There is a strong level of interest amongst advertisers in being involved in the upcoming consumer trails for digital radio, according to Commercial Radio Australia CEO, Joan Warner.
Speaking at the Australian Marketing and Advertising Summit in Sydney about the opportunities for digital radio, Warner said advertisers are “keen to understand and test the potential benefits of digital radio.”
“Radio is the only advertising medium that still has an opportunity to take a significant technological leap. The radio industry is working closely with the advertising industry and consumers to identify the potential and value-adds of digital radio which will be essential to any future move to an enhanced radio offering,” said Warner.
“Benefits of digital radio include CD sound quality, easy tuning, data display and the ability to download songs and rewind programs to hear a news item, weather update or traffic report.”
Warner told the conference the consumer trials for digital radio, scheduled to begin in Sydney around April next year, will further test the consumer and advertising response to the benefits of digital radio and also allow more testing of the technology.
The trials will also “assist the Federal Government to define its policy on digital radio and assess the availability and suitability of the available spectrum.”
The consumer trials will be aimed at five specific markets including young people, personal computer users, horse racing followers, opinion makers and taxi drivers.
People involved in the trials will be chosen on the basis of age, gender, place of residence, radio listening habits, lifestyle characteristics and technology take-up.
These trials are in addition to the technology tests underway since 1999 on a limited basis at several radio stations including 2DAY, 2KY, 2WS and the ABC. The three main sectors of Australian Radio, ABC, Community Radio and Commercial radio, have been in constant dialog about the trials since their inception, but recently Commercial Radio has been taking the lead in exploring viable business and consumer models for the technology.
“The Australian radio industry has allocated more than $1 million over the past twelve months establishing the appropriate infrastructure to properly test the viability of digital radio. Establishing a transmission system and gaining access to appropriate spectrum for digital radio is a complex process but once established will provide the foundation for a state of the art, upgradeable, world-class system for the future,” said Warner.
Warner said the introduction of digital radio faces challenges including the current cost of receivers and a lack of understanding amongst radio listeners about the potential benefits of the technology. She said taking the time to work through these issues “is essential to ensure a successful and viable future for digital radio in Australia.”
A recent sign of progress on the consumer awareness front is the inclusion of items about digital radio in recent editions of popular TV and Audio Technology supplements such as The Age’s ‘Green Guide’ and the Sydney Morning Herald’s ‘Guide’. In a Christmas Gift Catalog in this week’s Daily Telegraph Digital Radios were also mentioned.