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Radio Key Facts 2002 Radio Key Facts 2002 Document Transcript

  • Radio 2002 2nd Edition November 2002
  • ForewordThe International Key Facts – Radio 2002 analyses the Formats have been reduced to main families in order tosituation of radio in 22 European countries plus the United give indication of the main target group of a radio station,States which can be used as benchmarking. The figures they do not intend to give a strict definition of the sta-presented are those that are recognised and used by the tions play-lists.professionals of each country. This does not, however, Although by no means exhaustive, the unique gatheringenable a direct cross comparison of the data to be made. of those sometime heterogeneous information intends toThe definitions used in each country vary quite consid- give to the reader a glimpse of the diversity and power oferably. The audience measurement, for instance, is pretty radio in Europe.different from a country to another: the population of the In order to register scale, the financial indicators havesample may vary from 9 year-olds and plus to the 15 year- been converted into € at constant value. Those used forolds and plus. In some other countries, people over 75 or this issue are for January 1st 2002.79 are not part of the sample. 1st January 2002 Country Currency abbreviation 1 € equals Czech republic CZK 32.11232 Denmark DKK 7.42858 Hungary HUF 244.687 Norway NOK 7.97286 Poland PLZ 3.5406 Romania ROL 27198.1 Slovakia SKK 42.7163 Sweden SEK 9.3088 Switzerland CHF 1.4779 UK GBP 0.6121 USA USD 0.891392 Radio 2002
  • Editorial After a century of existence, radio is still a youthful medium, with enormous growth potential. Firstly, though radio has yet to go through its own digital revolution, 25 years after the FM revolu- tion, with the advent of increasingly available advances in technology, it is nevertheless definitely moving forward. Several countries (mainly the UK and Northern European countries) have made firm steps in the Digital audio broadcasting field. But technology is not only about terrestrial broad- casting. It opens up new opportunities to increase radio consumption through alternative distrib- ution channels such as digital cable & satellite, Internet or the future mobile telephony applica- tions. This technology will free radio from the current scarcity of available frequencies and fuel new offers for listeners. Secondly, radio is far from having reached its definitive structure. In most European countries the liberalisation of the airwaves is rather recent. Private radio stations only began to appear as recently as the 80s or the 90s, most often on a local level. The strong link between radio and the local com- munities as well as varying national or even regional regulations in Europe explain why radio is a highly fragmented medium. The challenges posed by new technologies, the listeners’ demand for more professionalism and clear programming promises, the increase in competition between sta- tions, and finally, the need for a coherent and simple advertising offer are all factors that will most likely lead to progressive structural changes and to a certain degree of consolidation in several European markets. Radio is healthy enough to undergo these transformations. Listening is on the rise in Europe, thanks to more diversified and attractive programming formats. More than ever, radio proves itself to be adapted to the modern way of life, being as “mobile” as the new generation of Europeans. The increased share of out-of-home listening is a clear demon- stration of this phenomenon. Radio also benefits from improved financial resources. In most European markets, investment in radio advertising has grown constantly over the last few decades, growing more quickly than total advertising investments in nearly all other markets. The end of the century proved to be a very dynamic time for radio. One of the main reasons for this is a bet- ter advertising sales offer, and a new organisation of the media in many markets that convinces many traditional advertisers to use it. Secondly, a growing number of advertisers have turned their attention toward those elusive target groups that radio reaches so well, such as young adults, work- ing people and the upper classes. All of this combined with the broadcast media’s effectiveness at quickly building consumer awareness, it is not surprising that radio rapidly became one of the favourite vehicles for the so-called New Technology sector. Of course, the 2001 economic slump has hit radio all over Europe. However, with its high degree of reactivity and its enhanced advertising attractiveness, radio is nevertheless well placed to weather the current downturn and profit from the