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Radio & The Internet | best of bedfellows
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Radio & The Internet | best of bedfellows

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The Radio industry needs to embrace The Internet, augmenting campaigns and programming with it. They need to disrupt themselves now.

The Radio industry needs to embrace The Internet, augmenting campaigns and programming with it. They need to disrupt themselves now.

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  • Edwin H. Armstrong, who was awarded the patent for FM radio in 1933
  • AC Nielsen, which compiles advertising spending figures in SA, reported that R34,4bn was spent on advertising in SA in the 12 months up to February 2013. (19bn)
  • When Pandora struck a deal with Pioneer Corp. to bundle the internet radio service into dashboard navigation systems (this was in 2010).
  • Our average listening time is between 40 minutes and one hour – 2OVradioDifferent elements will have different prices (per Qualified Session). So if a certain show averages 100 Qualified Session, then a 30 second ad run every hour during that show, will cost R1,500. This is because 30 second ads have a CPQ of R15. Show sponsorships, live-reads and other elements, will have a set CPQ - some higher/lower than others.
  • Our average listening time is between 40 minutes and one hour – 2OVradioDifferent elements will have different prices (per Qualified Session). So if a certain show averages 100 Qualified Session, then a 30 second ad run every hour during that show, will cost R1,500. This is because 30 second ads have a CPQ of R15. Show sponsorships, live-reads and other elements, will have a set CPQ - some higher/lower than others.
  • Our average listening time is between 40 minutes and one hour – 2OVradioDifferent elements will have different prices (per Qualified Session). So if a certain show averages 100 Qualified Session, then a 30 second ad run every hour during that show, will cost R1,500. This is because 30 second ads have a CPQ of R15. Show sponsorships, live-reads and other elements, will have a set CPQ - some higher/lower than others.
  • Radio gives you an often-captive audience - people listening in cars and offices - while online is an ideal platform for interacting with them.
  • Stitcher Radio is amazing. The four-year-old company blends terrestrial broadcasts with popular podcasts to let users build a highly personalized, lean-back radio experience. Earlier this year, Stitcher Radio announced a partnership with Ford. Pandora's Music Genome Project still provides some of the smartest semi-automated music recommendations out there.Terrestrial radio conglomerate Clear Channel sees the threat posed by innovative startups and has responded accordingly. Its iHeartRadio service combines 1,5000 live broadcast stations with personalized channels fueled by the Echo Nest's music recommendation application programming interface. 
  • Stitcher Radio is amazing. The four-year-old company blends terrestrial broadcasts with popular podcasts to let users build a highly personalized, lean-back radio experience. Earlier this year, Stitcher Radio announced a partnership with Ford. Pandora's Music Genome Project still provides some of the smartest semi-automated music recommendations out there.Terrestrial radio conglomerate Clear Channel sees the threat posed by innovative startups and has responded accordingly. Its iHeartRadio service combines 1,5000 live broadcast stations with personalized channels fueled by the Echo Nest's music recommendation application programming interface. 
  • Michael Robertson, CEO of DAR.fm and founder of the original MP3.com, recently expressed confidence in the long-awaited migration from passive over-the-air listening to more configurable music streams offered by web / mobile services.
  • Michael Robertson, CEO of DAR.fm and founder of the original MP3.com, recently expressed confidence in the long-awaited migration from passive over-the-air listening to more configurable music streams offered by web / mobile services.
  • Michael Robertson, CEO of DAR.fm and founder of the original MP3.com, recently expressed confidence in the long-awaited migration from passive over-the-air listening to more configurable music streams offered by web / mobile services.

Radio & The Internet | best of bedfellows Radio & The Internet | best of bedfellows Presentation Transcript

