In 1979, The Buggles enjoyed a smash hit with Video Killed the Radio Star, which ushered in the age of Music Television. After years of dominance, radio had a new rival. The same year, China was busy implementing its new one-child policy and radio stations were vital government mouthpieces, mixing folk songs and novel readings with Communist Party updates.
Things have come a long way since then. Radio is still very much alive and well on both sides of the planet, despite changing audience tastes and increased competition from the internet and MP3 players.
China's newly market-oriented radio industry is resembling its western counterparts more and more. But there is still some way to go. State censors, even from a distance, still maintain firm control over news and programme content, and a recent government tightening of media ownership and co-operation with foreign media firms is holding the industry back.
While China is the second-largest radio market in the world in terms of listenership, it lags behind more developed markets in terms of advertising revenue and market share. According to the ratings company CTR, 3.4 billion yuan was spent on radio advertising in China last year, accounting for about 1.36 per cent of a market worth 243.9 billion yuan, and rising. Radio stations, combined with outdoor media and the internet, took 3 per cent of market share away from the newspaper industry. But there is great potential for even more growth in radio advertising and overall revenue.
While the mainland advertising market slowed to 18 per cent growth last year, radio advertising expenditure rose by more than twice that amount - 39 per cent. Radio stations achieved this by attracting more advertisements from telecommunications companies and vehicle-related companies.
China Mobile, for example, increased its radio advertising expenditure by more than 60 per cent, and other companies are following suit. The reason is the increased quality, specialisation and variety of radio stations in China, and their ability to catch up with a busy population on the move. The average commuter in a Chinese city spends up to five hours travelling each day.
