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In a nutshell: Radio growth and advertising

Posted by radio On September - 25 - 2012 ADD COMMENTS

By Helen Phushela

 

Radio is the most important medium in South Africa reaching over 88% of the population. Most people living in rural areas rely on it as a news and information source. Most stations that reach these areas are community radio stations that narrow down listenership and target market for advertisers into ethnic groups. An advertiser can produce an advert for a particular product which targets the right audience in their native language.

 

Advertising revenues increased in 2011 by 7.4%, which is lower than the 13.3% gained in 2010 a direct boost from the FIFA Soccer World Cup, according to research.

 

Radio, with its listenership covering 88% of the population, is still a dominant medium for broadcast advertising. The revenue increased by 7.1% on a compound annual rate from R3.2billion in 2011 to an estimated R4.6billion in 2016. Radio broadcast advertising as well as public funding revenue increased by 0.7% in 2011. Due to this, there has been a subsequent increase in television licence fee, which cross-subsidise the public radio station. With more and more households gaining access to television, public funding is projected at 1.5% increase compound annual rate to R480 million in 2016.

 

Radio consists of three segments namely public service broadcasting sector, commercial sector and community radio stations. Public broadcaster, SABC is state owned and funded through public licence fees and advertising. It operates public service stations in all of the official languages including Indian on Lotus FM and San on X-K FM.

 

Online radio streaming has allowed consumers to listen to their favourite programmes on the go. The frenzy to create applications for broadcasters has also taken the industry by storm. Jacaranda and 5Fm have their own apps, while other stations can be accessed on a group app such as TFS Radio. Radio programming is broadcast in all 11 official languages, as well as German, Hindi, Portuguese, Greek and Khoi-San languages.

 

Radio is the leading broadcasting medium in South Africa; Kwazulu Natal is the front-runner in radio listenership, claiming 20% of the total population. It is closely followed by Gauteng with 19% and Limpopo and Eastern Cape each at 13%. Regardless of the current RAMS for ethnic radio stations, radio shows produced in English remain dominant in South African radio taking up 41.1% of listenership in 2011. IsiZulu follows with 13.5% then Afrikaans at 9.3%.

 

Music however, still serves as a key ingredient to reaching and retaining audiences. Then there is phone in talk shows, current affairs and news programming.

 

Community radio stations claim more listeners as a collective with 8.5 million people tuning in each week – comprising of more than a quarter of the overall radio listening audience. Despite their reach, community radio stations still struggle to get advertising funding while some radio stations get subsidies from government or rely on community donations. The role of the Independent Communications Authority of South Africa (ICASA) is to ensure universal access, as well as to mediate disputes brought against licensees and regulate the industry. ICASA issued three invitations in February 2012 to provide commercial sound broadcasting in primary and secondary markets. Primary market, the authority, awarded two licenses in Gauteng, Durban and Cape Town. One license was awarded to Northern Cape and Eastern Cape, one in Free State.

 

Research by the South African Advertising Research Foundation (SAARF) showed a decline in the time spent listening to radio, a nine minute decline daily listenership as compared to the 1:33 minutes from the previous year. This took place when the weekly penetration declined by 0.1%. On the other hand, the Radio Advertising Bureau (RAB) promotes the use of radio as an advertising media. The focus is to educate the advertising community on the advantages of using radio as an advertising medium. Radio has launched online and is gradually migrating digitally, one can now comment on and follow the development of their favourite radio shows through social media tools such as Facebook pages and Twitter handle.

 

Branded content advertising, a relatively new form of advertising medium that blurs conventional distinctions between what constitutes advertising and what constitutes entertainment, will soon be integrated into programming. In the old days radio adverts were 30 seconds long and often left listeners perplexed. Advertisers in radio are now creating adverts that are more than a 30 seconds long. An example is FNB’s ‘Hello Steve’ campaign, which moved away from the traditional 30-second slot. According to reports, this campaign earned accolades throughout the industry and produced great results for FNB. Roles in adverts have now changed – the idea exists before a time period has been set.

 

Then there is the return of the jingle. Jingles and pneumatic trigger instant brand recognition in the hearts and minds of the listeners. These help brands build firm relationships with listeners and stand out from the media clutter. Radio with its online migration and popularity can now brand and promote products.

 

Another phenomenon is station-advertiser collaboration which, allows marketers the need to collaborate with stations, increasingly becoming content generators with the focus of entertaining and engaging listeners.

 

Power of personality is one of radio’s strengths which, lies in the personal relationship created between listeners and radio personalities. With the ever-expanding scope of radio presenters’ influence via social media platforms, we’ll see more brands matching themselves to a show or host.

 

More and more people are able to listen to their favourite show online and podcasts enable listeners to catch up on shows. Satellite radio is usually carried by a signal through the DStv’s audio bouquet however, not many people use this unconventional method of listening to radio.

