The Independent Broadcasters of Ireland (IBI) and RTÉ Radio have invested over €100,000 in launching RadioGAUGE in Ireland and it is free to advertisers and media buyers wishing to measure the effectiveness of their radio advertisement campaign as well as the impact of creativity on a campaign’s success.

“At a time when there is increased competition for advertising spend, The JNLRs published this week once again demonstrate the unparalleled ability of independent radio to reach consumers.  2.43 million potential customers listen to independent radio stations on an average weekday. This is an increase of 19,000 people year on year and proves that radio is an unrivalled medium for advertisers who want to reach an engaged audience”, said Scott Williams, Chairman of the Independent Broadcasters of Ireland

According to Williams, the level of engagement and the depth of loyalty listeners have with their radio stations in not replicated with any other medium.  “If you think about it, people tend to have favourite TV programmes, rather than favourite TV stations so there is no loyalty to any one station.  With radio, time and again you will hear people talking about their favourite radio station and this is an opportunity advertisers need to recognize and grasp” he said.

“Advertisers also need to rethink their approach to media buying”, said Williams.  “The most common approach among media buyers is to think national first, then local.  I would challenge that thinking based on the strength and reach of independent radio stations.   The most effective way to reach consumers is through their local communities and local radio is the lynchpin of many communities across Ireland. Remember 2 out of every 3 minutes spent listening to radio on an average weekday is to independent radio”.

With Radio Gauge RTÉ and Independent broadcasters are leading the way in working with advertisers to help them improve the creativity and effectiveness of their advertising”, said Scott Williams.  “The more impact radio campaigns have, the greater potential advertising spend on radio.  It’s a win-win for the radio industry and for advertisers.“

RadioGAUGE is fast becoming the global standard for measuring radio advertising effectiveness.  It has been operating very successfully in the United Kingdom for the past five years where, in 2010 it was credited by the Radio Advertising Bureau with increasing radio advertising spend for the first time in four years. It is also used in South Africa, Germany, Canada and now Ireland, as well as an ongoing pilot in Finland.

RTÉ Radio and The Independent Broadcasters of Ireland have worked together successfully on a number of ‘Choose Radio’ projects over the past few year, promoting radio to the media industry. RadioGAUGE takes this partnership to a new level.

“We welcome the introduction of a new broadcasting charge to replace the current TV licence and we urge the Minister to take advantage of the opportunity this change presents to review how the revenue collected is used.

The new Household Broadcasting Charge was committed to in the Programme for Government. The Programme for Government also contains a commitment to “review the funding of public and independent broadcasters to ensure a healthy broadcasting environment”. If the Minister is bound to examine the television licence fee then he should also be bound to the Programme’s commitment to undertake a full review of the funding of broadcasting in Ireland.  Indeed the two are inextricably linked and it is it is inconceivable that any change to the current TV licence system would not involve a review of how the funding is used.

In various media interviews Minister Rabbitte has referred to RTE as the state’s “public service” broadcaster. We would like to remind Minister Rabbitte that with over 2.4 million listeners each week day, all independent radio stations provide a high level of public service and that this is a condition of their licence.

We also note with great interest that €25 million of the television licence fee is lost each year through evasion and the Minister’s contention that the new licence fee arrangement would greatly reduce this amount. It is conceivable that the revenue to be collected from the new broadcasting charge be apportioned to fund the operations of the Broadcasting Authority of Ireland, a move that would benefit every broadcaster in the country regardless of whether they are community, commercial or state-funded. It is vital that the Minister reflects on how the changes he makes now will impact on the Irish broadcasting landscape over the coming years”.

RadioGAUGE was piloted by RTÉ Radio and the IBI with a number of advertising agencies during 2011 and the success of this pilot sees RTÉ Radio and the IBI invest over €100,000 in launching RadioGAUGE in Ireland.  RadioGAUGE is a significant investment by the entire radio industry and radio broadcasters in Ireland are leading the way in working with advertisers to help them improve the creativity and effectiveness of their advertising

Scott Williams, Chairman of the IBI said; “This is probably the most significant collaboration between Independent Broadcasters and RTÉ Radio.  Our investment in this project is testament to the confidence we have in the effectiveness of radio as an advertising medium.  RadioGAUGE will not only help advertisers measure the effectiveness of existing campaigns it will also help advertisers understand the factors that contribute to effective radio creativity, thus improving the results of future advertising campaigns”.