rebound. Encouraging signs are already appearing in 2002 in several markets, notably in France, one of Europe’s largest radio markets. RTL Group, Europe’s leading broadcaster and content provider, together with IP, Europe’s leading advertising sales network, are proud to present the third edition of their International Key Facts - Radio report. The International Key Facts - Radio 2002 will provide you with a concise overview of the current radio markets in 22 European countries. It is a reference tool to help you better understand a media with strong local specificity, which has undergone profound changes over the last 20 years: a media that will continue to evolve and grow in the coming years with more sweeping changes ahead. We hope this publication will help you to enrich your knowledge of this exciting media. Didier LEFEVRE Head of IP’s International Marketing CommitteeRadio 2002 3 View slide
  • 4 Radio 2002 View slide
  • Table of contents Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Radio in Europe, a young, traditional media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Western Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Austria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Belgium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Denmark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Finland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Greece . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Ireland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Luxembourg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Norway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Portugal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 Sweden. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 Central Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 Czech Republic. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 Hungary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 Romania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 Slovakia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 Non-European country . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173Radio 2002 5
  • 6 Radio 2002
  • Radio in Europe, a young, traditional mediaEuropean Radio is like Europe itself. In the media world the last twenty years that the modern media we enjoyit has a long history established during the last century. today was created. And this latest part of history is notThis has ensured it is the subject of a strong cultural over. Radio is still on the move, offering new choicesrecognition in European society. No matter how old we every day, adapting itself to our new habits, our neware we all have a nostalgia for our own “Radio Days”. But ways of life, using - and sometimes even preceding - newthis memory is in fact specific to our home country, as technologic developments.Radio is a part of our local history. Radio is closely European Radio is like Europe itself. Built on tradition,linked to our local past, our local culture and our local imbued with local cultures, reflecting a wide variety oftradition. Everyone has their own special programme, contexts, but at the same time, modern and dynamicspecial presenter, special Radio event. European Radio and all moving in the same direction. This makes it ais made of all those local cultural differences. But major and powerful media, with a massive populationalthough loaded with history and tradition, European reach, but at the same time remaining our own per-Radio is also a young and dynamic media. It is only in sonal and intimate friend.Local regulations have created a varyinglandscapePublic or private sectorThe local organisation and regulation of radio reflects nity and not carrying advertising. It was the case for manyprofound historic and political concerns. Some countries years in the UK, where commercial television was allowedhave traditionally given higher importance to their Public before commercial radio. Whilst commercial radio hasServices. We have had to wait until the last ten years to expanded in recent years, it has remained mainly regionalsee the emergence of private commercial radio stations. with strict regulations governing station ownership. TheNorthern Europe dominates in this picture, mainly the planned changes in the law here should lead the way forNordic countries with a dominant local state-owned radio a major consolidation of the market.organisation, with a strong involvement in the commu- AUDIENCE SHARES PUBLIC SECTOR Norway 95.0% Austria 83.0% N.Belgium 82.2% Denmark 66.5% Sweden 65.0% Germany 53.0% Finland 53.0% UK 52.6% Slovakia 47.1% Ireland 47.0%Netherlands 46.7% Romania 46.4% Italy 32.9% Poland 31.1% Hungary 28.0% Czech Rep 28.0% Spain 24.2% France 22.7% S.Belgium 18.8% Portugal 9.2%Luxembourg 2.7% Radio 2002 7
