According to PricewaterhouseCoopers’ Global Entertainment and Media Outlook: 2010-2014, global entertainment and media spending is expected to rise from $1.3 trillion to $1.7 trillion by 2014, growing at a compound annual growth rate of 5.0%.  The US E&M market is expected to grow at 3.8% CAGR reaching $517 billion in 2014, from $428 billion in 2009. Fast changing consumer behavior is expected to be the catalyst of the entertainment and media industry change over the next five years,

Ken Sharkey, US leader, entertainment, media & communications practice, PricewaterhouseCoopers, notes that “… the digital pace of change has proven to be even quicker than anticipated with consumers embracing new media… and digital downloads at often-unexpected speeds… the continued fragmentation of the E&M sector will fuel greater experimentation by both established industry giants and niche players… ”

Digital services continue to be the primary growth engine, but traditional revenue streams are expected to remain significantly larger throughout the forecast period.  The industry will need to embrace digital not as a competitor to traditional services, but as a complement. Digital spending in the US is expected to account for 26% of all E&M spending in 2014, up from 19% in 2009.     

While there are signs of a rebound, advertising is unlikely to return to former levels. By 2014, the US advertising spend is expected to still be 9% below its level in 2007.  Overall US advertising is expected to increase at a 2.6 % CAGR from $159 billion in 2009 to $180 billion in 2014.  In the US, Internet advertising is expected to surpass newspaper advertising spend in 2010. 

Advertising spending for Internet, television, radio, out-of-home, and video games are expected to be larger in 2014 than in 2009, while consumer magazines, newspapers, directories and trade magazines are expected to be smaller. These projections reflect the market fragmentation and consumer behavioral changes. The advertising industry is responding to consumers’ shifting attention and migrating towards total marketing or total brand communication.  Brands are changing their focus from advertising on a medium, to marketing through, and with, content.  

Consumer feedback and usage provides the only reliable guide to the commercial viability of products and services, and the global consumer base is being used as a test-bed for new offerings and consumption models.  PwC has identified three themes that are expected to emerge from changing consumer behavior and the industry must anticipate and pre-empt the needs and wants of consumers.  

• Rising power of mobility and devices: Advances in technology are expected to see increasingly converged, multi-functional mobile devices come of age as a consumption platform by the end of 2011. By 2014, US mobile Internet access subscribers are projected to increase to 96.1 million, a 40% CAGR from 2009. 
• Growing dominance of Internet experience over all content consumption: Increasingly, the consumer has moved beyond thinking of the Internet as an end in itself, and expects all forms of media to embed the convenience, immediacy and interactivity of the Internet. People are already consuming magazines and newspapers on Internet-enabled tablets, and streaming personalized music services in preference to buying physical CDs.
• Increasing engagement and readiness to pay for content-driven by improved consumption experiences and convenience: Consumers are more willing to pay for content when accompanied by convenience and flexibility in usage, personalization and a differentiated experience that cannot be created elsewhere. Local relevance is also expected to enhance the content providers’ ability to charge.  

Digital migration and consumer behavior changes have put extreme pressure on existing business models.  The proliferation of platforms and rising consumer expectations mean companies can no longer ‘be everything.’

“The industry must radically rethink its approach to monetizing content in capturing new revenue sources, from transactions or from participation with others operating in the evolving digital value chain… ” added Ken Sharkey.   

Segment highlights In the US:

• Internet access and Internet advertising is expected to continue to outperform the other E&M segments, with 8.8 % and 7.7% CAGR, respectively 
• Video games (6.4% CAGR)
• TV subscriptions (6.5% CAGR)
• TV advertising (5.3% CAGR)
• Radio (4.6% CAGR),
• Filmed entertainment (3.6% CAGR)
• Out-of-home advertising (3.2% CAGR)
• Consumer and educational book publishing (2.5% CAGR)
• Business-to-business publishing (0.9% CAGR)
• Recorded music (-2.4 CAGR)
• Newspaper publishing (-2.8 CAGR)
• Consumer magazine publishing (-0.5 CAGR)

