Buying Space
They used to call it buying space. Not so long along ago, media buying was a relatively simple process. Success in media sales was dependent more on service than on savvy analysis. But much like most everything else in life, progress brought complexity. Every answer brings a new set of questions. So here advertisers sit in an era of increasing media fragmentation trying to ascertain what they should buy and in what combination. On the flip side of the coin, broadcasters and publishers are contemplating what properties they should buy in order to maintain control of the marketplace. Expansion brings us scores of new specialty TV channels catering to almost every whim, hobby, fantasy or fetish. In this turbulent atmosphere, radio has an opportunity that should not be overlooked.
Traditionally speaking, television has always been a mass medium while radio was somewhat more targeted with formats catering to specific niches. Suddenly, television is leapfrogging radio in its attempt to superserve narrowly defined niches. All History, All Golf, All Women’s Sports, All Weather, All Cartoons, etc. I’m waiting with anticipation for the new “All Female Left-handed Golfer’s Channel” beaming in 24 hours a day. Although they could run out of “A” list programming by 3am. But pity the poor buyer. Long gone are the days of programmes such as the finale of MASH which delivered astronomical audience shares and spectacular reach.
In the midst of these developments, the overall number of radio stations has remained fairly consistent. Credit the CRTC with this much…..it has not allowed Canadian markets to be flooded with unprofitable radio stations like we have seen in some U.S. cities. While television audiences are being spread across a burgeoning menu of choices, the top radio stations continue to deliver the kind of audiences that advertisers have come to expect.
In Canada, radio has, by standing pat while the number of television stations explodes, improved its competitive position. Radio audience measurement is more detailed than ever with the availability of BBM’s single source demographic/product usage diary data and the incomparable RTS study. These afford the medium precise niche targeting without audience dilution.
While the number of radio stations may not have markedly increased, the revised ownership regulations issued by the CRTC have had a dramatic impact. Broadcast groups are now afforded the opportunity for multiple ownership in a market (e.g. a group can own two AM and two FM stations in a major market). This has resulted in expansion for certain major broadcast groups and the demise of others. With so much consolidation, the atmosphere is very difficult for independent broadcasters.
One development saw Astral Media purchase 19 radio stations in Quebec, New Brunswick and Nova Scotia from Telemedia. Adding CITE-FM to their CKMF-FM powerhouse gives Astral a formidable foothold in the Francophone Montreal market.
In the Anglophone Montreal market, Standard Radio picked up CHOM-FM which will make a nice addition to their current holdings, CJAD and MIX96.
In another stunning development, Standard Radio announced the acquisition of Telemedia stations in Ontario, Alberta and B.C. plus Craig stations in Manitoba and Alberta. Adding EZRock to MIX99.9 and CFRB in Toronto gives the group a very well rounded presence in Canada’s largest market. In subsequent transactions the northern Ontario properties were then sold to Rogers while other western properties were sold to Newcap.
With the exit of Telemedia from radio, the list of major ownership groups is becoming very thin. We have Corus, Astral, CHUM, Standard, Rogers and the CBC. The remaining groups, while providing essential and vibrant voices, are somewhat smaller. The question remains as to what will be the implications of these changes.
Certainly, one of the most interesting aspects of multiple station ownership in individual markets is better station positioning. Owners can zero in on a very specific niche which is complimentary to those targeted by their other stations. The listener/advertiser benefits in that there tends to be less format duplication. For example, fewer different owners slugging it out in the Female 25-54 Adult Contemporary arena. By dominating a distinct niche, owners afford themselves definite marketing advantages, not the least of which is setting the market cost per point for their given target. Advertisers can take advantage of group sales which boast domination of a targeted demo. For example, witness Corus Radio properties in Toronto. With Q107’s classic rock, Mojo Talk Radio for Guys (AM640) and The Edge’s (CFNY-FM) new music (not to mention Energy95.3) a group buy delivers excellent coverage of young males and certain lifestyle groups (e.g. beer drinkers).
Multiple ownership allows broadcasters to spread operational costs (traffic, accounting, production, rent, etc.) over more properties, thus making the overall enterprise more efficient. This, in turn, results in more flexibility with ad rates. Broadcasters have been pruning staff on an ongoing basis to make sure their stations both maintain profit margins while remaining cost competitive with others stations and media.
Another implication of broad ownership is the resurgence of syndication, albeit in a very different form. In the days of “mosaics” and various other CRTC programming regulations, a number of independent syndicators prospered. With the easing of the restrictions, avenues for this sort of programming largely dried up. On the other hand, syndication firms such as Sound Source (owned by Standard) can prove to be a valuable resource for their parent firms. They produce cost effective programming with a base of stations from their parent network already in place. The idea of a “Superstation” sharing programming is another popular experiment. Here, a format (e.g.EZRock) is developed by the flagship station in a group. From there the format and certain programming elements are rolled out to other members in the broadcast group. This allows the advertiser to focus on certain targeted features and maintain a consistency from market to market.
One of the most ambitious examples of the brave new world of syndication or networking has been CHUM’s creation of the “Team”, Canada’s first Sports Talk Network. They boast affiliates in 9 key centres….Toronto, Montreal, Vancouver, Ottawa, Kingston, Kitchener, Peterborough, Winnipeg and Halifax. Costs are applied over a broad market list, affording the sort of programming which might normally be cost prohibitive for an individual market. Ads can be purchased on both a local and national basis. Sadly, the network has not yet been able to generate sufficient audience or revenue to make it a success. CHUM has recently announced a restructuring with somewhat less centralization and more emphasis on local content.
