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Radio 2002 2 nd Edition November 2002

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Page 1: Radio Key Facts 2002

Radio 2002

2nd EditionNovember 2002

Page 2: Radio Key Facts 2002

2 Radio 2002

Foreword

The International Key Facts – Radio 2002 analyses thesituation of radio in 22 European countries plus the UnitedStates which can be used as benchmarking. The figurespresented are those that are recognised and used by theprofessionals of each country. This does not, however,enable a direct cross comparison of the data to be made.The definitions used in each country vary quite consid-erably. The audience measurement, for instance, is prettydifferent from a country to another: the population of thesample may vary from 9 year-olds and plus to the 15 year-olds and plus. In some other countries, people over 75 or79 are not part of the sample.

Formats have been reduced to main families in order togive indication of the main target group of a radio station,they do not intend to give a strict definition of the sta-tions play-lists.Although by no means exhaustive, the unique gatheringof those sometime heterogeneous information intends togive to the reader a glimpse of the diversity and power ofradio in Europe.In order to register scale, the financial indicators havebeen converted into € at constant value. Those used forthis issue are for January 1st 2002.

Country Currency abbreviation 1 € equalsCzech republic CZK 32.11232

Denmark DKK 7.42858

Hungary HUF 244.687

Norway NOK 7.97286

Poland PLZ 3.5406

Romania ROL 27198.1

Slovakia SKK 42.7163

Sweden SEK 9.3088

Switzerland CHF 1.4779

UK GBP 0.6121

USA USD 0.89139

1st January 2002

Page 3: Radio Key Facts 2002

3Radio 2002

After a century of existence, radio is still a youthful medium, with enormous growthpotential.

Firstly, though radio has yet to go through its own digital revolution, 25 years after the FM revolu-

tion, with the advent of increasingly available advances in technology, it is nevertheless definitely

moving forward. Several countries (mainly the UK and Northern European countries) have made

firm steps in the Digital audio broadcasting field. But technology is not only about terrestrial broad-

casting. It opens up new opportunities to increase radio consumption through alternative distrib-

ution channels such as digital cable & satellite, Internet or the future mobile telephony applica-

tions. This technology will free radio from the current scarcity of available frequencies and fuel new

offers for listeners.

Secondly, radio is far from having reached its definitive structure. In most European countries the

liberalisation of the airwaves is rather recent. Private radio stations only began to appear as recently

as the 80s or the 90s, most often on a local level. The strong link between radio and the local com-

munities as well as varying national or even regional regulations in Europe explain why radio is a

highly fragmented medium. The challenges posed by new technologies, the listeners’ demand for

more professionalism and clear programming promises, the increase in competition between sta-

tions, and finally, the need for a coherent and simple advertising offer are all factors that will most

likely lead to progressive structural changes and to a certain degree of consolidation in several

European markets.

Radio is healthy enough to undergo these transformations.

Listening is on the rise in Europe, thanks to more diversified and attractive programming formats.

More than ever, radio proves itself to be adapted to the modern way of life, being as “mobile” as

the new generation of Europeans. The increased share of out-of-home listening is a clear demon-

stration of this phenomenon. Radio also benefits from improved financial resources. In most

European markets, investment in radio advertising has grown constantly over the last few decades,

growing more quickly than total advertising investments in nearly all other markets. The end of

the century proved to be a very dynamic time for radio. One of the main reasons for this is a bet-

ter advertising sales offer, and a new organisation of the media in many markets that convinces

many traditional advertisers to use it. Secondly, a growing number of advertisers have turned their

attention toward those elusive target groups that radio reaches so well, such as young adults, work-

ing people and the upper classes. All of this combined with the broadcast media’s effectiveness at

quickly building consumer awareness, it is not surprising that radio rapidly became one of the

favourite vehicles for the so-called New Technology sector. Of course, the 2001 economic slump has

hit radio all over Europe. However, with its high degree of reactivity and its enhanced advertising

attractiveness, radio is nevertheless well placed to weather the current downturn and profit from

the rebound. Encouraging signs are already appearing in 2002 in several markets, notably in France,

one of Europe’s largest radio markets.

