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.

Transcript of Radio & The Internet | best of bedfellows

RADIO & INTERNET best of bedfellows

@jus%nspra*  

@justinspratt

Im Australian. Sorry.

Been hacking since I was 10.

RadioWorks - August 21-3 | RAB | justin spratt

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

My job is to make you uncomfortable and hopefully inspired about possibilities.

RadioWorks - August 21-3 | RAB | justin spratt

AGENDA

Internet & Social Media in SA

Radio meets Internet

The Future of Radio

RadioWorks - August 21-3 | RAB | justin spratt

The “Problem”…

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

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

But…

This misses two critical points:

1.  Social Engagement

2. Active, rather than Passive

INTERNET & SOCIAL MEDIA IN SA

The obligatory stats to make you sound smart at the dinner party…

RadioWorks - August 21-3 | RAB | justin spratt

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

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

= 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

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

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%

Cam

era

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bro

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r

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Rural Urban

Source: World Wide Worx, July 2012

RadioWorks - August 21-3 | RAB | justin spratt

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%

Cam

era

FM R

adio

Inte

rnet

bro

wse

r

Mus

ic p

laye

r

Gam

es o

n ph

one

Face

book

MM

S

Dia

ry /

orga

nise

r

E-m

ail

Wha

tsA

pp

App

s

Mxi

t

Gam

es d

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rry

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ping

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S

2Go

Wor

d / E

xcel

/ P

PT

Sky

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Mob

ile T

V

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Source: World Wide Worx, July 2012

RadioWorks - August 21-3 | RAB | justin spratt

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

Social Media is just basic human nature. Only turbo charged by the web.

RadioWorks - August 21-3 | RAB | justin spratt

“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

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

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

Currently, advertising slot costs anything from R500 to R8000.

2OceansVibe, 2013

RadioWorks - August 21-3 | RAB | justin spratt

Internet Advertising in SA

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

RADIO MEETS INTERNET

Reach of radio,

engagement of web Jozi Speaker #RW13

Radio is the intimate media

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

Sharing music via Bluetooth

RadioWorks - August 21-3 | RAB | justin spratt

FANS, NOT LISTENERS

RadioWorks - August 21-3 | RAB | justin spratt

“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

COMMUNITY

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

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

Measuring Internet Radio:

“CPQ” COST PER QUALIFIED SESSION

RadioWorks - August 21-3 | RAB | justin spratt

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

RadioWorks - August 21-3 | RAB | justin spratt

RadioWorks - August 21-3 | RAB | justin spratt

RadioWorks - August 21-3 | RAB | justin spratt

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

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

THE FUTURE OF RADIO

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

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

"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

Sure. But the question is, when?

Don’t be the boiling frog.

RadioWorks - August 21-3 | RAB | justin spratt

Disrupt yourself now will there is still runway.

RadioWorks - August 21-3 | RAB | justin spratt

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

Videos

Prime Time Call Girl

Mosquito Repellant

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

/fin. @justinspratt