Audio Advertising Market in Germany RMS Radio 2.0 Paris 2013

Dr. Lars Peters, RMS Audio Advertising in Germany

15.10.2013 Radio Marketing Service

RMS – Radio Marketing Service Europe’s largest audio saleshouse Founded 1990, RMS today sells airtime on 158

commercial FM radio stations RMS and covers almost two thirds of the German audio advertising spendings

In 2000, RMS started its digital business selling display advertising on radio websites

Working for over 450 different online audio offers as webradios, but also radio.de and Spotify, RMS is market leader even for online audio in Germany

FM radio, webradio, mobile, and display - RMS takes the listeners through the day!

15.10.2013 Radio Marketing Service | page 2

Advertising Market Germany Ad Spendings and Market Shares 2012

27.09.2013

Quelle: Nielsen Media Research, 2012, not including cinema (0,4%)

19,5%

15,5%

43,8%

5,9% 4,3%

11,0%

Whole Market: € 26,0 Billion Market Shares 2013

NEWSPAPERS JOURNALS TV

RADIO OUTDOOR ONLINE

Verkaufsbericht | Seite 3

60,3%

39,7%

2013

RMS AS&S

Radio: € 1,54 Billion Market Shares Radio 2013

Audio Use is Changing From FM Radio to Audio – from multiple sources on multiple devices


Digital Media at RMS Our offers


Digital Media

28,0 26,1

12,3

8,5

2013 II2012 II2010 II2008 II

Web radio listeners (millions).

Strong Growth in Web Radio Take-Up

Source: Basis: from MA 2008 R II D+EU 10+, from 2010 German-speaking 10+. Up to 2010 limited to surveys of web radio use on PCs, notebooks, tablets; includes web radio use on wireless speakers and smartphones as of 2011


Web Radio Use

Internet radio listeners in Germany

Online audio is still growing, with around two million more listeners in the space of one year!

Growth is now slowing, but not stopping.

Internet radio listeners in Germany

17.6m people in Germany listen to web radio and other online audio services

11.2m tune in every month, with 6.4m using services weekly

Web Radio Use Web Radio Listeners Tune in Frequently

17,6

11,2

8,8

6,4

Have used webradio

In the last 4weeks

In the last 2weeks

In the last week

Use frequency of web radio (millions).


Source: RMS Webradio Ratings 2013, 14-64 years old, figures in millions

Online Audio Offers in Germany Systematisation of the German Association for the Digital Economy (BVDW)


Source: BVDW

SIMULCAST Transmission of FM stations on the Internet Same content on both channels

~ 350

ONLINE-ONLY-STATIONS (incl. FM-Substations) Transmission only on the Internet (programming FM alike or music only) Usually very specific music types or topics of interest ~ 2.500

PERSONAL RADIO Individual music programming for every single listener Radiosoftware understands listeners preferences and gives music advice ~ 10

RADIO AGGREGATORS Database with thousands of radios on the Internet Easy access to the offers, huge choice

~ 10 MUSIC ON DEMAND Listing to individually choosen songs and albums Free of charge (financed by advertising) or different fee models ~ 15

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=fwoWI_iXSK7YEM&tbnid=hWSgZF9IYYsawM:&ved=0CAgQjRwwAA&url=http%3A%2F%2Fpress.spotify.com%2Fus%2F2013%2F01%2F22%2Flogotype%2F&ei=6VZUUo_JH4iJ4ASV-4GwBA&psig=AFQjCNFFsFE_CRW-pMlLTdf4gSPJXhtmSw&ust=1381345385549782

New Competitors for Audio Traditional Audio/Visual Media


Intermedia competition becomes intramedia

Rivalry with new audio- and audiovisual competitors such as Youtube or Tape.tv

New sales potentials in the online market, but also risks

Radio

TV Print

Online

Online Audio

Our Task – Our Aim

Facing the new (online) audio competitors.

Securing audio advertising money.

Obtain online spendings for audio.


RMS Webradio Advertising with High Quality of Contact


in-stream audio ad programme programme

pre-stream audio ad stream

stream in-stream audio ad stream

audio

audio+display ads / cross-media connections, etc. audio + display*

* Audio+Display only available with Spotify and radio.de

Sources of Funding for Webradio Stations 2011 Audio spots becoming more important


Source: Webradiomonitor 2012 Ranking of kinds advertising according to their revenue share

Display

In-Stream Spots

Pre-Stream Spots

Sponsoring

Affiliate Marketing

In-Text-Advertising

Video Advertising

Ad Word Adverstising

Others

Net-Advertising Revenues of Online Audio Dynamic growth on still low level


Source: Goldmedia Webradiomonitor 2012 Advertising revenue (net) for all German webradio offers in Germany until 2015 CAGR = Compound Annual Growth Radio

Portfolio Bundeling online audio at RMS


FM brands ANTENNE THÜRINGEN delta radio Hit-Radio Antenne HIT RADIO FFH planet radio ANTENNE BAYERN radio SAW …

Target groups 14-29 years 30+ Men Women

Genres Mainstream Rock Oldies Schlager Electronic Black Lounge

Platforms Spotify radio.de AUPEO!

