Stuart Fogarty

From RTE

Spotify today swung to a quarterly profit aided by price hikes in its streaming services and growth in subscribers in all regions, and forecast that its number of monthly listeners would reach 601 million in this quarter.

The company posted a third-quarter operating income of €32m, its first quarterly profit since 2021, helped by a higher gross margin and lower marketing and personnel costs.

“We believe moving forward, we should see pretty consistent growth in our operating income,” its Chief Financial Officer Paul Vogel said.

It forecast operating income of €37m in the current quarter.

After spending more than €1 billion in building up its podcast business, Spotify has been keeping a tight lid on costs, laying off 6% of its employees earlier this year and in July raising prices for its premium plans.

“We are still focusing on efficiencies, but efficiencies for us doesn’t mean just cost cutting, it means getting more out of each dollar,” CEO Daniel Ek told Reuters.

Spotify’s gross margin rose to 26.4% in the three months from July to September, up 166 basis points from a year earlier.

“We do expect to continue to see margin expansion into next year,” Vogel said in an interview.

The company’s number of monthly active users rose 26% to 574 million in the third quarter, beating its own guidance and analysts’ forecast of 565.7 million.

Premium subscribers, who account for most of the company’s revenue, rose 16% to 226 million, topping estimates of 223.7 million, according to IBES data from LSEG.

Revenue rose 11% to €3.36 billion, just beating estimates of €3.33 billion.

Spotify’s monthly user forecast for the fourth quarter sets the company firmly on target to reach 1 billion users and $100 billion in revenue annually by 2030. Analysts had expected a forecast of 591.2 million listeners.

It also expects premium subscribers to reach 235 million in the last three months of the year and revenue to reach €3.7 billion.

Analysts were expecting a forecast of 232.4 million premium subscribers and revenue of €3.69 billion.

From RTE.

Video sharing platform TikTok has announced that there are now 2 million people in Ireland using the app each month.

The company said a community of creators across the country had helped it reach the milestone.

“Our vibrant community of 2 million people across Ireland is made up of book lovers, foodies, families, musicians, comedians, artists and so much more, who come to TikTok to discover, share their stories, inspire creativity and spread joy,” said Cormac Keenan, Head of Trust and Safety at TikTok.

The Chinese-owned video-sharing app has faced scrutiny over how much access China has to user data.

In April, the National Cyber Security Centre (NCSC) issued guidance advising Irish Government departments and state agencies against the use of the app on official devices.

The US and UK governments, as well as EU institutions, have also banned the platform on staff devices over cybersecurity fears.

TikTok has described the government bans as misguided and based on misconceptions.

Ireland is playing a central role in the company’s efforts to address concerns over data security.

A plan called “Project Clover” involves European user information being stored at two data centres in Dublin and at a third centre in Norway.

Yesterday, TikTok secured permission from the High Court to challenge the Data Protection Commission’s decision to fine it €345m for failing to protect children’s privacy on the site.

From The Irish Times.

Rise in confidence driven by domestic factors as improved sentiment in Ireland contrasts markedly with other countries

Irish consumer sentiment improved modestly in October as support measures rolled out in Budget 2024 made consumers a little less gloomy about their household finances, according to a consumer sentiment report.

The Credit Union Consumer Sentiment Survey is a monthly survey carried out by Core Research of a nationally representative sample of 1,000 adults. The October survey was taken between October 4th and 18th.

The report said the uptick in confidence was driven by domestic factors as improved sentiment in Ireland contrasted markedly with weaker results in the latest readings for similar confidence measures for the US, Germany and the UK.

The broad tone of Irish consumer sentiment remained cautious as cost-of-living concerns remained elevated and nervousness about the outlook for jobs has increased. “However, Budget 2024 measures seem to have encouraged some improvement in household spending plans in October,” the report noted.

Colin Gleeson

Colin Gleeson is an Irish Times reporter

From IMJ but we say, a very welcome return that deserves all of our full support!

