New radio station may prove oldies are truly golden

Media and marketing:It's one of the curiosities of modern consumer marketing that the over-45s, one of the most affluent demographic groups in the country, are mostly ignored by advertisers. Currently just 5 per cent of total annual agency spend is specifically targeted at the 45+ population, writes Siobhan O'Connell.

Yet five applicants - 4FM, Cream, Legend, More FM and Radio 3 - are competing to win the new multicity radio licence for a music-based radio station playing and targeting golden oldies. The licence is due to be awarded by the Broadcasting Commission of Ireland later this year and will allow the winner to broadcast in and around Dublin, Cork, Limerick and Galway.

The key criterion for the award is that the new station must cater for over-45s. While they might have danced in ballrooms or smooched in Tamangos, today's 45+ adults like nothing more than to watch TV, read a book or go to dinner with friends. And when they turn on the radio, they want to hear the soundtrack of their life. At least that's what the competing consortiums seem to think.

Each of the applications presented by the consortiums to the Broadcasting Commission of Ireland includes the views of advertising agency executives on the 45+ demographic.

Only one in three media buyers has a brief to target the 45+ demographic when planning media schedules for their clients. This is largely because people in their forties and fifties have long made their major lifestyle choices - bank, mortgage, car, insurance, beer etc - and they're slow to change.

Legend, a consortium that includes Denis O'Brien, estimates that the new station will have a potential audience of 710,000 people. Legend sees the potential but recognises the tough road ahead to persuade advertisers that the older audience is worth targeting. Its presentation remarks: "45+ year olds have been underserved, or overlooked, to date and significant sales management will be required to ensure media buyers plan schedules with this audience in mind. Very little research exists for this demographic, as they are considered to be well past marketing's conventional threshold of demographic relevance."

Whoever wins the licence - the applicants include The Irish Times as part of the 4FM consortium - could have an uphill battle convincing advertisers of the value of this older audience.

Dave Tallon of Initiative Media, a large media buyer, is quoted by Legend as saying that an oldies station would be of benefit to the radio industry, though he notes that "such a station would find it difficult to turn a profit as most money is not targeted at the 45+ demographic".

Tim Griffiths, managing director of OMD, felt the new station would only "marginally grow advertising revenue".

Striking a more positive note, Bill Kinlay, chief executive of Group M, is quoted in the Cream application as follows: "Clients would be very interested in the 45+ market. Clients realise this market has very high disposable income and once you gain their trust they are very loyal. Sectors like financial, retail, food, alcohol and government would be only too keen to reach this lucrative group."

Graham Taylor, chief executive GT Media, is also quoted in the Cream application: "The over-45 age cohort is growing rapidly in importance for many advertisers as people nowadays are living more active lifestyles for longer and in many cases have a great deal more disposable income at this stage of their lives. Many food companies are now introducing foods with added health benefits for older people so it is clear that there is quite a significant pool of advertising revenue available."

Kia general manager James Brooks is quoted in the Radio 3 application as follows: "At Kia Motors, we believe that the medium is the message and RTÉ 1 is a predominantly news environment. When we are advertising a leisure brand, we want a leisure environment. And for the 45+ cohort, there aren't many of those. Given their disposable income, this age group is very important to us."

Brand strategy agency Jump researched the behaviour, attitudes and preferences of the 45+ market. The research findings state: "It must be recognised that 45-54s are at quite a different stage of life to 55-64s. They are busy with jobs, children and are still paying off their mortgages compared with mortgage free 55+ with older children."

All the consortiums bidding for the new multicity radio licence agree that the 45+ demographic is the wealthiest older generation Ireland has ever seen. It's a bit of a mystery why so few advertising euros are targeting them directly. But all the applicants are willing to stake at least €6 million their station can change advertising habits.