The RAMS data was originally due for release a few weeks prior; however, it was delayed after material issues were raised during the industry scrutiny process. AC Nielsen is commissioned by SAARF to conduct the RAMS survey across South Africa.
The latest RAMS release shows the incidence of radio listening has dropped in the Western Cape from 78% a year ago (RAMS May-August 2014) to 66% (April-September 2015), pointed out as a significant shift in radio listening, but without insights or reasons given for such a drop.
Other provinces affected, but to a much lesser degree, are the Eastern Cape, Limpopo and Kwa-Zulu Natal.
Subsequent to the scrutiny process, AC Nielsen undertook to have the data validated. However it is Primedia Broadcasting's understanding that 'validation' of the data does not interrogate the accuracy of the results of the survey, which is what is in question. The broadcaster has been told that the answers to specific questions posed to SAARF and AC Nielsen after the scrutiny process will only be answered late in January.
Not real reflection of listening habits
"We are very concerned that this data has been released to the industry without any explanation for a significant and most concerning trend, and prior to an investigation into the results for the Western Cape," said Ryan Till, COO Primedia Broadcasting.
"Whether we view it as a function of changes in media habits, or the reasons that have been given on each RAMS release over the last 12 months, we do not believe the data reflects the reality," he said.
Primedia Broadcasting is fully aware that audience figures fluctuate all the time; however, it is the broadcaster's view that this magnitude of fluctuation, which is statistically significant, is substantially out of kilter with a number of other sources that gauge radio listening patterns.
The most recent AMPS release (July-June 2015), which also measures the incidence of radio listening, puts the incidence of radio listening at 84%. It is understood that AMPS uses a different methodology to RAMS, but the primary household respondent fills out both questionnaires so it can be reasonably expected to see a correlation between the data sets. AMPS, as with RAMS, is conducted by AC Nielsen and commissioned by SAARF. The disparity between the 84% reported by AMPS, and the latest report of 66% on RAMS, is at the core of the issue.
"In addition to this industry research, we track the appeal of our stations using a number of methods, none of which are showing a drop in radio listening in general, and more specifically on our stations in the Western Cape."
Primedia Broadcasting's internal research includes response metrics to campaigns they run themselves; response metrics shared by advertisers about campaigns they run on Primedia Broadcasting's stations; focus group research and programming metrics into the stations, including SMS, competition entries and ticket sales.
Furthermore, global trends show that the incidence of radio listening has remained high around the world, despite the time spent with all media types being challenged by digital. In the US and the UK, both having more mature digital uptake, the incidence of radio listening is stable at 91% and 89% respectively.
Locally, the latest RAMS figures for Gauteng are stable. As a business that is involved in both the Western Cape and Gauteng, with stations which operate similar formats and target similar markets, Primedia Broadcasting cannot see any justification for the significantly disparate performance of radio in the Western Cape in general, or its specific stations, particularly in a 12-month period.
"We have picked up this trend on RAMS of decline in radio listening in the Western Cape over time, but as we look for trends, rather than reacting to any one specific release of figures, we are only now confident in our position as we are able to compare it with other data, including AMPS, which does not support the trend shown in the RAMS results."
The RAMS data is used every day in the media and advertising industry to guide decisions that direct hundreds of millions of Rands in advertising spend. This is not just between radio stations in the same geographical area, but also between media types. The risk is that radio is being shown incorrectly as underperforming relative to other media types, and advertising is being placed with this incorrect information. The consequences are far-reaching in that this affects decisions about performance in the media, marketing and advertising industries as well as return on campaigns, shareholder investments and strategies.
"In addition to this, programming decisions are based on the RAMS data, which is a key input to the popularity of presenters, shows and content," said Till.
"We know through our clients, who track response, that our stations remain in a position of generating premium response levels, which is ultimately the measure of success of an advertising campaign," said Malani van Huyssteen, head of sales at Primedia Broadcasting.
"We encourage our clients who may be confused by any audience measurement tools that inform their media and advertising decisions to contact us if they would like further information. We also encourage all advertisers to continuously conduct their own research on the effectiveness of different platforms in generating response to their advertising message."
The latest RAMS release is the second last release of data, which is being conducted through SAARF and AC Nielsen for radio in South Africa.
"One of the reasons we have supported the changes being brought about in the radio audience research is that there will be more robust Key Performance Indicators in place on research releases from August 2016 allowing recourse on issues such as this raised on a particular release," concludes Till.
