GFK Digital Radio Data, Expensive & Limited, Say Vendors

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Digital radio vendors have snubbed GFK claiming that their sell through data is “too expensive and has limited history”. They have also raised questions about the accuracy of the data.

According to Commercial Radio Australia more than 406,000 digital radios have been sold in Australia since it was launched in 2009.

According to Graeme Redman from Pure Radio Australia, his company has had discussions with GFK regarding digital radio data in Australia but found their asking price for digital radio data “expensive”.

“They have only been collecting digital radio data for 12 months yet they are asking tens of thousands of dollars for their reports. It is expensive and limited” He said

He added: “There is limited history in the GFK data because they only started counting sell through sales 12 months ago, not when digital radio was launched in 2009. They are also not counting some retailers like JB Hi Fi so one has to question the dollar value they are placing on their data”.

Redman said that Pure Digital Radios which are distributed by Pioneer Australia has around 20% of the market in Australia with over 100,000 units.

Robert Costello, Marketing Director at Canohm, distributor of the Sangean digital radio said that his company contributes to Infomark, which measures sell in, not sell out, data.

“Infomark data is significantly ‘cheaper’ than GFK data,” said Costello. 

 Infomark is another division of GFK.

 

 

“GFK data is too expensive especially for a distributor like Canohm. We choose to use the sell in data from Infolink Vs the sellout data to assess our competitors’ numbers. We are currently tallying our total numbers for the Australian market since we launched the product in 2009. We operate in the premium end of the digital radio market yet despite this we are witnessing significant growth. At Xmas 2010 our sales were up 50% over Xmas 2009”.

 Costello claims that he “disputes” some of the numbers being bandied around the industry.

Brian Rogers, Marketing & Sales Manager at Bush, a major supplier of digital radios in Australia said that sales were often boosted when vendors like his used retail catalogue promotions,” especially during periods like Mother’s Day or Father’s Day,

According to Commercial Radio Australia, 700,000, people listen to digital radio in an average week, in the five state metropolitan capitals of Sydney, Melbourne, Brisbane, Perth and Adelaide.

They claim that over 406,000 digital radios have been sold since the service was launched in 2009.

They also claim that there has been an increase of 185%, in 2010/11 over the prior year which had an extremely low base due to the early release of digital radio in Australia.

 Commercial Radio Australia chief executive officer, Joan Warner said: “The commercial radio industry has spent more than $25 million dollars on an ongoing and extensive digital radio marketing strategy and campaign and continues to work collaboratively with digital radio retailers and manufacturers to build the awareness with listeners.”  

 Warner said that CRA  priorities over the next 12 months will be to build the growing metropolitan audience and the range of receivers available to them;  work on specific promotions with retailers; work with car manufacturers to get  DAB+ radios into cars; and work with the Government to plan the regional rollout”, said Ms. Warner. 

 Other key findings from the report include:

 

·             Time spent listening to radio via DAB+ digital radio devices is 11 hours and 11 minutes each week, up by two hours and 55 minutes since Survey #1, 2010.
·             Time spent listening to radio via a DAB+ digital radio has overtaken listening to radio on the internet by 2 to 1 (TSL on internet 5 hours & 11 minutes).
·             78% of those surveyed were aware of digital radio, up from 63% at the beginning of 2010.
·             87 % of people who own a digital radio would recommend it to a friend.
·             Digital radio uptake in Australian households conservatively estimated at around 16% by 2014.
 

*The Commercial Radio Australia data is based on GFK reports.

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