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.


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


AGENDA

Internet & Social Media in SA

Radio meets Internet

The Future of Radio


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.


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


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…


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.


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


= 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


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%


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%

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Face

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Wha

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Mxi

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Sky

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Rural Urban

Source: World Wide Worx, July 2012


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


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


“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


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.


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


Currently, advertising slot costs anything from R500 to R8000.

2OceansVibe, 2013


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.


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.


Sharing music via Bluetooth


FANS, NOT LISTENERS


“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


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.


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.


Measuring Internet Radio:

“CPQ” COST PER QUALIFIED SESSION


Radio can be a passive medium, offering opportunities to guide listeners to online channels where they can carry out the action. Sell advertising accordingly.


Of those 200 million registered users, over 140 million of them have tuned in to Pandora via mobile.


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.


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.


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.


"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


Sure. But the question is, when?

Don’t be the boiling frog.


Disrupt yourself now will there is still runway.


TSL* will be increasingly under threat.

And Ad revenue too.

Why? The internet gives exact figures (and they are lower). (*time spent listening.)


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


/fin. @justinspratt

Radio & The Internet | best of bedfellows

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