Audio Advertising Market in Germany Presentation of Lars Peter (RMS) at III Rencontres Radio 2.0 Paris (INA, 15 october 2013) http://www.rr20.fr

1. Audio Advertising in Germany
Dr. Lars Peters, RMS
15.10.2013
Radio Marketing Service

2. 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

3. Advertising Market Germany
Ad Spendings and Market Shares 2012
Whole Market: € 26,0 Billion
Market Shares 2013
Radio: € 1,54 Billion
Market Shares Radio 2013
19,5%
11,0%
39,7%
15,5%
4,3%
5,9%
60,3%
43,8%
NEWSPAPERS
JOURNALS
RADIO
OUTDOOR
ONLINE
2013
TV
RMS
AS&S
Quelle: Nielsen Media Research, 2012, not including cinema (0,4%)
27.09.2013
Verkaufsbericht | Seite 3

4. Audio Use is Changing
From FM Radio to Audio – from multiple sources on multiple devices
15.10.2013
Radio Marketing Service | page 4

5. Digital Media at RMS
Our offers
Digital Media
15.10.2013
Radio Marketing Service | page 5

6. Web Radio Use
Strong Growth in Web Radio Take-Up
Web radio listeners (millions).
28,0
26,1
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.
12,3
8,5
2008 II
2010 II
2012 II
2013 II
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
15.10.2013
Radio Marketing Service | page 6

7. Web Radio Use
Web Radio Listeners Tune in Frequently
Internet radio listeners in Germany
Use frequency of web radio (millions).
 17.6m people in Germany listen to web
radio and other online audio services
17,6
 11.2m tune in every month, with 6.4m
using services weekly
11,2
8,8
6,4
Have used web
radio
In the last 4
weeks
In the last 2
weeks
In the last week
Source: RMS Webradio Ratings 2013, 14-64 years old, figures in millions
15.10.2013
Radio Marketing Service | page 7

8. Online Audio Offers in Germany
Systematisation of the German Association for the Digital Economy (BVDW)
SIMULCAST
 Transmission of FM stations on the Internet
 Same content on both channels
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
~ 350
~ 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
Source: BVDW
15.10.2013
Radio Marketing Service | page 8

9. New Competitors for Audio
Traditional Audio/Visual Media
Online Audio
Radio
 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
Online
TV
15.10.2013
Print
Radio Marketing Service | page 9

10. Our Task – Our Aim
 Facing the new (online) audio competitors.
 Securing audio advertising money.
 Obtain online spendings for audio.
15.10.2013
Radio Marketing Service | page 10

11. RMS Webradio
Advertising with High Quality of Contact
stream
in-stream audio ad
stream
audio
pre-stream audio ad
programme
audio + display*
in-stream audio ad
stream
programme
audio+display ads / cross-media connections, etc.
* Audio+Display only available with Spotify and radio.de
15.10.2013
Radio Marketing Service | page 11

12. Sources of Funding for Webradio Stations 2011
Audio spots becoming more important
Display
In-Stream Spots
Pre-Stream Spots
Sponsoring
Affiliate Marketing
In-Text-Advertising
Video Advertising
Ad Word Adverstising
Others
Source: Webradiomonitor 2012
Ranking of kinds advertising according to their revenue share
15.10.2013
Radio Marketing Service | page 12

13. 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
15.10.2013
Radio Marketing Service | page 13

14. Portfolio
Bundeling online audio at RMS
RMS WEBRADIO (run on network)
Genres
 Mainstream
 Rock
 Oldies
 Schlager
 Electronic
 Black
 Lounge
15.10.2013
Target groups
 14-29 years
 30+
 Men
 Women
FM brands
 ANTENNE THÜRINGEN
 delta radio
 Hit-Radio Antenne
 HIT RADIO FFH
 planet radio
 ANTENNE BAYERN
 radio SAW
 …
Platforms
 Spotify
 radio.de
 AUPEO!
Radio Marketing Service | page 14

15. Individual Bundeling
Approaching online audio target groups via music taste
Music style on
internet radio
Techno
Hip Hop, Rhythm & Blues
Lounge, Chillout
Rock
Pop, Top 40
Country & Western
Musical, Film Music
Jazz
Classical Music
German Schlager, Oldies
Traditional German Music
Age 14-29
Ind.-Q.
341
303
253
191
190
130
127
102
76
53
28
Age 30-49,
HHNI 2.500+ €
Ind.-Q.
58
97
139
166
159
123
174
182
199
174
104
Source VUMA 2013
15.10.2013
Radio Marketing Service | page 15

16. Technology Based Targeting
Online audio adserving with AdsWizz
Pre-Stream
Spot 1
song y
song x
web radio
In-Stream
Spot 2
song y
song x
station sound
song y
song x
song x
Distribution of
the audio ads
08.10.2013
In-Stream
Spot 3
In-Stream
Spot 4
song y
song y
Tracking of the
generated
contacts
stream
Digitale Medien | Seite 16

17. Technology Based Targeting
Available Targetings
SOCIO
- Gender
- Age
*being planned
08.10.2013
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.
Digitale Medien | Seite 19

18. Standardising Measurement of Online Audio
Web Radio Currency and Planning
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
~ 2016/2017
~ 2018
08.10.2013
Standardised measurement of online audio based on IP-data
Merging technical data with personnal data to develop individual reach
Hybrid currency for all audio incl. FM radio and online audio reach
Digitale Medien | Seite 20

19. RMS Webradio Ratings
First Data about Use of Online Audio from One Source
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/
08.10.2013
Digitale Medien | Seite 21

20. RMS WEBRADIO
Produkte, Reichweiten, Preise
RMS WEBRADIO
ROTATION
250 Mio. contacts per month
REACH
Audio Ads
IN-STREAM
TARGETING
FREQUENCY CAPPING
Audio+Display Ads
selected offers**
Audio Ads
up to 20 sec. 20 €
up to 30 sec. 25 €
Audio+Display Ads
PRE-STREAM
25 €*
up to 30 sec. 30€***
date, time, regio, device
only audio, number of contacts per device and period
* max. 15 Sek.; not possible with all staions
** e. g. radio.de, others on request
*** only with Spotify.com/de
08.10.2013
Digitale Medien | Seite 22

21. Online Audio Planning
RMS WEBRADIO MANAGER
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/
08.10.2013
Digitale Medien | Seite 23

22. Combining FM and Online Audio
RMS DIGITAL DRIVER: Two Channels – one offer
Per 1 FM spot
up to 100.000 webradio contacts
08.10.2013
50% discount*
= 10 € CPM
Digitale Medien | Seite 24

23. Further Actions
Promoting Online Audio as Effective and Efficient Advertising Medium






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
08.10.2013
Digitale Medien | Seite 25

24. Merci beaucoup!
08.08.2013
Abteilung | Seite 26

25. 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 peters@rms.de
14.08.2013
Abteilung | Seite 27

26. III Rencontres RADIO 2.0 Paris
Radio Augmentée & Publicité
www.rr20.fr
15 oct 2013 @ Ina Paris
250 professionnels / 50 intervenants
10 keynotes / 3 tables rondes / 12 workshops
Grands Prix Radio 2.0 / La Radio des Rencontres
Partenaires Platinum :
Organisateurs :
Nicolas Moulard
moulard@actuonda.com
Xavier Filliol
xavier@octet.com