Media & Marketing:The latest radio ratings, known as the Joint National Listenership Research (JNLR), have come at the wrong time for Emap, the UK media group which is selling Today FM, FM104 and Highland Radio in Donegal.
It has been reported that Emap has put very frothy valuations on its Irish radio assets, which Emap is selling to pay for restructuring costs at its publications arm in England. However, the latest JNLR book has strengthened the hand of potential purchasers.
The JNLR survey conducted by TNS mrbi is the single largest research project undertaken in Ireland, with 15,000 individuals aged 15 and over interviewed every year.
Unlike some polls, interviews are conducted face-to-face in the respondent's own home. JNLR is published four times a year, so it's possible for media analysts to perform quarterly and half-year sequential analysis.Comparing the six-month ratings from October 2006 to March 2007 with the preceding April to September 2006 period, Today FM's national reach declined two points to 15 per cent. The station's reach was also down a couple of points in its key demographics of 15 to 34 and 20 to 44 year olds.
It was the same story at FM104, with its adult reach in the capital down three points to 21 per cent. The impact of new rock station Phantom was evident with FM104's reach among 15 to 34 year olds plunging seven points to 34 per cent, and its reach among 20 to 44 year olds declining six points to 29 per cent.
In their defence, the stations will argue that JNLR results can be seasonal, but the media buyers counter back that the ad rates are never seasonal
In the radio business , "reach" counts in any listener who listened to a station yesterday, even if only for a couple of minutes. Market share is the actual share of all minutes listened to a radio station and can be a better measure of loyalty. And despite its declining reach, the ratings show that FM104 is having more success with getting its listeners to stay tuned for longer. Even though their reach figures are down, a consolation for Today FM and FM104 is that reach ratings for just about every other station were down too when comparing October 2006 to March 2007 with the preceding April to September 2006 period.
This could be a blip or it may be that listeners are narrowing their repertoire of stations, a development which advertisers would welcome.
Paul McCabe, director MCM Communications, explains: "People are listening to just about the same amount of radio as before, but they are listening to less stations - making them less likely to flick between stations during commercial breaks."
However, Today FM and FM104 are sure to command huge sale prices because they are market leaders. Nationally, Today FM attracts more young adults aged between 15 to 34 than any other station, while FM104 is number one with housewives in the capital, as well as in the 15 to 34 and 20 to 44 demographics.
And it could be said that Highland Radio is the most successful radio station in the country, with two out of every three adults in its catchment area tuning in every day. These market leading positions deliver impressive income.
According to Adspend - an industry barometer of media advertising revenues - FM104 brought in €8.3 million in ad revenue last year.
However, media buyers estimate that the true figure was closer to €10 million. The Adspend estimate for Today FM was €17.2 million, although observers reckon that the station's revenue was around €20 million.
The JNLR figures show that the Dublin radio market is becoming more competitive. For instance, new kid on the block Phantom FM is beating Today FM's Tom Dunne in the evening. Paul McCabe observed: "The big success in Dublin is Newstalk, which now draws 11 per cent of the population daily, increasing to 16 per cent among Dublin men. Newstalk now draws a bigger audience in Dublin than Lyric FM, Today FM, Q102, Country Mix, Spin FM or Phantom FM.
"The station will take huge encouragement from their performance in Dublin - a position that took several years, and many programming reformulations to achieve - and will hope to replicate this nationally over the next couple of years."
Gary Power, managing director of the ad agency Saor Communications, believes that as a brand, FM104 is in the mature cycle, but it could still grow a couple of more percentage points. He says that Today FM has not yet reached its full potential and should continue to grow in single-digit figures as long as it can hold its offering, which is driven by its personality presenters.
"Today FM's current market value is only as good as its last book and it holding on to its star personalities," says Power.
FÁS marketing plan
FÁS is tendering for a marketing and communication audit services company to plan and commission market research which will establish the current brand position, and also recommend ways of enhancing the effectiveness of future campaigns.
Meanwhile, FÁS is also advertising for an advertising design agency, with details on the eTenders website, www.e-tenders.gov.ie. A decision on which agency will be awarded the FÁS media buying account is expected in mid summer. The incumbent agency is AFA O'Meara.
Super Valu ad
Super Valu is planning to spend over €3.5 million over the next two years on producing and buying the airtime for a new TV campaign.
Using the tagline "Real Food Real People" and the soundtrack The Girl From Ipanema, it's the first television campaign created by Super Valu's new ad agency, McCann Erickson. Supervalu also plans to open 11 new stores this year.
