Publications

Format: Jun 2018
sort descending Sector(s) Date
Commercial radio update: pressure continues

This report updates our coverage of the commercial radio sector. In Q1 2010, RAJAR data showed that the average number of hours listened per listener and the total number of hours listened, across both the commercial sector and the BBC, fell by 2.7% and 1.2% respectively compared to Q1 2009. This continues the long term trend of gradual consumption decline we have highlighted in the past. Another consistent trend is the relative robustness of listening to BBC radio, whilst the brunt of the decline is borne by the commercial sector

Whilst BBC radio is funded by the licence fee, the commercial sector relies on advertising, which was severely impacted by the recession in 2008-09, on top of the structural shift of advertising to the internet. Oversupply of radio inventory continues to cause downward pressure on ad rates. As the UK economy exited recession in Q4 2009, commercial revenues rose 6.3% over Q4 2008, after six consecutive quarters of revenue decline. Q1 2010 is expected to come in at approximately 7-8%, with more modest positive growth in Q2

Public sector advertising, which includes procurement by the Central Office of Information (COI), has proved to be a significant source of income for radio (18.9% of revenues in 2009, COI itself accounting for 11.5%). On 24 May George Osborne announced that, with the exception of previously committed and “essential” campaigns, further COI advertising will be put on hold until March 2011. Based on this understanding about COI spend, which will translate to a small negative impact in H2 2010, we expect H2 2010 to be flat. Overall, we forecast small, positive annual growth of commercial segment revenues of 2.5% for 2010

Whilst income is being compressed, the cost of serving dual analogue and digital transmission remains a strain. Ofcom’s ongoing deregulation will have a small positive impact on costs. However, further station closures are entirely possible, especially if COI spend continues to be squeezed

  • BBC
Music and Radio, Media 26 May 2010
Commercial radio: growth ambitions quashed by economic realities

Commercial radio trade association launches new R.A.D.I.O. plan to achieve 20% revenue growth, increased share of listening and migration to digital platforms by 2011

Media, Music and Radio 1 March 2007
Commercial radio: out of tune with London

The three most listened to radio stations in London all belong to the BBC, for the first time since commercial radio started in 1973

  • BBC
Media, Music and Radio 16 May 2007
Competition Commission CRR announcement imminent

The impending Competition Commission announcement of its provisional decision concerning the Contract Rights Renewal (CRR) remedy is expected to make little change beyond extending CRR to cover variants of ITV1, such as ITV1 +1 and ITV1 HD

Extending CRR to cover ITV1 variants should benefit ITV NAR (Net Advertising Revenue) by improving ITV1’s overall audience share, but does nothing to ease the deflationary pressures now gripping the TV advertising medium, where CRR works hand in hand with the requirement on the commercial PSB channels to sell 100% of their advertising inventories

The current goings on underline the dichotomy between competition and public broadcasting policy objectives

 

 

  • ITV
Media, TV 9 September 2009
Competition Commission view about the Sky stake in ITV

BSkyB’s 17.9% shareholding in ITV is likely to lead to a substantial lessening of competition in the all-TV market, according to the provisional findings of the Competition Commission (CC) investigation announced on 2nd October 2007

  • Sky
  • ITV
Media, TV 1 October 2007
Competition concerns for the TNS-GfK merger

We expect the TNS-GfK merger proposal to be examined closely by the European Commission, and anticipate competition concerns to be raised in the market for television audience measurement (TAM)

Media 28 June 2008
Competitive pressures on the press: presentation to the Leveson Inquiry

In the context of his Inquiry, Lord Leveson invited Claire Enders, as “one of the UK’s foremost media business analysts”, to kick off the seminar series on the 6 October with a synoptic presentation on “Competitive pressures on the press”. The Inquiry is interested in understanding the market economics of the mainstream media, including the impact of technology

This presentation brings together our existing work on the newspaper and consumer magazines industry, with an emphasis on the former, highlighting the challenges to the print media of the internet

A video transcript of Claire’s presentation and the debate on the session’s subject of “Competitive pressures on the press and the pressures on journalism”, may be accessed on the site of the Leveson inquiry, at www.levesoninquiry.org.uk

  • News Corp
  • Guardian Media Group
  • DMGT
Internet, Media 5 October 2011
Conservative proposals to tackle CRR

The proposal by the Conservatives to remove or to moderate Contract Rights Renewal if elected would put ministers back into the thick of competition issues

The Conservatives strongly supported the move to make the competition authorities independent of government in Enterprise Act 2002, and should this stance be reconsidered, the regulatory landscape for business would acquire a political dimension, to the detriment of UK business generally

CRR is a side issue and the Conservatives could be better advised to examine closely the marketplace for TV advertising sales in order to make it more transparent and thus work better for the industry as a whole

  • ITV
Media, TV 19 March 2010
Consolidation in Italian mobile

Egypt-based mobile operator Orascom’s investment in Hutchison Telecom creates an intriguing if convoluted link between the 3rd and 4th players in the Italian market, Wind and H3G

Telecoms 17 January 2006
Consolidation in Media Buying

The last three years have seen huge concentration in the marketing services industry. One source suggests that 56% of the world’s advertising billings now pass through just seven buying groups, up from 32% in 1999. Though the advertising recession in major economies shows little sign of abating, the major groups continue to grow by acquisition, often financed by debt. At the same time, media planning and media buying have moved to the centre of these groups after a century of being little more than a clerical activity at the periphery of their business.