RTL Group, Europe’s leading broadcaster and content provider, together with IP, Europe’s leading

advertising sales network, are proud to present the third edition of their International Key Facts - Radio

report. The International Key Facts - Radio 2002 will provide you with a concise overview of the current

radio markets in 22 European countries. It is a reference tool to help you better understand a media

with strong local specificity, which has undergone profound changes over the last 20 years: a media

that will continue to evolve and grow in the coming years with more sweeping changes ahead.

We hope this publication will help you to enrich your knowledge of this exciting media.

Didier LEFEVREHead of IP’s International Marketing Committee

Editorial

Page 4: Radio Key Facts 2002

4 Radio 2002

Page 5: Radio Key Facts 2002

5Radio 2002

Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Radio in Europe, a young, traditional media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Western Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Austria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Belgium. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Denmark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Finland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Greece . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

Ireland. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

Luxembourg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

Norway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

Portugal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

Sweden. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123

United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133

Central Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

Czech Republic. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141

Hungary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147

Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

Romania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

Slovakia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165

Non-European country . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171

United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173

Table of contents

Page 6: Radio Key Facts 2002

6 Radio 2002

Page 7: Radio Key Facts 2002

7Radio 2002

European Radio is like Europe itself. In the media world

it has a long history established during the last century.

This has ensured it is the subject of a strong cultural

recognition in European society. No matter how old we

are we all have a nostalgia for our own “Radio Days”. But

this memory is in fact specific to our home country, as

Radio is a part of our local history. Radio is closely

linked to our local past, our local culture and our local

tradition. Everyone has their own special programme,

special presenter, special Radio event. European Radio

is made of all those local cultural differences. But

although loaded with history and tradition, European

Radio is also a young and dynamic media. It is only in

the last twenty years that the modern media we enjoy

today was created. And this latest part of history is not

over. Radio is still on the move, offering new choices

every day, adapting itself to our new habits, our new

ways of life, using - and sometimes even preceding - new

technologic developments.

European Radio is like Europe itself. Built on tradition,

imbued with local cultures, reflecting a wide variety of

contexts, but at the same time, modern and dynamic

and all moving in the same direction. This makes it a

major and powerful media, with a massive population

reach, but at the same time remaining our own per-

sonal and intimate friend.

Local regulations have created a varying landscape

Public or private sector

The local organisation and regulation of radio reflects

profound historic and political concerns. Some countries

have traditionally given higher importance to their Public

Services. We have had to wait until the last ten years to

see the emergence of private commercial radio stations.

Northern Europe dominates in this picture, mainly the

Nordic countries with a dominant local state-owned radio

organisation, with a strong involvement in the commu-

nity and not carrying advertising. It was the case for many

years in the UK, where commercial television was allowed

before commercial radio. Whilst commercial radio has

expanded in recent years, it has remained mainly regional

with strict regulations governing station ownership. The

planned changes in the law here should lead the way for

a major consolidation of the market.

Luxembourg

Portugal

S.Belgium

France

Spain

Czech Rep

Hungary

Poland

Italy

Romania

Netherlands

Ireland

Slovakia

UK

Finland

Germany

Sweden

Denmark

N.Belgium

Austria

Norway

2.7%

9.2%

18.8%

22.7%

24.2%

28.0%

28.0%

31.1%

32.9%

46.4%

46.7%

47.0%

47.1%

52.6%

53.0%

53.0%

65.0%

66.5%

82.2%

83.0%

95.0%

Radio in Europe, a young, traditional media

AUDIENCE SHARES PUBLIC SECTOR

Page 8: Radio Key Facts 2002

8 Radio 2002

National or local

A national or local organisation of the media is also one

of the key differences between our various countries. A

federal country like Germany has a regional organisation,

with a variety of audiovisual regulations depending on the

different Landers. There it was not possible to establish

nationwide coverage, or national programming or branded

networks of stations. The reality remains local or regional.

