In October 2003, Heart 106.2 FM was, briefly, the number-one commercial radio station in London - knocking traditional market-leader Capital FM off its perch. The station, which targets a 30-something mix of 'office angels and new families', with a playlist ranging from Sister Sledge to the Scissor Sisters, hit 7.2% share, with 1.9m listeners tuning in each week.
Since then, the network's share has been on the slide. Heart reached just 1.62m listeners a week during the fourth quarter of 2004, according to Rajar, while share dropped to 5.3%. Not only has it fallen behind Capital (6.2% share), Magic 105.4 (6.1%) has cruised past it with an easy-listening formula aimed at 40-somethings.
What is so frustrating for Heart is that the departure of Capital's breakfast icon Chris Tarrant was a golden opportunity to seize the initiative. While Tarrant's replacement, Johnny Vaughan, suffered a 300,000 fall in listeners in his first six months, Heart unleashed a TV campaign to bring listeners to its own breakfast slot, fronted by Jono Coleman. Soon after, it unveiled its first brand overhaul in six years, only to see a 123,000 loss in breakfast listeners year on year. Overall, the network shed 189,000 between the third and fourth quarters in 2004.
Heart 106.2 managing director Steve Parkinson has responded to the latest set of figures by axing motormouth DJ Jono, and putting Jamie Theakston in the hotseat from Easter. His view is that audiences want a more natural easygoing style.
Do Heart's problems run deeper than its breakfast show? Parkinson thinks not. As Heart enters its 10th year on air, he says its core audience - 30- to 39-year-olds, with a strong female bias - is rock solid. 'Research showed our listeners wanted us to surprise them. I think we have done that with Jamie. We have already had calls from agencies interested in sponsoring his show.'
We asked Mike Buckley, head of radio at ZenithOptimedia, and Martin Poole, director of sales and marketing at Brian Dunlop Associates, which created ITV's idents, whether they think a change in breakfast DJ will save the day for Heart.
DIAGNOSIS 1 - MIKE BUCKLEY HEAD OF RADIO, ZENITHOPTIMEDIA
Since the departure of Chris Tarrant from Capital, the London radio market has become very volatile, giving Heart a chance to win listeners. However, it may have been trying too hard to go after Capital and, by aiming for a younger audience, it could have opened the door for Magic.
There is nothing wrong with Heart's core 'lifestyle' proposition and it should not panic. Its fall in audience last year may be due to schedule changes made to keep in touch with the core audience, which is understandable.
What Magic has shown, however, is that a consistent package is key. Heart must also realise that between 1.6m and 1.9m listeners may be as good as it gets in London.
The decision to replace Jono with Jamie Theakston may be a good one.
He is a proven broadcaster and known to his audience via TV. However, there are risks. It will be a while before we see any benefits and it may alienate Jono's fan base - which remains big despite recent losses.
It also remains to be seen how Jono will respond between now and Easter when Theakston takes over.
REMEDY
- Get back to basics by focusing on the 30-something audience, instead of trying to take on Capital.
- Do not give up on the DJ-led approach. In local markets, audiences like presenters they can connect with.
- Address the strength of the BBC. Advertisers will receive greater benefits if audiences start to return to commercial radio from BBC Radio 1 and Radio 2 than if they switch between Magic and Heart.
DIAGNOSIS 2 - MARTIN POOLE DIRECTOR OF SALES AND MARKETING, BRUCE DUNLOP ASSOCIATES
Heart, like many radio stations, bases much of its marketing on celebrity DJs. However, replacing Jono with Jamie Theakston and backing the switch with a 拢1m marketing blitz is not the answer. It is a risky approach, which does little to establish a connection between brand and listeners.
If audiences don't like Theakston, Heart is back to square one.
Heart's recent brand-based activity does not seem to say much about what the brand stands for. It needs to establish an attitude that helps it stand out. Magic's 'More music, less talk' says more about the station than Heart's 'Right music, right now' - a line that could be interchanged with any radio station.
Heart's biggest asset is perhaps its name. It needs to look at ways to inject concepts such as heart and emotion into all areas of its schedule. It isn't enough to tinker with the logo.
Having established that the brand is about lifestyle, it needs to inject that into its communications.
Also, if the audience wants to be surprised, it needs to establish how to surprise them within the framework of a station they trust.
REMEDY
- DJs can articulate a radio brand, but they are not the brand. Heart needs an approach that is not just about revamping its logo and jingles.
- Create editorial events that give the brand expression. Find the Heart equivalent of Desert Island Discs.
- Heart needs a strong visual identity that its target audience can relate to. Its website, for example, does not fit the profile of the older female audience at which it is aiming.
VITAL SIGNS
Station Listening share % Weekly reach %
Q4 04 Q3 04 Q4 03 Q4 04 Q3 04 Q4 03
95.8 Capital FM 6.2 7.2 7.8 20.0 21.0 22.0
Magic 105.4 FM 6.1 4.8 4.5 15.0 15.0 13.0
Heart 106.2 5.3 5.4 7.0 16.0 17.0 18.0
BBC Radio 1 FM 4.3 5.1 3.6 14.0 14.0 12.0
Kiss 100 FM 3.9 4.5 4.0 14.0 15.0 13.0
Virgin 105.8 FM 2.9 2.6 1.8 8.0 8.0 8.0
Capital Gold London 2.3 1.7 2.1 7.0 7.0 10.0
Source: Rajar