Ashford Local Radio - Ofcom Licensing

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6. Digital Radio ALR is convinced that digital radio will become a major factor in the next 10 years. However it has to live within its means. Ashford Local Radio has looked at Digital Radio and monitored its progress over the last year. Currently Ashford and the surrounding area is covered by the Kent Multiplex on a regional basis. After examining costs and coverage along with the current market penetration of DAB radio sets, we have decided at this point it would not be a financially viable option for ALR at this point to join the Kent Regional Multiplex. ALR is keen to embrace the onset of new technology and has formed the strategy to join a Digital Multiplex as soon as financial to result ratios become closer. Our strategy would also be to join an East Kent Multiplex that covered a smaller area focused on Ashford and the surrounding area (as with the FM TSA) that would also offer better cost results to the station. ALR is looking to be on a digital multiplex during 2010. www.ashfordlocalradio.com 23
7. Local Advertising Revenue ALR is the only group that has experience of running an on going Ashford only radio station. In 1989 Richard Sturt and Nigel Reeve set up Radio Ashford from studios in central Ashford.The station broadcast for six hours a day and in 1989 generated up to £15,000 a month in advertising revenue. Using this and the current experience of Nigel Reeve, Richard Sturt and Peter Edwards the ALR team have used the following three factors to calculate the revenue: i. Radio Airtime Purchasing Trends ALR already have experience of the level of revenue that the Ashford area can generate. In 1989 when involved with Invicta Radio Nigel Reeve and Richard Sturt launched Radio Ashford from studios in the centre of Ashford using one of Invicta Radio's opt-out transmitters.The station broadcast for six hours daily Monday to Friday.The radio station generated £15,000 per month back in 1989 from these short broadcasts. Its average weekly advertising rate was £378 per week and just over £1,000 per month. No other group has had this level of experience in this market. Since then the radio marketplace has changed. In 1989 85% of Invicta Radio's income came from the local advertisers. Now the advertising rates have grown substantially and the position has reversed. Around 85% of Invicta's revenue comes from the national market and only 15% locally and then only from the major advertisers.The ALR strategy will be to target local advertisers where it will be possible to be on air for £250 per week. ii.The Local Advertising Market The total annual advertising spend in the Ashford area is just over £7 million (Source Kent Regional Newspapers/MIP). There are three newspapers in the area, the KM Kentish Express, the KM Extra and Adscene plus regional radio, posters, bus sides and local television although this covers a much wider area. ALR has set a target of just 3.9% of this advertising spend in year one rising to 4.62% in year two. It is not until year five that the revenue is over the 6% level and this is still below the radio industry’s revenue share nationally (projected to be 6.4% in 2005. Source RAB).This would give revenue of £278,000 in year one rising to £381,000 in year three and £430,00 in year five.This figure has been reached after research into comparable stations in the same type of market. No allowance has been made for advertising spend growth over the next three years. iii. Area Expansion As already covered, Ashford is planning population growth of 2,000 adults per annum over the next 25 years.This growth has been calculated into the advertising projections. The key influences in our advertising projections are therefore the radio advertising purchasing trends, the local Ashford market and the area's expansion. Local advertisers will be on air for as little as £120 per week with the average monthly package costing £900. However at this stage national revenue is only being projected to cover store openings and specific area targeted campaigns.The vast majority of the revenue will come from the local market. www.ashfordlocalradio.com 24
Page 1 and 2: ASHFORD LOCAL RADIO www.ashfordloca
Page 3 and 4: > > > > > TABLE OF CONTENTS Section
Page 5 and 6: SECTION 105(A): ABILITY TO MAINTAIN
Page 7 and 8: NIGEL REEVE Position: Non Executive
Page 9 and 10: PAUL TORY Position: Non Executive D
Page 11 and 12: (ii) If there are firm plans to app
Page 13 and 14: (v) Where a corporate body other th
Page 15 and 16: SECTION 2 FINANCIAL AND BUSINESS PL
Page 17 and 18: 1. Broadcast Area To help define th
Page 19 and 20: 2.The Current Population The curren
Page 21 and 22: 2. Do you think that the existing r
Page 23: 2049 3589 Born in the UK 97023 Born
Page 27 and 28: (e) Funding Detail the sources of f
Page 29 and 30: (iv) Bank overdraft Not applicable
Page 31 and 32: Advertising Revenue The applicant s
Page 33 and 34: Method Three - Local Demand ALR car
Page 35 and 36: ALR Salary Structure Department Rol
Page 37 and 38: Financial Projections The applicant
Page 39 and 40: TRANSMISSION PROPOSALS (g) Transmis
Page 41 and 42: 32dB Overspill Map (iii) Transmissi
Page 43 and 44: SECTION 105 (B) AND (C): CATERING F
Page 45 and 46: 2. Do you think that the existing r
Page 47 and 48: Putting Local Information First Alt
Page 49 and 50: > Local Sport www.ashfordlocalradio
Page 51 and 52: Programming Staff Schedule And Resp
Page 53 and 54: Catering for the Tastes of the Area
Page 55 and 56: SECTION 5 RESEARCH, DEMAND AND SUPP
Page 57 and 58: 1.The Quantitative Research Objecti
Page 59 and 60: Music Tastes Respondents were asked
Page 61 and 62: The ALR presenters were endorsed as
Page 63 and 64: ALR Finding Local news and informat
Page 65 and 66: ALR Finding The news should focus o
Page 67 and 68: ALR Finding A great deal of interes
Page 69 and 70: Programming Research Conclusions AL
Page 71 and 72: 5. Sales Qualitative Research Objec
Page 73 and 74: EVIDENCE OF SUPPORT ALR believes th
Page 75 and 76:
4. Consultation Lunches Held a seri
Page 77 and 78:
5. Lunchtime Consultation Event Hel
Page 79 and 80:
7. Supported local Charities and Ev
Page 81 and 82:
SECTION 6 DECLARATION www.ashfordlo
Page 83:
APPENDIX 8 Appendix 8 - Promise of
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Ashford Local Radio - Ofcom Licensing

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