National advertisers had to wait until the creation of

national advertising packages, developed by the sales

houses, to increase their use of the media. In Austria,

where the public service - which carries advertising - is in

a monopolistic situation at the national level, it is at the

regional scale that private radios have expanded. Here

national advertising packages have also provided an effec-

tive means of increasing advertising revenues. Some other

countries, like France, have a long tradition of centrali-

sation and so it is no surprise to observe that the national

program networks lead the market here.

A rich variety of formats

The programme offer is especially rich in Europe. Again

this is closely linked to the variety of cultural expectations

and it remains rather difficult to classify this offer within

a clear format segmentation as can be done in the US. The

most significant point is certainly the dominance of the

“Generalist” format. This has historically been the shape

of the European radio and has been broadly favoured by

the various Public Service stations. General interest, full

service, “conventional”, “talk and news”, the actual real-

ity certainly covers a range of concepts. But this form of

radio programming, mainly talk based and oriented

towards news and services, today represents the majority

of the European offer. It has not been hit by the develop-

ment of music orientated FM stations, as it has been able

to create new, more modern and dynamic forms. It is

worth noting that this format also seems to be on the

rise in the US.

Within the music offer, it should be noted that aside from

the “classic” music formats (such as European Hit Radio

- EHR - or Adult Contemporary - AC -), some countries still

have a significant share that is a specific national variety

offer, such as folk music and Italy’s Solo Musica Italiana, the

many German Schlager stations and Spain’s Radio Ole. Yet

further proof of European culture specificity in terms of

Radio.

Netherlands

UK

Hungary

Portugal

Ireland

Italy

S.Belgium

Romania

France

Denmark

Poland

Finland

Norway

Slovakia

N.Belgium

Czech Rep

Spain

Sweden

Luxembourg

Austria

8.5%

11.3%

27.0%

30.0%

37.0%

37.0%

40.0%

40.0%

40.1%

41.3%

43.5%

46.0%

46.0%

47.9%

49.0%

49.5%

49.7%

50.0%

76.5%

79.0%

AUDIENCE SHARES GENERAL INTEREST

Page 9: Radio Key Facts 2002

9Radio 2002

TalkGeneral interest RTL (France)

Talk & News Expres (Czech Rep.)

All News Radio 24 Il Sole 24 Ore (Italy)

Theme Culture NDR/ORB Radio3 (Germany)

Sport Talk Sport (UK)

Ethnic R.Beur (France)

Religious R.Maryja (Poland)

MusicClassic Radio 4 (Netherlands)

Jazz Jazz FM (UK)

Easy Listening NRK P4 (Norway)

Variety

Local music R.Ole (Spain)

Middle of the Road (MOR) R.Nora (Germany)

Oldies RTL Die Oldie Sender (Geramany)

Gold Spreeradio 105,5 (Germany)

Adult contemporary (AC)

Oldie base AC Antenne Wien (Austria)

Current base AC Berliner Runfunk (Germany)

Euro AC Radio Contact (Belgium)

Hot AC Capital FM (UK)

Contemporary/European Hit Radio (CHR/EHR)

Mainstream NRJ

Dance 8FM (Netherlands)

Rock Arrow Rock (Netherlands)

Alternative

Dance Galaxy (UK)

Urban HR XXL (Germany)

Techno/House Planet Radio (Germany)

Rap Sky Rock (France)

FORMATS EXAMPLES OF STATIONS

Page 10: Radio Key Facts 2002

Listening on the rise

Each time something happens in the world, each time

the news has a personal relevance, Radio is turned on. The

year 2001 was - unfortunately on certain occasions - rich

with spectacular headlines. No surprise then that radio

listening reached new peaks. Compared to 1999, listening

was up in most of our countries. There are, of course, sig-

nificant differences in the consumption of the media. For

instance, daily reach ranges from 56% in Spain to 87.2%

in Hungary. The average listening duration per listener

ranges from 182 minutes a day in Italy to 330 minutes in

the Northern part of Belgium. And of course one must be

careful when trying to compare data, as it does not nec-

essarily cover exactly the same things. Europe is still dis-

tinguished by a number of different audience measure-

ment methodologies. And this can sometime explain cer-

tain differences in listening scores.