• Overall, US consumer/end-user spending is expected to grow by 3.7% CAGR

inserted from:

http://www.mediapost.com/publications/fa=Articles.showArticle&art_aid=130544

Posted under Mobile, New Media, Newspaper, Online, Radio, Revenue, TV & Cable

Media Life Magazine – Study

Thursday, June 17, 2010

Advertisers who want to connect with shoppers right before they make their purchases would be wise to consider radio over television. Sixty-two percent of shoppers say they were listening to their radio an average of 14 minutes prior to doing their shopping, according to the Video Consumer Mapping study from the Council for Research Excellence, compared to 48 percent who said they viewed TV an average of 42 minutes before shopping. It makes sense that people would have listened to the radio closer to doing their shopping; most shoppers were in cars prior to heading into the mall or supermarket. The study found that 90 percent of shoppers were in their cars an average of 5 minutes and 40 seconds before shopping, while 75 percent were in their homes an average of 30 minutes prior to shopping. The study, which was conducted by Ball State University and Sequent Partners, looked at media consumption habits of 376 adults over a total of 752 days.

Inserted from <http://www.medialifemagazine.com/artman2/publish/Hereandthere/32-million-watch-Obama-s-BP-speech.asp>

Posted under Radio, Research

From Media Life Magazine
By Louisa Ada Seltzer

Jun 22, 2010

Arbitron’s Portable People Meter is a huge advance over the diary system for tracking radio listenership, in no small part because it is portable, thus able to pick up radio listenership in bars, offices and other venues outside the home. Now the PPM is about to get even more portable. Arbitron is testing a new model, the 360, that is truly wireless, capable of sending data back to Arbitron as if it were a cell phone. The current model requires that the user dock the device in a special transmitter at night that then sends the data back to Arbitron via landline. The new PPM will also enable Arbitron to send users messages, which will appear on a screen. The new device is smaller and sleeker, but perhaps a bigger advantage for Arbitron is that it will be simpler to send out an install, without the docking station. Once testing is complete, which should be in several months, Arbitron will start distributing the new 360 to panelists.

Inserted from <http://www.medialifemagazine.com/artman2/publish/Hereandthere/Arbitron-s-PPM-gets-a-wireless-makeover.asp>

Posted under PPM, Radio

Wednesday, May 26, 2010

3:56 PM

From MarketingCharts.com 

“Radio’s 7.4% increase outpaced overall gains in advertising expenditures in Q1”

Large Advertisers Boost Q1 Spending

The largest advertisers boosted spending significantly in the first quarter of 2010, according to new data from Kantar Media.

P&G Remains Biggest Spender

The top three advertisers increased spending significantly: Procter & Gamble spending jumped 17.7%, AT&T boosted spending 26.7%, and General Motors increased spending 28.5%, according to Kantar.

Procter & Gamble maintained its position as the largest advertiser, spending $772.6 million; budgets continued to shift toward magazines and away from television.

AT&T rose to the second spot with spending of $576.4 million, behind a large TV ad buy in the Winter Olympics. Rival Verizon (fourth-largest advertiser) reduced its total expenditures by 9.1%, to $517.2 million. Both telecom companies continued to allocate more resources to promote their TV service products as they try to win subscribers from cable and satellite operators. General Motors was the third largest advertiser, spending $533.7 million.

Pfizer, the fifth largest advertiser, posted the highest growth rate with expenditures up 46.2% to $396.4 million as the company maintained aggressive marketing support for Lipitor (prior to the brand going off patent in 2011).

Other Top Advertisers

6. News Corp spent $366.8 million (up 7.8%)

7. Johnson & Johnson spent $344.1 million (down 11.8%)

8. Time Warner spent $304.3 million (up 14.7%)

9. Disney spent $267.6 million (down 11.8%)

10. General Electric spent $264.6 million (up 1.3%)

Top Categories Increase Overall Expenditures

Of the top 10 spending categories in the first quarter, only one – direct response – fell, down by 3.2%. Overall, expenditures for the ten largest advertising categories rose 7.8% in the first quarter and totaled $17.95 billion.

Automotive was the leading category by dollar volume and also had the highest growth rate among the top 10, with spending up 18.6% to $3,016.8 million, ending a streak of 18 consecutive quarterly declines. Manufacturers and dealerships reacted quickly to an improving sales environment by ramping up marketing efforts with TV, magazines and radio being the main beneficiaries.