 

Digital radio will allow radio to have sound quality of a CD and live streams of information on music played on shows will also allow the station to get information easily. In public funding there has been a 2% increase, from 442 million to 449 million in 2012. Radio stations such as Ja.fm, launched by Jacaranda FM, can only be connected to online and it serves an Afrikaans audience through a Listener Driven Radio application.

 

Wolrdtunes.net-All Hit is one of the radio stations which are music-orientated where listeners vote for songs and hit songs are played. Ballz Radio covers current affairs and news.

 

According to the South African Music Performance Rights Association (SAMRO), although radio has seen success over the years, it still faces the obstacles of paying 10% of its net broadcasting revenue to songwriters. The National Association of Broadcasters remains in dispute with this even after the recent judgement of 7% payable by stations passed by the Commission of Copyright at the Copyright tribunal.

 

South African broadcasters have to adhere to Constitutional laws since SA does not have established national media laws. This poses a problem to the regulation of broadcast media where the regulation rights that run broadcast media and different stations come from the Broadcasting Complains Commission of South Africa (BCCSA) and ICASA.

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Kagiso Media – The Emerging Giant

Posted by radio On September - 25 - 2012 ADD COMMENTS

By Helen Phushela

 

In the past year Kagiso Media has managed to purchase chunks of broadcasting and marketing company shares. This was a direct cause of their entire subsidiary. The media giant has since purchased 100% voting rights in Shinake Investments, which has direct shareholding of 24.9% at Kaya FM, the fastest growing radio station in Gauteng. The transaction was effective from the 3 June 2011 and the company’s interest in Kaya FM increased from 22.59% to 47.49%.

 

The growth in radio advertising enabled their broadcasting division to successfully deliver revenue of R575.2 million – this is an 18.3% increase in comparison to the previous year. According to reports by the Radio Advertising Bureau (RAB), the sector has grown 14.1% highlighting great performance from Kagiso Media’s radio stations.

 

In 2012 Kagiso Media managed to acquire a number of shares in marketing as well as rugby companies. This included acquisition of 90% of Kaufman Levin Associates (KML), a leading marketing research company, for R25 million. Included is also an offer to acquire EXP group of companies, which included Trinergy brand connections and 100% of the shares in Blue Bulls Rugby holdings (which owns 50% of the Blue Bulls Rugby Club); this was a R335 million contract with a R10 million loan, as detailed in the SENS report published 5 September 2012. This transaction has strengthened the marketing services of KML. Meanwhile, EXP has operations in 11 African countries, making communication and information distribution a breeze. Shareholders are often advised to tread carefully while trading in company shares.

 

The changes brought by Kagiso Media have brought a new dawn for growth for all radio stations in its stable. After an increased economic interest of 47.4%, Kaya FM’s revenue increased to 24%. It is currently the fastest growing radio station in South Africa with a weekly listenership of 1.4 million. The station scooped two awards at the MTN radio awards. Thabo Mokwele aka T’Bose won Best Music Presenter and John Perlman won the Best News and Actuality award.

 

 

While East Coast Radio’s pressurised revenue saw the station suffer a shortfall in the first half, the second half performance passed expectation of recovering costs and backlog.

 

The following highlights attest to the Durban-based station’s growth:

 

  • Overall listenership grew by 13% to over 1,9 million underpinned by a 14% growth within the target market category.

 

  • Market share remains dominant in the lucrative LSM 7-10 with targeted age group of 25-49 at 40%.

 

  • The station completely revamped its line-up to ensure its long term relevance. Also publishing a cook book called East Coast Tables which is an innovative concept for radio. It sold over 5500 copies.

 

  • In effort to pull from below the line revenue, the station in association with Gordon Institute of Business Science (GIBS) launched the executive business breakfast, which has been declared an annual event.

 

  • The station also launched Fundzani a long term campaign to re-connect with Kwazulu Natal’s people and the East Coast way of life as well as tapping into urban pride through key events, activations and stunts. The goal was to entrench East Coast FM’s position within its target market.

 

Another station under the Kagiso Media umbrella is Jacaranda FM which has doubled its numbers in Johannesburg as a result of increased marketing investments. Despite their slight drop in profit line as compared to the prevision year, the station remained within expected profit line. Reaching first place in Afrikaans listenership in Gauteng market, with 28.3% increase in share and 9% increase in audience as compared to the previous year; Jacaranda has gained an outstanding 2.2 million listeners. The station achieved 21% growth in Gauteng, 29% in Limpopo, 24% in North-West and 18% growth in Mpumalanga. The station has plans underway to launch a new station at the Emnotweni Casino in Nelspruit; it is strengthening plans to penetrate Mpumalanga. Like most of the stations under Kagiso Media, Jacaranda also clenched a MTN Radio Station Award for best breakfast show in 2011.

