Radio industry makes waves

ALKESH SHARMA / Emirates Business

Radio industry, which was once considered a dud medium of entertainment, is now growing significantly in the UAE. The Emirates has emerged as one of the most refined radio markets in the Middle East and North Africa (MENA) region and has, by far, the highest number radio stations in this part of the world.
According to a latest survey-report titled ‘Media Industries in the Middle East 2016’, UAE radio stations broadcast in more languages than
any other country does, reaching nearly 80 percent of the UAE’s total population.
“UAE is one of the fast moving countries in the world. Everybody is busy and has very less time for personal entertainment. Handy nature of radio proves boon in such circumstances. Not only consumers but also broadcasters are earning good ROIs (return on investment) in the radio industry,” Alexandra Sanchez, a 32-year-old entrepreneur, who is running a digital media start-up in Dubai, told Emirates Business.
High penetration of internet in the UAE society is also facilitating the fast emergence of radio as an ultimate medium of entertainment. Interestingly, top five radio stations (by reach) of the UAE have dedicated websites and offer the facility of online streaming while nearly 80 percent of them also offer mobile apps.
Presence of a huge number of expat population in the UAE, especially Indians and Pakistanis, is also contributing towards the growth of the industry. In this region, the UAE has witnessed a higher surge in
the number of radio stations providing non-Arabic content, including Armenian, Hindi, Malayalam, and Urdu. Notably ad revenues have also stayed steady in the industry.
“Radio’s shares of ad revenues in MENA have remained relatively stable contrary to other parts of the world, where radio’s share decreased in the past five years. However, the share of radio advertising spend in MENA is still considerably lower than elsewhere in the world. It accounts for only 3 percent of total advertising spend when compared to North America (11 percent), Western Europe (5 percent), and Latin America (6 percent),” stated the report, which is compiled by
the Northwestern University in Qatar, in partnership with Doha Film Institute.
As per the report, the MENA radio ad revenue was recorded $168 million in 2015 while it was only $148 million in 2010. Year 2012 saw the peak season when it reached whopping $187 million.
UAE has also seen a good jump in the number of radio stations during 2011-2014. There were 38 radio stations in 2011 in the Emirates and the number rose to 47 in 2014; it was the maximum in the region.
“Radio also offers a plethora of job opportunities in various departments ranging from production, sound modulation, editorial and broadcasting. It must be very exciting to work in a radio station as you are directly communicating with the end consumers,” Rashi Varghese, a student of Mass Communication in Dubai, who is looking forward to make a career in radio, told Emirates Business.
Report says that within the MENA region, concentration of radio ad spend is high in the UAE (31 percent), Saudi Arabia (22 percent),
and Egypt (32 percent) that account for nearly 85 percent of all radio advertising revenue ($168 million) in the region.