Telecom was the second largest category as expenditures reached $2,276.5 million, an increase of 10.6%. Financial services also experienced a revival, up 10.1% to $2,028.7 million. Sharply higher spending from marketers of credit cards and loan products offset continued weakness within the consumer banking segment.

Packaged goods categories, where advertisers took advantage of soft ad pricing in 2009 to bolster their media weight, were undaunted by rising ad prices in the first quarter of 2010. Spending from Food & Candy was up 7.3% to $1,600.0 million and expenditures for Personal Care Products increased by 5.5% to $1,311.5 million.

Restaurant category spending also turned around with modest growth of 3.1%, to $1.454.5 million. A major contributor to the gain was McDonald’s television sponsorship of the Winter Olympics.

Kantar reported that overall, ad spending climbed 5.1% in the first quarter.

Posted under Radio, Revenue, TV & Cable

From New York Daily News

David Hinckley

Wednesday, February 24th 2010

MTV VJs Mark Goodman, Nina Blackwood, Alan Hunter, Martha Quinn and JJ Jackson.

Radio so rarely wins a victory over television that it would be a shame not to point out that it just did.

When MTV formally acknowledged the obvious – that it is no longer a music channel – it was also symbolically acknowledging that video did not kill the radio star.

The Buggles were wrong.

“Video Killed the Radio Star” by the Buggles, you might remember, was the first video MTV played, on Aug. 1, 1981.

The message of the song was that henceforth, pop music would become a visual as much as an audio medium. This and subsequent generations would know music as something they both heard and saw, and a song without an accompanying visual would be marginalized.

Important note: MTV itself never made that declaration. The MTV party line was that television and radio could work together, promoting and enhancing the other.

But MTV wasn’t just some wide-eyed innocent. While it never had huge viewership, it was widely considered a predator, both from its swift business moves to head off any competition and from the splashy way it was pushing sometimes controversial music to impressionable youth.

Even before MTV played rap, or any black music at all, critics accused the channel of debasing America by spreading lewd, suggestive images of half-naked women and worse.

On the other side of the spectrum, some music fans accused MTV of promoting a product that sucked the magic out of songs by pre-empting the listener’s imagination.

Fierce debates sprang up over whether, for instance, Bruce Springsteen had sold out in 1984 when he finally released his first video, “Dancing in the Dark.”

And all the while, some media futurists kept insisting pop music had already changed from an audio to a visual medium – which would soon diminish or destroy radio, as television itself was supposed to do in the early 1950s.

In fact, MTV’s official party line was correct. Radio and MTV together helped create the mid-1980s golden age of popular music, with artists from Springsteen to Prince to Cyndi Lauper and Madonna. And, of course, Michael Jackson, who danced to the top, both on the radio and on MTV.

This proved two things: Music television was here to stay and so was radio.

And now? MTV is doing fine. Its television video children are doing fine. Yes, they have spawned pop stars whose appeal was 98% visual and 2% musical. We have survived them.

In 2010, the age of iPods, Facebook, Twitter and viral culture, most fans still get their new pop music from the radio. Even better, most fans still listen to songs first and watch them second.

Three decades after the Buggles, the radio star is doing fine.

Posted under Radio

Meg Whitman

from Yes on Radio
by Mike MeCey
2/8/10

After a series of polls conducted towards the end of 2009, it appears that former eBay CEO Meg Whitman, a Republican candidate for Governor, has eliminated a major barrier faced by most political newcomers – finding a cost-effective means to introduce herself to the voters.

In fact, she’s done it so well that Whitman dominates her Primary Election rival with 45 percent support among Republican voters, leading State Insurance Commissioner Steve Poizner by 28 points, according to the latest Field Poll.

Whitman, who began her multi-million dollar Radio advertising campaign after Labor Day 2009, is currently airing her third round of introduction spots in all major markets of the state. The campaign strategy has been debated and applauded by many of the state’s top political strategists and election observers suggesting that Whitman’s Radio has been particularly effective.

“She is assuming a certain command at this point, very early, and therefore she’s sinking herself in as the favorite and squeezing him (Poizner) out,” said Larry Gerston, a political science professor at San Jose State University.

Seasoned Democratic consultant Bill Carrick said, “It operates to some degree under the radar. But in a state where people are in their cars one to three hours a day, if you stay with it long enough and spend enough, it has the potential to be very effective – a sort of slow burn impact that can move voters. Every day, drip by drip, she’s communicating with voters.”

