15th Korea Advertising & Public Relations Society Autumn Conference
Integrated Platform Operating in Australia, Japan, and Indonesia
Hundreds of Radio Broadcasts Available on a Single App
As radio advertising expenditures continue to decline, voices have emerged calling for individual radio stations to join forces and provide an integrated application (app) service to enhance radio's competitiveness as an advertising medium. One of the strengths cited is the ability to respond to the trend of infotainment systems being installed in vehicles, where radio demand is high.
On the 15th, the Korea Advertising & Public Relations Society held its autumn regular academic conference and hosted a seminar titled "Measures to Revitalize Advertising through the Introduction of an Integrated Radio Platform." Professor Lee Si-hoon of the Department of Advertising and Public Relations at Keimyung University, who presented at the seminar, pointed out the weakening competitiveness of radio as an advertising medium and proposed the introduction of an integrated radio platform.
Currently, radio advertising has shown a continuous decline in advertising revenue since the COVID-19 special demand period of 2020-2021. Radio advertising revenue decreased from 259.767 billion KRW in 2021 to 254.022 billion KRW in 2022, 219.485 billion KRW in 2023, and is projected to be 219.208 billion KRW in 2024. Since advertising revenue is also used as a resource for radio broadcasting, it is important to enhance the medium's competitiveness.
Professor Lee analyzed, "Domestic broadcasters have long operated individual radio apps, but it is difficult to secure competitiveness within the rapidly changing automotive infotainment systems."
He suggested referring to overseas integrated platform cases. Australia has built an integrated platform through an application called Community Radio Plus, which allows listeners to access over 300 radio stations in real-time or as podcasts. Japan's Radiko involves more than 100 radio stations, offering local radio broadcasts for free, while all broadcasts can be accessed with a subscription fee. Indonesia's 'RRI Play Go' also enables nationwide listeners to select and listen to regional radio stations.
Professor Lee Si-hoon stated, "An integrated platform can respond to the trend of vehicle infotainment system installations by automakers and is expected to have positive effects such as the digital advancement of small and medium-sized radio stations. Establishing an entity capable of promoting the construction of the integrated platform based on legal, institutional improvements and financial support will be an important preliminary task."
Another presenter, Professor Lee Hee-bok of the Department of Media, Video, and Advertising at Sangji University, emphasized the need to allow indirect advertising through amendments to the Enforcement Decree of the Broadcasting Act to increase radio advertising revenue.
Professor Lee Hee-bok cited Professor Lee Si-hoon's research results, stating, "With amendments to the Enforcement Decree of the Broadcasting Act, sponsorship of program titles and the introduction of indirect advertising on radio will be possible," and predicted, "Radio indirect advertising is expected to generate an annual revenue increase of approximately 10.3 billion KRW." He added, "While television advertising can introduce new types of ads such as virtual and indirect advertising, radio is primarily audio-based, limiting the application of new advertising types. As an alternative, 'live read,' where mentions of products or services are made directly during broadcasts, can be considered."
He also mentioned that to introduce live read, the Enforcement Decree of the Broadcasting Act must be amended to include this within the scope of indirect advertising. Specifically, an exception clause should be added to Article 59-3 (Indirect Advertising) of the Enforcement Decree of the Broadcasting Act, allowing indirect advertising via voice on radio broadcast channels. Furthermore, he noted the need to relax regulations on various prohibited advertising categories such as prescription drugs, medical advertisements, compounded oils, alcoholic beverages, and gambling industries.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