Media 9 September 2002
Consolidation in UK commercial radio – positioning for a digital future

Global Radio’s acquisition of GMG Radio has cemented its dominant position in the commercial radio sector, giving it a 51% share of revenues and a 47% share of listening.

If approved by the Competition Commission, the deal will allow Global to extend the Heart brand to the North of England and Scotland, helping to establish a stable listener base ahead of the digital switchover.

We believe there is scope for further consolidation, which is likely to focus around Planet Rock and Absolute Radio – two groups that are leading the way on digital platforms.

Music and Radio, Media 7 October 2012
Consumer books: slow transformation

The appearance of mass market consumer eBooks was delayed, evolved explosively, and has since plateaued more quickly than other media. Physical books are attractive objects and elegant devices compared to CDs and DVDs.

Furthermore, “all you can eat” is not a reader’s mindset, limiting the relevance and growth of mass market eBook subscription services.

Amazon’s mission is to grow market share, and strategic initiatives to move up the supply chain into publishing do not address its core issue: digital provides a poor discovery solution for dedicated book lovers, hence the continued necessity of retailers for publishers.

Media 19 August 2014
Consumer magazine publishing, Part one: The power of brands and industry collaboration

Evidence is mounting that the consumer magazine market is reaching an existential threshold. In this two-part overview of the UK consumer magazine marketplace we address the need for industry collaboration and brand innovation.

The print market is seeing sector-wide declines and the real structural fallout has only just begun; a supply chain review is urgently required.

Magazine brands lack a unique selling point in online advertising, and although long-disastrous ad tech trends may be finally turning in favour of premium publishers, developing must-have consumer services remains the key.

  • Facebook
  • Google
  • News UK
Internet, Media, UK Media 5 October 2017
Consumer magazine publishing, Part two: The power of brands and industry innovation

In a challenging digital marketplace, publishers face a crisis of purpose. To navigate the turbulent seas, publishers must invest more in their brands and the industry as a whole must innovate

Consumer engagement, previously held by magazines, has sailed to social media where young influencers across Instagram, YouTube and Snapchat challenge established norms of content discovery and curation

Magazines are more heterogeneous than is commonly assumed, and strength lies in a distinctive brand. To right the course, we recommend the industry carry out bespoke reviews that outline brand-specific audiences, use-cases and revenue solutions, and exploit systematic audience data to optimise all brand manifestations - with enhanced marketing income a secondary benefit

  • Facebook
  • Google
Internet, Media, Mobile, UK Media 6 October 2017
Consumer magazines: economic and technological disruption

Persistent, anaemic economic growth continues to constrict all spend on recreation and culture, especially for lower income consumers. Female readers, the bedrock of the magazine industry, will be especially hard hit by government austerity measures, which will begin to bite in 2013

Smartphone and tablet ownership amongst wealthier consumers has already impacted their spend on magazines. The industry can expect further shocks as mobile device penetration grows among older and also lower income demographics

New publishing platforms pose familiar challenges: publishers must compete with new online players from very different sectors; complexity and rapid change are a constant; historically low print magazine subscription volumes make the transition for publishers to data strategies and to develop flexible charging models more demanding than might otherwise be the case

Media 28 January 2013
Consumer Magazines: Print still key; radical innovation emerging

UK consumer magazine print circulation fell -9% in 2015 while total display advertising fell -7% as magazines continue to outperform other press categories.

However, the overall picture is still one of falling consumer and advertiser demand and the fierce competition for user attention and advertising spend online is reflected in consumer magazine digital display advertising growth of just 12%: about half of the total online display growth rate in 2015.

At the same time publishers are starting to embrace radical innovation using their brands to produce multiple revenue streams ranging from e-commerce to events, as we explore in our four publisher case studies included in this report.

Media 5 July 2016
Consumer Payment Companies

In this short note Chris Goodall looks at consumer payment technologies. He says that the banks and credit card companies are under no immediate threat from new technologies. Do not be confused by the wizard new technologies coming out of Nokia; technical advances are not going to change payment systems much in the next five years. Rather, he suggests, observers should focus on three interesting companies which use low technology solutions to solve particular payments problems. These companies support, rather than undermine, existing players in the consumer payments industry.

Media, Telecoms 25 October 2001
Consumer Reactions to 3G

The service from '3' in the UK is one of the few examples of a 3G network in action in Europe. In this report we look at the evidence of customer experiences at 3 to determine the potential popularity of the services to a wider audience. Our sources include two studies performed by GSM operators and an NOP survey.

 

 

 

Telecoms, Mobile 27 October 2003
Consumers and digital marketing

UK digital advertising will grow beyond £10 billion by 2018 by our estimates, representing more than half of all advertising spend and delivering the most advanced large advertising market in the world on a per capita basis.

Nevertheless, we see critical issues in digital marketing that are frequently acknowledged, but hard to fix.

At the heart of our hypothesis is the view that the marketing industry – brands, agencies and media – has focused on technology and efficiencies at the expense of consumer experience and distinctiveness.

  • Facebook
  • Google
Internet, Media, Technology, Telecoms, TV 22 June 2016
Content marketing online in Europe to 2020

Paid placements for content marketing online in Europe will increase by 186% from 2014-2020, to over €2 billion

It is a particularly exciting area for premium publishers, who can leverage their content expertise to reverse the flight of ad money to lower-cost properties. Almost all are developing creative content offerings to capture this value

Metrics and measurement, disclosure and cost remain as challenges for content marketing online, but growth is strong due to high commitment to spend from advertisers

  • Facebook
  • Guardian Media Group
  • Vice Media
  • Yahoo
Non-UK Media, Internet, Media, Mobile 3 May 2016

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