Romania*

Spain

Portugal

Norway

Italy

Belgium S.

Czech Rep.

Luxembourg

Belgium N.

Poland

Sweden

Netherlands*

Slovakia

UK

Germany*

Finland

France

Denmark

Austria

Hungary

Ireland

Switzerland G*

46.4%60.2%

56.0%56.2%

57.5%58.5%

66.9%66.1%

67.8%67.7%

68.1%67.0%

70.6%75.3%

70.7%65.9%

76.8%67.0%

77.4%66.4%

77.5%80.4%

78.2%72.5%

80.0%80.9%

80.2%

81.8%84.3%

82.0%81.0%

83.6%83.3%

84.2%86.0%

84.8%82.8%

87.2%85.9%

88.0%88.0%

93.1%77.2%

2001

1999

DAILY REACH

* change in audience measurement

10 Radio 2002

Page 11: Radio Key Facts 2002

11Radio 2002

Switzerland G

Sweden*

Italy

Spain

France

Romania

Finland*

Norway*

UK*

Luxembourg

Germany

Denmark*

Netherlands

Austria

Czech Rep.

Hungary

Belgium S.

Poland

Belgium N.

131

163

182

185

191

191

200

201

205

212

218

225

229

251

252

302

313

325

330

LISTENING DURATION (in minutes)

M to F, * M to S

Page 12: Radio Key Facts 2002

An audience measurement patchwork

Many countries use the personal diary methodology. Most

of them can be found in the north of the Continent. The

latest one to finally adopt this technique is Belgium, with

the first audience results being published in October 2002.

Elsewhere, Day-after-recall remains the rule. But even

within this single methodology, there are differences that

need to be underlined. Telephone and face-to-face inter-

views are varying local choices. This is certainly not neu-

tral as the slight decrease in daily reach that may have

been observed in Germany, contrary to the global trend,

is undoubtedly explained by the fact that this country

has switched from face-to-face to telephone interviews.

The difference between being a mono or a cross-media sur-

vey (as is the case in Spain) is also important, as well as

the minimum recorded listening period (generally 1/4

hour in most countries but 1/2 hour in Spain). All those

differences clearly have an impact on the final result.

Another major difference within the various audience

measurement surveys in Europe is the age range.

Depending on the country, the interviewed population can

be from 9+ to 15+. Most of the time this reflects the his-

tory and the organisation of the local radio landscape.

Some countries have recently changed their universe. This

is the case for the Netherlands, which two years ago

changed from 13+ to 10+. And it is also the case for France

which is changing from 15+ to 13+.

Austria Telephone 24 000 10+ twice a year

Belgium Diary* 10 000 12+ twice a year

Czech Rep. Face-to-face 30 000 12-79 Quarterly

Denmark Diary 23 000 12+ Quarterly

Finland Diary 4 930 9+ Quarterly

France Telephone 75 250 13+* 2 months/Quarterly

Germany Telephone 54 888 14+ twice a year

Greece** Face -to -face 17 000 13-70 Quarterly

Hungary Diary 28 000 15+ Monthly

Ireland Face-to-face 5 000 15+ twice a year

Italy Telephone 72 000 11+ twice a year

Luxembourg Telephone 3 500 12+ Yearly

Netherlands Diary 15 000 10+ Monthly

Norway Telephone 52 728 9+ Weekly

Poland Telephone 111 788 15-75 Quarterly

Portugal Telephone 20 160 15+ Quarterly

Romania Face-to-face 2 000 nat. 15+ Weekly

Slovakia Face-to-face 2 140 14/79 3 times a year

Spain Face-to-face 71 174 14+ Quarterly

Switzerland Peoplemeter 22 843 15+ Daily

United Kingdom Diary 130 000 15+ Quarterly*As from September 2002** Several surveys

