These are the bullet points from my presentation to The Marketing Institute Breakfast march 10th which was powerpointless so they are just notes !!

1. Marketing Institute of Ireland BreakfastMarch 10th 2010 Dave Hammond Sales and Marketing Director 4fm

2. Introduction set out the stall Thanks to Marketing Institute Traditional Media in the Digital Era / Convergence Issue Helicopter View Brief setting of the stage Dave Hammond Media since 1980s Launched 98fm / Re- launched Radio Ireland into Today FM / Helsinki Launch among others and more recently Irelands first multi city 4fm 94.9fm Launched Fm Radio station in the middle of recession and in the middle of significant digital revolution The likely impact of the significant changes that are emerging The relevance of change to media companies / marketing people Don’t see it as a battle of US v Them – give reasons See it a market shift all companies need to respond to ! Especially through the impact of technology high levels of change It’s much more likely that media consumption stays high but consumed very differently Try make a distinction of digital revolution versus the recession !! Not a 4fm presentation but a view about the place of traditional media in the digital revolution

3. KPMG Research findings KPMG research of Top 100 Marketing directors (US) Two significant challenges /issues 1. Marketing budgets in decline 2. The disruption of digital revolution particularly mobile

4. Mobile Significance Mobile Broadband Mobile SmartPhones Apps Mobile Advertising Admob ¾ Bn sale Google Mobile Social Networking M Commerce Africa / Asia Mobile disruption Nokia / Apple /Google Mobile Music Radio Apps / Spotify / Pandora R Apps Impact of apps on various sectors and services Mobile convergence -Telemedia Company

5. Mobile consumer habits 50 times more online searches according to Google Head of Mobile with I-phone Mantra - 19m handsets in India in one month Average Indian growth 15m per month Google has become one of the biggest media companies and it’s impact is wide varied fast and significant Google Mantra- Think Mobile First !

6. Mobile First – why- networked society Evidence Overwhelming ! I- phone Mums / I-pad expectations Personal medium and always within a few feet reach and evidence that people go home of they forget their mobile for work ! Apps / Sky remote / Sky News 1m apps Android / Apps / Google Handsets / Nokia Moving to a networked society !!!

7. Social Networking Statistics are widespread Twitter /Facebook aim to become broadcast channels Google Buzz or perhaps even a purchase of twitter possible Key point is the building of a networked market!

8. Social Networking Facebook – 20m dollars from Super Bowl by Pepsi to social media Twitter – How best to monetize You tube – 100m USA users–how best to monetize and make profits YouTube Ireland – 1m hits for guy who fell in the snow ! Google Buzz Possible purchase Twitter There will be success and failures All want to monetize !!! Radio is one model that in some ways they want to emulate.... Feels free , pay with attention Radio model !!

9. How monetize TV / Radio entertainment – warm hearts of audience – water-cooler moments Newspapers – Engage the Minds of the reader Google – Tech people with business processes and fixing business problems Google adopted an ad model Many trying to follow – key question how monetize in digital era ?

10. What does all this mean ? Broadcast one to many - many to many Moving from EGO system to ECOsystem From control to networked O3B Challenge for all companies old and new Build trust / relevance / What role can the media company play in the new networked society Traditional Media and New media will co exist at different levels and with new challenges and opportunities The speed and level of impact from giants more keenly felt in Ireland (everywhere) than ever before Iphone / Buzz / Facebook/ Twitter Previously what NYT / Radio in US UK slowly impact Irish market – much more immediate now Traditional Media not only ones impacted – think Garmin Tom Tom

11. Impact of Networked Society Media Future with significant choice creates different levels of importance Importance of Filter Curators Editors Program Directors Rather than simply expect decline -media companies will play a significant role in helping serve the menu for end users

12. Music Industry decline ? Music used by entertainment industry to build audience provide content and a context Radio use music to set context Apple used music successfully sell Ipod handsets Moved to using Apps to sell I phones / Pads Put Radio on the latest Nano ( to sell handsets ) I tunes in a lubricant - but not enough to fix music industry Newspapers will look to see lessons of how to monetize NY Times – More important to get the sub model right rather than fast NYT 20% cost of providing journalism and 80% distribution being examined Radio a model that feels like free to audience but they pay with attention and many tech initiatives are following - Gmail

13. Google Largest media company in the world 6bn - ¼ profit – projections for 5 or ten fold increases in decade ahead O3B – initiative for to get the other 3 billion people on the planet connected with sattelite Monetize the business with a model similar to radio – free / freemium / feels like free Essentially moving from one to many – many to many The share network means its not really online offline anymore but its also a challenge for established business to re-establish themselves NYT 20% of entire cost base on content creation

14. Where to from here Watch the developments of many of the new media players monetize and watch for free or ‘freemium’ or feel like free....the radio model is very robust....other follow Different for print – NYT – Get right rather than fast ----20% producing content- digital imminent Record industry was initially anti- radio too as they felt that people wouldn’t buy records if they could hear them free- opposite proved to be the case !!

15. Not Old V New – Socially Networked society role of media Peter Mc Partlin –Carat Strategic Director Great insight Digital Media is not replacing its complimenting Irish traditional media holding up very well TV – Youtube 100m – possibly developing movie rental ? Netflix –subscriber base of 12.3m 48% watching online movie ? US TV events up in viewers average 15% alongside social media usage Radio –robust / puts a context / monetized / listeners like what they get- some challenges Telecoms / Ad Groups / Media Companies Social Media to beat email Video and possibly search TeleMedia ----future to engage in the networked society Speed of change will continue and accelerate especially mobile

16. Professor MIT Professor Jenkins MIT Gerdleonhard ‘It is important to focus on emerging cultural practices rather than on the emerging technologies’ Convergence Culture -when old and new media collide- amazon ‘new media will not replace old media but there will be a ‘convergence culture’

17. What Emerging Cultural Practices ? Key emerging cultural practice is society moving towards the always connected Shared network This has profound implications for client /marketing and media companies both traditional and digital – how monetize opportunities Obviously different degrees of impact and different levels of threat

18. Peter Mc Parlin Carat Traditional Media in Ireland TV Radio Newspapers ( still unit shifting)

19. Impact of change is significant ! ASK The Music Industry – a great example of how not to respond and move with the times.. EMI didn’t like the radio model from way way back ‘why will people buy records if they can hear them on radio ? Music 2.0 / I-tunes / €15 CD’s and barrier to entry ASK The New York Times – so important we get it right rather than just get it quick ! ASK Garmin and Tom-Tom ASK Nokia ASK Microsoft ASK Any business that relied on classifieds ? Look at the biggest brands in the world---Google not Coke – a company that did not build their business using extensive using above the line media advertising- so yet another groundbreaking claim for a company that has become one of the biggest media players in just over a decade

20. Linking the launch of old media todays market Launching traditional Radio in this landscape Important that we have a strong business model – radio is monetized Important we understand and recognise the significant changes in consumer behaviour Get attention / Build trust / Relevant Not just content creation it is also about context and radio is well placed to do that

21. New paradigm Mobile is a significant disruptive force The dust may not settle as previously the case Mobile shared networked audiences need to be engaged differently to build business in the years ahead Significant challenges for all media old and new Significant opportunities as media consumption is healthy but old rules no longer apply ! It is not an Us V them it is a competitive market for all players and 4fm and all media companies will work hard to meet the challenges ahead Success and failures for old and new media companies When strong winds of change are blowing some people build shelters while others build Windmills Thank you take any questions ?

22. Quote ‘when the strong winds of change are blowing some people build shelters while others build windmills ‘