 

 

More stations in the media giant’s backyard have produced good figures. OFM delivered on expectations with 9.4% revenue growth with stable listenership.

Heart FM is a commercial radio station attracting 59500 listeners weekly. Play listing predominantly contemporary music, Heart FM has Cape-town Metropolitan residents and surrounding areas bobbing to their tunes. The station’s target market stabilised during the year after they repositioned in the previous year.

 

The Kagiso Media Group reduced its economic stake and shareholding in the station from 33.3% to 20%. It has also reduced its interest in Gagasi FM with the same percentages as Heart FM. Gagasi FM showed a 12.8% revenue growth for the year with a small increase in audience to 1.87million listeners.

 

(The figures in the article were sourced from RAMS August 2011/3 – www.saarf.co.za)

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MetroFM Takes Weekend Radio Seriously

Posted by radio On September - 3 - 2012 ADD COMMENTS

By Radiobiz

 

Let’s take a trip down into Metroville to see what they have to offer their listeners in the next year or so. In April we witnessed a few additions to the Metro FM line-up with a noticeable change of Minnie Dlamini joining Adil on the Saturday Top 40 countdown show.

The weekend team has more or less remained unchanged with the likes of DJ Sbu, Leko, Ismail Abrahams, LuloCafe, Naked DJ, Oskido, Dj Naves & Spectacula , Thami Ngubeni , Wilson B Nkosi the list goes on. While the weekday shows feature Paul Mtirara , Glen Lewis, Azania, Amon , T-Bo Touch  and Eddie Zondi, one could do a bit of DJ reshuffling to illustrate how weekend DJs could easily anchor weekday shows. Adil takes over the weekday afternoon drive show between 3pm and 6pm; Thami Ngubeni to anchor the mid-morning show, Sbu to take over the breakfast show and Oskido serves lunch between 12pm and 3pm.

 

 

This is an indication of the expansive talent MetroFM has in its possession; I also think that it shows how seriously they take weekend radio. At any given moment Metro can provide a high quality line-up to fit in a lot of stations around the country. You would commonly find that most radio stations use a weaker line-up on weekends because they don’t take weekend radio seriously.

 

The question remains whether Metro’s formidable weekend line-up prevents the station from introducing new and young talent. Paul Mtirara first joined in 2002 and has since grown and been progressive in the station. Should Metro not groom a new Paul or Glen in order to maintain their high standards? On the other hand, Yfm provides the most basic radio foundation which allows for the grooming and training of fresh talent that is ultimately pouched by MetroFM. There is a whole list of former Y-fm’s jocks that left the youth station for the commercial giant; this includes Thato Mataboge, William Lehong, Bad Boy T, Oskido, Unathi, Amon Mokoena, Adil and Chilli M.

 

Whatever it is that Metro FM’s management is doing to attract and retain exceptional talent, they should keep at it. This has translated into the station growing its weekly listenership to over 6,2million according to the latest SAARF RAMS.

 

What do you think is MetroFM’s secret strategy? Is it effective? Please share your views.

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Radiobiz is Hiring!

Posted by radio On August - 28 - 2012 ADD COMMENTS

By Radiobiz

 

Radiobiz is looking for a Junior Online Content Editor, do you have what it takes? If you think you do, send us your CV to nathi@radiobiz.co.za or ann@radiobiz.co.za .

 

Junior Online Content Editor

 

Job Mission

– To produce, edit and manage the Radiobiz website content, keep it updated and increase the number of visitors in the site through quality content.


Responsibilities:

– Ensure that content on Radiobiz social media and blogging platforms is of the quality needed to grow audiences and enhance the overall performance of Radiobiz.

– Lead and co-ordinate the efforts of Radiobiz editorial team across all areas in which Radiobiz operates

– Design and create web banner/adverts, e-mailers & on-line newsletters.

– Source news and images for Radiobiz.

–  Manage the website and give direction regarding updates and maintenance of the site.

– Writing, research, sub-editor, proof reading, design & layout pages, manage traffic, & chasing artwork, pictures, sign off, etc.  for the website.

 – Drive projects designed to grow readership.

– Co-ordinate the editorial and technical roll-out of new products.

– Produce articles on a weekly basis.

 – Ensure that there is sufficient content to be published on the website.

– Represent Radiobiz in public.

– Work closely with the Directors to secure the financial sustainability of Radiobiz.

– Co-ordinate internal and external content before going live.

– Conduct interviews with key Radio stakeholders.

– Maintain good relations with key industry players.

– Attend press briefings and conferences.

– Interviewing media industry personalities.

– Keep up to date with latest news within the media industry.

– Explore new ways to create online channel content.

– Content creation and planning for future ideas.

