Commercial radio reclaims share in Q2

by Emma Barnett, Media Week 29-Jul-08

LONDON - Growth in private sector ownership of commercial radio, allied to the increased use of network content across local stations, is being pinpointed as key reasons for commercial radio's return to growth in Q2.

The latest set of Rajars shows that commercial radio managed to pull back listening share in Q2 - after the BBC posted a record 56.8% share in Q1 - from 41.1% to 42.4%.

National commercial stations' share climbed from 10.7% in Q1, to 11.2% in Q2. Local commercial stations did better, rising from 30.3% to 31.2%, although this was lower than the second quarter 2007 figure of 32.3%.

Leading figures in commercial radio attribute the sector's positive quarter to a number of factors, including a string of acquisitions by private sector companies: Bauer's purchase of Emap Radio; Global Radio's agreement to buy GCap Media, and Absolute Radio's £53.2m Virgin Radio buy.

Bauer Media enjoyed a strong Q2 across its portfolio, with Magic 105.4 claiming the mantle of top London breakfast show in the all-important 6am to 9am slot, increasing its share of listening to 7.4%, compared with 5.8% in the first quarter.

Mark Story, Bauer Media managing director of national radio brands, said: "Bauer has invested a lot into getting good talent and teams together and now that we are privately owned, short-term attitudes have disappeared. Good ideas are given a longer runway and we are benefiting from such stability."

Nick Hewat, Virgin Radio sales director, said: "New owners are bringing fresh thinking to the commercial radio business and I think that we are starting to see the beginnings of that effect."

Local commercial radio's Rajar success is being attributed to the effect of new Ofcom rules that allow radio stations to air network shows all-day for the first time, apart from breakfast and drive-time slots.

Jonathan Barrowman, Initiative's head of radio, said: "With the structural changes to ownership and deregulation freeing up more companies' money to invest in excellent programming at a local level, from savings by networking content, things should be looking up for commercial radio."