Black radio, hidden goldYou wouldn’t think that in this

day and age, radio stations aimed mainly at black audiences

are still undervalued by advertisers, but they are.

Charlene Deacon

My Background

• Radio for 20 years – 8 years as MD Kaya FM• Currently JET/NECT Project Director – in the

field of basic Education• My job here today is to spark discussion

around the topic “Black Radio, hidden gold”.• Who are you?

Baseline comments

• Commercial Black stations are younger than other stations which means their brand equity had to be built with advertisers and agencies before they got traction in terms of locking down their fair share of the spend

• On the other hand Black SABC stations that have been around a lot longer and their pricing was kept back by the fear of a backlash from advertisers

Black Radio in a still predominantly white economy

• The paradox is that the gold is buried between the under pricing, the growth of listeners disposable income and the need of the marketer to maximise return on investment.

• We need to understand the impact of our social grant policies on the economy and the mind-set's of our people.

Ad Sales Triangle/Square

• Marketers – looking for return on investment • Radio – looking for advertising revenue• Listeners – with varying levels of income listen

to a station that is relevant to their lifestyle because it adds value to their lives

• Agencies – the ‘middleman’ that marries marketers to markets to grow return on investment and to build brand equity that generates longevity in the marketplace.

How are Black audiences undervalued?

• Listeners not always aware of their consumer power

• Black radio stations in the quest to make money under price themselves to get traction in the marketplace

• Agencies have a narrow focus on the Black middle class and are transforming at a slow pace

• Marketers will always look for value for money and opportunities to grow their client base

Where is the hidden gold?

• Listeners are hungry for valuable information in a transforming society that makes their lives more meaningful and easier.

• Where is the listeners disposable income focused in terms of spending? (Is it in retail type products e.g. clothing, cell phones etc.)

• Understanding the lifestyle issues that drive cultural differences and vice versa is where the real gold is.

What are the questions that need to be asked and answered?

• How do we as a black radio stations unlock the potential of the predominantly white economy to the benefit of all?

• How can Agencies and marketers participate in driving transformation to a new economy?

The problem statement?

• If we recognise that the Black market in its totality has value beyond the sum of its parts then South Africa will transcend into a new economy and that is where the real gold is.