Internet thrills the radio star

Having survived the advent of TV and the internet, radio is set to grow commercially, with more and more UAE listeners tuning in online.

A growing number of people are tuning into Arabian Radio Network's stations online. Above, Karishma Fernandez, a presenter for City 1016, part of the network. Jaime Puebla / The National

Video did not kill the radio star - nor has the internet.

For decades, the humble radio broadcast has been tipped to die out, as television and online muscled into the media market. Yet radio, which took off in the 1920s, has proved resilient.

Globally, audiences remain strong. In the United States, 93 per cent of people aged 12 and older tune in to the radio every week, according to Arbitron, a media measurement company. In the UAE, 39 per cent of adults listen to radio daily, according to the Pan Arab Research Center.

"While you are driving a car, you cannot read a newspaper and you cannot watch TV," says Abdulrahman Awadh Al Harthi, the director of the Abu Dhabi Radio Network. "But you can listen to a radio station."

Amid a global recession and tough times for the local media industry, new radio stations continue to spring up across the UAE.

Commercial radio arrived in the Emirates relatively late but has proved popular.

In September, the Dubai-based Arabian Radio Network launched the FM station Radio Shomato serve Farsi speakers in the Emirates.

And in February, the Abu Dhabi Radio Network launched Radio Mirchi, which is aimed at the Hindi speakers. The network is part of Abu Dhabi Media, which also owns and publishes The National.

"Right now, we have more than 45 radio stations in the UAE," says Mr Al Harthi. "So it's a very competitive market."

Despite the strength of radio in the UAE, times are changing.

The car is still king for radio broadcasters, with most listeners tuning in while driving.

But this is gradually changing, with more people listening from home. Many of those have shunned the FM receiver in favour of the internet.

Mr Al Harthi says the network's six stations are now available online and via smartphone apps.

"Four years ago, around 90 per cent of our listenership were car listeners. Now it's between 70 and 80 per cent," he says. "Lately, we noticed a drop on the car listenership. They are listening online, via smartphone applications."

Despite the popularity of radio, advertisers have not yet woken up to its full potential in the UAE, executives say.

Radio accounts for just 3.5 per cent of the UAE's estimated US$1.4 billion (Dh5.14bn) annual advertising spending, according to the Pan Arab Research Center. That figure is inflated, because it does not take into account the huge amount of free and discounted advertising.

Vikram Dhar, the head of the radio network Gulf News Broadcasting,says the medium draws woefully low advertising rates.

"The reach of radio is not fully appreciated, and therefore I think marketers are missing a trick," he says. "Radio and digital suffer from the same thing - a lack of appreciation."

Typical rates for a 30-second advertisement on UAE radio are between Dh250 and Dh300, says Mr Dhar. In Saudi Arabia, the equivalent advertising rate is Dh1,200, he says.

Such figures represent a fraction of the advertising fees charged by national newspapers and television stations, where print ads and TV commercials typically cost thousands of dollars.

But while advertisers may not fully appreciate UAE radio, local residents do.

That is the view of Steve Smith, the chief operating officer of the Arabian Radio Network (ARN), which is part of the Arab Media Group.

"Is radio undervalued in as far as the share of advertising revenue is concerned? Yes. But is it undervalued from a listenership point of view? Absolutely not," he says.

"This market has a love affair with their favourite radio station," Mr Smith adds.

ARN operates eight stations, including Virgin Radio 104.4, Dubai Eye and Dubai 92 - and Mr Smith says a growing number of listeners are tuning in online.

"Since January 2011, we've seen a 60 per cent increase of non-traditional listening," he says. "Just last month, we had 775,000 non-traditional listeners through apps and online."

One tool that may spur growth in radio advertising is set to be launched this year.

MediaCell, a system to measure radio audiences, is being deployed in the Middle East and North Africa by the media-measurement firm Ipsos MediaCT.

Elie Aoun, the president for the Middle East, Africa and Pakistan at Ipsos MediaCT, says the system uses a smartphone app to measure how many people are listening to particular stations.

"My plan is to start something within the next three months in the UAE," he says.

Advertisers would be able to use data from this system to better allocate their media budgets. With better listenership figures available to advertisers, Mr Aoun expects radio's revenue to grow.

"I think radio will be getting a better share of advertising and a better future," he says.

So having survived the advent of TV and the internet, radio in the UAE is tipped to grow commercially. With more advertisers on board, reports forecasting the death of radio start to look distinctly exaggerated.