AUDIENCE MEASUREMENT SURVEYS

Methodology Sample Age limit Publication

12 Radio 2002

Page 13: Radio Key Facts 2002

13Radio 2002

A media that follows our way of life

Northern Europe is the heaviest listener

Traditionally, radio consumption has been stronger in

the North East of the Continent. A surprising parallel can

be drawn with daily newspaper readership. Countries in

Central Europe - the former-people’s democracies - still

have a tradition of heavy radio listening and Hungary

continues to lead with overall audiovisual media con-

sumption, since it is not only among the major TV radio

countries but was also one of the very first radio listen-

ing countries. History and culture have their own roles in

audience building, as well as weather condition. Being out-

door more often does not result in heavy radio listening.

Thus most of the Southern countries post under-average

listening scores. This is the case for Spain, Italy and Greece.

A more detailed analysis would show that even in these

countries, the Northern areas listen to radio more than

the Southern parts.

But the methodological patchwork that Europe repre-

sented is now getting even more complex with the arrival

of the Personal Peoplemeter. The Swiss are pioneering the

technology with their “Watch peoplemeter” which daily

records every sound the panel members are exposed to.

These are then compared to the recorded tracks of each

radio station. So Radio is entering into the passive audi-

ence measurement era. This is leading to fundamental

shift within the audience results, favouring the recording

of more numerous but shorter listening periods. Higher

daily reach, shorter average listening time. Switzerland is

the first country to have taken this route. But it is not the

only one working on this new kind of survey. In the US,

Arbitron is running tests in several markets with a “pager

PPM” and in Europe, many other countries are experi-

menting with various techniques. All these new develop-

ments are obviously being closely watched by the adver-

tising community, as their implementation would have

a major impact on media planning and buying. But from

a small market such as Switzerland to the other bigger

markets on the Continent, there will be a long route and

we will undoubtedly have to come back to this issue in

the coming years.

But even if comparing audience results from different

countries can be hazardous, it does not change the fact

that radio listening remains closely linked to local ways

of life.

Page 14: Radio Key Facts 2002

Listening curves ref lect ways of life

History, culture and weather, radio consumption are also

closely linked to everyday life. In our last issue we empha-

sised the close link between the daily listening curve and

the local organisation of the working day, whether lunch

is taken at home or not, the commuting time and all the

other practical aspects that impact on our day-to-day

timetable. We then identified five different shapes for

the daily listening curves. These are still applicable. Nordic

countries still have a regular audience curve between 7:00

and 17:00 (Type 3). Latin countries show two audience

peaks and audience falls at lunchtime and early evening

(Type 4), unlike Luxembourg and Hungary which show

strong “lunchtime peaks” (Type 5). The classic shape is still

with a strong morning peak, dropping gradually until

the early evening, with the more or less pronounced morn-

ing peak that differentiates type 1 from type 2.

What is striking is how these listening curves comple-

ment the TV viewing curves. These two media have per-

fectly opposite modes of consumption. TV viewing takes

place when people are relaxed and comfortably settled at

home.

M to F

TYPE I - UK

Radio TV

0%

10%

20%

30%

40%

50%

23 h21 h19 h17 h15 h13 h11 h9 h7 h5 h

M to F

TYPE II (N. BELGIUM)

0%

5%

10%

15%

20%

25%

30%

35%

40%

21 h19 h17 h15 h13 h11 h9 h7 h5 h

14 Radio 2002

Page 15: Radio Key Facts 2002

15Radio 2002

M to F

TYPE III (SWEDEN)

Radio TV

0%

10%

20%

30%

40%

50%

23 h21 h19 h17 h15 h13 h11 h9 h7 h5 h

M to F

TYPE IV (FRANCE)

