News story about the launch of new local commercial FM radio stations 'L-107', 'Xfm' and 'Talk 107' intensifying the competition in the Scotland market of the UK, written by Grant Goddard in January 2006 for The Radio Magazine.

1. NEWS: NEW LOCAL
COMMERCIAL RADIO STATIONS
'L-107', 'XFM' AND 'TALK 107' IN
SCOTLAND INTENSIFY MARKET
COMPETITION
by
GRANT GODDARD
www.grantgoddard.co.uk
January 2006

2. Competition between commercial stations is intensifying in Scotland with the
recent re-launch of Lanarkshire station 'L-107', last week’s re-launch of 'Beat
106' as 'Xfm', and the launch of the new Edinburgh station 'Talk 106' in five
weeks time. At the same time, heritage station 'Radio Forth' has been
allocated a six-figure marketing budget by new owner EMAP plc to retaliate
with its own advertising and promotion campaign.
Lanarkshire station 'The Edge' was re-launched as 'L-107' on 28 November
with a visit by local MP John Reid, following its acquisition by Perth FM
Limited. Its new managing director Mark Page said: “I am very proud to have
the Defence Minister open Lanarkshire’s L107 in his home county. This has
been a very hectic two months, but I think we’ve put a full-scale commercial
radio station to air in record time, which is a reflection on the efforts of our
radio team.”
Page explained the stations’ philosophy to members of the Lanarkshire
Chamber of Commerce: “The station’s specialisation would be ‘local’, offering
more local news bulletins, travel news and information throughout daytime,
including ‘what’s on’ items of interest.”
GCap Media plc’s launch last week of 'Xfm' was noted by one observer in the
Scottish press to be “the most quiet launch of a radio station ever.” Stuart
Duncan, Xfm marketing controller, said: "We are not going to try to buy
listeners by spending a lot on advertising. We want to generate word of mouth
– people will be talking about the station and how the musical styles have
changed. There are specific audience targets set, but one of the things we are
not saying is: 'It's about hitting this many people by this time.' It's a three-year
plan that's tied into Xfm nationally. By the time we get into autumn 2006, Xfm
stations will be available across the vast majority of the country."
When it launches on Valentine’s Day, Ulster Television plc’s 'Talk 107' station
aims to attract 109,000 listeners and to be profitable by its third year of
operation. Station manager Peter Gillespie explained the launch campaign:
"The marketing around the launch will be to encourage people to give us a try.
There's going to be a reasonably substantial marketing push to get the station
known. The guys we want to encourage are the people who listen to 'BBC
Radio Five' but find it too national, or people who listen to 'Radio Scotland' but
find it's not doing what it's supposed to do. 'Beat 106' is revitalised – they are
going to put reasonable resources behind that to reinvigorate the brand. 'Real
Radio' continues to do well, and EMAP has bought Scottish Radio Holdings.
But, as far as I'm concerned, we sit at the side of all of that. Our objective is to
grow the commercial radio market. We are doing something that's not provided
by other stations."
'Radio Forth' has signed a £200,000 deal with the British Airports Authority that
will see the arrivals lounge at Edinburgh Airport sponsored by the station.
Managing director Adam Findlay said that the increased competition in the
market was evident: "You can feel the tension. Radio has always been a
successful genre, but 2006 will be the year when very professional players up
News: New Local Commercial Radio Stations 'L-107', 'Xfm' And 'Talk 107' In Scotland Intensify Market Competition
Page 2
©2006 Grant Goddard

3. News: New Local Commercial Radio Stations 'L-107', 'Xfm' And 'Talk 107' In Scotland Intensify Market Competition
Page 3
©2006 Grant Goddard
their game. It will be one of the most interesting years for Scottish radio. The
game is now on."
Guardian Media Group plc-owned 'Real Radio' said it was not planning
additional marketing campaigns for its Scottish station. Managing director Billy
Anderson explained: "We have never moulded our plans based on what others
do."
[First published in 'The Radio Magazine' as 'Radio Wars In Scotland', #718, 11 January 2006]
Grant Goddard is a media analyst / radio specialist / radio consultant with thirty years of
experience in the broadcasting industry, having held senior management and consultancy
roles within the commercial media sector in the United Kingdom, Europe and Asia. Details at
http://www.grantgoddard.co.uk