Big changes due in ads, revenues at Israel Radio

Follows decision to open up advertising and marketing division to several franchisees.

By
September 13, 2011 03:12
2 minute read.
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IBA logo311. (photo credit: Courtesy)

Major changes are expected in advertising content and revenues at Israel Radio following a decision to open up its advertising and marketing division to several franchisees instead of leaving it to the monopoly of a single agency, as has been the case for 18 years.

Until now, Shapam, an acronym for Sherutei Pirsum Meuhadim (“United Advertising Services”) has been solely responsible for the commercials on Israel Radio and has sold them as a package.

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What this means, explained a spokesman for the Israel Broadcasting Authority, is that while most advertising has up till now been designated for the Reshet Bet station, which has the most listeners out of all the networks under the Israel Radio umbrella, those that were sold as part of a package were also siphoned off on to other stations and may not have been appropriate for the listeners of those stations.

The new policy is to promote niche marketing so that someone who specializes in the needs of the Arab sector, for instance, will provide appropriate advertising for that sector, and someone else who understand the needs of the Orthodox community will ensure that no commercials that might be offensive to that sector are broadcast on Reshet Moreshet, the Jewish heritage station.

Listeners on Reshet Gimmel, the popular music station, would be interested in commercials about concerts, new record releases, and music festivals.

That doesn’t necessarily mean that annoying commercials will disappear from Reshet Bet, but it does mean that over all, fewer people will be annoyed by content in commercials.

To some extent the franchisees that will be selected will compete with each other, and it is hoped this will result in increased revenues for Israel Radio. In the period 2008-2010 Israel Radio’s revenues from advertising averaged around NIS 110 million year.

It is anticipated that under the new system revenues will rise to NIS 116m. per year.

The new policy was devised by Sasson Yona, a member of the plenum of the Israel Broadcasting Authority, in response to complaints by advertising agencies that they could not get a foot in the door at the IBA.

For several years now, advertising has been allowed on Israel Radio but not on TV Channels 1 and 33, which are permitted to accept sponsorships for special events but not full-blown commercials.

Whether this will change in the face of the IBA’s efforts to overcome its deficit remains to be seen.

Meanwhile the IBA has published tenders, details of which are available at www.iba.org.il/tenders.


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