Radio TV

0%

10%

20%

30%

40%

50%

23 h21 h19 h17 h15 h13 h11 h9 h7 h5 h

5M to F

TYPE V (HUNGARY)

0%

10%

20%

30%

40%

50%

23 h21 h19 h17 h15 h13 h11 h9 h7 h5 h

Page 16: Radio Key Facts 2002

The media for people on the move

Radio listening accompanies every single active moment

of the life, from the bathroom to the kitchen, from the

car to the working place. Radio is mainly listened to by

active people. No surprise then than its reach is higher

among the working population, generally between 20 and

55. No surprise either that, as listening is higher during

the working hours of the day, it is also higher on work-

ing days during the week than at the weekend, a more

relaxed period of time when TV is preferred.

More and more out of home listening

Following listeners at every moment of their active lives

has always been a typical advantage of radio. It is inter-

esting to note that this fact has become even more evident

in recent years. The share of out of home listening has been

on the increase since 1999, and in the large majority of

the countries surveyed. Several explanations for this are

possible. First, people are increasingly active and spend

less time at home on weekdays. This is mainly the case

for women, who are ever more likely to have active out-

side lives. Secondly, people spend longer periods of time

commuting. There is a direct link between radio listening

and the time spent driving. It is also interesting to observe

that outside listening is less developed in the smaller

countries, like Belgium, where most commuting times

are shorter. It is also worth noting that outside radio lis-

tening increases as in-car equipment improves. Poland

has been a spectacular example of this.

Thirdly, new technological developments lead to new

opportunities for consumption. It is the case with the

Internet, which is clearly a factor in favour of radio lis-

tening in the office. And this trend will undoubtedly

increase in the coming years.

Finland

Netherlands

Germany

France

Poland

Spain

Hungary

UK

Austria

Romania

Czech Rep.

Belgium N.

Belgium S.

22.5 12.7 46.2 18.6

51.2 13.9 28.1 6.8

55.0 14.2 27.1 3.7

55.7 22.8 17.0 4.5

60.7 9.6 24.0 5.6

67.1 14.8 7.7 10.4

68.3 6.7 22.1 2.9

69.4 15.8 13.3 1.5

69.5 9.4 17.0 4.1

75.2 6.0 17.3 1.5

76.0 5.0 17.0 2.0

85.8 5.1 8.6 0.5

86.9 3.8 8.8 0.5

LISTENING PLACES

LISTENING PLACES - FRANCE - 2001

HOME 55.7%CAR 22.8%

WORKING PLACE 17.0% OTHERS 4.5%

LISTENING PLACES - FRANCE - 1999

HOME 62.3%CAR 18.5%

WORKING PLACE 13.3% OTHERS 5.4%

Home Car Work Other

16 Radio 2002

Page 17: Radio Key Facts 2002

17Radio 2002

LISTENING PLACES - GERMANY - 2001

HOME 55.0%

CAR 14.2%

WORKING PLACE 27.1% OTHERS 3.7%

LISTENING PLACES - GERMANY - 1999

HOME 62.3%CAR 12.9%

WORKING PLACE 15.6% OTHERS 3.2%

LISTENING PLACES - NETHERLANDS - 2001

HOME 51.2%

CAR 13.9%

WORKING PLACE 28.1%

OTHERS 6.8%

LISTENING PLACES - NETHERLANDS - 1999

HOME 58.1%

CAR 11.6%

WORKING PLACE 22.8%

OTHERS 7.3%

LISTENING PLACES - POLAND - 2001

HOME 60.7%

CAR 9.6%

WORKING PLACE 24.0%

OTHERS 5.6%

LISTENING PLACES - POLAND - 1999

HOME 73.1%CAR 3.9%

WORKING PLACE 21.3%

OTHERS 1.7%

Page 18: Radio Key Facts 2002

The new technologies

The Internet

The new technologies have not pushed Radio out of the

game.