Has to be said, well done sponsors An Post, Coca-Cola and Cadbury. Very, very worthy. 

Christmas FM, the popular radio station that ‘Switches Christmas On’ every year will be back on air in late November and the seasonal station has secured Cadbury, Coca Cola and An Post as its lead sponsors.

Now running for 16 years, the station has launched a new promotional competition for Irish businesses to help them stand out from the crowd this festive season.

Open to businesses both big and small, the competition is easy to enter, businesses simply need to fill in their details here. The closing date is Monday 6th November at 1pm. The prize is a €5,000 digital advertising campaign on Christmas FM

This year, Christmas FM will also be continuing with the successful Magic of Christmas fundraising appeal, raising money for three of Ireland’s leading children’s charities – Barnardos, Barretstown, Make-A-Wish Ireland and a range of children’s charities around Ireland making a difference in local communities through Community Foundation Ireland. The Magic of Christmas was launched in 2022, with the aim of raising €1m over a three-year period for the charities.

“Cadbury, Coca-Cola and An Post will be premier FM sponsors for 2023 and we’re delighted to have them on board,” says Garvan Rigby, co-founder of Christmas FM.

“We are celebrating Christmas FM’s 16th year on air this festive season which has been made possible by our incredible sponsors, listeners and volunteers. We are looking forward to raising funds for The Magic of Christmas fundraising appeal and we would also like to thank Clayton Hotel Liffey Valley who have kindly donated their studio space once again this year.”

“For us at Cadbury, Christmas is a time for connection and showing you care. We are delighted to be working with Christmas FM once again this year to help generously spread Christmas magic throughout the season. Year after year, the fantastic Christmas FM team bring Christmas to life on our airwaves while also fundraising for some great causes, reminding us all of the true spirit of the season. The festive tunes and heartwarming stories fill us all with joy, reminding us of what’s most important during this special time of year,” says Maighréad Lynch, brand manager, Cadbury Ireland, said.

“Coca-Cola and Christmas have a longstanding connection and our sponsorship of Christmas FM for the 5th year allows us to bring the Coca-Cola Christmas spirit to the Irish airwaves again. This festive season, Coca-Cola will ignite people with the Christmas Spirit and invite them to bring more joy and kindness across the island of Ireland. As Coca-Cola is the brand that helped create Santa, together with Christmas FM, we plan to expand his meaning to remind everyone of the magic of Christmas. Our Coca-Cola Santa will return, along with our iconic Christmas truck and Designated Driver initiative to help people discover their inner Santa and remind us that kindness and generosity rules. The world needs more Santas,” adds Rebekah Hitchmough, brand manager GB&I, The Coca-Cola Company.

Richard Miley, marketing communications lead , An Post Mails & Parcels, adds: “At An Post, we believe in sending from the heart, and this sentiment resonates even more during the Christmas season. We’re passionate about sending love worldwide and connecting loved ones with post. That’s why we’re thrilled to renew our partnership with Christmas FM, the station that truly embodies the essence of the season. Together, we continue to share the magic of Christmas and support the invaluable work of these remarkable charities.”

We had Clients Advertising in The RWC. Not cheap (37k for a 60 seconder in the ‘in’ breaks) but incredible reaction.

Whilst you query the costs, the reach was extraordinary and there’s a hardly a better way to corporately fly the flag. Every Client said they’d do it again!

This from our Friends in UM and the Radio Centre.

Terrific report in the Audio market (device usage etc) here The Irish Audio Market Report 2023-24

Excellent reading on Q3 2023 Versus Q2 2022 stations listenership here UM JNLR detailed Q2 2022 vs Q2 2023

From IMJ

The Irish radio advertising market has reported revenues of €113m for the period January to September 2003.

This is a 2% increase on the same figure in 2022. Revenue for the third quarter of 2023, meanwhile, was up by 1% when compared to the same period in 2022.

