Archive for the ‘radio’ Category

Radio Networks and the Internet

February 9, 2010

Radio stations and networks have been a very succesful business for the last 80 years. In most developped countries, they got between 6 and 11 percent of total media ad sepending. They managed to keep low production, marketing and distribution costs and they were able to face the entrance of new strong competitors like TV.

In some way, the success of radio stations and networks has been based on their humility: on the one hand, they did not ask the listeners’ total attention; usually the audience is involved in other activities -eating, cooking, driving, walking…- while listening to the radio programms. On the other hand, managers of radio companies do not ask for high rates to the advertisers.

But the Internet has changed the rules of the game. Radio companies’ strenths have become weaknesses: Internet is not as portable as the radio; the users of Internet can not do other activities at the same time; radio is about sounds and Internet is mainly about texts and images… All those reasons are behind the lack of adaptation of radio companies to the Internat Age. The future of radio stations and networks depend on the ability of leaders in radio companies for sorting out such difficulties.

The Spanish Radio Market

October 27, 2009

The radio business in Spain has been very dynamic. Early deregulation and great creativity are behind the success stories of Spanish radio.  Most part of big networks and local stations have been quite profitable. Traditionally, radio advertising acounted for 11% of total above the line advertising.

But nowdays radio companies in Spain are feeling the pinch. Of course, one of the reasons is the crisis, but there are also some other problems: lack of reliability of audiences measurement systems; launching of new networks and fragmentation of audiences; new competition from Internet, pay TV and videogames…

Radio advertising income was 641 million € in 2008, 9% of total above the market advertising and 5,3% lower than the previous year. (The decrease in the US market was 7,4%). Managers of Spanish radio companies should look for new strategies to face the increasing competition. Consolidation, new distribution windows (like Internet), pay services and more innovation in programming are some options to pay attention to.