It isn't just rock: The role of radio

Author: Chris Botha

Publish: 27 August 2009

In the presentations that I do there is always one slide that gets a gasp from clients. It compares the number of media types that we had available in 1975, and compares it to what we have available now in 2009. The one that always knocks me over is the radio figure. In 1975 we had 7 radio stations. At last count, there are 135 Radio stations currently broadcasting in South Africa.

This has however not had the effect that one would imagine it would have had. With more competition, and more licences out there, you would imagine that the price of radio would have dropped, and become more affordable. More competition after all, should drive the price down. This is not the case. In fact, the exact opposite has happened. The audience has become fragmented, and the cost to reach them has increased exponentially.

Radio's role in the media plan was traditionally to be the frequency push for your campaign. You would launch the brand on television or on print, and then buy 10,000 radio spots to ensure that the brand stays top of mind for the rest of the year. This is not the case anymore. The cost of radio has made it impossible to use it as a support medium to anything else. Very few brands now have the budget to do a campaign using television or radio.

For example - Lets do a two-week campaign, with six spots every day (two in morning drive, two in afternoon drive and two in daytime radio). Our target market is LSM 9-10, so we use the major regional Radio stations - Highveld, 702, Jacaranda, East Coast Radio, KFM, Cape Talk, Algoa and OFM. Sounds about right doesn't it?

How much will it cost you?. Take a guess before reading further.

The answer is R2,2 million! That is huge - especially considering that you would only have bought 46 percent reach. So, to further build your reach you want to add on a few national stations like 5FM, Metro FM and RSG - then your costs really hit the roof: R3,2 million for two weeks of Radio. Your reach now sits at 65 percent. (frequency of 13 OTH)

Then I can take the exercise another step further and start including some of the great new black urban radio stations like Igagasi FM, Kaya FM, and Heart and you will see the number continue to climb.

Imagine if your target market is LSM 6-10 and you have to include the 9 ALS stations. Your bill for two weeks of radio will be close to R6 million. And . . . you would still be excluding stations like YFM, Good Hope FM, SAFM and Lotus FM.

The stations are partly to blame. Their rate increases are preposterous, and they are offering no real incentive to advertisers to take money away from television. The media planner decision is no longer, "how much to radio and how much to television?", but "radio OR television?"

The reality of the situation is that our radio audience has become so fragmented over the past 20 years, that in order to get a decent reach on a radio campaign you need to have serious loot.

You need to buy 23 stations if you want to effectively cover LSM 6 - 10 market. Those 23 stations have in turn increased their rates exponentially as well, making the role of radio no longer a supportive one with most other media. Cost simply doesn't allow.

Oh, for the old days of seven radio stations.