Antony Whittall, Commercial Director for RTÉ Radio said:  “We can now measure the performance of radio campaigns for those who use our medium as an integral part of their marketing activity. In addition RadioGAUGE measures the strength of that radio campaign’s creative execution and can give feedback to all those brands that take part.  We believe the accountability provided by RadioGAUGE will be welcomed by advertisers and media buyers who are under pressure to demonstrate value for every euro spent on advertising.”

According to Williams and Whittall, radio advertising allows brands to develop a ‘personality’ creating more effective engagement between the brand and its customers.  The ability to measure the effectiveness of the creative approach in a radio commercial is an important value proposition of RadioGAUGE.

RadioGAUGE is fast becoming the global standard for measuring radio advertising effectiveness.  It has been operating very successfully in the United Kingdom for the past five years where, in 2010 it was credited by the Radio Advertising Bureau with increasing radio advertising spend for the first time in four years. It is also used in South Africa, Germany, Canada and now Ireland, as well as an ongoing pilot in Finland.

RTÉ Radio and the IBI have worked together successfully on a number of ‘Choose Radio’ projects over the past few year, promoting radio to the media industry. RadioGAUGE takes this partnership to a new level.

“The flawed manner in which the state owned broadcaster has responded to what must stand as one of the worst defamations in the history of Irish broadcasting must now permit a closer look at how RTE is regulated and funded”, said Tim Collins, Board member of the IBI and CEO of OceanFM in Sligo.

“RTE enjoys extraordinary and unfair financial and legal privileges.  These privileges are not just unfair on independent broadcasters.  They undermine the interest of the audience which all broadcasters are licensed to serve”,

Mr. Collins said that Ireland’s broadcasting legislation is clearly creating an uneven and unfair playing pitch between independent broadcasters and RTE.  He pointed out that Independent commercial broadcasters work within a highly regulated environment but that in many respects these onerous conditions did not all apply effectively to RTE.

“Unlike RTE, independent broadcasting licences are issued for 10 year periods by the Broadcasting Authority of Ireland (BAI).     We operate to very detailed codes and policy statements that are monitored and policed by the BAI on behalf of the general public. Our track records are scrutinized and taken into account when we apply for a new licence and the good opinion of the Authority is literally a life or death issue.

“By contrast, under the 2009 Broadcasting Act, while RTE submits to oversight of many aspects of its operations by the BAI, it does not have to reapply for its licence and is not subject to the same level of scrutiny by the regulator.  It says a lot about the arms length nature of much of the regulation of RTE that it took a request from the Minister to initiate such action against RTE.”.

Mr. Collins said that the situation was exacerbated by the manner in which RTE is funded.  “At the root of the problem is the rather naked commercial mandate given to RTE by Section 108 of the 2009 Act. This gives RTE carte blanche to pursue every last scrap of revenue available in the market using the considerable armory of its multimedia platforms with no reference as to the impact it has on independent broadcasters.

“Approximately half of RTE’s €400m annual budget comes from commercial revenues and the remainder from the licence fee.  Independent broadcasters are solely reliant on advertising and commercial revenue and compete with RTE for this revenue.  Because these stations are completely dependent on advertising revenue, the vital service they provide is now under significant threat.

“The Broadcasting Act 2009 failed to accept that every licensed broadcaster worthy to hold a license is truly a public broadcaster regardless of whether it is owned by the state or not.  It is time that the public service broadcasting by independent radio stations is recognized and supported just as we have rightfully supported RTE over all these years”.

Mr. Collins said that RTE’s reputation for high quality programming has up to now prevented any meaningful and balanced debate about how RTE is regulated and how it’s commercial activities impact on independent broadcasters.

