Post on 17-May-2015
description
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
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
ownl
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d
Bla
ckbe
rry
Mes
seng
er
Twitt
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GP
S
Goo
gle
Talk
Map
ping
, no
GP
S
2Go
Wor
d / E
xcel
/ P
PT
Sky
pe
Mob
ile T
V
Pin
tere
st
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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
ownl
oade
d
Bla
ckbe
rry
Mes
seng
er
Twitt
er
GP
S
Goo
gle
Talk
Map
ping
, no
GP
S
2Go
Wor
d / E
xcel
/ P
PT
Sky
pe
Mob
ile T
V
Pin
tere
st
Zing
Rural Urban
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