Submit newsAdvertise & rates  17°C Johannesburg Contact us
Press offices
Radio news

Internet radio: It's all in the numbers

4 Jun 2012 09:518 comments2 BizLikes
One of the most consistent questions we get working in internet radio is where we get our numbers? Predominantly the question comes from those working in commercial radio and people interested in how we operate and create revenue flow.
The irony of course is that were we just a straight website operating in the online environment, people wouldn't ask the question. In the online world of websites, we have established a measurement for traffic, assigned a value to it over the last ten years that is accepted and traded upon. To get to an audience size via a website we count the number of hits to the site on the server and then work out unique hits against overall site hits and derive an audience figure and reach from there.

In the online world it is that simple; it is ones and zeros.

In terrestrial radio, audience is worked out on a quarterly basis, and while it is based on some very sound statistics and analysis it is at the end of the day worked out on a qualitative basis rather than quantitative. Such is the nature of the way information is collected via diaries it is prone to data errors and of course the subjectivity of those being interviewed for information.

Very simply what are known as "diaries" are put into general population with statistic gatherers knocking on doors and asking you what radio station you listen to, how often you listen, when you listen etc. Added to this are age, race and the important statistical information required to build a decent picture of who listens to radio and how they go about doing it. It is akin in many respects to a Census count for radio listeners.

A complicated process

The number of diaries that come back are then extrapolated according to the population district they come from and a figure for each station, age and population group worked out.

I am over simplifying this I am sure. The actual statistical breakdown is very complicated and in-depth process but the fact remains it is prone to statistical errors and subjectivity.

While it's not an exact science it is an industry benchmark; everyone sings from the same hymn sheet and growth and decline can both be measured against the competition.

I should add that after 15 years in broadcasting I have yet to have anyone knock on my door, stop me in a shopping mall or the street to questions my radio listening habits. I can categorically state, I do not know nor have heard of anyone who has ever been through this process. Obviously it is happening but as yet I haven't come across someone who has been through the process.

So where does the irony come in?

Measuring the audience is quite exact

While Internet radio is still finding its feet in many respects in South Africa, it is still online. We deal in binary code as much as the next online entity. Just as you measure a website's hits on a server, so you measure an audience for online radio.

IP addresses allow us to measure how many are listening, for how long, from where and when. It's not extrapolated data, its not based on qualitative research; it's very much in black and white which, just like online entities in the digital era, means that measuring an audience is quite exact.

Combined with online questionnaires aimed specifically at our audience we can further break down our knowledge base into LSMs, race, spending power and beyond.

One of the strongest USP's for an online station is the ability to know their audience quite intimately. Combined with knowledge down to exactly what device there are tuning in on, it's a powerful tool for any media planner or client wanting to pinpoint an exact audience fit for their brand or product effectively.

In the last two years we have found a growing interest in spending online on radio and a growing base of clients who are seeing the results.

An increasingly appealing option

At the start there was a lot of passing the buck with agencies. Digital would hand us over to the guys that dealt with radio, and the radio guys would immediately hand us off to the digital desk; whilst we were unknown quantity, we were defiantly online so not within in their gambit.

Much of that education process is now coming to the fore and the understanding that online radio offers a real audience based on real numbers is starting to become a very appealing opportunity to both agencies and direct clients alike.

The benefit of knowing exactly whom you are talking to has obvious and far-reaching advantages. While quoting large listenership figures may sound impressive to clients, if you are a blue chip company or are selling a product that 80% of the population could not hope to afford then are you not wasting your cash? Would you not rather focus on those who can afford to interact with your message and do so with results?

An online audience in SA is a prequalified audience from the get-go. To be web enabled in South Africa immediately puts you in the upper echelon of our society and therefore removes the lesser 80% of the population that may hear your message but are unable to act on it.

*2oceansvibe radio gets its audience statistics from an independent company (www.netdynamix.co.za) and does not compile its own audience figures.
 
More options

About the author

Richard Hardiman: After 15 years in with one foot in the world of the internet gambling industry and the other in the world of commercial radio, Hardiman attempted to make his life uncomfortable. Betting on online radio as a new content platform in SA, he got behind 2OV.fm, partnering with the author of "the vibe", Seth Rotherham founder award-winning blog-turn-news site, 2OceansVibe.com In two years the station has established itself as a leading digital brand in its field and now boasts studios in Cape Town and Johannesburg and an average listenership of 35 000 an hour and growing.
Grant Jansen
Nice one! Glad you've shed light on the the highly scientific process of the diaries, are those that spend ad budgets naive, ignorant or simply afraid to spend in the 'unknown' digital realm - which can provide far more feedback, than traditional spaces. Posted on 4 Jun 2012 10:25
Bob Lewis
Have you told the people how much radio digital streaming costs in SA -- totally unaffordable except for employees using their company's pipe. Posted on 4 Jun 2012 16:14
Anthony Duke
Well said Richard. SAARF needs to shake some cobwebs and do substantially more dissections of terrestrial listeners and Internet users, where they live and their loyalty. Posted on 4 Jun 2012 16:33
Richard Hardiman
Hi Bob,
Its a good point and one often presented to us. The truth is that the bit-rate we stream at means that if you listened to 2ov.fm for 24 hours over a period of a full month (30 days) the total usage would amount to roughly 1.2 gigs.

