The Elegance Of Simple Strategy

Michael Hedges May 16, 2013 Follow on Twitter

Good management tackles hard choices. In these times of changing audience behavior and new platforms strategies are increasingly short-term and tactics mostly fleeting. Then, too, there’s the cost of it all. Brands matter but that’s not all.

Yes, indeed, DJs matter. BBC Radio 1 breakfast (morning) show DJ Chris Moyles was replaced last year by the guy who had been doing the night show, Nick Grimshaw. There was certainly a strategic reason. That notwithstanding, the Radio 1 audience share plummeted in the Q1 2013 RAJAR survey to 6.7% from 8.2% one year on, the biggest drop of any channel in the national survey and the lowest share for Radio 1 in more than a decade.

Commercial broadcasters have moaned about Radio 1 for years; its youthful target audience supposedly attractive to adult media buyers. BBC radio grandees took the opportunity of Mr. Moyles’ age and fading audience to make a change. It seems those listeners – they know what they like and like what they know - spirited themselves to BBC Radio 2 and Chris Evans breakfast (morning) show and, perhaps, alternative music digital-only BBC 6Music.

Radio 2 posted its biggest audience share in forever, 17.7% up from 16.8% one year on, securing the top ranking nationally. News and talk channel Radio 4 also had a significant share gain to 12.8% from 11.9% in the same period 2012. That, too, is a best-ever showing.

This RAJAR survey period was reasonably good to BBC radio, ignoring the Radio 1 crash. Taken together BBC channels attracted 55.7% on the national radio audience, up from 55.4% one year on and highest since Q1 2010.  RAJAR survey shares for BBC channels tend to rise in the winter-spring quarters and commercial channels rise in the summer-fall quarters. Maybe it’s the weather or survey sampling or something else. This meta-trend seems unaffected by competitive factors suggesting listener’s hardened preference for either BBC or commercial offerings. (See 10-year trend chart here)

Commercial channels on aggregate in the national survey fell, predictably, in market share to 41.9% from 42.3% year on year, lowest since Q1 2010 (41.3%), Q1 2009 (41.6%) and Q1 2008 (41.1%). National and quasi-national commercial channels, on aggregate, posted 13.0% market share, up from 12.0% year on year and the best showing in forever. UK commercial radio biggies have scrambled in recent years to create national brand networks, with the help of regulator OFCOM rule changes. Cannibalism being what it is, the aggregate market share for local commercial stations dropped to 29.0% from 30.3% year on year, lowest in forever.

The Heart, Capital, Smooth, Magic, Kiss and Read Radio networks were all lower, by shades, in market share year on year. Classic FM, a legacy national commercial channel, was up to 3.8% market share from 3.5% one year on. TalkSport, another legacy national commercial channel, was lower by a sliver to 1.9%.

Playing a different game entirely is Absolute Radio, the true multi-platform brand beast. The main pop-rock channel appears on medium wave, FM (in London) and every conceivable digital thing. To that add the six co-branded music channels. In the Q1 2013 RAJAR survey the Absolute Radio brand – all channels aggregated – reached 1.2% national share, up from 1.0%. Not exciting, you say? In the London survey Absolute Radio hit 2.6% market share, up from 2.2% one year on.

The London survey had its own quirks. BBC Radio 4 continues to lead, winning a 17.2% market share, up from 16.2% year on year. Radio 2 was also up to 12.6% from 12.1%, holding second place. Down, again, was Radio 1 to 4.5% from 5.0% and it’s worst showing in eight years. Arts and culture Radio 3 posted a 2.0% market share, up from 1.6% one year on. Sports channel Five Live was lower and BBC London unchanged.

One might think the crash of Radio 1 would benefit London commercial stations with in-your-face DJs playing the hits. Seems not: Capital Radio dropped to 4.2% market share from 5.3% one year on and Kiss 100 FM dropped to 3.9% from 5.1%. Also down year on year were Magic 105 and Heart 106. Gaining most among commercial stations in London were Classic FM, the aforementioned Absolute Radio, Gold London and XFM 104.9.

Digital platforms continue to attract UK listeners, a bit more than one-third of all radio listening hours are on other than analogue – mediumwave and FM – platforms. The majority were listening via the DAB platform but online listening has grown most, year on year, followed by, without surprise, mobile phones.

See also in ftmKnowledge

Europe’s Radio – Northern Europe

Northern Europe’s radio has a very digital sound. And change is in the air. Economic challenges abound for both public and commercial broadcasters. The ftm Knowledge file reports on Denmark, Estonia, Finland, Iceland, Ireland, Latvia, Lithuania, Norway, Sweden and the UK. 144 pages PDF includes Resources (November 2012)

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