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

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

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%
Camera
FMRadio
Internetbrowser
Musicplayer
Gamesonphone
Facebook
MMS
Diary/organiser
E-mail
WhatsApp
Apps
Mxit
Gamesdownloaded
BlackberryMessenger
Twitter
GPS
GoogleTalk
Mapping,noGPS
2Go
Word/Excel/PPT
Skype
MobileTV
Pinterest
Zing
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.

Reach of radio,
engagement of web
Jozi Speaker #RW13

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

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.

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

Radio & The Internet | best of bedfellows

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