Sponsorship may offer a key to digital radio’s success

The fact that there are 1.66 million digital radios in UK homes may impress those radio industry types, but as most homes have multiple analogue sets, the reality is that digital radio is not so much up and running, as ambling along at a respectable pace.

But to get ahead in the race, some digital radio operators have found innovative ways of getting advertisers to buy into the idea that the revolution is already happening.

Orange, the mobile telecoms giant, is one big advertiser that has pinned at least some of its colours to digital radio. Last week, the phone network took the rambling up to a brisk pace, with the announcement that it would be taking the place as the solus advertiser on GCap Media's digital youth network Core, brokered through its media agency, Initiative.

Digital agenda

Jonathan Barrowman, head of radio at Initiative, says the deal is part of a focus on the burgeoning digital sector: "We tried to create a deal that took the client's thoughts about its brand further up the digital agenda."

The deal takes the concept of "owning" a media property to a new level, as Orange will not only take control of all promotional spots within the programming schedule, but will also control content in the form of several new branded shows across the fledgling property.

Core reaches 89,000 listeners a week according to the latest figures from the official radio measurement body, Rajar, so it could be classed as a niche station with a focused target audience, which would fit part of Orange's target demographic.

But the question must be asked: Is this taking advertiser control too far across a fragile medium?

Mark Story, managing director of programming at Emap Radio, says all encompassing sponsorship deals could be a way to bridge the gap between the switch from analogue to digital.

"The way that digital radio works is that some of it will work conventionally and it will be similar to analogue FM stations, but some of it won't and the offer is changing."

He added: "Core is quite a small station and I think you have to look at it differently from a national station. It's a relatively different offer and this deal opens up the possibility for creative targeting and use of digital radio to reach a particular audience.

"It's almost like you're sponsoring a programme, but that programme runs when you want it, 24/7."

The truth is that digital radio is encouraging advertisers to take their first baby steps, before a tipping-point occurs that will allow clients to confidently book schedules that will reach amass audience.

Simon Daglish, director of national sales and trade marketing at GCap Media, says radio networks will have a window of opportunity to take advantage of this type of deal, while digital audiences grow.

"The key to being able to do this sort of thing is flexibility – flexibility from the client and flexibility from our programmers to be able to deliver a message to the key audience on behalf of the client.

"You are going to see more and more of these integrated packages that use techniques such as ad-funded programming, to get across a message that isn't as obvious as a bank of spots."

Media opportunities

This offers opportunities for media owners willing to forgo the 10, 15 even 30-second slot, to look at a more content-led approach.

The pros are simply that in one swift deal, your network is not left without slots, repeating slots or simulcasting advertising from your analogue network onto your digital properties.

There's a big con though: your brand identity can be diluted or, at worst, destroyed by the invading identity of the advertiser.

In a world where the consumer doesn't want to know they are being sold to, virtually owning a media property has the possibility of looking far better on paper than it can in the cold light of day.

Something both the media owner and the potential advertiser need to be aware of.

How  to make radio sponsorship work

? Avoid repetition of your brand name; audience annoyance can destroy a brand
? Get involved in a productive dialogue with the programming staff
? Piggyback on the already established station, don’t try and destroy its brand in favour of your own–and be flexible