  • National or localA national or local organisation of the media is also one houses, to increase their use of the media. In Austria,of the key differences between our various countries. A where the public service - which carries advertising - is infederal country like Germany has a regional organisation, a monopolistic situation at the national level, it is at thewith a variety of audiovisual regulations depending on the regional scale that private radios have expanded. Heredifferent Landers. There it was not possible to establish national advertising packages have also provided an effec-nationwide coverage, or national programming or branded tive means of increasing advertising revenues. Some othernetworks of stations. The reality remains local or regional. countries, like France, have a long tradition of centrali-National advertisers had to wait until the creation of sation and so it is no surprise to observe that the nationalnational advertising packages, developed by the sales program networks lead the market here.A rich variety of formatsThe programme offer is especially rich in Europe. Again ment of music orientated FM stations, as it has been ablethis is closely linked to the variety of cultural expectations to create new, more modern and dynamic forms. It isand it remains rather difficult to classify this offer within worth noting that this format also seems to be on thea clear format segmentation as can be done in the US. The rise in the US.most significant point is certainly the dominance of the Within the music offer, it should be noted that aside from“Generalist” format. This has historically been the shape the “classic” music formats (such as European Hit Radioof the European radio and has been broadly favoured by - EHR - or Adult Contemporary - AC -), some countries stillthe various Public Service stations. General interest, full have a significant share that is a specific national varietyservice, “conventional”, “talk and news”, the actual real- offer, such as folk music and Italy’s Solo Musica Italiana, theity certainly covers a range of concepts. But this form of many German Schlager stations and Spain’s Radio Ole. Yetradio programming, mainly talk based and oriented further proof of European culture specificity in terms oftowards news and services, today represents the majority Radio.of the European offer. It has not been hit by the develop- AUDIENCE SHARES GENERAL INTEREST Austria 79.0%Luxembourg 76.5% Sweden 50.0% Spain 49.7% Czech Rep 49.5% N.Belgium 49.0% Slovakia 47.9% Norway 46.0% Finland 46.0% Poland 43.5% Denmark 41.3% France 40.1% Romania 40.0% S.Belgium 40.0% Italy 37.0% Ireland 37.0% Portugal 30.0% Hungary 27.0% UK 11.3%Netherlands 8.5%8 Radio 2002
  • FORMATS EXAMPLES OF STATIONSTalk General interest RTL (France) Talk & News Expres (Czech Rep.) All News Radio 24 Il Sole 24 Ore (Italy)Theme Culture NDR/ORB Radio3 (Germany) Sport Talk Sport (UK) Ethnic R.Beur (France) Religious R.Maryja (Poland)Music Classic Radio 4 (Netherlands) Jazz Jazz FM (UK) Easy Listening NRK P4 (Norway) Variety Local music R.Ole (Spain) Middle of the Road (MOR) R.Nora (Germany) Oldies RTL Die Oldie Sender (Geramany) Gold Spreeradio 105,5 (Germany) Adult contemporary (AC) Oldie base AC Antenne Wien (Austria) Current base AC Berliner Runfunk (Germany) Euro AC Radio Contact (Belgium) Hot AC Capital FM (UK) Contemporary/European Hit Radio (CHR/EHR) Mainstream NRJ Dance 8FM (Netherlands) Rock Arrow Rock (Netherlands) Alternative Dance Galaxy (UK) Urban HR XXL (Germany) Techno/House Planet Radio (Germany) Rap Sky Rock (France)Radio 2002 9
  • Listening on the riseEach time something happens in the world, each time in Hungary. The average listening duration per listenerthe news has a personal relevance, Radio is turned on. The ranges from 182 minutes a day in Italy to 330 minutes inyear 2001 was - unfortunately on certain occasions - rich the Northern part of Belgium. And of course one must bewith spectacular headlines. No surprise then that radio careful when trying to compare data, as it does not nec-listening reached new peaks. Compared to 1999, listening essarily cover exactly the same things. Europe is still dis-was up in most of our countries. There are, of course, sig- tinguished by a number of different audience measure-nificant differences in the consumption of the media. For ment methodologies. And this can sometime explain cer-instance, daily reach ranges from 56% in Spain to 87.2% tain differences in listening scores. DAILY REACH 77.2%Switzerland G* 93.1% 88.0% Ireland 88.0% 85.9% Hungary 87.2% 82.8% Austria 84.8% 86.0% Denmark 84.2% 83.3% France 83.6% 81.0% Finland 82.0% 84.3% Germany* 81.8% UK 80.2% 80.9% Slovakia 80.0% 72.5% Netherlands* 78.2% 80.4% Sweden 77.5% 66.4% Poland 77.4% 67.0% Belgium N. 76.8% 65.9% Luxembourg 70.7% 75.3% Czech Rep. 70.6% 67.0% Belgium S. 68.1% 67.7% Italy 67.8% 66.1% Norway 66.9% 58.5% Portugal 57.5% 56.2% Spain 1999 56.0% 60.2% 2001 Romania* 46.4%* change in audience measurement10 Radio 2002