The Orange County Register opined, “November was a good month for the Whitman camp but her surge in the polls is no coincidence. The campaign attracted attention and worked to redefine Ms. Whitman as a candidate through a series of radio and Internet advertisements. Her camp is shelling out a good amount of money on radio and online ads – the only campaign using those media thus far. She has used the advertisements very strategically to alter negative public sentiments and to introduce herself to many potential voters.”

Posted under Branding, Radio

From Media Post Publications

by Bob McCurdy

Thursday, December 24, 2009

If an advertiser wants to target a college-educated 18-34-year-old consumer, a blockbuster new study confirms there’s no better place to look than radio. Yes, radio.

Younger people remain committed to their radios, according to the recently released Nielsen white paper, “How U.S. Adults Use Radio and Other Forms of Audio.” By realigning the data socio-economically instead of by medium or audio platform, the study offers an unprecedented glimpse into the media habits of various population segments.

Almost 80% of 18-34-year-olds listen to radio every day for an average of 104 minutes. Contrary to conventional wisdom, only 20% of the younger demographic sought by advertisers listen to MP3s daily; and among those who did, 82% also listen to broadcast radio for close to 100 minutes a day. It turns out this coveted demographic tends to be lighter viewers of television, while paying little attention to print and spending close to 40% less time with newspapers than the average adult.

Education and income levels also play critical roles in determining people’s media habits. Individuals with a high school education or less spend significantly more time with TV than any other medium. TV dominates their media day with viewing clocking in at 7.4 hours, almost two full hours more per day than the average and accounting for an amazing 80% of their daily media consumption. Broadcast radio reaches more 18-34s

Because of this huge dose of television, those with a high school education or less tend to be lighter than average consumers of both audio and radio. The college-educated, however, are much more audio-centric, tuning into broadcast radio for close to two hours a day while viewing almost three hours a day less television than less-educated people. Those with advanced degrees are also fans of radio, with 84% tuning in daily while viewing nearly three and half hours less of television per day than those with a high school education or less.

The media habits of various income levels also vary dramatically. Households with annual income below $30,000 consume less audio and are lighter than average broadcast radio consumers with only 62% tuning to broadcast radio daily. Their use of satellite radio, other digital audio options and the Internet is also far below average. But their devotion to television is extraordinary at 478 minutes, or 8 hours, a day.

Meanwhile, households with annual incomes above $100,000 are heavy consumers of audio, listening about 30 minutes more per day with fully 84% tuning to broadcast radio daily. Listening to satellite, streaming and MP3s, as well as other digital audio options, are all above average. Households with incomes above $100,000 spend about the same amount of time with audio as with television — 210 minutes with audio compared to 224 minutes with television.

What’s more, while the upscale individuals increased their use of other digital forms of audio, it’s not at the expense of radio. As with the higher educated, the affluent continue to embrace radio — viewing other audio options as a supplement, not a substitute. It’s a completely different story for television, with high-income households viewing close to two hours less television per day than the average household; and 4.25 hours less than households with annual income of $30,000 or less. This upscale segment also shuns newspapers, spending 25% less time with the paper on a typical day.

Employment also plays a key role in media consumption. The employed tend to consume more audio and radio than the norm, are more likely to be online and less likely to read a newspaper. Those who are unemployed, retired or students are extremely television-centric and lighter than average consumers of radio and audio. Similar to low-income households, they spend 90 minutes more per day with television (seven hours) than the average individual, and are one-third less likely to use the Internet. This segment is also 29% more likely to read a daily newspaper.

Viewed socio-economically, the Nielsen audio study confirms that radio remains a vital cog in today’s media landscape, especially among the more affluent and higher-educated. Radio has made great strides in transforming the medium, incorporating a multi-channel mix of terrestrial radio, digital audio, mobile applications and audio streams, and we expect these efforts will serve to maintain radio’s continued relevance for many years to come.

