Cornwall's 105 to 107 Itchy FM - Ofcom Licensing

sustain small scale youth media and marketing businesses and IMD Radio Cornwall Ltd’s investors are
confident that the secondment of Ian Merricks and Martin Dallaghan to oversee the launch of the
station , alongside deep radio experience from Mark Briggs and the Managing Director will result in a
station that out-performs the cautious revenue and reach targets set out herein.
(F) Financial and Audience Projections
The purpose of this section is to allow the applicant to demonstrate its understanding of the market.
The forecasts should be based on reasonable assumptions that are logically applied and justifiable.
The applicant should provide financial projections on an annual basis for the licence.
(I) Profit and loss accounts
(II) Projections for listenership ratings over the first three years of the service
(III) The expected impact of the proposal service on existing services, in listenership terms.
This section must include a full listing of the underlying assumptions on which the financial projections
are based, relating such assumptions clearly to other parts of the applications (e.g. proposed format,
extent of coverage area).
The applicant should detail how revenue figures were derived, distinguishing between local, national
and sponsorship revenues.
The applicant should also address the following issues:
(i) The target audience for the proposed service;
(ii) Projections for listenership ratings over the first three years of the service;
(iii) The expected impact of the proposed service on existing services, in listenership terms.
Revenue Strategy
A significant benefit of targeting an Under 35 audience is the opportunity to capitalise on a range of
non-traditional revenue streams that are currently under-exploited. IMD Radio Cornwall Ltd will adopt a
diversified approach to building commercial revenues, reducing its reliance upon purely local spot
advertising in favour of sponsorship, promotions, events, brand partnerships and advertiser funded
specialist programme production.
The IMD Group is exceptionally well-placed in its ability to provide strategic and operational input
relating to numerous non-traditional radio revenue opportunities such as client marketing services
(events, PR, sampling) and specialist programme production / advertiser funded programming. This will
be led by Rob Wood, IMD’s Head of Content Development. Rob was previously managing editor of
youth magazines JockeySlut and Sleaze[Nation], and is a respected consultant to brands and the
music industry on partnership marketing through content.
Despite its explosion in profile as a youth centre and destination, Cornwall’s established media owners
continue to target an older profile. This presents the opportunity for IMD Radio Cornwall to unite,
develop and promote a large number of disparate, but increasingly successful publications, venues and
thriving youth brands. Itchy FM will effectively corner this section of the communications market,
utilising a range of activities centred on the station.
Revenue summary
Itchy FM’s income will comprise local and national clients, buying spot advertising, on and off-air
sponsorship and other youth targeting marketing services ideally provided by a radio station.
Revenue composition
Year 1 Year 2 Year 3
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