  • RADIO & INTERNET best of bedfellows @jus%nspra*  
  • @justinspratt Im Australian. Sorry. Been hacking since I was 10. RadioWorks - August 21-3 | RAB | justin spratt
  • I am not a “radio” guy. I am an internet guy who believes in the potential of radio. I fucking love the internet. RadioWorks - August 21-3 | RAB | justin spratt
  • My job is to make you uncomfortable and hopefully inspired about possibilities. RadioWorks - August 21-3 | RAB | justin spratt
  • AGENDA Internet & Social Media in SA Radio meets Internet The Future of Radio RadioWorks - August 21-3 | RAB | justin spratt
  • The “Problem”…
  • Radio listeners have reduced their average daily listening time by 16% in the past four years as digital music streaming services have gained a foothold in the market. RadioWorks - August 21-3 | RAB | justin spratt
  • Figures from SAARF radio audience measurement survey show that, in 2009, the average daily “time spent listening” to radio was 4 hours 9 minutes. Now it's 3 hours 29 minutes. Financial Mail, 2013 RadioWorks - August 21-3 | RAB | justin spratt
  • But… This misses two critical points: 1.  Social Engagement 2. Active, rather than Passive
  • INTERNET & SOCIAL MEDIA IN SA
  • The obligatory stats to make you sound smart at the dinner party… RadioWorks - August 21-3 | RAB | justin spratt
  • End of 2011: 2,69 Tbs End of 2012: 11,9 Tbs SA Undersea Internet Capacity End of 2013: will double again Source: World Wide Worx, 2012 As the national capacity increases exponentially, we are seeing a concurrent drop in data prices, which means more South Africans are buying data more regularly. RadioWorks - August 21-3 | RAB | justin spratt Was 300Gbs in Telkom era
  • Costs are sunk. Marginal costs are close to zero. Landscape should be very different in ~2 years. Data Prices continue to fall RadioWorks - August 21-3 | RAB | justin spratt
  • = 33,7-million SA INTERNET USERS (65%) Based on the number of feature phone users, the growth in smartphones and the prevalence of Internet cafés, we believe that more than half of South Africans now have access to the Internet. We believe that close to 50% of South Africans do access the Internet, in some form, at least once a month; 35% at least once a week. Source: Quirk prediction, April 2013 RadioWorks - August 21-3 | RAB | justin spratt
  • 2 out of 3 speak an African language at home Source: national census data THE AVERAGE SA INTERNET USER… 2 out of 5 live on less than R1,500 ($162) per month Urban Rural 15-24 40% 25-34 33% 35-44 14%   44+ 13%   RadioWorks - August 21-3 | RAB | justin spratt
  • n=1195 PHONE FEATURES – URBAN VS RURAL 66% 70% 40% 43% 81% 36% 35% 59% 24% 20% 21% 30% 27% 6% 13% 10% 15% 5% 7% 6% 1% 2% 1% 1% 83% 72% 61% 60% 86% 57% 61% 71% 51% 41% 46% 43% 37% 25% 31% 32% 30% 23% 14% 14% 6% 2% 2% 2% Camera FMRadio Internetbrowser Musicplayer Gamesonphone Facebook MMS Diary/organiser E-mail WhatsApp Apps Mxit Gamesdownloaded BlackberryMessenger Twitter GPS GoogleTalk Mapping,noGPS 2Go Word/Excel/PPT Skype MobileTV Pinterest Zing Rural Urban Source: World Wide Worx, July 2012 RadioWorks - August 21-3 | RAB | justin spratt
  • n=1195 PHONE FEATURES – URBAN VS RURAL 66% 70% 40% 43% 81% 36% 35% 59% 24% 20% 21% 30% 27% 6% 13% 10% 15% 5% 7% 6% 1% 2% 1% 1% 83% 72% 61% 60% 86% 57% 61% 71% 51% 41% 46% 43% 37% 25% 31% 32% 30% 23% 14% 14% 6% 2% 2% 2% Camera FMRadio Internetbrowser Musicplayer Gamesonphone Facebook MMS Diary/organiser E-mail WhatsApp Apps Mxit Gamesdownloaded BlackberryMessenger Twitter GPS GoogleTalk Mapping,noGPS 2Go Word/Excel/PPT Skype MobileTV Pinterest Zing Rural Urban Source: World Wide Worx, July 2012 RadioWorks - August 21-3 | RAB | justin spratt
  • Network Global  users SA  users Facebook 800-­‐mil 7.5-­‐mil Mxit 44-­‐mil 9-­‐mil Twi*er  225-­‐mil 3-­‐mil Google+ 90-­‐mil 750  000 YouTube 1.1-­‐bil 6-­‐mil LinkedIn 150-­‐mil 2.5-­‐mil Pinterest 20-­‐mil 250  000 Instagram 50-­‐mil 350  000 Social Network Usage Source: Quirk extrapolation, based on World Wide Worx, 2012 RadioWorks - August 21-3 | RAB | justin spratt
  • Social Media is just basic human nature. Only turbo charged by the web. RadioWorks - August 21-3 | RAB | justin spratt
  • “Our data shows that higher social engagement levels can have a direct impact on increasing overall audience… In addition, adding a ‘feedback loop’ to a one-way broadcast can drive measurable brand engagement with the traditional radio spots aired on these broadcasts.” Mike Dougherty, Jelli’s CEO RadioWorks - August 21-3 | RAB | justin spratt
