possible deal for the industry on music rights. RadioCentre | Annual Review 2012 03 Review2012_210sq_V11_RC 21/03/2013 16:47 Page 6 CEO’s Review RadioCentre’s Senior Management Team: Simon Redican, Linda Smith, Nishi Sharma, Andrew Harrison, Yvonne Kintoff, Matt Payton and Mark Barber (from left to right) It’s been another busy year for commercial The RAB was launched in May 1992 with // Our priority radio, as we continue to work on the key the remit of championing the use of radio issues for our members: revenue, audience, as an advertising platform, as part of the digital, influence and organisation – our cross-industry initiative with UK commercial continues to be R-A-D-I-O strategy. radio. Over the years the RAB has become synonymous with excellent customer service Commercial radio continued to maintain and industry-leading media insight. to work on the strong audiences across 2012, with some 33 million weekly listeners. The RAB’s catalogue of award-winning key issues for our research has helped demonstrate radio’s Most importantly, radio advertising revenues effect within the media mix, most notably remain robust (up +3.7% year-on-year), the Multiplier series – including the Online members. // bucking the trend of traditional media. Multiplier and Emotional Multiplier The Radio Advertising Bureau (RAB) initiatives – and radioGAUGE, which celebrated its 20th anniversary with a major provides radio campaign effectiveness customer event at the British Museum on measurement to individual advertisers. 23rd May 2012. The event took a look back The event also saw the launch of two new at 20 years of radio innovation, comprising initiatives from the RAB – RadioGauge a series of concise presentations from Predict and our LoveRadioAds app – both industry figureheads, including the BBC’s aimed at helping advertisers, media Tim Davie, David Mellor, Former Secretary of agencies and creative agencies get more State for Heritage, and Chris Macdonald, from the medium. Chief Executive of McCann Erickson. The anniversary comes at a time of strong industry growth, with Revenues for radio brand integration (Sponsorship and Promotions) up 8.1 per cent, up from 2.9 per cent growth in 2011. 04 RadioCentre | Annual Review 2012 Review2012_210sq_V11_RC 21/03/2013 16:47 Page 7 BRITAIN LOVES RADIO The rise reflects the freedoms allowed under We also saw Radioplayer celebrate its Finally, on Organisation, RadioCentre the new Broadcasting Code, adopted in first birthday in March 2012, with 300 continues to evaluate its role and purpose 2010, as brands look for deeper and stations and over 7 million listeners. and we’ve introduced some new services broader engagement with customers. Some Partly as a result of this initiative internet which we hope you find useful. Firstly, the of the year’s most successful S&P campaigns listening reached 43 million hours per- RACC have launched some training sessions included Coca Cola’s Olympic Torch Relay week, up 8% year-on-year. Listening via to give you a quick, handy guide to ad campaign on Bauer and Global stations, a mobile phone is also up 12% year-on- clearance, ensuring your ads can be cleared Weight Watchers campaign on Bauer’s Place year to 18% of adults aged 15+. as quickly as possible for you. The portfolio, the XFM Naked Breakfast and RadioCentre has launched the e-bulletin, On Influence, the External Affairs team Tesco’s campaign on Absolute Radio. designed to keep you up-to-date with our have been feeding into the Government activities, training, member offers and Commercial radio continues to go head-to- as part of its communications review endeavours on your behalf. head with the BBC for Audience, nationally consultation on radio’s priorities Bill. We and locally. Therefore we continue to work are expecting a White Paper to be As ever, we are always pleased to hear your with the BBC Trust to ensure that its services published in 2013. RadioCentre believes thoughts and views. are offering distinctive content to their that this is an opportunity to update target audiences (e.g. younger audiences for radio’s legislative and regulatory Radio 1 and older audiences for Radio 2). framework for a digital age, to support growth and investment. The key development on Digital radio in 2012 was the signing of the Memorandum Another major piece of work from of Understanding on the funding for local RadioCentre this year has been the re- Andrew Harrison DAB coverage. We will continue to work negotiation of the PRS music licence. At Chief Executive, RadioCentre with Government, the BBC, Digital Radio UK the time of writing, we are close to a and you, our members, on this crucial issue final agreement. in 2013. Digital radio now accounts for 33% of listening hours (Q4 2012) – with DAB the dominant digital platform representing 21% of all radio listening hours. On a weekly basis, DAB now reaches 15.3 million UK adults, up 10% from 13.9 million in Q4 2011. RadioCentre | Annual Review 2012 05 Review2012_210sq_V11_RC 21/03/2013 16:47 Page 8 // 2012 saw the radio industry record its third consecutive year of revenue growth – quite an achievement. // R REVENUE 06 RadioCentre | Annual Review 2012 Julian Treasure from the Sound Agency at the RAB event at the British Museum Review2012_210sq_V11_RC 21/03/2013 16:47 Page 9 Our research project Media and The Mood creative agencies get more from the of the Nation won Gold at the Marketing medium: radioGAUGE Predict and the Revenue Week Engage Awards and Silver at the LoveRadioAds App (more information Media Week Awards. overleaf). Building on the continued success of David Mellor, Secretary of State for National radioGAUGE in building confidence in radio Heritage in 1992, and now radio presenter, advertising effectiveness we have created delivered a keynote speech in London radioGAUGE Predict, a groundbreaking tool comparing the media landscape in 1992 BRITAIN which enables customers to assess the likely with today, and explored why radio has impact of radio within their media schedule. endured in the internet age. Further external LOVES speakers included Tim Davie, then Head of The most significant outcome for the Audio and Music at the BBC, Andrew RADIO industry from RAB activity in 2012 saw Harrison, CEO of RadioCentre, Dominic revenue growth in excess of 3% in an Grounsell, Marketing Director at More Than, economy which continues to flatline. More Julian Treasure from the Sound Agency, and importantly, media agency forecasts predict Chris MacDonald from McCann Erickson. In that radio will continue to grow ahead of Manchester, RAB were also joined by Adrian Simon Redican, MD of RAB, said “2012 saw the market in 2013.