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RAJAR exposes commercial radio’s online opportunity

Posted on Monday, December 15th, 2008 at 6:33pm. #

Weekly listening via the internet is growing – according to the latest “MIDAS” RAJAR research.

A year ago, 14.5m people claimed to have listened to “the radio via the internet” “last week”. This year, 16.1 million claim to have done so. That’s a startling increase of over 10% year-on-year. Impressive.

Drill down further, though, and you get to see the real story: and it’s not a very pleasant story for my friends in commercial radio.

The RadioCentre proudly claims that commercial radio punches above its weight in digital homes, and is the market leader for younger audiences. So when it comes to the internet, commercial radio should be achieving more than the 43% market share it currently has for radio listening, right?

The stark finding from this research is that 71% listen to the radio by going direct to BBC radio station websites – and only 24.5% go direct to commercial radio websites. It gets worse: if you look at “media players gathering several radio stations”, 51% listen through the BBC iPlayer, 15% listen via iTunes, and 23% listen via “something else”.

When I worked at Virgin Radio (now Absolute), its internal online audience figures were higher than the BBC’s published figures for the competing Radio 2 (and even, actually, Radio 1). Absolute’s in iTunes – most other commercial stations aren’t. So, I’m guessing that Absolute is bouying up the rest of commercial radio’s figures – which must make the rest really dismal. (Of course, we don’t know, since no commercial radio company publishes its online audience figures – audited or not).

Commercial radio is in curiously poor shape online. The much-needed consolidation and simplification of radio buying, spearheaded by the RadioCentre, hasn’t benefited commercial radio websites – which are still a ramshackle of different ad banner sizes and different offerings.

Commercial radio’s failure to understand the web is exemplified by the RadioCentre Player. The original player was marketed to advertising agencies with great chutzpah: except it successfully hid all advertising opportunities available within the online radio players. The video at-launch on Virgin Radio’s; the Microsoft sponsorship of Capital Radio’s; the listen-again functionality of Kiss – all of this was unavailable, as the RadioCentre Player hotlinked direct into the station streams, bypassing the carefully-branded radio players in use by the industry. To add insult to injury, news headlines within the player came from… the BBC. Cough. It’s probably not a surprise that the first that commercial radio’s new media departments knew of the player was the launch press release.

The concept of the RadioCentre Player is a good one – and, being fair, that player is now markedly better than the first release. Commercial radio – indeed, radio in general – needs one place for programme schedules, for information like “what kind of music does this station play”, for more interactive additions to the experience. And it’s not as if the content’s lacking – there’s huge diversity of content carried on commercial radio -from documentaries, to engaging speech, to religion and ethnic programming, which should be celebrated. Where’s the widget to add my favourite (commercial) radio station onto my Facebook page, or my MySpace page? Where’s the thing on the Divine Comedy website telling me when Neil Hannon is playing live on my local radio station?

The RadioCentre has done a great job at making radio easier to buy. In the online world, it’s in the perfect position to make fantastic relationships with websites, wifi radio manufacturers, and others to protect radio’s future in the new media landscape – perhaps working together with the BBC. While it might be difficult for those in Shaftesbury Avenue right now, understanding the web better is one opportunity that commercial radio has to grasp – and the RadioCentre (and the DRDB) is in exactly the right place to do it.

Photo: Donna Grayson. Used under licence. As always, these are my own personal views; and the views of my employer will probably differ.

5 comments

James Martin
commenting at December 15th, 2008 at 11:16pm

I think it would be of great interest to survey these online listeners regarding the actual geography of the services they listen to online.

For example; are they listening to a national service, a local service (and importantly, if so, is it local to them), an internet only service or a foreign station?

This would provide a whole new angle to the data for the various enterprises who provide online streams.

I realise there is some data already in the research detailing how many listeners used a station website to listen to BBC/commercial/foreign stations – but reckon there is more to learn in this area.

A local radio station then, for instance, could use this information to discover potentially how useful their streaming service is in supporting RAJAR results for their own TSA.

Paul
commenting at December 15th, 2008 at 11:50pm

It probably won’t surprise you to know James, that I believe UK commercial radio is still very ‘head in the sand’ about all digital developments, not just online. At the centre of the problem seems to be a pronounced belief that ‘more stations’ is the only necessary response to the digital world. And of course we’re talking ‘more stations’ that are for the most part automated, voicetracked, jukeboxes.

DAB and online can both deliver so much more than “100 different ways to program Selector”. Big brands like Absolute and Kiss could be providing much more content – both audio and secondary media – tied to their main broadcast stream.

On DAB, receivers are the principal barrier to this at the moment, they need to have a broadcaster customisable interface for each station on a full colour screen, much like the online ‘radio player’. But until the industry gets its act together and specifies this, the chances of any such receiver being produced are zero.

Steve Green
commenting at December 16th, 2008 at 10:49am

The 14.5m figure was actually from the MIDAS2 report in May 2008, and the 16.1m figure is from the current MIDAS3 survey, which was in October, so the number has grown 11% in 5 months – or a compound annual growth rate of about 28%.

Tony
commenting at December 21st, 2008 at 10:07pm

Of course what the ‘MIDAS’ press release is careful to omit is the fact that Rajar’s own figures show Internet as accounting for only 2.2% of total radio listening – a sixth of the DAB figure.

Mr. Hip Hop
commenting at May 19th, 2009 at 3:40am

Maybe this younger audience is finally rebelling against terrible commercial radio now that music is so widely available now. RadioCentre might be the only saving grace for these consolidated commercial companies.

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