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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.

Radio & The Internet | best of bedfellows

  1. 1. RADIO & INTERNET best of bedfellows @jus%nspra*  
  2. 2. @justinspratt Im Australian. Sorry. Been hacking since I was 10. RadioWorks - August 21-3 | RAB | justin spratt
  3. 3. 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
  4. 4. My job is to make you uncomfortable and hopefully inspired about possibilities. RadioWorks - August 21-3 | RAB | justin spratt
  5. 5. AGENDA Internet & Social Media in SA Radio meets Internet The Future of Radio RadioWorks - August 21-3 | RAB | justin spratt
  6. 6. The “Problem”…
  7. 7. 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
  8. 8. 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
  9. 9. But… This misses two critical points: 1.  Social Engagement 2. Active, rather than Passive
  10. 10. INTERNET & SOCIAL MEDIA IN SA
  11. 11. The obligatory stats to make you sound smart at the dinner party… RadioWorks - August 21-3 | RAB | justin spratt
  12. 12. 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
  13. 13. 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
  14. 14. = 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
  15. 15. 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
  16. 16. 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
  17. 17. 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
  18. 18. 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
  19. 19. Social Media is just basic human nature. Only turbo charged by the web. RadioWorks - August 21-3 | RAB | justin spratt
  20. 20. “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
  21. 21. 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
  22. 22. 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
  23. 23. Currently, advertising slot costs anything from R500 to R8000. 2OceansVibe, 2013 RadioWorks - August 21-3 | RAB | justin spratt Internet Advertising in SA
  24. 24. 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
  25. 25. RADIO MEETS INTERNET
  26. 26. Reach of radio, engagement of web Jozi Speaker #RW13
  27. 27. Radio is the intimate media
  28. 28. 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
  29. 29. Sharing music via Bluetooth RadioWorks - August 21-3 | RAB | justin spratt
  30. 30. FANS, NOT LISTENERS RadioWorks - August 21-3 | RAB | justin spratt
  31. 31. “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
  32. 32. COMMUNITY
  33. 33. 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
  34. 34. 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
  35. 35. Measuring Internet Radio: “CPQ” COST PER QUALIFIED SESSION RadioWorks - August 21-3 | RAB | justin spratt
  36. 36. 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
  37. 37. RadioWorks - August 21-3 | RAB | justin spratt
  38. 38. RadioWorks - August 21-3 | RAB | justin spratt
  39. 39. 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
  40. 40. 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
  41. 41. THE FUTURE OF RADIO
  42. 42. 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
  43. 43. 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
  44. 44. "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
  45. 45. Sure. But the question is, when? Don’t be the boiling frog. RadioWorks - August 21-3 | RAB | justin spratt
  46. 46. Disrupt yourself now will there is still runway. RadioWorks - August 21-3 | RAB | justin spratt
  47. 47. 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
  48. 48. Videos Prime Time Call Girl Mosquito Repellant
  49. 49. 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
  50. 50. /fin. @justinspratt

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