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Predictions2020: The Year Ahead for Radio

By Marwan Al-Hashimi, founder and owner of Empire Group media agency

At the start of the last decade, radio was in its prime. It was people’s number one source of entertainment and news. Whether it was what they were listening to in the car on the way to work, in  the office or supermarket or, of course, on the drive home, radio was a constant. However, with the  rise of digital entertainment, cars now all come as standard with Bluetooth and auxiliary connectivity, and more and more people are embracing podcasts, internet and music apps. Does this mean radio  faces an inevitable decline?

Counterintuitively, there still appears to be a huge audience around the globe that relies on FM radio. In the US alone, 272 million people still listen to radio (from a total population of 330 million). Even in  this internet age, radio still rules the world. And, that’s because it was traditionally always a source of local information. It has been passive and catchy – its biggest differentiator from other media. And  today that still holds true.

When Apple Radio arrived, many said that this meant the end for radio. But clearly it didn’t, and that’s  because people want radio in their content mix. They want to hear their local content, information and news.

The problem, I believe, is that the word ‘radio’ is somewhat misleading. What radio is, in its purest  form, is audible content. So FM transmitting, DAB, internet, satellite and podcasts are all in the audio business. And from what research tells us, people clearly like variety in their audio mix. That being said, it would be foolish for radio not to change with the times, and the rise of the podcast should not be ignored.

A recent survey conducted by Censuswide stated that 19 per cent of the adult UAE population is tuning in a least weekly to podcasts. In listenership figures, the UAE is on par with the UK and close behind the US, which is currently the world’s premier podcast market. 93 per cent of people who listen to a podcast finish it, which means that there is a huge potential for brands to tell their stories to a captive audience.

With the average daily smartphone usage in the UAE at 6.5 hours, podcast consumption has been able to slide seamlessly into the digital era and reach many new adopters. UAE podcast The Dukkan Show attracts a monthly listenership of up to 20,000, while other podcasts such as The Two Vegans, When Women Win and Gulf News: Dirhams & Dollars are increasing in popularity. Podcasts and internet radio are just other ways of consuming content and there’s no reason a radio station couldn’t offer all of that. A great example of this is Dubai Eye 103.8, which now also offers internet radio as well as podcasts. It’s not alienating its longtime listeners, but it is embracing the new age. This approach is delighting its existing audience and attracting new, younger listeners too.

At the end of the day, radio or any other medium will always have a role. People will continue to listen to content just as they will continue to view content. As the media industry, it is our job to keep up with how they prefer to do so.

The radio reality is that in this current climate, some radio networks continue to grow while,  unfortunately, others struggle to keep up with change and technology and are not creating engaging content with quality coverage. This, of course, is affecting the make-up of the radio landscape. Radio stations have shut down and I foresee more stations closing their doors if they don’t embrace change. That being said, good quality stations will continue to sustain and grow because their listeners are still engaged. Unlike print, they aren’t going anywhere.

In my view, radio is essential for all media plans because it’s cost-effective, has a high reach and delivers impact. In difficult markets, it fl exes its cost-effective side. In a strong market, its compelling delivery cuts through the clutter to deliver reach and memorability.

Of course, advertisers need to focus on the right stations for their audience and the products or services they’re promoting. Agencies and clients often choose stations based on personal preference or price point – it’s an easy trap to fall in to. Neither of these ensures you are going to reach your  target audience. And if you don’t, does price or personal preference really matter?

Although a lack of innovation may see some stations closing, I still foresee the radio industry growing in 2020, even if slowly in this challenging economic climate. In comparison, print and TV will both continue to decline. Because of its cost effectiveness, I foresee an even bigger appetite for spend on radio in the coming year. With the loss of some stations, agile stations have an opportunity to enjoy a bigger piece of the radio pie.

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