*CYBERTORIAL: The analysis of research and examination of changes in SABC Radio audiences over a 10 year period revealed that there was significant growth in the audience profile, in terms of reach, listenership figures, and of the audience demographic. SABC’s total radio audience is now 24.3 million daily listeners (AMPS2014BA).
The SABC has been reviewing how it can optimise its radio advertising offering and has thus initiated a broad process of internal change and improvement that will facilitate more effective media planning across its portfolio of 18 stations, and multitude of platforms.
From a media perspective, it understands the sheer magnitude and challenges in planning across 100+ radio stations in South Africa. SABC has segmented its radio portfolio based on the common psychographic thread and grouping.
The African Language Services (ALS) Stations portfolio has 11 stations in the bouquet (uKhoziFM, Lesedi FM, uMhlobo Wenene FM, Thobela FM, iKwekwezi FM, Phalaphala FM, Ligwalagwala FM, Munghana-Lonene FM, TruFM, XK-FM and Motsweding FM) serves the highly aspirational, connected, rooted, relevant , and evolving dominant market.
Fortune4 (2000FM, Lotus FM, SAFM, and Radio Sonder Grense – RSG), speaks to the matured, rooted, legacy driven, and settled B2B audience.
The MG5 portfolio (MetroFM, GoodHope FM, and 5FM) mainly speaks to the youthful market.
SABC Radio has endeavoured to collate world-class research insights about each station and group of stations, drawing on the All Media Product Survey (AMPS), Target Group Index (TGI) through Ask Afrika, and the UCT Unilever report, which will be made easily accessible to clients.
“The SABC has made a concerted effort to improve its radio product. We invested in improving the quality of sound, secured long term contracts for on-air talent, and invested in audience research that assisted us in keeping up with changed consumer patterns. Our investment in providing quality research programming that resonates with the audience has also contributed to our growing audience base,” says Zolisile Mapipa, general manager of SABC Public Broadcasting Service Radio.
“SABC Radio has registered significant audience growth in recent years with almost two million new listeners over the past two years. SABC Radio has entrenched the loyalty of its listeners in unprecedented numbers in terms of time spent listening to our stations and in terms of listeners who exclusively tune in to our channels,” says Eugene Zwane General Manager of SABC Radio advertising sales.
Audiences have evolved in terms of their spending power and lifestyle. This is reflected in the Lifestyle Standards Measures (LSMs) in AMPS and in lifestyle statements through TGI.
In the past 10 years, the adult population grew by about 23%. The growth comes from the mass market or LSM 5-8. There are now 22.9 million adults in LSM 5-8 compared to 12.4 million in 2004. When considering the total SABC Radio audience in 2004 and ten years later in 2014, LSM 1-4 has decreased by 40%, LSM 5-8 has increased by 93% to 15.2million, and LSM 9-10 has more than doubled (by 103%) to 3.2million adults.
The SABC Radio audience as measured in 2014 was 24 % LSM 1-4 (51% in 2004), 63% LSM 5-8 (41% in 2004), and 13% LSM 9-10 (8% in 2004). In the last ten years, the proportions have shifted radically. LSM 1-4 proportions decreased by 32% points for ALS, by 5% points for Fortune4, and by 20% points for MG5. Proportions of listeners in LSM 5-8 have grown by 29% points for ALS, 5% points for Fortune 4 and by 9% points for MG5. At the top end, listener proportions in LSM 9-10 have increased by 4% points for ALS and 11% points for MG5, they have remained stable at 38/39% of all listeners for Fortune4.
This growth in the middle market, LSM 5-8, which are 67% of all SABC listeners, shows that the SABC Radio audience has real spending power, 6.5 million listeners or 27% earn more than R11 000 per month (House Hold Income – HHI) whereas ten years ago only 1.3m of them were in this income group. Another 18% of listeners earn R5000 to R8 000/m HHI.
The middle market are young, 52% are under 34 years old, and they want to be educated, they are hopeful, aspirational, mobile, social and engaging (25% are 15-24 years old and 27% are 25-34 years old).
The middle market is more interested in financial services 70% are ‘banked’ versus 55% ten years ago. Almost this entire group, 99% has electricity at home. Ten years ago they did mostly monthly bulk food and grocery shopping, that is still true today but their frequency of shopping increased significantly. Fifteen million of the middle market listened to ALS yesterday, that’s 65% of all LSM 5-8’s. The advertising revenue value per listener for ALS is on average R48 compared to the R500+ of commercial stations.
“Our combined ALS stations continue to attract sizable audience. From a pricing perspective ALS remains the most undervalued of our portfolio of stations. Redressing the undervaluing of this portfolio remains our key focus. Significant audience research, technology and other investment is regularly ploughed into this portfolio in order to remain the market’s dominant player. As highlighted, the audience behind this portfolio continues to evolve, are connected, technologically savvy and commercially active yet the market price lags behind,” says Siphelele Sixaso, head of SABC Radio marketing.
SABC Radio rates tracks well-below All Radio market rates including Independent ‘Black Format Radio stations’. All Radio inflation grew by 19% CAGR since 2010 with ‘CIW’ CAGR at 16%, ‘Independent Black Format Radio’ CAGR at 11% whereas SABC Radio CAGR at average of 4.7% (MG5 at 6%, Fortune 4 at 3% and ALS at 5%).
“As demonstrated, the SABC Radio audience profile (i.e. demographic, psychographic, economic value, spending power) has significantly evolved over the last ten years and historical pricing has not factored the evolved consumer, in addition, SABC Radio inflation rates have been lower than competitors. In turn, the SABC has resolved to price its audience in line with fair market price in relation to its audience profile,” says Wanele Mngomezulu, general manager of Business Intelligence at SABC.
IMAGE: Eugene Zwane
*Cybertorial is paid-for content.