  • 83   17   pre-paid post-paid MOBILE USAGE PRE-PAID vs. POST-PAID Source: Deloitte Digital, 2013 Since most South Africans are on pay-as-you-go, they buy data whenever they can afford it. RadioWorks - August 21-3 | RAB | justin spratt
  • Phone conversion cycles are 24 months, even for pre-paid. We are at the tail end of a signifcant change to smartphones, even at lowest income levels Conversion Cycle RadioWorks - August 21-3 | RAB | justin spratt
  • Currently, advertising slot costs anything from R500 to R8000. 2OceansVibe, 2013 RadioWorks - August 21-3 | RAB | justin spratt Internet Advertising in SA
  • Not many entertainment habits are easier or more ingrained than turning on a radio -- especially in the car All new cars in USA fitted with digital radio receivers. RadioWorks - August 21-3 | RAB | justin spratt
  • RADIO MEETS INTERNET
  • Reach of radio, engagement of web Jozi Speaker #RW13
  • Radio is the intimate media
  • STREAMING = RADIO One is internet (TCP/IP) One is radio waves So don’t buy the hype. The content is the same, just the delivery mechanism is different. RadioWorks - August 21-3 | RAB | justin spratt
  • Sharing music via Bluetooth RadioWorks - August 21-3 | RAB | justin spratt
  • FANS, NOT LISTENERS RadioWorks - August 21-3 | RAB | justin spratt
  • “Regional radio players have been very successful in building niche audiences within a mass pool. The benefit for the advertiser is a mix of far reach and targeted results that remains unique in the South African media environment,” Cindy Diamond, inland sales director at Mediamark RadioWorks - August 21-3 | RAB | justin spratt
  • COMMUNITY
  • Licensed FM stations pay a flat fee, plus royalties per song to SAMRO. But, legally speaking, internet radio stations in South Africa don't have to work with SAMRO. RadioWorks - August 21-3 | RAB | justin spratt
  • ICASA has yet to recognise internet radio as a platform within its own regulatory framework. It is completely undefined. Bad ICASA. But this is good for incumbents. RadioWorks - August 21-3 | RAB | justin spratt
  • Measuring Internet Radio: “CPQ” COST PER QUALIFIED SESSION RadioWorks - August 21-3 | RAB | justin spratt
  • Radio can be a passive medium, offering opportunities to guide listeners to online channels where they can carry out the action. Sell advertising accordingly. RadioWorks - August 21-3 | RAB | justin spratt
  • RadioWorks - August 21-3 | RAB | justin spratt
  • RadioWorks - August 21-3 | RAB | justin spratt
  • Of those 200 million registered users, over 140 million of them have tuned in to Pandora via mobile. RadioWorks - August 21-3 | RAB | justin spratt
  • Pandora users have also given over 25 billion thumbs, to help personalize their stations, and on average Pandora streams around 200 million songs before 10am each morning. RadioWorks - August 21-3 | RAB | justin spratt
  • THE FUTURE OF RADIO
  • Transmission via radio waves will be augmented by wireless Internet. Those networks will carry much more interactive and smarter audio content, which will likely push broadcasters toward a more personalised experience. RadioWorks - August 21-3 | RAB | justin spratt
  • How? At the very least, we will know region (via IP address) and exact time spent listening. If we get a logged-in user, we can build interesting profiles and target accordingly. We can also induce listenership. RadioWorks - August 21-3 | RAB | justin spratt
  • "There's no question that it will change from 10/90 (digital- analog) to 90/10” Michael Robertson, CEO of DAR.fm and founder MP3.com RadioWorks - August 21-3 | RAB | justin spratt
  • Sure. But the question is, when? Don’t be the boiling frog. RadioWorks - August 21-3 | RAB | justin spratt
  • Disrupt yourself now will there is still runway. RadioWorks - August 21-3 | RAB | justin spratt
  • TSL* will be increasingly under threat. And Ad revenue too. Why? The internet gives exact figures (and they are lower). (*time spent listening.) RadioWorks - August 21-3 | RAB | justin spratt
  • Videos Prime Time Call Girl Mosquito Repellant
  • The real voyage of discovery consists not in seeking new lands, but in seeing with new eyes Marcel Proust RadioWorks - August 21-3 | RAB | justin spratt
  • /fin. @justinspratt