Distribution start-up vows to slash radio advertising costs

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.”

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here