Posted under Radio, Research

Jagger and Kristi

On the back of Mark Jagger’s laptop in the studio at MAGIC 92.5 is a sticky note that says “I love you.”  He doesn’t remember when he put it there, but it’s intended to be read by the woman at the microphone across from him.  That would be Kristi, his wife, friend and radio-partner on the station’s MAGIC Mornings with Jagger & Kristi show.  The duo is obviously good together because according to Arbitron PPM surveys, they are consistently rated one of the top morning shows in San Diego. But what’s even more important to the couple is the fact that they’re still very happy to spend almost every day of their career and private lives together after a fifteen year relationship and twelve years of marriage.

“We have an unspoken agreement,” says Kristi.  “Mark gets up at 3:00 in the morning and after he’s showered, he wakes me up.  Then we both do what we have to do to get out of the house by 4:30.  We drive here (to the Finest City Broadcasting studios near Mission Valley) walk into the station and at 5:00 go on the air.  We don’t speak until we get into the studio.  It’s how we’ve learned to cope with this schedule.”

But once they’re on the air, it’s a much different story. The two radio veterans glide through their four-hour show with enthusiasm, finesse and genuine warmth that has earned them the devotion of a growing radio audience. 

Jagger & Kristi at the Annual Four Corners Food and Coat Drive benfitting the San Diego Food Bank and Alpha Project

“I love it,” says Jagger, whose first radio job was in St. Louis, his native city.  “It’s definitely a connection that we have with our audience that makes this worthwhile.  If we weren’t doing this, I would miss that the most. And what I’ve learned after working in many markets throughout the country, if something happens in San Diego and you ask for help from listeners, they will always pull through.  It’s not like that everywhere.  Every year we do a fundraiser for Children’s Hospital and a food drive for the food bank and every year we’re blown away by the generosity we see.  San Diegans are so good about rallying around those who are in need.”

Jagger and Kristi are a team in every sense of the word, picking up on cues from one another, calming the other when one is frazzled, and treating each other with a respect that is palpable.  They first met while working for a San Francisco station in the early 1990s.  When their jobs there ended, they moved to San Diego.  After years of popularity in the afternoon drive slot, they made a strategic decision to go to mornings. They were thrilled to come to work for their friend and former employer, then-program director Rick Thomas. 
 
And they saw morning drive time as the most secure spot for talent on the air waves as the radio industry evolves in a fiercely competitive market.

One happy family at Furball 09, the San Diego Humane Society annual fundraiser

“I mourn the loss of opportunity for those who are just coming into the business,” says Kristi. “We’ve worked with so many talented people over the years who were working behind the scenes and got their first chance to go on air in the overnight spot. Now that isn’t available at most stations, and staffs are pared down to the minimum. There are no more pools of raw talent. It’s much more of a business than in the early days.”

Still, the radio couple keeps their show from sounding at all business-like. They’re spontaneous and relaxed and their positive state of mind comes across the air waves. For the most part, it’s family-oriented material. But one of the more popular elements of Magic Mornings is the segment called “War of the Roses” which Jagger and Kristi admit is controversial. That’s because at the request of a suspecting spouse or significant other, the show’s producer calls the person in question, pretending to be from a new flower shop that’s offering to send a free dozen roses to whomever he or she wishes. When the suspected cheater names someone other than the loved one who called in, he or she is busted on the air.

“People sometimes call us the goody two shoes couple for doing that, “ says Kristi. “But it’s really about entertaining radio. And I love doing the segment. You wouldn’t believe these people who are caught in the act and then try to shift the blame on their partner.”

Jagger says for him, it’s an uncomfortable thing to do. “But when they start yelling at one another, you can tell that some of these people just love the drama,” he explains.

Their baby horse Laci at one hour old

The couple says they’re grateful that with their increasing popularity, they have advertisers seeking them out, and a platform where they can address issues that are important to them.  Animals are high on their priority list.  They advocate for them on the air, featuring pets of the week brought in by the Humane Society.  And at home, their pets come in all shapes and sizes.  They spend a great deal of time with their horses, dogs and cats.

Jagger & Kristi with their horse Teddi

The environment is another passion of Jagger and Kristi’s. Their website touts carbon-shreading.  Just as Jagger finishes saying, “Kristi is SERIOUS about being eco-friendly” Kristi jumps in and proves what he says is true.

