Radio advertising costs could be cut following changes in the way advertising is distributed to UK radio stations.
Michael Horner, former LBC Radio sales director, has set up a rival to Satellite Media Services (SMS), the radio advertising distribution operation which for eight years has had sole control of the market.
Horner says the new company, Independent Media Distribution, will cut costs by 40 per cent by sending copy to stations using a PC network instead of by satellite.
He adds: “Under SMS about a third of radio advertising budgets has been going towards distribution, which often means advertisers have to restrict campaigns.”
SMS shareholders include EMAP Radio, Capital Radio and Scottish Radio Holdings.
“It is one thing paying over 100 for every piece of copy when you’re sending it to four television stations,” says David Fletcher, head of radio at CIA Medianetwork. “It’s different when you need to send it to 50 radio stations.
“The cost of copy distribution is higher for radio than other media. Anything that makes radio more attractive to clients is good news.”