Listening to the radio through your computer is becom-

ing increasingly widespread. In 2001, according to the

Measurecast measurement institute, the time spent lis-

tening to streamed radio quadruped. The most listened to

station is the London-based Virgin Radio, competing with

the US Clear Channel station network. It seems that for the

time being the core target for Internet radio is the 15-24

age group which accounts for 29% of total listening time,

with a clear majority of male listeners (70%). Internet

radio listening remains mainly dominated by working

hours since 80% of total listening occurs during this period

of time. Top streaming countries are the US, UK, Canada,

Japan, France and Mexico. Although the change in the

law concerning broadcasting royalties in the US has put

some kind of a brake on the expansion in the number of

Internet radio stations, the phenomenon is on a rising

trend even if the listening volume is still rather marginal.

One of its possible consequences would be to free some

stations from their regional limitations and increase lis-

tening time during working hours.

Cable and TV platforms

But the Internet is not the only technical development that

radio is facing. Other broadcasting means have been used

in those countries where regulations limited the num-

ber of stations potentially available to the population. For

instance, cable has played an important role in commer-

cial radio development in Germany and the Netherlands.

TV digital packages also offer a wide choice of radio sta-

tions with an excellent reception quality. But these recep-

tion modes are limited as they are bound up with TV set

in-home usage, which - as we noted - does not comply with

the global trend in radio listening.

18 Radio 2002

Page 19: Radio Key Facts 2002

19Radio 2002

The DAB

But, without any doubt, the major element in terms of

radio broadcasting development is Digital Audio

Broadcasting (DAB).

DAB allows a better quality of reception, rivalling a CD,

without any interference, ensuring an uninterrupted sig-

nal whilst driving. Digital broadcasting also makes it pos-

sible to provide different kinds of information on a sin-

gle frequency, whether sound or data. It may widen the

offer of programmes delivered to the listener while reduc-

ing broadcasting costs for operators. As DAB can be deliv-

ered either by terrestrial or satellite services, it can deliver

programmes at a regional, national or international level.

A number of European countries are leading in DAB devel-

opment. It is generally reliant on a strong governmental

commitment. It is thus not surprising to find among these

countries most of the Nordic countries in which public

service radio is dominant. It has also been one of the

major projects in those countries where the programme

offer has so far been restricted by a strict legal frame-

work. The UK is one of these, with DAB giving broadcast-

ing groups an opportunity to develop their programme

offer. Most of the radio stations specifically created for DAB

are thematic. The latest project in the UK is a joint ven-

ture between Capital and Disney to launch a targeted chil-

dren’s station: Radio Disney.

But whilst terrestrial technical coverage is increasing in

Europe, very few European listeners can so far receive

DAB. Although there are over 30 different kinds of DAB

receivers available to the consumer, these are still expen-

sive and very few private households have so far bought

them. The receivers are in fact still more expensive than

traditional radio sets. And although the industry in Britain

launched a receiver under £100 last summer in order to

promote the new reception technology, it is estimated

that there are currently no more that 70,000 equipped lis-

teners in the UK. In another attempt to promote DAB in

the Nordic countries, the priority has been changed from

technical coverage to the enhancement of the programme

offer.

So, in spite of the strong potential of this new broad-

casting technique, it would seem that it will take many

years before it becomes a widely accepted means of radio

reception. Unlike television however, it already seems

that in many countries the offer is actually there and

responds well to listener expectations. This is clearly not

a factor in favour of additional personal expenditure in

order to receive any more programmes. So it is expected

that this issue will remain in the news for some time to

come.

All of these ongoing developments do prove, as if this was

necessary, that Radio is a dynamic media, applying new

technologies and still in touch with changes in our

lifestyles.

