Cornwall's 105 to 107 Itchy FM - Ofcom Licensing

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In addition, IMD Group’s local sales force will be able to refer business to Itchy FM. IMD Group’s national client relationships will enable station events to be sponsored by national brands, and a national sales agency will focus on national spot sales. Emphasis on wide range of commercial activity As set out previously, Itchy FM has identified and researched nine different revenue streams, broadly falling into three inventory areas for servicing: 1. Local: spots, programme sponsorship, outside broadcasts, on-air promotions 2. National: Large event sponsorship, sampling activity, data capture and data sales 3. Consumer revenue: Music downloads, SMS, publications Local commercial activity The Cornwall business, education, social community has made the Itchy FM bid team very aware of the difficulties they each currently face reaching the youth market as no one media channel targets significant numbers in a credible or accountable way. From their enthusiastic support for our application we are confident that many of these businesses and organisations will adopt Itchy FM as their preferred marketing channel. Commercial trial During the course of the year, the underlying principle of IMD Radio Cornwall’s local sales strategy will be to sell effective campaigns to the majority of the county’s key local youth targeting business 'on air' within twelve months of launching. For many of our target advertisers, a large part of their business is reliant upon the youth market, and as such many businesses have developed to specifically target young people within the county. As such, the station will benefit from a large number of potential clients across the county, currently frustrated by the lack of opportunities to enable effective communication with this valuable demographic. Due to the geographic spread of Cornwall, IMD believes that many of these clients will be smaller businesses. Subsequently, one of our methods to grow local advertising will be through providing a fresh, targeted media opportunity for the many smaller advertisers for whom other media channels are either too expensive, demographically wasteful or geographically limited. Our split transmitters will enable East / West campaign optimisation and act as an incentive for many of the County’s smaller businesses – those having a turnover of less than £500,000 (35%), to try radio advertising as part of their marketing activity 4 . Through IMD’s local sales training programme, local sales staff will be encouraged to sell campaigns that will secure the best possible chance of generating repeat business. This factor reiterates the importance of an integrated approach to the sale of advertising on the Cornwall youth station. We will demonstrate Itchy FM’s ability to reach the lucrative youth market with minimal wastage, in a cost-effective manner, against all other media options. Attracting a broad brand count will also encourage other less obvious advertisers (including seasonal businesses) to use the station whenever they wish to communicate with the youth market in Cornwall. “As a new high end clothing range based in Cornwall, we would welcome the opportunity to promote our business on a cool local radio station with lots of young people listening!” – Chris Dart, Owner / Co-Founder - Lief Clothing Alongside integrated campaign planning, our local sales staff will be trained to plan and implement airtime campaigns that will achieve quantifiable results for the client, whether through sufficient weighting of ad campaigns, creative copy, supporting activity or a combination of all three. This will enable our clients to trust Itchy FM, and will increase the ability for our staff to recommend future campaigns. 4 Source: Cornwall Enterprise, 2004 41
Revenue justification Given our programme format and target audience, Itchy FM will have no direct competitors for local sales. Owing to the previous low levels of young (Under 35) audience attracted to the existing commercial station, Pirate FM, we believe that many advertisers at a local level will be new to radio. These clients will need to be “educated” about the benefits of radio advertising (secondary medium, trusted, low ad avoidance etc) and be made aware of the importance of the more technical aspects of a radio campaign (copy rotation, USP, motivation to act, message clarity, OTH weighting etc). Itchy FM's sales forecasts are based on previous experience and recent client research undertaken by the IMD Radio Cornwall team, and on advice from three of the national sales agencies contacted by IMD Group. The forecasts are viewed as conservative due to the unique offering our service provides, allowing total audience access without wastage, and creating a channel to reach a sizeable leisure audience of UK youth each summer. We have found that many local companies have significant budgets aimed at the youth / student community; these include mobile phone stores, fashion & record retailers, surf shops, as well as professional firms seeking recruitment. As part of the commercial research, IMD has interviewed fifty local businesses many of whom have already expressed serious interest in advertising and sponsorship opportunities on Itchy FM. We have also had good support from the organisations impacting directly on the local business economy: “You are creating a form of communication that will be important in engaging the younger members of our community in developing the future of Cornwall. From Business Link’s point of view we currently have difficulty in reaching this audience. I am pleased to offer Business Link’s endorsement for your project and hope that you are successful in your application for the new radio licence” Andrew MacDonald, Operations Director, Business Link Devon and Cornwall Ltd Our local commercial review has demonstrated that many (62%) youth targeting local businesses do not use Pirate FM, due to its older, ‘family’ appeal or cost, but 58% would consider using Itchy FM. National revenues A national sales agency with experience of youth ILR sales will be selected. They will be tasked with selling the advertising to national clients and their agencies. We intend to work with a trade PR agency specialising in representing media clients to communicate our proposition to the national media buying audience. As part of the application process, IMD has interviewed national clients and radio planners and buyers at several advertising agencies who are keen on the proposition. “I was pleased to hear about your plans for Cornwall and feel that your programming proposals targeting 15-35’s will certainly extend choice in the marketplace for listeners and advertisers alike. With your past radio experience and growing expertise in wider youth media, I believe Itchy FM will be most successful. ZenithOptimedia puts c.£600k into the South West marketplace and our clients would welcome another media outlet that broadens choice for thus under-utilised audience.” Michael Buckley 42
Page 2 and 3: GENERAL INFORMATION Application for
Page 4 and 5: Rolf Munding Non-Executive Chairman
Page 6 and 7: Martin Dallaghan Current directorsh
Page 8 and 9: o Christopher Weston - A serial hig
Page 10 and 11: Market Opportunity BBC Radio 1 cons
Page 12 and 13: usiness being awarded a Shell Livew
Page 14 and 15: The seasonal uplift in listener vol
Page 16 and 17: This arsenal of advertiser-aligned
Page 18 and 19: only through this genuine investmen
Page 20 and 21: Station’s link with Investor stra
Page 22 and 23: (e) FUNDING The business will be ca
Page 24 and 25: sustain small scale youth media and
Page 26 and 27: Telegraph, Nuts Magazine (IPC) and
Page 28 and 29: Audience Projections Itchy FM predi
Page 30 and 31: Total Hours 546,000 100% Based on t
Page 32 and 33: might incur to achieve such high le
Page 34 and 35: o Newquay: surf / skate, clubbing,
Page 36 and 37: We would also support all station a
Page 38 and 39: A large part of Itchy FM’s likely
Page 40 and 41: Staff structure IMD Radio Cornwall
Page 44 and 45: Director of Radio, Zenith Optimedia
Page 46 and 47: SECTION 105(B) AND (C): CATERING FO
Page 48 and 49: 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 F
Page 50 and 51: spoken word content will provide ed
Page 52 and 53: (b) Proposed format Licence Outline
Page 54 and 55: NOP Study - November 2004 Edison Me
Page 56 and 57: Interest in New Radio Station: When
Page 58 and 59: Radio listeners in Cornwall are wel
Page 60 and 61: Research Conclusions This format cl
Page 62 and 63: collated a number of the most perti
Page 64 and 65: Local meetings Summary of some of t

Cornwall's 105 to 107 Itchy FM - Ofcom Licensing

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