  • LISTENING DURATION (in minutes) Belgium N. 330 Poland 325 Belgium S. 313 Hungary 302 Czech Rep. 252 Austria 251 Netherlands 229 Denmark* 225 Germany 218 Luxembourg 212 UK* 205 Norway* 201 Finland* 200 Romania 191 France 191 Spain 185 Italy 182 Sweden* 163Switzerland G 131M to F, * M to S Radio 2002 11
  • An audience measurement patchworkMany countries use the personal diary methodology. Most vey (as is the case in Spain) is also important, as well asof them can be found in the north of the Continent. The the minimum recorded listening period (generally 1/4latest one to finally adopt this technique is Belgium, with hour in most countries but 1/2 hour in Spain). All thosethe first audience results being published in October 2002. differences clearly have an impact on the final result.Elsewhere, Day-after-recall remains the rule. But even Another major difference within the various audiencewithin this single methodology, there are differences that measurement surveys in Europe is the age range.need to be underlined. Telephone and face-to-face inter- Depending on the country, the interviewed population canviews are varying local choices. This is certainly not neu- be from 9+ to 15+. Most of the time this reflects the his-tral as the slight decrease in daily reach that may have tory and the organisation of the local radio landscape.been observed in Germany, contrary to the global trend, Some countries have recently changed their universe. Thisis undoubtedly explained by the fact that this country is the case for the Netherlands, which two years agohas switched from face-to-face to telephone interviews. changed from 13+ to 10+. And it is also the case for FranceThe difference between being a mono or a cross-media sur- which is changing from 15+ to 13+. AUDIENCE MEASUREMENT SURVEYS Methodology Sample Age limit Publication Austria Telephone 24 000 10+ twice a year Belgium Diary* 10 000 12+ twice a year Czech Rep. Face-to-face 30 000 12-79 Quarterly Denmark Diary 23 000 12+ Quarterly Finland Diary 4 930 9+ Quarterly France Telephone 75 250 13+* 2 months/Quarterly Germany Telephone 54 888 14+ twice a year Greece** Face -to -face 17 000 13-70 Quarterly Hungary Diary 28 000 15+ Monthly Ireland Face-to-face 5 000 15+ twice a year Italy Telephone 72 000 11+ twice a year Luxembourg Telephone 3 500 12+ Yearly Netherlands Diary 15 000 10+ Monthly Norway Telephone 52 728 9+ Weekly Poland Telephone 111 788 15-75 Quarterly Portugal Telephone 20 160 15+ Quarterly Romania Face-to-face 2 000 nat. 15+ Weekly Slovakia Face-to-face 2 140 14/79 3 times a year Spain Face-to-face 71 174 14+ Quarterly Switzerland Peoplemeter 22 843 15+ Daily United Kingdom Diary 130 000 15+ Quarterly*As from September 2002** Several surveys12 Radio 2002
  • But the methodological patchwork that Europe repre- PPM” and in Europe, many other countries are experi-sented is now getting even more complex with the arrival menting with various techniques. All these new develop-of the Personal Peoplemeter. The Swiss are pioneering the ments are obviously being closely watched by the adver-technology with their “Watch peoplemeter” which daily tising community, as their implementation would haverecords every sound the panel members are exposed to. a major impact on media planning and buying. But fromThese are then compared to the recorded tracks of each a small market such as Switzerland to the other biggerradio station. So Radio is entering into the passive audi- markets on the Continent, there will be a long route andence measurement era. This is leading to fundamental we will undoubtedly have to come back to this issue inshift within the audience results, favouring the recording the coming years.of more numerous but shorter listening periods. Higherdaily reach, shorter average listening time. Switzerland is But even if comparing audience results from differentthe first country to have taken this route. But it is not the countries can be hazardous, it does not change the factonly one working on this new kind of survey. In the US, that radio listening remains closely linked to local waysArbitron is running tests in several markets with a “pager of life.A media that follows our way of lifeNorthern Europe is the heaviest listenerTraditionally, radio consumption has been stronger in ing countries. History and culture have their own roles inthe North East of the Continent. A surprising parallel can audience building, as well as weather condition. Being out-be drawn with daily newspaper readership. Countries in door more often does not result in heavy radio listening.Central Europe - the former-people’s democracies - still Thus most of the Southern countries post under-averagehave a tradition of heavy radio listening and Hungary listening scores. This is the case for Spain, Italy and Greece.continues to lead with overall audiovisual media con- A more detailed analysis would show that even in thesesumption, since it is not only among the major TV radio countries, the Northern areas listen to radio more thancountries but was also one of the very first radio listen- the Southern parts. Radio 2002 13