Austria 19%

Belgium 98%

Czech Republic 12%

Denmark 75%

Finalnd 40%

France 25%

Germany 70%

Hungary 30%

Italy 30%

Netherlands 40%

Norway 50%

Poland 8%

Portugal 70%

Spain 50%

Sweden 35%

Switzerland 58%

UK 80%Source: The World DAB Forum, October 2002

DAB TECHNICAL COVERAGE IN EUROPECountry Population

Page 20: Radio Key Facts 2002

The hot advertising media

This is one of the many reasons why European advertis-

ers, as well as their US counterparts, have trusted radio

as a powerful communication media for many years and

continue to increase the share of this media in their adver-

tising plans.

Local and National, the search for the right balance

The radio advertising market in fact operates at two lev-

els. It is both regional and national. And the scale of adver-

tising revenues is closely linked to the right balance

between those two markets. If in the US the local market

is dominant, representing almost 80% of the total, its

share in Europe averages only 1/3. Radio efficiency is

widely recognised by local traders and service providers.

But the global weight of the local markets in the Old

Continent is not comparable to America’s. European local

budgets are far more volatile and to generate long-term

advertisers it is necessary to ensure the development of

the national market. This has clearly been a handicap in

those countries where the radio landscape has been built

on a regional base. That was the case in the UK. The com-

mercial dynamism of sales houses originating from strong

and professional communication groups has provided an

answer to this challenge. National packages, syndication

and bartering have been able to draw in national adver-

tisers. On a regularly rising trend over a number of years

now, the advertising market share of radio has risen above

the 5% level. It was a similar case in Germany. There, radio

advertising was not only suffering from regional frag-

mentation but also from a multitude of owners with radio

stations mostly being owned by the local daily papers. A

consolidation into two major national sales houses has

allowed the development of targeted national packages

which have eased radio buying for national advertisers.

Today radio scores a 4.5% advertising market share and

certainly has a strong potential for growth in the coun-

try.

USA

Denmark

Romania

Sweden

Finland

Norway

Greece

Italy

Germany

Hungary

UK

Poland

Czech Rep

Portugal

France

Ireland

Netherlands

Austria

Spain

Slovakia

Belgium*

Luxembourg

13.2%

1.1%

2.9%

3.2%

3.8%

3.8%

4.0%

4.3%

4.4%

4.9%

5.5%

6.3%

7.0%

7.2%

7.5%

8.0%

8.2%

8.6%

9.2%

10.3%

10.6%

16.3%

RADIO ADVERTISING MARKET SHARES

20 Radio 2002

Page 21: Radio Key Facts 2002

21Radio 2002

A specific part within communication plans

National advertisers trust Radio as a fast acting media.

Thanks to its very special relationship with its listeners,

it has an incomparable power to push them to action such

as traffic building for retail or telephone calls for direct

marketing operations. This hot and effective media was

quickly recognised by the telecom and Internet related

budgets, as well as the financial services, in the boom at

the beginning of 2000. The media was thus one of those

that benefited strongly from the growth of the New

Economy. As a consequence it was also one of the first to

suffer when the dot.com bubble burst. Along with the

advertising market as a whole, radio was hit by the crisis

in 2001 and 2002. It then had to fall back on its tradi-

tional advertisers like the automotive industry and food

and specialised retail stores. But these tend to be rather

conservative with their budgets. Nevertheless, as radio

remains in close proximity to reality, it is also one of the

very first media to recover when the economic situation

improves and when consumer purchasing recovers. The

trend for radio should thus be positive over the coming

months especially during a period when most advertisers

are convinced of the benefits of the media complemen-

tarity. Not only has radio proved to be efficient as a hot

and fast acting media, it is also the ideal complement for

television because, as we noted, the consumption of the

two media covers two very specific moments in consumer

life.

An old, traditional and friendly media, radio has also con-

tinued to evolve, adapting to the new technologies, new

life styles, new listener expectations. It could well have dis-

appeared with the arrival of television, but this was not

the case. It has on the contrary managed to talk to us at

other moments of the day, following us throughout our

active lives in order to remain in non-stop contact with

us. And it is continuing along this route.

For our greater pleasure. For the maximum satisfaction

of the advertising community.

Page 22: Radio Key Facts 2002

22 Radio 2002