 

 

Skills Required

– Ability to manipulate images and use Photoshop, Fireworks etc.

– Strong editing, proofreading and writing skills, with a keen sense of design layout.

– Public speaking skills

 

Personal Skills/Attributes

– A willingness and ability to learn

– The flexibility and willingness to work unusual hours occasionally.

– Full understanding of digital content.

– An interest in  Radio issues

– Ambitious

– Organised

– Reliable

– Reliable and takes pride in the quality of their work.

 

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A Newsreaders Guide (Part 2)

Posted by radio On April - 5 - 2012 1 COMMENT

Ways of presenting Radio News

To establish a distinct “voice” for the station, consider using a solo news reader to be the anchor. A solo news reader can read the headlines effectively, and introduce stories from contributors.

The dynamic of two news readers, who are respectively male and female, provides an interesting contrast and can break up longer news pieces effectively. Interviews which are either conducted by the anchor, collectively (the joint two anchor newsreaders), or remotely; from a reporter on the ground who is live at the scene of the story, often provides great audio material.

Spokespersons from organisations involved in the subject matter give the official statement, and add the necessary balance, not only to the story itself, but to the benefit of the listeners well. Although spokespersons seldom give their own opinion, but represent the organisation, it is important to get the alternative perspective, for depth and credibility.

Consider using Vox Pops to aid news telling as they add local colour and interest to the news. They’re quick (or should be) and are a chance for the station’s own listeners to get involved, depending on the station and the nature of the story.

There are various other types of contributors available to add colour and interest to the audio of a news bulletin. These range from professional broadcasters who are closer to the scene. These can either be freelancers or as employees who are part of a bigger news broadcaster or organisation.

Music in the News Bulletin

As news reports and the bulletins themselves become quicker and shorter, especially in music driven format stations, some stations feel it necessary to add a music bed running underneath and throughout the news. That is an alternative. Opinions are divided on how short news can be delivered, yet still be effective. Each station generally tailors its own format to suit its individual agenda.

Radio listeners get their news from a variety of sources and some turn to their radio station for in-depth coverage whilst other listeners are content with the headlines. In the radio industry, listeners ultimately have carte blanche to decide what type of news they want from their station, and it is for that station to deliver  what is appealing to their target audience.

 

 

 

 

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Ways to Present Radio News (Part 1)

Posted by radio On April - 4 - 2012 209 COMMENTS

A Guide to the Different Styles and Presentations of News Bulletins

There is an ever expanding number of different recognised radio station formats and variations in operation, and each station’s news output needs to fit the format.

The news output of any radio station doesn’t exist in isolation. It has to fit in with the overall programming. News is constantly changing and the news output for each radio station and each format will tend to reflect the way the listeners to that station, prefer to have their news delivered. This can vary from in-depth analysis of news, to short ‘bite size chunks’ of the main headlines.

Sources and Types of News

Consider first the various places news can emanate from before it is reported to the station’s listeners and in what format. Possible sources and types of news are:

  1. News Agencies and News Conferences
  2. Reporters and News Contacts
  3. Press Releases and Politicians
  4. Freelancer Contributors
  5. Pressure Groups and Letters to the Editor
  6. Tip Offs including hoaxes.
  7. Events and the Emergency Services
  8. Local, National and International News
  9. Anniversaries and Follow-ups of existing and previous news stories

The smaller the transmission area of the station, the more likely it is that more localised stories will feature. This may be largely because the advantage a local station has over its bigger rivals is that it is able to report news, of particular interest to that community, as well as noting the larger stories covered by the networks. The larger networks will focus on news that affects a larger area and the style of each delivery for both type of station will also vary.

Broadcasting the news in a short “One Minute News,” feature demands a totally different style of news broadcasting to the more rounded rolling news or in-depth news format say of a Talk Station. The kind of station and the format it is following, will dictate varying styles for each, and how it is broadcast.

The style of a news bulletin is often arrived at by focus groups or other forms of research to determine what’s important in news output to the listeners and delivering it. Radio News may be delivered in a number of ways, and is dependent on the type of radio station, the style of the news reporting in the overall context of the station’s programming and the intended audience.

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Meet Our Contributors

Posted by radio On March - 10 - 2012 19 COMMENTS

Mpho Smart is a South African/British freelance journalist, writer and broadcaster. She studied English and Political Science at the University of the North in Limpopo. While studying towards her Masters in International Journalism at City University in London, Mpho did her internship at the BBC World Service. She also presented a current affairs programme for British community radio station Future Radio in 2004. Mpho has worked at Business Report, Business Day, The Times, Laing & Buisson Healthcare Publishing and Sunday Tribune. Her writing has appeared in The Star Business Report, The Sunday Tribune, The Times, Business Day, Sowetan and Sunday World.

 

 

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