  • Listening curves reflect ways of lifeHistory, culture and weather, radio consumption are also (Type 4), unlike Luxembourg and Hungary which showclosely linked to everyday life. In our last issue we empha- strong “lunchtime peaks” (Type 5). The classic shape is stillsised the close link between the daily listening curve and with a strong morning peak, dropping gradually untilthe local organisation of the working day, whether lunch the early evening, with the more or less pronounced morn-is taken at home or not, the commuting time and all the ing peak that differentiates type 1 from type 2.other practical aspects that impact on our day-to-day What is striking is how these listening curves comple-timetable. We then identified five different shapes for ment the TV viewing curves. These two media have per-the daily listening curves. These are still applicable. Nordic fectly opposite modes of consumption. TV viewing takescountries still have a regular audience curve between 7:00 place when people are relaxed and comfortably settled atand 17:00 (Type 3). Latin countries show two audience home.peaks and audience falls at lunchtime and early evening TYPE I - UK Radio TV 50% 40% 30% 20% 10% 0% 5h 7h 9h 11 h 13 h 15 h 17 h 19 h 21 h 23 hM to F TYPE II (N. BELGIUM) 40% 35% 30% 25% 20% 15% 10% 5% 0% 5h 7h 9h 11 h 13 h 15 h 17 h 19 h 21 hM to F14 Radio 2002
  • TYPE III (SWEDEN) Radio TV 50% 40% 30% 20% 10% 0% 5h 7h 9h 11 h 13 h 15 h 17 h 19 h 21 h 23 hM to F TYPE IV (FRANCE) Radio TV 50% 40% 30% 20% 10% 0% 5h 7h 9h 11 h 13 h 15 h 17 h 19 h 21 h 23 hM to F TYPE V (HUNGARY) 50% 40% 30% 20% 10% 0% 5h 7h 9h 11 h 13 h 15 h 17 h 19 h 21 h 23 h5M to F Radio 2002 15
  • The media for people on the moveRadio listening accompanies every single active moment 55. No surprise either that, as listening is higher duringof the life, from the bathroom to the kitchen, from the the working hours of the day, it is also higher on work-car to the working place. Radio is mainly listened to by ing days during the week than at the weekend, a moreactive people. No surprise then than its reach is higher relaxed period of time when TV is preferred.among the working population, generally between 20 and LISTENING PLACES Home Car Work Other Belgium S. 86.9 3.8 8.8 0.5Belgium N. 85.8 5.1 8.6 0.5 Czech Rep. 76.0 5.0 17.0 2.0 Romania 75.2 6.0 17.3 1.5 Austria 69.5 9.4 17.0 4.1 UK 69.4 15.8 13.3 1.5 Hungary 68.3 6.7 22.1 2.9 Spain 67.1 14.8 7.7 10.4 Poland 60.7 9.6 24.0 5.6 France 55.7 22.8 17.0 4.5 Germany 55.0 14.2 27.1 3.7Netherlands 51.2 13.9 28.1 6.8 Finland 22.5 12.7 46.2 18.6More and more out of home listeningFollowing listeners at every moment of their active lives and the time spent driving. It is also interesting to observehas always been a typical advantage of radio. It is inter- that outside listening is less developed in the smalleresting to note that this fact has become even more evident countries, like Belgium, where most commuting timesin recent years. The share of out of home listening has been are shorter. It is also worth noting that outside radio lis-on the increase since 1999, and in the large majority of tening increases as in-car equipment improves. Polandthe countries surveyed. Several explanations for this are has been a spectacular example of this.possible. First, people are increasingly active and spend Thirdly, new technological developments lead to newless time at home on weekdays. This is mainly the case opportunities for consumption. It is the case with thefor women, who are ever more likely to have active out- Internet, which is clearly a factor in favour of radio lis-side lives. Secondly, people spend longer periods of time tening in the office. And this trend will undoubtedlycommuting. There is a direct link between radio listening increase in the coming years. LISTENING PLACES - FRANCE - 2001 LISTENING PLACES - FRANCE - 1999WORKING PLACE 17.0% OTHERS 4.5% WORKING PLACE 13.3% OTHERS 5.4% HOME 55.7% HOME 62.3% CAR 22.8% CAR 18.5%16 Radio 2002