Given that most people have 5 gig plus (including uncapped) accounts we feel there is not a significant amount of damage to your bottom line.

We also offer a different value proposition to commercial stations that our audience feels very often negates "cost".

We are also very much of the belief that data will only get faster and cheaper and if we are at the worst point of cost right now, the future looks pretty good.

Richard Posted on 4 Jun 2012 17:57
Richard Hardiman
Hi Bob - correction! 12 gigs....I got a little happy with my "."!

But given that most people have a 5 gig plus plan and dont listen for anywhere near 30 day non-stop the impact is minimal.

R Posted on 4 Jun 2012 18:24
Martin Sims
Richard, I once carried a diary in primary school so it does happen. I suspect SAARF don’t publicise diary holders to avoid them suddenly winning an unlikely number of radio competitions.

I do agree that RAMS does not do the best job of the numbers. The poor reporting on small footprint stations shows this up. It’s a good confidence check for the big players but it doesn’t tell the whole story. However diaries are held by real people who can be interviewed and evaluated. That process details the measured audience’s demographics and psychographics well.

In comparison as you say web stats nail the number of listeners, and the duration of listening with painful accuracy, user location slightly less so. But to an extent that is where the information ends. The tech info, browser, OS, etc are not easy selling points.

But unlike RAMS the further demographic and psychographic info can not be drawn from the listening info. That information will have to be surveyed in another way and how to you prove that it’s the listeners that are filling in that survey? This is besides the fact that an unscrupulous online station could manipulate listener numbers. Because while you can measure a user taking stream but you can’t easily prove there is a warm body at the receiving end of it.

That said, I’m all for your and more generally online radio’s success but I suspect the real value is going to found beyond conventional stats and have more to do with the loyalty and audience intimacy that super-niched services can achieve. Posted on 4 Jun 2012 22:05
Kobus Rudolph
Hi Richard.... We - Radio Rippel 90.5 fm in Pretoria - have over 17 years asked our listeners if there is just one of them who ever has been approached about their radio listening habits. We haven't found one in seventeen years. SAARF's research is not designed for the smaller stations and it doesn't really benefit them. Posted on 5 Jun 2012 11:23
Athar Naser
Having recently come to Cape Town from the UK radio & digital media market, and having been involved in many traditional - new media transitions with the biggest radio operators in the country (Classic FM - 7m listeners for one brand of many), I can safely say that you're certainly headed in the right direction.

Radio penetration in most markets remains exceptionally high in traditional channels, but having a strong online presence helps to future proof your cash cows, as the (inevitable) change in consumer habits shifting to new media channels takes shape. Naturally, this shift is aided by marketeers wanting more ROI and a new, more relevant measuring methodology, away from the (outdated in today's world?) radio listening diary.

Radio listening online however, in my opinion, will really take off when the big telecoms service providers in South Africa move to create new, affordable uncapped (or high cap) consumer packages. What I've experienced in the last 8 months living in the beautiful Western Cape countryside, is that a 5 gig cap is not par for the course when you leave the major cities - and neither are broadband connections big enough to support a live stream whilst also browsing.

Then there are the many listening habits - for most people, listening to radio online may take place in the office, hence missing the key radio breakfast slots, usually dominated by in-car listening or mums getting kids ready for schools...will this dictate a shift in radio scheduling trends perhaps?

An omission from the text so far, and a potential key to online radio listening then, for the near future, is on handheld devices. I've been amazed at the ubiquity of Blackberry, Android and iPhone handsets, and these then offer a golden opportunity to whoever capitalises on this growing channel.

If the UK trend is anything to go by, then the 'radio revolution' in SA is just beginning, and worth getting excited about! Posted on 5 Jun 2012 12:57
LEGAL DISCLAIMER: This Message Board accepts no liability of legal consequences that arise from the Message Boards (e.g. defamation, slander, or other such crimes). All posted messages are the sole property of their respective authors. The maintainer does retain the right to remove any message posts for whatever reasons. People that post messages to this forum are not to libel/slander nor in any other way depict a company, entity, individual(s), or service in a false light; should they do so, the legal consequences are theirs alone. Bizcommunity.com will disclose authors' IP addresses to authorities if compelled to do so by a court of law.

Subscribe to industry newsletters

Bizcommunity has over 400 industry contributors and we always welcome further contributions and contributors.

Subscribe

Receive free email newsletter

Make us your homepageAdd us to your favoritesRSS feedGet biz on your phoneFollow us

Invite

Tell a friend about us