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MEDIAWATCH
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The newly launched Spin South West’s management team, from
left: Aevann Upton, Paul Delaney, Julie White and Nessa McGann
Future challenges
Despite the strength of the Irish radio sector, there are questions Table 1: Top 10 radio advertising revenue growth categories
as to whether the market can sustain so many new stations
when those launched over the past five years have yet to make
a profit. According to Dan Healy, CEO of broadcast newcomer
2007 2003 pc change
Wilton Radio: “The new services will be providing greater access
€ 000s € 000s
to 15-34 year olds with a new national platform almost in place
for younger audiences, following the completion of the super
1. Construction/property 3,796 1,073 +254pc
regional licensing process. The multi-city licence is going to pro- 2. Energy/environment 886 214 +251pc
vide ‘non-serious’ radio for the 45-plus audience, which is the
3. Educational courses 1,733 572 +203pc
‘new young’ and the most financially comfortable generation
4. Office equipment 380 128 +196pc
ever in Ireland. Increased audiences for advertisers will assist in
the maintenance of existing revenue levels, with more modest
5. Commerce 2,774 1,080 +157pc
annual growth forecasted.” 6. Leisure activities 1,843 739 +149pc
Commercial radio will also face pressure from other directions,
7. Finance 22,574 10,174 +122pc
including changing patterns of media consumption, resulting
8. Charities 3,254 1,495 +118pc
from new digital consumer technologies and a structural shift in
advertising spending towards the internet. In addition, there will
9. Fuel 1,765 920 +92pc
possibly be regulatory changes resulting from the establishment 10. Health awareness 1,323 692 +91pc
of the new Broadcasting Authority of Ireland, governing RTÉ and
the independents. Source: JNLR/TNS mrbi – Carat Ireland – 2007 v 2003 calendar year
These are concerns echoed to varying degrees by both exist-
ing and new operators in the sector. “Radio is recession-
resistant; it’s not recession-proof,” says Antony Whittall, RTÉ
Radio’s commercial director. “In Ireland it is a highly cost-
effective, mass-audience, low ad-avoidance medium, and this
Table 2: Daily listening by radio station: national adults
will hold it in good stead for the next few years, but it will have
to continually fight for audiences and revenues.”
Digital audio broadcasting (DAB) has been painted as the
pc
2007
2006
change
great white hope for radio in these islands, and the first tentative
steps in establishing Irish consumer demand for DAB have been
000s pc 000s pc
taken in the past year. RTÉ is test marketing new DAB channels
RTÉ Radio 1 805 23 777 23 +4pc
across the greater Dublin area, including RTÉ Junior, RTÉ Gold
RTÉ 2FM 601 17 595 18 +1pc
Lyric FM 112 3 117 3 -4pc
and RTÉ Digital Radio News and Sport, alongside its existing
Today FM 550 16 541 16 +1pc
services and those of the leading independent stations. The BCI
Newstalk 216 6 N/A N/A N/A
is expected to allocate licences to various digital TV and radio
Any local 1,827 52 1,873 55 -2pc
multiplexes later this year.
On the face of it, this is great news for radio consumers, as
Source: JNLR/TNS mrbi – Carat Ireland – April 07-Mar 08 v April 06-Mar 07
they have more ways to listen to and access a greater choice of
programming and channels. Digital represents an alternative
May/June ‘08 Marketing Age 69
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