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Masti Radio - Ofcom Licensing

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This section must include a full listing of the underlying assumptions on which the financial projections are<br />

based, relating such assumptions clearly to other parts of the application (e.g. proposed format, extent of<br />

coverage area).<br />

Licence Coverage<br />

Coverage prediction maps provided to us by Arqiva suggest the new licence should<br />

reach all main concentrations of our target ethnic groups in Greater Manchester despite<br />

the predicted interference from Real <strong>Radio</strong> in Yorkshire. Furthermore, listeners living<br />

near the edge of our coverage area who do experience reception problems will have the<br />

option of installing a directional FM aerial to focus our signal. This tactic should be<br />

effective in virtually all cases of home-based reception because hardly any of our target<br />

audience lives sufficiently far to the west of Manchester city centre to require an aerial<br />

pointing in the same direction as Emley Moor, the source of the interference. This makes<br />

this new FM licence particularly suitable for city-wide broadcasting to the particular<br />

ethnic groups we seek to serve.<br />

Revenue Projections & Advertising Rates<br />

To reliably predict our advertising income we adopted the calculation technique already<br />

used at Sunrise <strong>Radio</strong> (Yorkshire) which has proved very accurate and reliable over the<br />

last sixteen years. This involves setting advertising rates around what the average local<br />

advertiser might consider reasonable to reach a local Asian audience.<br />

The approach works well because many Asian advertisers are the proprietors of family<br />

businesses, more likely to be looking for easy-to-understand evenly-scheduled<br />

commercial packages than wanting to get involved with the science of specific sub-group<br />

targeting. That said, we’ll also be ready to offer tailored packages if needs-be, for<br />

example to businesses selling music/fashion/leisure products and services (etc) to our<br />

young audience, perhaps around particular programmes or features.<br />

Special packages will also be available for advertisers wishing to use our specific Black<br />

and Chinese programmes to target those particular groups, though we have not<br />

attempted to forecast this income as no appropriate model will exist until we’ve run the<br />

station for a while.<br />

Our ‘reasonable rate’ approach to Asian advertising spot pricing is actually similar to that<br />

adopted by many mainstream small-scale commercial licensees who also find it more<br />

appropriate than ‘cost per thousand/revenue per head’ techniques because it effectively<br />

disconnects the success of day to day advertising sales from the need to prove precise<br />

audience numbers. Indeed, quite a few stations broadcasting to populations of this size<br />

either cannot afford, or don’t feel a need, to be part of Rajar, provided their popularity is<br />

sufficiently obvious ‘on the street’.<br />

So we have based our revenue projections firmly on the reality of actual spot rates<br />

already being achieved in nearby Bradford by Sunrise <strong>Radio</strong> (Yorkshire). And to make<br />

doubly-sure that any errors are on the side of caution, we have projected sales of less<br />

than a third of our total advertising inventory during the first year on-air, followed by only<br />

small increments so that the proportion of ‘sold’ airtime is still under 50% in year three.<br />

21

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