“We have no choice.  We have to be more conscious about our actions.  Now so much of what I buy is from recycled material. Once you start, it’s hard to stop.  I think of it like collecting one dollar from a thousand people.  It adds up!  So when individuals do their part, it makes a difference.  If just one person in a home could recycle for the whole family, we’d all be better off.  You would be amazed at how much money you can save with light bulbs, and watching how much gas and water you use, and on HG front loaders!”

The couple recently added solar power to their home and is proud to have the company that did the work, groSolar, advertise on their show.  They’re also excited about a campaign they’ve helped put together for Toyota of El Cajon which has built a state-of-the-art, “green” dealership.

Throwing out t-shirts with the Pad Squad

 As much as they love their work, whenever they can, they shut the door to the studio on a Friday morning after their show and don’t look back.  But quite often, there are those additional weekend duties that see them at station events throughout San Diego.  They say it’s always energizing to see their fans in person and are amazed at the intensity they show.

Kids News Day with the Padres' Adrian Gonzalez

“They greet us as if we’re old friends,” says Kristi.  “After all these years, I’m still astounded at the power of radio to create such a strong relationship between us and our audience. They want to give us a hug.  And it’s usually a really big hug that you would give a family member.”

“It’s kind of like being in a club,” Jagger explains.  “They all feel like they are our friends because we’re in the same club, playing the music that’s been the soundtrack to their lives for so long.  Our “Old School” format evokes many great memories for so many people.  It’s positive and it’s a ton of fun.”

From the looks of things, Jagger and Kristi find joy in every aspect of their lives – on and off the air.  And when they’re asked how they can manage to make it all work, day in and day out, Jagger quickly answers, “I’m always in control.”

Bodie learning to surf at Dog Beach; he placed 6 out of 14 in his heat at the annual Surf-Dog Surf-A-Thon

Kristi ignores the comment and says, “We don’t analyze it.  We just do it.  If we do have a disagreement about something, it’s usually work-related and we use it as fodder on the air.  At some point, we always realize that it was pretty stupid to begin with.”

Posted under In the Spotlight, Radio

According to a Nielsen analysis of a media study conducted by the Council for Research Excellence, 77% of adults are reached by broadcast radio on a daily basis, second only to television at 95%. The study found that Web/Internet (excluding email) reached 64%, newspaper 35%, and magazines 27%.

Radio Best Audio Media

And, in a deeper analysis of audio media titled “How U.S. Adults Use Radio and Other Forms of Audio,”Nielsen found that:
 • 90% of consumers listen to some form of audio media per day
 • The 77% who listen to broadcast radio surpass the 37% who listen to CDs and tapes and the 12% who listen to portable audio devices.
 • Almost 80% of those aged 18 to 34 listening to broadcast radio in an average day.

While the recent emergence of portable audio devices like the iPod and other MP3 players was considered a threat to traditional forms of audio, this study’s evidence suggests that the new technology has had a positive effect on radio consumption. Radio was found to have a higher reach (82%) among those who listen to portable audio devices, compared to the average reach for all audio consumers.

Jeff Haley, President and CEO of the Radio Advertising Bureau (RAB), concludes that  ”… this… observational study of today’s consumer proves that the primary source of new music is the radio.”

Another key takeaway from the reports is that broadcast radio is the dominant form of audio media at home, work, and in the car. Exposure to audio listening falls into four tiers in terms of level of usage among listeners:
 • Broadcast & satellite radio (79.1% daily reach; 122 minutes daily use among users)
 • CDs and tapes (37.1% daily reach; 72 minutes)
 • Portable audio [ipods/MP3 players] ( 11.6% daily reach; 69minutes), digital audio stored on a computer such as music files downloaded or transferred to and played on a computer (10.4% daily reach; 65 minutes average use), and digital audio streamed on a computer (9.3% daily reach; 67 minutes)
 • Audio on mobile phones (<2% daily reach; 9 minutes)

Other findings highlighted in the report include:
 • Audio media exposure has the highest reach among those with higher levels of education and income
 • Approximately 12% of study participants listened to MP3s and iPods for an average of 69 minutes per day, yet eight-in-ten of these individuals also listened to broadcast radio for an average of 97 minutes per day
 • 90% of adults are exposed to some form of audio media on a daily basis, with broadcast radio having by far the largest share of listening time