  • LISTENING PLACES - GERMANY - 2001 LISTENING PLACES - GERMANY - 1999WORKING PLACE 27.1% OTHERS 3.7% WORKING PLACE 15.6% OTHERS 3.2% HOME 55.0% HOME 62.3% CAR 12.9% CAR 14.2%LISTENING PLACES - NETHERLANDS - 2001 LISTENING PLACES - NETHERLANDS - 1999 OTHERS 6.8% OTHERS 7.3% WORKING WORKING PLACE 28.1% PLACE 22.8% HOME 51.2% HOME 58.1% CAR 11.6% CAR 13.9%LISTENING PLACES - POLAND - 2001 LISTENING PLACES - POLAND - 1999 OTHERS 5.6% OTHERS 1.7% WORKING WORKING PLACE 21.3% PLACE 24.0% CAR 3.9% HOME 60.7% HOME 73.1% CAR 9.6%Radio 2002 17
  • The new technologiesThe InternetThe new technologies have not pushed Radio out of the radio listening remains mainly dominated by workinggame. hours since 80% of total listening occurs during this periodListening to the radio through your computer is becom- of time. Top streaming countries are the US, UK, Canada,ing increasingly widespread. In 2001, according to the Japan, France and Mexico. Although the change in theMeasurecast measurement institute, the time spent lis- law concerning broadcasting royalties in the US has puttening to streamed radio quadruped. The most listened to some kind of a brake on the expansion in the number ofstation is the London-based Virgin Radio, competing with Internet radio stations, the phenomenon is on a risingthe US Clear Channel station network. It seems that for the trend even if the listening volume is still rather marginal.time being the core target for Internet radio is the 15-24 One of its possible consequences would be to free someage group which accounts for 29% of total listening time, stations from their regional limitations and increase lis-with a clear majority of male listeners (70%). Internet tening time during working hours.Cable and TV platformsBut the Internet is not the only technical development that TV digital packages also offer a wide choice of radio sta-radio is facing. Other broadcasting means have been used tions with an excellent reception quality. But these recep-in those countries where regulations limited the num- tion modes are limited as they are bound up with TV setber of stations potentially available to the population. For in-home usage, which - as we noted - does not comply withinstance, cable has played an important role in commer- the global trend in radio listening.cial radio development in Germany and the Netherlands.18 Radio 2002
  • The DABBut, without any doubt, the major element in terms of DAB. Although there are over 30 different kinds of DABradio broadcasting development is Digital Audio receivers available to the consumer, these are still expen-Broadcasting (DAB). sive and very few private households have so far boughtDAB allows a better quality of reception, rivalling a CD, them. The receivers are in fact still more expensive thanwithout any interference, ensuring an uninterrupted sig- traditional radio sets. And although the industry in Britainnal whilst driving. Digital broadcasting also makes it pos- launched a receiver under £100 last summer in order tosible to provide different kinds of information on a sin- promote the new reception technology, it is estimatedgle frequency, whether sound or data. It may widen the that there are currently no more that 70,000 equipped lis-offer of programmes delivered to the listener while reduc- teners in the UK. In another attempt to promote DAB ining broadcasting costs for operators. As DAB can be deliv- the Nordic countries, the priority has been changed fromered either by terrestrial or satellite services, it can deliver technical coverage to the enhancement of the programmeprogrammes at a regional, national or international level. offer.A number of European countries are leading in DAB devel- So, in spite of the strong potential of this new broad-opment. It is generally reliant on a strong governmental casting technique, it would seem that it will take manycommitment. It is thus not surprising to find among these years before it becomes a widely accepted means of radiocountries most of the Nordic countries in which public reception. Unlike television however, it already seemsservice radio is dominant. It has also been one of the that in many countries the offer is actually there andmajor projects in those countries where the programme responds well to listener expectations. This is clearly notoffer has so far been restricted by a strict legal frame- a factor in favour of additional personal expenditure inwork. The UK is one of these, with DAB giving broadcast- order to receive any more programmes. So it is expecteding groups an opportunity to develop their programme that this issue will remain in the news for some time tooffer. Most of the radio stations specifically created for DAB come.are thematic. The latest project in the UK is a joint ven- All of these ongoing developments do prove, as if this wasture between Capital and Disney to launch a targeted chil- necessary, that Radio is a dynamic media, applying newdren’s station: Radio Disney. technologies and still in touch with changes in ourBut whilst terrestrial technical coverage is increasing in lifestyles.Europe, very few European listeners can so far receive DAB TECHNICAL COVERAGE IN EUROPE Country Population Austria 19% Belgium 98% Czech Republic 12% Denmark 75% Finalnd 40% France 25% Germany 70% Hungary 30% Italy 30% Netherlands 40% Norway 50% Poland 8% Portugal 70% Spain 50% Sweden 35% Switzerland 58% UK 80%Source: The World DAB Forum, October 2002 Radio 2002 19
