ADVERTISING/MARKETING: Red FM, Cork's new youth radio station, has an ambitious advertising revenue target of €1.9 million (£1.5 million) for its first year of operation.
The station, which went on air yesterday, is aimed squarely at the 138,000 15-34 year-olds in Cork city and county.
It's a tough market, not just because of the difficult advertising environment generally, but because Cork listeners are loyal to their own.
Red's chief competition in the market is County Sound 96 FM, a Cork station with a strong and stable listenership base.
The most recent JNLR figures - the industry research standard which measures listenership - say the broad-based music station was stronger than any other in the region. It attracted 59 per cent of listeners in Red FM's target market. 2FM, the next most popular station among the age group, came in at 43 per cent.
Ms Karen Cheevers, Red FM's marketing director, is bullish about the station's prospects, saying it hopes to win over 20-25 per cent of the market in its first year. If it succeeds, it will be an unparalleled debut and, given the current advertising market, an extraordinary achievement.
However, it will have to do at least that if the advertising revenue target is to make sense. The total radio market in Cork is estimated to be worth €6.35 million (£5 million), so for Red FM to reach its target in the first year, it will have to persuade a third of the audience to switch the dial.
The most optimistic prediction is that advertising revenue will be flat overall in 2002, so the new station will be looking to muscle in on existing expenditure, rather than grow the market.
At the height of advertising optimism in November 2000, Magic, one of the consortiums competing for the Cork radio licence, predicted first-year advertising revenue of €1.5 million.
It later revised the figure down by more than a third and suggested it would be well into the second year before that level of revenue would be achievable.
Red FM's first JNLR figures will not be available until February 2002, so Ms Cheevers and her team will have an uphill battle persuading advertising agencies to book space. Instead, they will be focusing on local Cork advertisers and expect that at least 20 per cent of their advertising revenue will come from sponsorship.
Red FM's €250,000 marketing campaign began yesterday.
"In this age group, if you miss it by an inch you miss it by a mile," said Ms Cheever, "but we know we have the formula right."
bharrison@irish-times.ie
