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DAB Digital Radio UK Market Update Mike Spencer Marketing Director DRDB.

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Presentation on theme: "DAB Digital Radio UK Market Update Mike Spencer Marketing Director DRDB."— Presentation transcript:

1 DAB Digital Radio UK Market Update Mike Spencer Marketing Director DRDB

2 DRDB - Who We Are BBC Digital One Emap Capital MISSION: to ensure digital radio's wide accessibility and swift adoption in the UK MXR GWR

3 Understand the DAB market Promote to the consumer Support retailers Encourage & assist manufacturers DRDB - What do we do?

4 DAB For consumers its all about station choice

5 275 analogue services As of 30 April 2004. Analogue figure – Ofcom (licences awarded) 398 DAB services And 2 multiplexes yet to launch, so over 400 by the end of this year 55% (or 217 services) - only available with a DAB radio 181 services - straight analogue simulcast comprising….

6 E.G.Bristol Analogue Radio NationalRegionalLocal

7 E.G. Bristol Digital Radio NationalRegionalLocal

8 % of card returns Source: Claritas post-reg cards Q. Which factors influenced you to buy DAB over analogue? Copyright: DRDB Brand very gradually becoming more of a factor? Consumers are buying DAB for the new digital stations The price of DAB is increasingly more attractive – was around 20% 3 months ago DAB owners – why are they buying?

9 National Services - Coverage 50 million people covered Digital One - 85% –83 transmitters on-line BBC – 80% –85% by mid 2004 –rolling-out 47 transmitters Digital One BBC BBC + Digital One

10 DAB – explosion in product no. of different DAB products in the marketplace – cumulative 2003 2004 50 new products so far this yearAnother 54 to come (est.)

11 DAB – value sales – continued growth Delivering a substantial market Sales have delivered a £54 million market in the last year (y/e jul 04)

12 In summary: the analogue market in decline -0.4%-12% Source: GFK

13 The DAB market – healthy growth +191%+163% Source: GFK

14 Av price of a kitchen radio – DAB v analogue Analogue price cutting

15 y/e may 04 v y/e may 03 DAB sectors – the only sectors in average price increase Most markets showed a stronger decline in average price £ in May than for the year in total - underlining the continuous price pressure in the market. Portable audio – % change in £ average price DAB sectors – the only sectors to see price increases

16 CE market – % change in £ average price DAB sectors – the only sectors to see price increases Source: GFK % change y/e May 04 v y/e May 03

17 Retailers

18 7 fold growth End of 2003March 2004 +50% Competitive market in a short space of time independents over

19 DAB digital radio sales A record june/july predicted Source: GFK (volume in 000s) GFK – approx 88% coverage of the DAB market * = estimate

20 DAB digital radio- cumulative sales Just shy of 700k Source: GFK +17.1k +22.5k +30.4k GFK bimonthly sales (volume in 000s) +36.7k+11.0k +176k DAB penetration estimated up to end jul 04 682k +48.7k GFK – approx 88% coverage of the DAB market +69.6k+60.7k +74.6k estimate ****

21 Kitchen portables market Now very much a DAB market % of value Source: GFK

22 Kitchen Radios Market Value 1987-jan 2004 Value £ millions * 52 w/e Nov **feb03-jan04 Source: GFK Copyright: DRDB

23 Consumer Marketing

24 DAB – ever increasing press coverage Source: Romeike No. of articles March – regional GM Daewoo articles = £1.2 million advertising value

25 Virgin – Win His and Hers DAB digital radios Sept 2004

26 Classic FM Survey / Win a DAB digital radio

27 DAB Pink Intempo - Cosmo Bride September 04 issue

28 DAB In the lifestyle magazines Pures The Bug in Closer

29 Retailer advertising Currys in-store brochure Sept 04

30 Comet Summer 2004 Flyer

31 Roberts Radio The 1 st radio brand - high profile ad campaign £0.5 million press campaign Autumn 2004 65 insertions, across the broadsheets, the Sunday broadsheets and the Radio Times

32 Growth in retailer effectiveness 24% first learnt about their DAB radio from a in-store display Source: Claritas % of card returns Where did they first learn about this product? Success to date % of card returns

33 DAB prompted awareness Over half of the UK population now aware of DAB Source: DRDB Tracker (Ipsos RSL Omnibus) – prompted awareness Awareness up 8 percentage points in just 6 months And up 18 percentage points in the last year = 25.4 million 15+ adults (15+ population: 48.862 million Rajar Q2 2004) Q. DAB digital radio is……Have you heard of this? (prompted awareness)

34 Broadcaster advertising Emap full page ad in Retail Week Sept 04 Offering retailers who are advertising DAB brands a 50% discount on Emaps digital stations

35 Consumer Feedback

36 % of respondents who state good/excellent satisfaction for that feature High satisfaction amongst owners 89% state good/excellent satisfaction with their radio & its features Source: Claritas oct-dec 2003 ALL features above 79% good/excellent satisfaction Easy to tune, sound quality & new stations are the big winners Increased satisfaction in product appearance – now 4th

37 Listening Changes Commercial radio share increasing –47% of analogue listening –80% of digital listening Number of stations listened to increasing –2.4 stations (analogue listeners) –3.6 stations (digital listeners) Length of listening increasing –Digital listening ~1.4 hours more a day Sources: RAJAR Q1 2004, and Continental Research report for MXR (April 2004)

38 In-car developments

39 DAB in-car developments Vauxhall New Astra Excellent uptake of DAB so far. –Total cars built: 28,000 With DAB: 1,245 (3.9%) –Total cars registered: 19,000 With DAB: 745 (4.4%) –NB. Compares to typical 1 to 2% uptake of similar options Special Edition model – SXI Digital –In showrooms from 20 th September –500 display/ demo cars in dealers. Complete with livery that says Go Digital. DAB Digital Radio as standard –DRDB-produced ad campaign on-air from 9 th Sept to 8 th Oct –Vauxhall running motoring press ads to say DAB fitted as standard

40 DAB in-car developments Vauxhall – Other models DAB option now extended to other models –Vectra, Corsa, Meriva, Signum, Corsavan and Combo –DAB is included in most basic audio upgrade –Same pricing (£400 for DAB + 6-CD changer) DAB option part of New Zafira launch, summer 05 From Oct 1 st DAB fitted as standard on Vectra higher end variants – Design, Elite, GSi


42 Marketing plans 2004 Advertising & Forecasts

43 DRDB advertising plans Breadth of range 5 th - 31 st July In-car Vauxhall 9th Sept – 9th Oct. Teaser campaign 9th Oct – 7th Nov. Christmas campaign i.e. easy access, breadth of range, price, in-car. 1 st -24 th Dec.

44 DRDB Aims this year Sales target – 1 million cumulative Converting the 48% DAB non-aware mass market Driving consumers to retailers Broaden product range Broadening the ownership profile

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