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THE MADIA JUNE 2018

RADIO The major winers and losers in terms of ad revenue sugests that SABC, in particular, has suffered… worying signs for the SABC remain, as they apear to be struggling to recover from their 80:20 content policy… audience losses and increasing rates have compounded the corporation’s problems… But Karl Gostner, group head of strategy at Primedia Broadcasting, admits that the reality is “not as rosy” as the data suggests, while Cobie van Jaarsveld, general manager, business intelligence at SABC Commercial Enterprises concurs, calling 2017 “a very challenging year for the SABC”. United Stations managing director, Rivak Bunce, describes the advertising environment, in the last 24 months, as “brutal”. His counterpart at Mediamark, Werner Lindemann, suggests that a 1.4% revenue growth in overall radio in 2017 is more realistic, but is quick to point out that the Mediamark brands grew at approximately 9%. From this comment, it can be inferred that some stations experienced significant declines. The Nielsen data supports this, showing wide variations in stations’ spot revenue. This top-line view of the major winners and losers in terms of ad revenue, suggests that SABC, in particular, has suffered. Ilan Lazarus, managing partner at PHD, comments that “worrying signs for the SABC remain, as they appear to be struggling to recover from their 80:20 content policy”. He adds that audience losses and increasing rates have compounded the corporation’s problems, resulting in some unsettling inventory statistics: February 2018 AFStereo monitoring data indicates that “many of the SABC stations are selling less than 20% of their available airtime inventory!” Ad investment winners and losers, year ending 2018 947 Jacaranda FM KFM 702 Power FM Heart FM Kaya FM Phalaphala FM Smile FM Motsweding FM 5FM Thobela FM Capricorn FM RSG -30.0% -10.0% 10.0% 30.0% 30.0% 50.0% 70.0% 90.0% 110.0% 130.0% 150.0% % Source: Nielsen Ad Dynamix P 8 The Media | wagthedog.co.za


THE MADIA JUNE 2018
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