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ftm Radio Page - July 29, 2011

Up, Up And Away For Internet Radio
equalizer Higher listening rates are encouraging to radio broadcasters. Almost everywhere more people are tuning in. Evidence is emerging that much of the increase is coming from the Web. Ad revenue is sure to follow.

 

 

Digital radio’s fate is in their hands
perspective needed

Digital radio in Germany on the DAB+ platform will relaunch officially August 1st after years of squabbling among public and private broadcasters, regulators, suppliers and others. Local, regional and national channels will appear, many digital-only. Needless to say, breath is bated in anticipation.

German private radio broadcasters are ever skeptical. “The technical and economic test phase has now started,” said  Association of Private Broadcasters and Telemedia (VPRT) radio department chairman Klaus Schunk in a statement (July 29). “The launch of DAB+ in Germany,” according to the VPRT, “will depend on the listener.”

“There is no question, from the perspective of the VPRT, that the existing FM market must not be compromised,” continued its message, noting “significant economic risk.” (See VPRT statement here - in German)

The risk, of course, is that the DAB platform will be eclipsed by internet radio. The group notes radio listening figures from AG.MA show 17% of smartphone users are currently listening to web-based radio services and that smartphones in Germany are less expensive that table model DAB receivers. (See more on digital radio here)

Public radio broadcasters are far less wary. “It is now up to industry to develop this fantastic opportunity and seize the opportunity for new business,” Bavarian public broadcasting radio director Johannes Grotzky in a separate statement (July 28). (JMH)

RTL trades radio for TV, buys cable channels
This is called horse trading

When ProSiebenSat.1 Media exited the Netherlands and Belgium back in April it was certain that other changes would follow. The former SBS television stations – three in the Netherlands and two in Flemish Belgium – were sold to Finland’s Sanoma along with John de Mol’s Talpa Media, for the Dutch stations, and publisher Corelio along with TV producers Wouter Vandenhaute and Erik Watté, for the Flemish group.

Netherlands Competition Authority (Mededingsautoriteit - NMa) waved the deal through provided John de Mol would divest the 26% stake in RTL Netherlands. That has now (July 28) been accomplished with a twist. RTL Group has acquired the minority stake in RTL Netherlands once held by Talpa Media, exercising an existing option in exchange for three radio stations – Radio 538, Radio 10 Gold and Slam FM. The deal is expected to close next year, according to the RTL Group statement.

Radio 538 has a stellar history in Dutch radio. John de Mol acquired that station in 2005 then turned around and sold it and the others to RTL. “Talpa Media will reimburse RTL Netherland for the purchase prices paid,” added the RTL Group statement.

As July comes to a close RTL Group seems to be clearing up a few deals. A week ago it bought out minority shareholders in Croatia. Announced a couple of hours after the deal with John de Mol, RTL Group announced it had raised its stake in Hungary’s RTL Klub and acquired seven cable channels. Perhaps the accountants can take their holidays now. (JMH)

What works best, highly targeted or highly creative ads?
We’ve got an answer

Advertising effectiveness is high science, long studied, oft debated. What about advertising, indeed, motivates people? The answers are seldom simple.

The question whether highly targeted or creative spots deliver results was posed to ad researcher Brand Science by WDR Mediagroup, the marketing arm of German public broadcaster Westdeutsche Rundfunk (WDR). Brand Science is part of media buyer Omnicom Media Group. Their study presented a series of radio ads for three products to three thousand people across several age brackets, said the WDR Mediagroup release (July 25). The ads studied were embedded in seven spot clusters, presumably just like German radio. Panelists were asked about recall.

Before getting to the results, we note that targeted ad placement, on to micro-targeting, has given media buyers great joy since the onset of Web advertising’s high tech treatment. Privacy issues with cookies notwithstanding, the left-half of the advertising world (media buyers and accountants) prefer a technology solution and the right-half (creative) another. (See more on creative advertising here)

So after all that, the envelope please!

The study revealed that radio spots that “fit the brand” and “came across pleasant” scored better in recall than targeted spots. In effect, one “good” spot works better than different copy for specific demographic targets. (JMH)

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