“Whenever these issues are raised, the response of Ministers and public officials has always been that RTE does a fine job and must be protected. The 34 independent national, multicity, regional and local stations command the lions share of radio listening in Ireland far outstripping the share of RTE owned stations.  The strength and popularity of local radio in Ireland has been an extraordinary success story.   In the wake of the Fr. Reynolds case, the Minister for Communications must now accept the need for changes in how public service broadcasting is both financed and regulated to ensure that we have a competitive broadcasting sector with the public interest at its core”.

Speaking at the IBI AGM in Dublin, Williams said; “A radical overhaul of public service broadcasting funding is long overdue.  Today we are launching the IBI position with regards to the funding of broadcasting in Ireland which, if accepted, would result in a healthier sector with real choice and quality broadcasting for the listener”.

“There has been little or no change made to the structure of broadcast funding since the 1960’s despite the radical changes which have taken place in Ireland’s broadcasting landscape.  The introduction of a Public Service Broadcasting Charge, if used to fund all forms of broadcasting, will reflect actual usage levels, the changes in technology and the availability of media on many different devices”.

The IBI is focused on two key areas of change – the abolition of Sound and Vision and its replacement with a new Public Service Broadcasting Fund and the funding of the Regulator from the proposed Public Service Broadcasting Charge which will be levied on all households instead of the TV licence fee.

Scott Williams points out that the stated aim of the Sound & Vision Scheme was to allow broadcasters to produce programmes which would not normally be financially viable in order to provide a better service to the public. However, he says that an extremely high number of broadcasters have stopped applying for Sound & Vision funding due to the rejection of high levels of submissions and an application system that is an administrative nightmare for the Regulator and applicant alike.

“Public service broadcasting is an essential service provided by independent radio stations at significant cost which is not recognised by the BAI or supported by Exchequer funding.    We can address this anomaly and fix much of what is wrong with the current scheme, if we replaced Sound & Vision with a new Public Service Broadcasting Fund .  A specified percentage of the fund would be ring-fenced for commercial radio broadcasting and the qualifications for funding would be streamlined to broaden the type of programmes included in the scheme e.g. live programming. This would recognise that much of the output of independent broadcasters is public service in nature and highly popular while allowing independent radio stations to provide great radio for its listeners”, he says.

On future funding of the Broadcasting Authority of Ireland, Williams says that the broadcasting industry believes that given that more monies will be collected by the proposed Public Broadcasting Charge, this should be used to directly fund the regulator, rather than levying the industry.

“The current levy is in the region of  €6 million per annum which is a significant burden on many stations.  Using the Public Broadcasting Charge to directly fund the regulator will provide a financial benefit to all radio and television broadcasters – state funded, commercial or community.   The €6 million saved by the industry is a sizeable figure which would be available for reinvestment in quality programming and employment in the sector”, said Williams.

“It is in the interests of the listening public that the Minister carefully examines the funding of broadcasting in Ireland and identifies ways in which the new Public Service Broadcasting Charge can support the broad based local, regional and national radio broadcasting sector in Ireland.   Our proposals are cost neutral and  will ultimately deliver a stronger broadcasting sector for the benefit of radio listeners and for benefit of the 1500 people employed in the sector”, he said.

“Independent radio is consistently winning and retaining a majority share of Irish radio listeners.  Our strength is the diversity of our offering which reflects the communities in which we are based and broadcast.  We are embracing new technologies to ensure that our listeners can tune in wherever they are and regardless of what they are doing and that is why the remain loyal to us”, said Scott Williams, Chairman, Independent Broadcasters of Ireland.

“Despite the choice of media outlets, the success of independent broadcasters continues to increase.  Year on year we continue to grow our audience by providing greater diversity and greater choice to Ireland’s radio listeners.  The wealth of talent in radio stations throughout the country who are making great programmes and keeping listeners tuned in is central to the commercial success of our members.   Our growth has been achieved without the benefit of a license fee subvention or indeed the extensive resources which our national broadcaster enjoys”.

