Andrew Harrison, Radio Advertising Bureau – “The Future Of Commercial Radio”

The future of UK Commercial Radio and what it means for advertising customers Andrew Harrison – CEO, RadioCentre

The future of UK Commercial Radio

RadioCentre – objectives & strategy

The current status of Commercial Radio

Catalysts for change

The vision for UK Commercial Radio

RadioCentre R evenue A udience D igital I nfluence O rganisation

Our purpose The RadioCentre leads a dynamic and thriving Commercial Radio Industry, helping our members grow revenues and audience year-on-year.

Our purpose The RadioCentre is “ the voice” of Commercial Radio

R-A-D-I-O R - Revenue A - Audience D - Digital I - Influence O - Organisation

Audiences are holding up brilliantly despite huge growth in new media Weekly reach (% of adults 15+) Source: RAJAR

Radio continues to recruit listeners amongst 15-24 Digital Natives Weekly reach of 15-24 year olds by quarter for all radio Source: RAJAR

Commercial Radio is strongest for younger audiences 55+ 55+ 45-54 45-54 35-44 35-44 25-34 25-34 15-24 15-24 Proportion of total hours listened by age group Source: RAJAR Q1 2008 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

% of time spent with each medium on average day Base: All adults 15+ Source: Touchpoints 2 Radio is an important medium in consumers’ lives Radio remains under invested-in relation to its share of consumers’ time % share of display revenue Source : NMR 2007

R-A-D-I-O R - Revenue A - Audience D - Digital I - Influence O - Organisation

R - Revenue Source : RadioCentre -7.3% -9.5% -1.6% +0.8% +5.4% +7.1% +6.7%

RadioCentre Certificate of Excellence

RAB – driving revenue growth

Not Always An Easy Sell A Medium I Know & Like Hooper Galton qualitative research, Dec 2007 Lots Of Other Options The challenge radio faces BENIGN NEGLECT

RAB activity 4. Agency events 3. Strategy Consultants 2. Reports

Trade events

R each/frequency A udio D ayparts I ntimate O nline Re-allocate some of your media budget to radio and you will get more overall effect for the same investment

A – Audience

D – Digital A digital media world complements not competes with radio

Digital platform s are extending radio’s distribution

Digital radio now accounts for 18% of all Commercial Radio listening Commercial radio: Share of Listening Hours % listening via platform Source: RAJAR Q2 08

www.radiocentre.org/player New RCP graphic

I– Influence Create optimal environment for Commercial Radio to grow

Achieving a level playing field with the BBC Local Video

Radio is important for consumers

Huge radio audience is holding up despite plethora of new media choices

Digital platforms will help enhance radio’s relevance & listening

Marketplace change The Times, 30 June 08 The Telegraph, 15 June 08 BBC News Online, 13 Sept 07

RAB response EVENT: A new vision for UK Commercial Radio 18 th September

Ownership change

Digital change - DRWG

Digital future

DAB & Broadband

UK broadcast

FREE

MOBILE

PROPRIETARY

ROBUST

Audience data

More national CR stations

Low level interaction

Global online

Worldwide choice

Return path

Alternative revenue streams

Links to station websites

The vision for UK Commercial Radio Deliver optimum value for advertisers Deliver optimum choice for listeners COMPETITIVELY Easier access to the whole CR listener & online community Take the game to the BBC and build share of listening COLLECTIVELY ADVERTISERS LISTENERS

Universal McCann immersion week 28 July Monday Starts with a Classic FM Breakfast 9:30am Andrew Harrison, RadioCentre “ The Future of Commercial Radio” 3:00pm David Meliveo, Autoglass “ How radio has built Autoglass” 29 July Tuesday Starts with an LBC Breakfast 9:30am Simon Cole & John Quinn, UBC Media “ Radio as a retailer” 12:30pm Moz Dee, talkSPORT “ Commercial Radio vs the BBC” 4:30pm Andria Vidler & Dee Ford, BauerRadio “ How UK brands are evolving in the digital age” 30 July Wednesday Starts with a talkSPORT Breakfast 10:00am Don Thomson, Global Radio “ Global Radio’s vision for the future” 11:30pm David Muniz, Gaydar Radio “ The power of discrete, targeted radio brands” 1:00pm John McGeough & Simon Daglish, GCap Media “ Fresh thinking with GCap” 3:30pm Steve Ackerman, Somethin’ Else “ Branded content on Commercial Radio” 31 July Thursday 9:30am Julian Carter, Paul Fairburn & John Myers, GMG Radio “ Taking on the BBC” 11:30am Martin Stiksel, Last FM “ The growing role of personalised online radio” 4:30pm Donnach O’Driscoll & Nick Hewat, Virgin Radio “ Meet the new owners of Virgin Radio” From 7pm join us for the Heart music quiz with Toby Anstis 1 Aug Friday Starts with a Kiss Breakfast 10:30am Jonathan Arendt, NME Radio “ NME Radio and their new proposition” 12:30pm DJ Q&A With special guests , inc. Christian O’Connell, Ricky & Melvin 4pm onwards Kiss FM host Agency DJ of the year