Radio networks edging agencies with in-house offerings

Josh McDonnell
By Josh McDonnell | 23 August 2018
 

This first appeared in the August issue of AdNews magazine.

Radio may be no stranger to diversification, but while podcasts, events and digital radio have been hogging the limelight, hiding in the background is the growing network divisions of in–house creative.

Commercial radio networks including Nova Entertainment, Australian Radio Network (ARN) and Southern Cross Austereo (SCA) have all been developing and setting up creative teams dedicated to servicing clients’ ad creative needs not just for radio, but digital and even most recently, television.

Traditionally clients wanting to advertise via radio would have assets created elsewhere, such as in creative or full-service agencies, but as radio networks look to get a greater slice of ad pie, they are increasingly taking a wider role in ad creation and branded content strategy.

SCA has The Studio, Nova has Create, and while ARN’s creative is there, it has no separate identity.

The networks promote their own talent as part of the sell, with The Studio stating shows like Hamish & Andy “know how to create ideas” and want to work “directly with you”.

Nova’s Create has its own radio duo Fitzy & Wippa and trio, Kate, Tim & Marty, plastered on its main page, all spruiking different brand logos.

Branded campaigns are only the half of it. Create director of commercial strategy, Kate Murphy, likens the team to that of a creative agency, offering a full service solution from brief through to execution.

Employing more than 80 commercial and strategic creative professionals across multiple disciplines, the team is now represented in every major capital city across the country.

“Many clients don’t want to simply invest in straight advertising or 30–second spots anymore,” Murphy said.

“They still have a place and they’re a fundamental part of every solution we come up with, but it needs to have complementary aspects.

“This is Create’s role. If you get a sales person who wants to sell more than inventory - beyond spots and dots, straight advertising or brand campaigns - then they would engage with us to come up with that solution.”

Murphy pointed to the ‘Modern Babies’ campaign created for IVF clinic and fertility specialists Genea as an example of how clients have leveraged Nova’s creative services.

Create was tasked with developing a podcast to act as an “intimate platform” for hopeful parents looking to explore the IVF option, providing information and support for those going through the difficult process.

SCA created this TV campaign for OVO

Luke Parsons, head of The Studio at SCA, said the opportunities these days go beyond simple audio creations.

“It’s not just about knowing ideas creatively. It’s working alongside the strategy and the strategist and developing ideas together,” he said.

“There’s a greater demand on creative collaboration and a deeper understanding from a strategic insight perspective because we know we can’t change behaviour without knowing the right insights.”

The SCA–run creative services team released its first TV work for partner and mobile network provider, OVO, in April and has plans to take on more established creative shops this year by making more ads.

Parsons said this foray into TV advertising was the opportunity it needed to solidify itself as the “central point” across all platforms.

As to whether in–house agencies like The Studio and Create are encroaching on creative agencies’ turf, Parsons says his team err on the side of caution as they look to avoid souring existing commercial relationships.

“By no means are we out in the market going against the creative and media agencies at all because they’re our friends, our allies and our stakeholders as well,” he said.

“However, we’ve definitely got provisions internally to be able to produce a lot of content ourselves, so it’s really trying to complement those media agencies that are full service.

“The creative agencies know that, and are aware that publishers are growing these skills so it’s all about who in that time, in that project, is best fit to execute that brief.”

As a result, Parsons said agencies have opened their doors to publishers such as SCA and developed more collaborative strategies, allowing creatives like The Studio to deal one–to–one with a client.

This is also reflective of client attitudes, as they begin to encourage these arrangements, they continue to push for more “bang for their buck”, Parsons said.

“We are all working far more collaboratively, because the clients are demanding that - and good on them,” Parsons said.

ARN head of creative Adam Williams, whose team predominantly work on radio and audio creative projects, said as the offering continues to grow, networks are tipping the scales, working with clients directly rather than going through agencies.

“What we are noticing with the growth of our in–house work is that we’re a very good proposition for agencies that want to use us as more of a production house as well,” he revealed.

“It’s getting close to parity between the direct work straight with the client and work through media agencies, especially in the bigger markets of Sydney and Melbourne.”

Williams said the networks have an opportunity to act as a “creative agency for clients who don’t have a creative agency”.
As ARN offers a more audio–focused service, the network has also become a production house for clients or agencies looking for a ‘premium’ audio product, Williams added.

“We are obviously respectful of the creative agencies. We don’t want to go treading on anyone’s toes, but we will always be competitors in one sense,” he said.

“We can either come up with the concept, write and produce the concept or we can more or less polish an existing concept and put it into the more audio friendly form. Or we can just straight out be used as a production house studio. We remain focused on growth.”

What's the recipe for good radio creative?

J. Walter Thompson Perth creative Tim Newton:

“This may not surprise you, but … people don’t care about ads. Yeah, yeah, you’ve heard about breaking through the clutter with something unexpected. But, if you really want people to listen, you gotta entertain. Elicit some sort of response so they connect with your ad, and, more importantly, the brand.”

Clemenger BBDO Melbourne senior creative Carlo Mazzarella: 

“Radio is unique because you’re forced to simplify everything, but the most important element is always the idea. What makes a good idea is subjective, but most people agree when a radio spot is well executed and crafted. So those two ingredients mixed together should make the work stand out.”

J. Walter Thompson Perth senior creative Wilora Keeley:

“It starts with having fun. Read the brief, find a simple insight for the audience and have a ball. Regardless of the politics, the budget, the award shows, the expectations and everything else, if you have a good time writing, your passion will speak to people. The success of the ad is the cherry on top.”

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