HOW RADIO BUSINESSES CAN MONETISE THE DIGITAL AUDIO BOOM BAUER - - PowerPoint PPT Presentation

HOW RADIO BUSINESSES CAN MONETISE THE DIGITAL AUDIO BOOM BAUER MEDIA SWEDEN STAFFAN ROSELL, CEO

BAUER MEDIA GROUP


200

MILLION PEOPLE
 READ US, LISTEN TO US AND USE OUR SERVICES.
 WORLDWIDE.

11.000

EMPLOYEES
 WORLDWIDE


140 


YEARS
 OF FAMILY TRADITION

2.2 


• BLN. EUROS


ANNUAL REVENUE
 PRESENT IN

15


COUNTRIES A THIRD OF SALES IN GERMANY

NEW BUSINESS OCP AUDIO PUBLISHING

BAUER MEDIA SWEDEN


OUR REACH

MILLION WEEKLY
 REACH

THAT’S 60%

OF THE
 POPULATION

>5

Source: Kantar SIFO/ PPM (Universe 8 155 300 people between the age 12-79 years old). Average weekly cover YTD 2019

7 FM RADIO BRANDS 10+ ONLINE RADIO STATIONS 25+ PODCASTS

BAUER MEDIA SWEDEN DIGITAL


• Digital audio consumption is growing rapidly in Sweden: +10% annually.
• Digital radio is part of that growth but that product is not strong enough against the

digital competition. Streaming of linear radio is not increasing. Music streaming and podcasts is the main challenger to radio.

• Music streaming has too high costs due to royalties.
• “Web only” stations do not get substantial reach.
• Podcasts is the fastest growing audio medium: +20% annually in the Nordics.
• The combination of podcasts and ip radio offer additional reach to advertisers on

traditional radio.

• Podcast listening has its strongest audience amongst 25-34 year olds.

Helps to future-proof our audio business as we attract new audiences using digital platforms.

Source: Kantar SIFO

WHY PODCASTS?

SWEDISH PODCAST GROWTH AGE GROUPS


16-19 år 20-29 år 30-39 år 40-49 år 50-79 år

7% 16% 24% 28% 23% 12% 27% 37% 42% 34%

2018 2015 Series3

Source: Kantar SIFO, weekly reach

BAUER MEDIA SWEDEN PODCAST BUSINESS TODAY


+ 150% weekly digital reach from podcasting 20-30% market share of commercial podcast listening in Sweden today 60% of our digital audio reach today can’t be reached by traditional commercial radio

TIMELINE

BAUER MEDIA SWEDEN DIGITAL TIMELINE 


2012 2013 2014

Launch of RadioPlay – initially a platform for streaming all our radio stations and on demand radio content Launch of our first podcasts on RadioPlay platform Launch of server side advertising

• n podcasts.

Launch of server side advertising

• n ip radio.

2017

Launch of cross platform ad sale

• ffering - bundling

radio, ip radio and podcast sales together

2018

Podcast reach exceeded ip radio reach More focus on the rapidly growing podcast business Launch of the Swedish podcast measurement standard together with public service and Acast

DIGITAL PLATFORM & CONTENT PARTNERS

PLATFORM PARTNERS:

• Open distribution on all platforms:

− Pros: High reach − Cons: Dependency on third party distributors and limited user data

• Distribution on proprietary platforms:

− Pros: Less dependency on third party distributors, more valuable user data − Cons: Limited reach

CONTENT PARTNERS:

• In house original content:

− Pros: High level of control with long term gains if successful − Cons: High up front cost, high risk of failure

• Third party licensed content:

− Pros: Low up front cost, low risk of failure − Cons: Low level of control with long term risk exposure to the loss of licenses

DIGITAL SALES

SALES PARTNERS VS. IN-HOUSE:

• In-house direct sales:

− Pros: High level of control, increased margins, long term gains if successful − Cons: Competencies and focus required to reach volumes

• Third party sales:

− Pros: Using existing third party competencies and short term volumes − Cons: Low level of control and lower margins

PODCAST CREATORS


WHAT DO WE OFFER THE PODCAST CREATORS?

• Audio production capacity / competence
• Sales competence
• Marketing capacity
• A “social context”
• Experience from podcast production
• Being part of a platform making it possible to monetise from the

podcast – very difficult to sell one podcast

DIGITAL AUDIO OBSTACLES & CHALLENGES

Need to change company culture:

• Negative attitude towards digital at first – there was a need to

change mindset from threat to opportunity. Need to reduce internal competition:

• There was a time when the radio show hosts did not think that it was

a good idea to promote podcasts since they saw it as a threat. Need of new competences:

• The sales staff initially thought that it was awkward selling digital,

working with a new currency.

GOING FROM THREAT TO OPPORTUNITY:

EXPERIENCES

PODCAST PRODUCTION SUITS RADIO COMPANIES

Audio Production Spot Sales Branded Content Entertainment Storytelling Talents

PODCASTS ARE ESSENTIALLY RADIO SHOWS – WE HAVE THE KNOW HOW

DIFFERENCES PODCASTS VS RADIO


Radio stations are (mostly) targeted to a broad audience. Podcasts are (mostly) targeted to a niche audience. Both radio stations and podcasts can be monetized through identical products. Audio advertising (ad sales) and promotions (creative sales).

SUGGESTED MINDSET PODCASTS VS RADIO:

PODCAST CONTENT


Influencer podcasts

• Focus on profiles, lifestyle and opinions
• Mainly funded by editorial sponsorships with ad sale as ad on
• Possible to charge high prices for the sponsorships because of the high

association value with the influencers Storytelling podcasts

• Focus on stories and content like crime, news, history etc
• Mainly funded by ad sales with editorial sponsorships as ad on
• Lower sponsorship prices because of the lower association value

3 TYPES OF SUCCESSFUL PODCASTS:

Branded podcasts

• Companies come to us with requests of special podcasts
• Fully financed

DIGITAL AUDIO SUCCESS FACTORS

Competencies:

• We learned where we had synergies, and where to

find new ways of doing things and develop new competencies. Content AND tech:

• Although tech and platforms are important, don’t

forget that content is crucial to the digital business. Sales synergies:

• Bundling is necessary, since the digital business

initially is too small to stand for itself. Cross promotion:

• Promotion between linear radio and on demand is
• essential. Convincing the radio hosts that it is a good

idea is crucial.

DIGITAL AUDIO FUTURE CHALLENGES

Audio-books competing with time spent listening Competition from global giants investing in audio content and tech Non transparent voice ecosystems (Google, Amazon, Apple, Microsoft) Produce local content in native languages competing with English content The acquisition and retention of talent and competencies required

DIGITAL REVENUE ANALOGUE REVENUE

DIGITAL REVENUE TO GROW RAPIDLY OVER THE NEXT TEN YEARS

2019 2020 2021 2022 2023 2024 2025 2026

THANK YOU!