Question: Would you let one of Gazza’s drinking mates run a radio
station? Answer: Only if it was previously owned by an old hippy who
traded his rock ’n’ roll recording stable - the Stones, Sex Pistols et
al - for a fleet of 747s and now likes to be called Biggles.
This is media DC Comics-style. Or even media as in the dreaded latest
Bond film, Tomorrow Never Dies - the ’Blofeld mutates into Robert
Maxwell’ Christmas turkey. In other words, it’s colourful, melodramatic
and more than a little surreal.
We are, of course, talking about Richard Branson’s decision to sell his
Virgin Radio station not to Capital Radio as promised, but to Chris
Evans (Campaign, 12 December). Carrot-top Chris Evans - Evans of the Big
Breakfast when it was good, Evans as in TFI Friday, Radio 1 walk-outs
and star of the current Virgin Radio Breakfast show.
On the face of it, the deal was pretty good business for Branson. Evans’
company, Ginger Media Group, gives him an pounds 80 million wad of cash.
He keeps a seat on the board (and the decision-making involvement that
entails) while also enhancing the likelihood that the Virgin Radio
branding has been secured over the long term.
Capital, of course, lost out because the Monopolies and Mergers
Commission announced that it was delaying its decision on the radio
group’s proposed - and agreed - takeover of Virgin.
Who could blame Branson for listening to Evans’ audacious 11th-hour
bid?
But, for some, his last- minute jilting of Capital left an unpleasant
aftertaste and they would argue his halo is looking distinctly
tarnished.
That’s history now. The real question is whether the deal is good
business for Virgin Radio. And, more broadly, whether it’s good for the
radio industry.
There’s no doubting Evans’ pedigree as a presenter and Ginger
Productions is a pretty clued-up little company. But running a national
radio station is an entirely different proposition.
Is Evans up to it? Agencies are already worried about remarks he’s
allegedly made about hiking ad rates. Will that just be the first of
their worries?
Jonathan Durden, a partner in New PHD, maintains that Evans is likely to
be a huge asset to the industry. He says: ’Evans is a talented performer
and is likely to attract similarly high-calibre talent to the
medium.
He has a knack of developing innovative formats and will continue to
bring to radio a high public relations profile. The only negative is
what happens to Capital after all the effort it put into this. I don’t
understand how the MMC can hold up a deal and yet allow other people to
have access to that deal. It didn’t look very honourable to us. A lot of
people will not find that aspect so attractive.’
But Durden doesn’t think that there’s a downside to Evans’
character.
’Only time will tell, obviously, but I believe his enthusiasm and feel
for the medium will count for a lot.
I could see him developing in the swashbuckling media tycoon mould. And
I can see a lot of the people he has surrounded himself with over the
past few years continuing to be important. I wouldn’t expect him to get
stuck behind a desk. He’s contracted to the Virgin Breakfast show for
the next three years - that’s enough to be getting on with.’
Others would go further. David Connolly, the joint media director of Leo
Burnett, believes Evans’ move will raise the stakes across the whole
radio industry. ’He’s a perfectionist in what he does and he has an
amazingly high profile - he’s in the newspapers almost every day. At a
basic level, he is likely to take audience from the BBC which will help
commercial radio as a whole. It will be intriguing to see how much he
actually contributes in terms of schedules and presenters.
’But I think the biggest impact will come in the longer term with a new
and different policy towards advertising. If you listen to his show, he
interacts with the ads, slating the ones he hates and being enthusiastic
about the ones he likes. I could really see him turning down ads because
they’re not good enough. It might be risky, but he could move the
argument away from just audiences and costs per thousand. It’s something
advertisers might applaud too. It could be a huge creative stimulus to
the advertising industry. I think we’ll see creative teams keen to
develop copy in tune with his style and also trying new advertising
formats.’
Others such as Paul Mukherjee, press and radio buying director of the
Network, argue that Evans is a far more rounded character than people
realise. Mukherjee states: ’Ginger Productions is a well-run company -
Evans is already the figurehead of a very complex business. There’s
quite a lot of financial acumen there and you should talk to people
who’ve actually worked for him - he’s actually a very astute manager of
people. Just as a presenter in the mornings, he is likely to steal
audience - from television as well as other radio stations. From our
point of view, the fact that Capital lost out means that there’s more
competition in the marketplace.’
As for ad rates, Mukherjee points out that radio has two things to
sell - the audience and the brand. ’Evans might try to hike rates on the
basis of the brand. If you’re buying the brand, that’s fair enough. If
you’re buying audience, then you can get it elsewhere.’
Bob Wootton, the director of media services at the Incorporated Society
of British Advertisers, agrees: ’Everyone tends to get only what the
market thinks they are worth. If Virgin delivers more, it deserves to
earn more.
Advertisers understand that. What they tend to object to are situations
where falling audiences are coupled with rising prices.’
What about Evans as businessman and media owner? ’Everyone makes a
change in career direction at one time or another. It would be petty and
ungenerous to make a negative judgment on that. Let’s give him a chance.
He delivers on radio - he is undeniably good for audiences. The
commitment he brings as a performer means Virgin can face the future
with confidence.’