The economic and social contribution of the independent broadcasting sector cannot be underestimated and in particular the employment supported.  1500 people are working in independent radio broadcasting in Ireland.

The IBI has submitted its response to the BAI’s draft Broadcasting Services Strategy.

“The viability of independent radio stations must be the central, predominant and principal consideration for the BAI at all times”, said Scott Williams, Chairman of the Independent Broadcasters of Ireland and CEO of Q102. “Regrettably, certain elements of the proposed strategy will ultimately threaten rather than support a strong, viable independent broadcasting sector”.

“The IBI is strongly opposed to the proposal to impose a cash sum payment on broadcasters for a sound broadcasting licence and wants this proposal removed entirely from the BAI strategy. A cash sum payment as envisaged would amount to a second unnecessary levy on the sector at a time when many stations are under financial pressure”.

“It is also extremely important that permitted levels of ownership are maintained at the current level of 25%.  The proposal to reduce ownership to 20% is without merit or any justification.  All media ownership changes must also be approved by Competition Authority in any case. This provides adequate protection against monopoly positions developing within the sector. The higher level of ownership must be maintained to allow for greater diversity for the radio listener”, said Williams.

The majority of the country’s local radio franchises will be relicensed over the coming two years and the IBI has made a number of key recommendations in this regard.   The IBI believes that the BAI should conduct a sectoral impact study before considering the award of any additional radio licences. It also believes the experience of incumbent broadcasters must be a key determinant in all license awards.

“In awarding a broadcasting contract particular weighting must be given to the high levels of listenership to independent radio stations and the amount of public service broadcasting done by independent stations.  This public service broadcasting is not acknowledged by Government or the BAI and the funding of public sector broadcasting must be urgently reviewed.  We believe it is anti-competitive to fund public service broadcasting on RTÉ only, whilst also allowing RTÉ to raise additional funds through advertising and sponsorship”.

“Given the high number of franchise areas to be relicensed and the resources this will require from both regulator and applicant, fast-tracking of licences must be adopted by the Contracts Awards Committee as its next step rather than an optional move” said Williams.

“This strategy is of extreme importance to IBI members. The greatest asset that broadcasters have is access to the airwaves and the strategy will define the key structures by which independent radio licences will be issued in the coming years”, he said.  “It is in the interests of the listening public that this BAI strategy is carefully implemented in a manner to support the broad based local, regional and national radio broadcasting sector in Ireland.

The IBI submission can viewed here

Scott Williams, Chairman of the IBI, which is the voice of the independent radio sector in Ireland, called for a long overdue and comprehensive restructuring of the state run radio stations.

“RTÉ Radio currently exists under a Public Service mandate and receives direct funding from every household in the state. Last year RTÉ Radio raised more than €31 million in commercial advertising revenue. This dual funding is not only against the spirit of RTÉ’s Public Service mandate but is also grossly anti-competitive in the current climate.  All commercial advertising on RTÉ Radio 1 should be abolished and it should become a Public Service Station funded directly by the income from the Television Licence Fee”, he said.

“The Programme for Government contains a commitment to review the funding of independent and state funded broadcasters to ensure a viable broadcasting sector.  The current Licence Fee was introduced in Ireland when RTÉ was the only broadcasting entity. Its continued existence confers an unfair advantage on RTÉ and is clearly anti-competitive in a market when all radio stations provide a strong public service dimension”, he added.

Mr Williams said the IBI is also strongly opposed to proposed changes to Ownership and Control outlined by the BAI, which he says  is ‘change for the sake of change’.  The BAI is proposing to reduce the cap on ownership from 25% to 20%.

“There is no need for this provision.  No one broadcaster holds anywhere near 25% of the market so we fail to see why the BAI feels it necessary to reduce the cap to 20%.  All ownership changes must also be approved by Competition Authority. This provides adequate protection against monopoly positions developing within the sector”

The IBI is also opposed to the BAI proposal to level a cash sum from successful licence applicants.

