
The multi-platform player: Unpacking a new era of ARN
Host: Nadia Cameron, Publisher | Editor – Marketing It’s been 12 months since ARN CEO, Michael Stephenson, took to the stage at the group’s inaugural upfronts and drew a line in the sand between the old ARN and the new. The promise: An entertainment company that would not only fight to regain more of its fair share of the audio market, but a slice of Australia’s $6bn video advertising market too. It was a pledge accompanied by a dizzying array of announcements covering content, product, advertising, data, technology and partnerships, as well as a deeper bet with global digital audio juggernaut, iHeart. Immediate feedback was overwhelmingly positive. “I don’t think anybody expected us to tell a story like we did,” Stephenson says. So began work to deliver on it. Now, ARN has been back on stage for its second annual upfronts, splashing a fresh set of major announcements for media buyers and brands to get their heads around. The centrifugal force: An expanding multi-platform play and across audio, video, social and real-life experiences. Getting to this point has meant making “sometimes difficult and challenging decisions, but decisions that were absolutely necessary for our business,” Stephenson says in the latest Mi3 podcast. “Given the type of person I am, I’m still not happy with where we’re at. But what I do know is that we’re a long way ahead of where we were 12 months ago." “Something our teams internally are very clear on is our plan: We have a very clear strategy, a very simple strategy. We’ve spent a lot of time simplifying the business, whether that be brand architecture or internal systems, processes and structures – quite the unsexy stuff, but really, really important.” Progress in business terms is equally evident. The cost base is down by nearly $50 million, debt is down, and ARN has reset its content platform on the KIIS Network. The advertising numbers aren’t back up to where they ought to be, but having left the black cloud of brand safety issues behind, the list of those who wouldn’t advertise on KIIS and sometimes, ARN, has been whittled down to zero. And now there’s so much more to talk about, with 12 major announcements squarely designed to set the agenda for a new era. The big milestone reached this year: The debut of video and now video advertising across iHeart, giving brands access to premium podcast talent and content through product integrations, pre-roll, and so on. The addition of video is incremental gain, says ARN chief digital and technology officer, Ben Campbell. Of inventory offering both audio and video, an average of 40 per cent of consumption is on video content, generating a +10 per cent lift in total audience. “Streams of our video podcasts on iHeart have grown 45 per cent in the last 30 days alone. So we're seeing meaningful audience engagement around our content, and people within the experience within iHeart,” says Campbell. “It totally changes the game.” There’s also content distribution extensions, as ARN seeks out more places where its content can be seen and heard beyond its 16 million monthly audiences and 5 million signed-in iHeart users. Notable here is the push onto the box, bringing ARN content to free-to-air TV and streaming. iHeart’s also making its debut on Fetch TV, tapping into another 600,000 households. Three major content tentpoles that start on the airwaves and extend to in-real life community experiences are coming off the back of Save Our Pubs this past year. There’s also a five-year deal with the Australian Open that’ll stretch broadcast radio through to video, dedicated digital audio channels and podcasting. “We’re not restricted by ownership, so if we want to distribute True Crime with Meshel Laurie onto 10, we can. If we want to distribute our breakfast show onto a free-to-air channel, we can. If we want to partner with a subscription business like Fetch, we do. If we want to create podcasts in combination with Are Media, we can. And we’ve done all of those things,” says Stephenson. Then of course, we have the biggest overhaul of on-air talent since the KIIS rebrand in 2015. Two new KIIS breakfast show line-ups in Sydney and Melbourne can now be heard across the airwaves in a commitment back to distinctive, local city shows. An upfront wouldn’t be complete without significant data partnerships or growing audience targeting capabilities, and ARN is promising those too. It’s expanded its Databricks partnership, taking first-party audience segmentation to 800 cohorts and informing a new iHeart Nation lifestyle segmentation approach. The brand count since their launch is up 90 per cent. Campbell points to one pet retailer getting a 48 per cent uplift in in-store footfall after leveraging segmentation for its campaign. An expanded Westpac DataX deal now aims to improve outcomes reporting and to realise total audio attribution. And ‘Spotty’, a new radio analytics platform, will provide by-campaign intelligence that’ll incorporate competitor and category insights. There’s a lot to take in. “What we are getting better at, and there's still some work to be done, is just on prioritisation,” Stephenson says. “There's 1000 things we can do. We listed 12 at our upfronts announcements the year prior, and another 12 only a few days ago. We could have hundreds, but we can't do that. We haven't got the capacity or the capability. And I want to make sure that everything we do is executed brilliantly.” See omnystudio.com/listener for privacy information.