  • The hot advertising mediaThis is one of the many reasons why European advertis- continue to increase the share of this media in their adver-ers, as well as their US counterparts, have trusted radio tising plans.as a powerful communication media for many years andLocal and National, the search for the right balanceThe radio advertising market in fact operates at two lev- and professional communication groups has provided anels. It is both regional and national. And the scale of adver- answer to this challenge. National packages, syndicationtising revenues is closely linked to the right balance and bartering have been able to draw in national adver-between those two markets. If in the US the local market tisers. On a regularly rising trend over a number of yearsis dominant, representing almost 80% of the total, its now, the advertising market share of radio has risen aboveshare in Europe averages only 1/3. Radio efficiency is the 5% level. It was a similar case in Germany. There, radiowidely recognised by local traders and service providers. advertising was not only suffering from regional frag-But the global weight of the local markets in the Old mentation but also from a multitude of owners with radioContinent is not comparable to America’s. European local stations mostly being owned by the local daily papers. Abudgets are far more volatile and to generate long-term consolidation into two major national sales houses hasadvertisers it is necessary to ensure the development of allowed the development of targeted national packagesthe national market. This has clearly been a handicap in which have eased radio buying for national advertisers.those countries where the radio landscape has been built Today radio scores a 4.5% advertising market share andon a regional base. That was the case in the UK. The com- certainly has a strong potential for growth in the coun-mercial dynamism of sales houses originating from strong try. RADIO ADVERTISING MARKET SHARESLuxembourg 16.3% Belgium* 10.6% Slovakia 10.3% Spain 9.2% Austria 8.6%Netherlands 8.2% Ireland 8.0% France 7.5% Portugal 7.2% Czech Rep 7.0% Poland 6.3% UK 5.5% Hungary 4.9% Germany 4.4% Italy 4.3% Greece 4.0% Norway 3.8% Finland 3.8% Sweden 3.2% Romania 2.9% Denmark 1.1% USA 13.2%20 Radio 2002
  • A specific part within communication plansNational advertisers trust Radio as a fast acting media. and specialised retail stores. But these tend to be ratherThanks to its very special relationship with its listeners, conservative with their budgets. Nevertheless, as radioit has an incomparable power to push them to action such remains in close proximity to reality, it is also one of theas traffic building for retail or telephone calls for direct very first media to recover when the economic situationmarketing operations. This hot and effective media was improves and when consumer purchasing recovers. Thequickly recognised by the telecom and Internet related trend for radio should thus be positive over the comingbudgets, as well as the financial services, in the boom at months especially during a period when most advertisersthe beginning of 2000. The media was thus one of those are convinced of the benefits of the media complemen-that benefited strongly from the growth of the New tarity. Not only has radio proved to be efficient as a hotEconomy. As a consequence it was also one of the first to and fast acting media, it is also the ideal complement forsuffer when the dot.com bubble burst. Along with the television because, as we noted, the consumption of theadvertising market as a whole, radio was hit by the crisis two media covers two very specific moments in consumerin 2001 and 2002. It then had to fall back on its tradi- life.tional advertisers like the automotive industry and foodAn old, traditional and friendly media, radio has also con- other moments of the day, following us throughout ourtinued to evolve, adapting to the new technologies, new active lives in order to remain in non-stop contact withlife styles, new listener expectations. It could well have dis- us. And it is continuing along this route.appeared with the arrival of television, but this was not For our greater pleasure. For the maximum satisfactionthe case. It has on the contrary managed to talk to us at of the advertising community. Radio 2002 21
  • 22 Radio 2002