So, while buying space in radio may be somewhat more complex than in days gone by, the combination of superior audience data, targeted group buying opportunities, exciting programming experiments and consistently substantial audiences is making the experience more rewarding than ever.
(Published in "Marketing Magazine")
Traditionally speaking, television has always been a mass medium while radio was somewhat more targeted with formats catering to specific niches. Suddenly, television is leapfrogging radio in its attempt to superserve narrowly defined niches. All History, All Golf, All Women’s Sports, All Weather, All Cartoons, etc. I’m waiting with anticipation for the new “All Female Left-handed Golfer’s Channel” beaming in 24 hours a day. Although they could run out of “A” list programming by 3am. But pity the poor buyer. Long gone are the days of programmes such as the finale of MASH which delivered astronomical audience shares and spectacular reach.
In the midst of these developments, the overall number of radio stations has remained fairly consistent. Credit the CRTC with this much…..it has not allowed Canadian markets to be flooded with unprofitable radio stations like we have seen in some U.S. cities. While television audiences are being spread across a burgeoning menu of choices, the top radio stations continue to deliver the kind of audiences that advertisers have come to expect.
In Canada, radio has, by standing pat while the number of television stations explodes, improved its competitive position. Radio audience measurement is more detailed than ever with the availability of BBM’s single source demographic/product usage diary data and the incomparable RTS study. These afford the medium precise niche targeting without audience dilution.
While the number of radio stations may not have markedly increased, the revised ownership regulations issued by the CRTC have had a dramatic impact. Broadcast groups are now afforded the opportunity for multiple ownership in a market (e.g. a group can own two AM and two FM stations in a major market). This has resulted in expansion for certain major broadcast groups and the demise of others. With so much consolidation, the atmosphere is very difficult for independent broadcasters.
One development saw Astral Media purchase 19 radio stations in Quebec, New Brunswick and Nova Scotia from Telemedia. Adding CITE-FM to their CKMF-FM powerhouse gives Astral a formidable foothold in the Francophone Montreal market.
In the Anglophone Montreal market, Standard Radio picked up CHOM-FM which will make a nice addition to their current holdings, CJAD and MIX96.
In another stunning development, Standard Radio announced the acquisition of Telemedia stations in Ontario, Alberta and B.C. plus Craig stations in Manitoba and Alberta. Adding EZRock to MIX99.9 and CFRB in Toronto gives the group a very well rounded presence in Canada’s largest market. In subsequent transactions the northern Ontario properties were then sold to Rogers while other western properties were sold to Newcap.
With the exit of Telemedia from radio, the list of major ownership groups is becoming very thin. We have Corus, Astral, CHUM, Standard, Rogers and the CBC. The remaining groups, while providing essential and vibrant voices, are somewhat smaller. The question remains as to what will be the implications of these changes.
Certainly, one of the most interesting aspects of multiple station ownership in individual markets is better station positioning. Owners can zero in on a very specific niche which is complimentary to those targeted by their other stations. The listener/advertiser benefits in that there tends to be less format duplication. For example, fewer different owners slugging it out in the Female 25-54 Adult Contemporary arena. By dominating a distinct niche, owners afford themselves definite marketing advantages, not the least of which is setting the market cost per point for their given target. Advertisers can take advantage of group sales which boast domination of a targeted demo. For example, witness Corus Radio properties in Toronto. With Q107’s classic rock, Mojo Talk Radio for Guys (AM640) and The Edge’s (CFNY-FM) new music (not to mention Energy95.3) a group buy delivers excellent coverage of young males and certain lifestyle groups (e.g. beer drinkers).
Multiple ownership allows broadcasters to spread operational costs (traffic, accounting, production, rent, etc.) over more properties, thus making the overall enterprise more efficient. This, in turn, results in more flexibility with ad rates. Broadcasters have been pruning staff on an ongoing basis to make sure their stations both maintain profit margins while remaining cost competitive with others stations and media.
Another implication of broad ownership is the resurgence of syndication, albeit in a very different form. In the days of “mosaics” and various other CRTC programming regulations, a number of independent syndicators prospered. With the easing of the restrictions, avenues for this sort of programming largely dried up. On the other hand, syndication firms such as Sound Source (owned by Standard) can prove to be a valuable resource for their parent firms. They produce cost effective programming with a base of stations from their parent network already in place. The idea of a “Superstation” sharing programming is another popular experiment. Here, a format (e.g.EZRock) is developed by the flagship station in a group. From there the format and certain programming elements are rolled out to other members in the broadcast group. This allows the advertiser to focus on certain targeted features and maintain a consistency from market to market.
One of the most ambitious examples of the brave new world of syndication or networking has been CHUM’s creation of the “Team”, Canada’s first Sports Talk Network. They boast affiliates in 9 key centres….Toronto, Montreal, Vancouver, Ottawa, Kingston, Kitchener, Peterborough, Winnipeg and Halifax. Costs are applied over a broad market list, affording the sort of programming which might normally be cost prohibitive for an individual market. Ads can be purchased on both a local and national basis. Sadly, the network has not yet been able to generate sufficient audience or revenue to make it a success. CHUM has recently announced a restructuring with somewhat less centralization and more emphasis on local content.
So, while buying space in radio may be somewhat more complex than in days gone by, the combination of superior audience data, targeted group buying opportunities, exciting programming experiments and consistently substantial audiences is making the experience more rewarding than ever.
(Published in "Marketing Magazine")