“This is a levy by another name and it is totally unjustified.  The independent radio sector already contributes significantly to the costs of regulating the sector through the BAI levy.  The BAI knows the financial pressures on radio stations with many restructuring operations in the face of falling revenues.  To demand payment from successful licence applicants now is unrealistic and suggests that there is little understanding within the BAI of the realities of the environment in which we are operating’

Next year a number of radio licences are up for renewal and the IBI believes consideration must be given to the track record of incumbents. “We are calling on the BAI to refine its weighting system to give a particular overall weighting to the successful track record of an incumbent applicant”, said Scott Williams.

“The Minister’s proposals for a review on funding should be published and developed in tandem with the BAI’s broadcasting services strategy to provide certainty to all broadcasters and to ensure that we have a balanced and competitive broadcasting sector as envisaged in the Programme for Government”, he said.

The figures show the strength of independent radio in Ireland with 69% or 2.422 million people listening in every day. This is despite diminishing advertising revenues placing significant strain on independent stations.

Scott Williams urged the Broadcasting Authority of Ireland (BAI), which is currently looking at the relicensing process, to consider the strength of the listenership to independent radio

“I’d like the Authority to really listen to independent radio as it goes through the relicensing process. Independent radio is at the heart of every community in Ireland with more than 1500 people employed in the sector. Today’s JNLR figures show an increased weekday primetime market share to an impressive 66.9%. Listeners are voting with their ears. More than two out of every three minutes listening in Ireland is to independent stations because our local, regional and national radio stations across the country are providing a service listeners clearly want.”

Mr Williams added that: “This confirms that Ireland is adequately served by the radio stations currently broadcasting and would suggest that this position remain stable. One of the primary determinants in the awarding of a radio licence should be the track record of an applicant and an increase in the weighting for existing operators should be introduced in light of ongoing economic circumstances.”

Mr Williams also called for certainty in respect of the process to be adopted by the Broadcasting Authority.“The track record of an applicant will be a key determinant for the BAI and we suggest that it should become the primary determinant”.

Monday 16 May 2011

Jointly developed by the Independent Broadcasters of Ireland and RTÉ Radio, the campaign will run on all 36 radio stations across Ireland from today.

The most recent JNLR figures, published on May 5, showed that 86% of respondents listen to radio every day with an average listening time of almost 4 hours.

According to Jim Jennings, RTÉ Radio 1, and Scott Williams, Chairman of the Independent Broadcasters of Ireland, the ubiquity of radio means that if an advertiser wants to reach multiple audiences, then they must be on radio.

Jim Jennings said; “With over 3 million people listening to radio every day, an integrated campaign on national, regional and local radio offers an ability to reach the target audience in a way no other medium can.  The creative potential of radio and its ability to connect with individuals in a personal way cannot be matched by other medium.  We see that close relationship every day in the immediate interaction between listeners and presenters, and the conversation that takes place via text, Twitter, Facebook and email”.

Scott Williams said: “Radio continues to thrive in the online environment. Research conducted for the recent IBI Broadcasting Conference showed that when people are on Facebook or web browsing they are listening to the radio at the same time. This clearly shows the multiplier effect of radio and highlights the importance of integrating radio and online advertising campaigns.”

This is the third year of the Choose Radio initiative and both Williams and Jennings are encouraged by the success of past campaigns.

Scott Williams said; “At the recent IBI conference, the industry was challenged by some agencies present to demonstrate our innovation and creativity.  I believe this campaign once again demonstrates that radio advertising can produce high quality, creative advertisements which stand out from the crowd”.

“The campaign has worked well to remind advertising agencies of the power of radio to sell to all consumer groups.  Radio’s loyal audience is a key strength as listeners are slower to switch channels during ad breaks.  This low ad avoidance makes radio advertising a very strong proposition”, added Jim Jennings.

Radio stations will broadcast the Choose Radio advertisement 3 times a day for the two weeks of the campaign.  The creative process was overseen by Jimmy Murphy and the team at Publicis QMP. Recording and post production was done in Mutiny Studios.