Considering Portable Audio Devices:
 • MP3 and iPod players averaged only 8 minutes of listening per day among the entire observed sample, with just under 90% of the sample not listening at all .
 • Among listeners of portable audio devices (11.6%), the highest reach was among those aged 18 to 34 years (20.8%), singles (18.5%), and those who tend to be more technology-savvy (18.2%) 
 • Among those who also listened to portable audio devices such as MP3 players or iPods, broadcast radio    had a daily reach of 81.6% reach and 97 minutes of average listening time among those who listen to radio

Broadcast radio reaches those aged 18-34 at rates equivalent to the general adult population, with 79.2% of younger adults listening to broadcast radio for an average of 104 minutes a day among listeners. On average, individuals spend almost identical amounts of time during weekdays (454 minutes) as they do on weekends (458 minutes) using one of the five key media sources.  
And, among key “advertising-based” media platforms:
 • Live television had the highest reach and daily usage among users (95.3%, 331 minutes)
 • Broadcast radio (77.3% reach, 109 minutes)
 • Web/Internet [excluding use of email] (63.7%, 77 minutes) 
 • Newspapers (34.6%, 41 minutes)
 • Magazines (26.5%, 22 minutes)

Posted under Radio, Research

from Radio Business Report
November 11, 2009 

Think the iPod and mobile phones have killed radio listening in the young demos? Think again. Analysis of a landmark study for the Council for Research Excellence (CRE), funded by The Nielsen Company, finds that younger people are consuming audio from lots of sources, but radio still accounts for the biggest share of their listening.

As indicated by its name, the Video Consumer Mapping Study focused first on how consumers were watching television and other sources of video. CRE released the study in March, with the headline finding that live TV viewing was still #1 with younger demos, despite their comfort with the Internet and other video sources. But there was lots and lots of data to pour over for other media, including audio sources, which is exactly what Michael Link, Chief Methodologist at The Nielsen Company, has been doing.

The study methodology had observers follow 376 people in Seattle, Chicago, Philadelphia, Atlanta and Dallas for two days – one in the Spring and one in the Fall of 2008 – to record their media usage. The professional observers recorded how much time people actually spent using each type of media, ranging from TV, radio and newspapers to the Internet, iPods and mobile phones. (An additional study of 100 people in Indianapolis studied how their media usage changed when they were given the opportunity to add additional devices at greatly reduced prices.) So, when the survey participants listened to radio, the exact amount of listening was noted.

“What you find is a much more complex view of what’s going on with audio than we have been led to believe. It really seems like the young group – they tend to be more audiophiles. They’re really into their audio. So, it’s not that they abandoned radio, per se, but they essentially augment with some of these portable media/digital media devices,” Link told RBR-TVBR.

Link said the study data showed that there are four tiers of audio usage. He particularly noted the magnitude of difference in daily listening to radio vs. iPod/MP3 players.

The four tiers of audio usage:
1) broadcast & satellite radio (79.1% daily reach; 122 minutes daily use among users);

2) CDs and tapes (37.1% daily reach; 72 minutes);

3) portable audio [ipods/MP3 players] ( 11.6% daily reach; 69minutes), digital audio stored on a computer such as music files downloaded or transferred to and played on a computer (10.4% daily reach; 65 minutes average use), and digital audio streamed on a computer (9.3% daily reach; 67 minutes);

4) audio on mobile phones (<2% daily reach; 9 minutes).

If you looked at the raw data back in March, you may have concluded that the Internet had surpassed radio as the #2 medium for young demos. However, Link’s latest analysis separated “media” usage of a computer from time spent with email and software programs. “Among key ‘advertising-based’ media platforms, live television had the highest reach and daily usage among users (95.3%, 331 minutes), followed by broadcast radio (77.3% reach, 109 minutes), Web/Internet [excluding use of email] (63.7%, 77 minutes), newspapers (34.6%, 41 minutes), and magazines (26.5%, 22 minutes),” his analysis concluded.

There’s still more to come. Link is still digging into the CRE data to produce detailed reports on online usage and on out-of-home video viewing.

RBR-TVBR observation: The bottom line is that heavy audio users haven’t quit listening to radio – they just listen to a lot of other places where they can get music and other audio content.

Many of the other audio sources don’t have advertising opportunities, so radio needs to make it clear to advertisers that the young demos can still be reached – and radio is the way to do it.

Posted under Radio, Research