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ftm Radio Page - May 27, 2011

Digital radio: opting in and out
“difficult start”

When the UK digital radio support group Digital Radio UK unleashed a second round of promotion, one of the country’s biggest broadcasters opted out. Global Radio, owner of national channel Classic FM and quasi-national Capital, decided that until a local DAB funding deal is struck it wouldn’t be sharing in the promotion task. Most other major UK radio owners are happily participating.

Commercial broadcasters, the BBC and the UK government are scheduled to meet in June to hammer out details of who will pay for local DAB multiplexes. DAB listening in the UK continues to grow, albeit more slowly, according to the most recent RAJAR radio audience report. (See recent RAJAR results here) The UK government has proposed shutting down most analogue (FM) broadcasting sometime after 2015 if both digital coverage and audience penetration thresholds are met.

In Switzerland, Zürich local commercial station Radio 24 will join the regional DAB+ multiplex system at the first of August. Basel-based independent digital broadcaster Open Broadcast dropped off the DAB+ multiplex serving the Swiss-German speak region last month for financial reasons. Swiss media regulator OFCOM changed rules last October to allow simulcasts of existing FM stations rather than wholly original programming, which attracted little broadcaster attention.

“Digital radio in Europe had a difficult start,” said Radio 24 program director Karin Müller, quoted by Klein Report (May 26). “After the initial euphoria of the late 1990s, development stalled. It’s always exciting to be with technological advances.” (JMH)

Radio gains in Gulf region
“Under-utilized” and “disorganized”

Ad spending on commercial radio stations in Dubai “nearly doubled” in the first quarter, reports Gulf News (May 25). Broadcasters, though, seem only modestly encouraged. Increased revenues have come at the expense of ad rates as advertisers in the region move to lower cost media.

“Since 2008 almost all stations have been forced to leave their rate cards unchanged,” said GN Broadcasting radio director Vikram Dhar, quoted by Khaleej Times (May 23). “Due to heavy discounting actual realization means a further attrition in rates.” GN Broadcasting owns Radio 1 and Radio 2 and sells advertising for other stations.

“Due to the fact that the industry is disorganized…discounting and value bonuses to clients are on the increase,” continued Vikram Dhar. “There are a host of discounts, commissions, (and) bonus value additions… that make the effective rate a small percentage of the published price.”

“As advertising spending took a nosedive during 2009 and started to recover cautiously only this year, low-cost vehicles were clearly in focus,” added Pan Arab Research Centre (Parc) spokesperson Shaharyar Umar. “As per Target Group Index surveys, 47 per cent agreed that they always listen to radio when in a car and 24 per cent do so on mobile phones.”

First quarter radio ad spending in the UAE rose to 6.0% of all ad spending from 4.6% in the same period in 2008, according to IPSOS MediaCT MENA. Outdoor advertising now accounts for 26.6% of UAE ad spending. Print advertising has plummeted to 44.6% from 66.6% of the advertising pie in three years.

“Radio is very under-utilized in our region, said Inca Tanvir Advertising managing director Tanvir Kanji, “and I feel it will show a strong growth pattern if the media owners rationalize their tariffs. TV audiences are too fragmented and widespread, with over 500 Arabic channels and over 1000 non-Arabic channels, and very sketchy viewership information.” (JMH)


Radio Page week ending May 20, 2011
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Radio Page week ending May 13, 2011
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Radio Page week ending May 6, 2011
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Radio Page week ending March 25, 2011
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Radio Page week ending March 18, 2011
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Radio Page week ending March 11, 2011
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Radio Page week ending February 25, 2011
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