Station seeks 10% market share

RADIO Ireland's aim for its first year is to take 10 per cent of the current £40 million radio advertising market.

This is a relatively modest aim, believes marketing manager, Mr Dave Hammond, particularly as Radio Ireland hopes its arrival will help to accelerate the existing strong market growth.

The radio station is budgeting to be in the black in its third year of operation. Its anticipated advertising and associated revenue of £4 million in year one would roughly cover running costs.

However, as the initial investment which has so far reached £3 million has to be written off, this will delay a move into profitability.

Mr Hammond is confident that Radio Ireland is starting up at a good time. The economy is strong and he says entire new advertising markets have built up in recent years. For example, financial institutions are now heavily advertising freephone numbers, while mobile telephones are part of a whole new growth area.

Radio Ireland is hoping to target 25 to 45 year olds, where it believes there is a gap in the market, with Radio One's listenership concentrated among older listeners and most of the other stations aiming for a younger market.

Radio Ireland's sale pitch will be that it can give advertisers access to its key age group, particularly in the Dublin marketplace. It is banking on providing a strong news service and featuring presenters which it hopes will attract listeners away from Radio One in the important early morning and late afternoon slots.

It believes its key programme points will be a strong news team and presenters such as Emily O'Reilly and Eamonn Dunphy.

Its advertising rates will obviously be pitched somewhere below Radio One's. Its backers hope that the station can quickly develop a strong identity attractive to its key market.

Radio Ireland is believed to be close to concluding an agreement for ICC Venture Capital to buy the 15 per cent which is not now being taken up by Thomas Crosbie Holdings, the owners of the Examiner newspaper.