According to Radiocentre Ireland, the €113m revenue was made up of €86.5m in spot advertising, which was flat for the period. However, branded content revenue including sponsorships, partnerships and content solutions was up 7%, to €21.5m, while digital audio revenue continued to grow substantially, rising by 35% to €5.1m.

Sectors that showed strongest growth were motors, pharmaceutical, travel/transport and business to business, according to Radiocentre Ireland. The largest decline in category spend over the period came from Government.

The audio sector continues to outperform the market with latest estimates suggesting the that total Irish advertising market is showing a decrease in revenue of between 1% and 2% for the January to September 2023 period. Industry sources, however, point to a strong Q4.

“It is great to see continued growth in radio revenue, following on from such strong revenue growth in 2022,” says Ciaran Cunningham, CEO, Radiocentre Ireland.

“The recently released Irish Audio Report shows that audio is universally listened to, with 98% of adults listening to audio content every single week.  More people are listening every week, and they are listening for longer. And this is at a time when television audiences are challenged in virtually every market and even big digital platforms are struggling to maintain audiences. It is great to see that advertisers recognise the power and the reach of the medium as they continue to increase investment.”

From Business Plus

Influencers have been warned to put clear labelling on ads on their social media content or face prosecution.

A number of different hashtags such as #IWorkWith and #OwnBrand are currently used by influencers to indicate advertising.

“For the avoidance of confusion, all commercial content should now be labelled #Ad,” said Kevin O’Brien, a member of the Competition and Consumer Protection Commission.

“Our research found that consumers consistently overestimated their ability to identify influencer advertising. Many consumers feel misled after purchasing an item on the advice of an influencer, and levels of trust in influencers generally are very low. Clear labelling benefits everyone.”

The CCPC and the Advertising Standards Authority for Ireland have published new guidance for influencers on the clear labelling of ads on social media. The guidance addresses paid promotion, items ‘gifted’ by brands or PR agencies, and the advertising of own-brand products and services.

“This guidance will support influencers to comply with their obligations under the law so that consumers know when they are being advertised to,” said O’Brien.

“It is an offence to mislead a consumer, and influencers who fail to comply with Ireland’s consumer protection legislation may be subject to enforcement action up to and including prosecution.”

The guidance was developed following experiments with eye-tracking technology and a survey of 500 social media users. A number of influencers were also asked to review the new guidance and provide feedback to the CCPC.

The CCPC published research into influencer marketing in 2022, which revealed that almost 50% of influencer advertising was not labelled or tagged as advertising. Tags used were often vague and unclear, leaving the consumer in the dark as to whether the influencer had been paid to recommend a product or service.

Influencers in Ireland must label commercial content to comply with the Consumer Protection Act 2007 and the ASAI’s Code.

ASAI chief executive Orla Twomey commented: “Consumers shouldn’t have to question if and when they are being advertised to – it should be instantly clear.”

Even if influencers use the recommended advertisement labels, the post may still breach consumer protection law if, in the overall context, the post is false or misleading. The CCPC publishes these enforcement actions periodically in its online Consumer Protection List.

The European Commission has launched an Influencer Legal Hub where influencers and content creators can find information on EU legislation in the area of fair commercial practices.

The hub provides animated video trainings and a library of resources developed in collaboration with academic experts.

Commissioner for Justice Didier Reynders said: “The business of influencers is thriving and a lot of consumers – often young people or even children – trust their recommendations. However, this business model also comes with legal obligations. Influencers must follow fair commercial practices and their followers are entitled to transparent and reliable information.”

The Commission and national consumer authorities are undertaking a review of online posts to identify testimonials and endorsements that mislead consumers.

Reynders said the result of this social media sweep will feed into the Digital Fairness fitness check that helps assess whether new legislation is necessary to make digital markets as safe as offline markets.

The Irish Audio Market Report 2023-24