RMS WEBRADIO (run on network)

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=fwoWI_iXSK7YEM&tbnid=hWSgZF9IYYsawM:&ved=0CAgQjRwwAA&url=http%3A%2F%2Fpress.spotify.com%2Fus%2F2013%2F01%2F22%2Flogotype%2F&ei=6VZUUo_JH4iJ4ASV-4GwBA&psig=AFQjCNFFsFE_CRW-pMlLTdf4gSPJXhtmSw&ust=1381345385549782

Individual Bundeling Approaching online audio target groups via music taste


Source VUMA 2013

Age 14-29 Age 30-49,HHNI 2.500+ €

Ind.-Q. Ind.-Q.Techno 341 58Hip Hop, Rhythm & Blues 303 97Lounge, Chillout 253 139Rock 191 166Pop, Top 40 190 159Country & Western 130 123Musical, Film Music 127 174Jazz 102 182Classical Music 76 199German Schlager, Oldies 53 174Traditional German Music 28 104

Music style on internet radio

Technology Based Targeting Online audio adserving with AdsWizz

08.10.2013 Digitale Medien | Seite 16

song y

song x

In-Stream Spot 2

Pre-Stream Spot 1

In-Stream Spot 3

In-Stream Spot 4

station sound

song x

song x

song x

song y

song y

song y

song y

Tracking of the generated contacts

Distribution of the audio ads

web radio

stream

Technology Based Targeting Available Targetings


*being planned

SOCIO - Gender - Age

REGIO - Federal state - City - Nielsen areas - Post code* - Weather*

TECH - Operation

System - Tablet / Phone - Internet Service

Provide

MUSIC - Rock - Top40 - Electro - Techno - Schlager - R‘n‘B - Etc.

Status Quo No standard of reach measurement yet Sales houses have data from technical measurement (adserver) Sales houses conducted their own reach studies To come January 2014 Standardised measurement of online audio based on IP-data ~ 2016/2017 Merging technical data with personnal data to develop individual reach ~ 2018 Hybrid currency for all audio incl. FM radio and online audio reach

Web Radio Currency and Planning


Standardising Measurement of Online Audio

Survey with almost 9.000 respondents, both computer assisted telephone and web interviews Net-reach for 188 online only stations, 19 live streams of commercial FM stations, 5 radio aggregators, and 5 music on demand offers First comparable data to evaluate the online audio portfolio of different online audio sales houses http://webradioratings.rms.de/

First Data about Use of Online Audio from One Source


RMS Webradio Ratings

RMS WEBRADIO Produkte, Reichweiten, Preise


* max. 15 Sek.; not possible with all staions ** e. g. radio.de, others on request *** only with Spotify.com/de

RMS WEBRADIO ROTATION

REACH 250 Mio. contacts per month

PRE-STREAM Audio Ads 25 €*

Audio+Display Ads selected offers**

IN-STREAM Audio Ads up to 20 sec. 20 € up to 30 sec. 25 €

Audio+Display Ads up to 30 sec. 30€***

TARGETING date, time, regio, device

FREQUENCY CAPPING only audio, number of contacts per device and period

Online tool for easy calculating and planning of web radio campaigns Data bases consists of data from technical measurement (adserver) Only available for RMS WEBRADIO http://webradiomanager.rms.de/

RMS WEBRADIO MANAGER


Online Audio Planning

RMS DIGITAL DRIVER: Two Channels – one offer


Combining FM and Online Audio

Per 1 FM spot up to 100.000 webradio contacts 50% discount*

= 10 € CPM

Developing reach and user studies Proving web radio advertisment’s impact

(click-through-rates, innovative study approaches)

Communication measures Presence on fairs (e.g. DMEXCO, picture) Workshops for agencies and costumers Active member in the German Association

for the Digital Economy

Promoting Online Audio as Effective and Efficient Advertising Medium


Further Actions

Merci beaucoup!

08.08.2013 Abteilung | Seite 26

RMS Radio Marketing Service

Dr. Lars Peters

Head of Business Development Digital Media

Contact details

RMS GmbH & Co. KG Moorfuhrtweg 17 D-22301 Hamburg

Tel. +49 (0) 40.23 890-333 E-Mail [email protected]

14.08.2013 Abteilung | Seite 27

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Grands Prix Radio 2.0 / La Radio des Rencontres

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Organisateurs :

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[email protected]

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[email protected]

Audio Advertising Market in Germany RMS Radio 2.0 Paris 2013

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