Date post: | 21-Mar-2017 |
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Marketing |
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Purpose of the study
Exploratory Research
Advertising on Online Radio Stations as perceived by Managers and Owners of
Web Radios
At a time of turbulence, radio provides an enduring platform to bring communities together. On the way to work, in our homes, offices and fields, in times of peace, conflict and emergencies, radio
remains a crucial source of information and knowledge.
Ms Irina Bokova, Director-General of UNESCO(12th February 2017)
RADIO BACKGROUND1920: Telegraphy for international and maritime messages rather than as mass
broadcasting
1998
12% of all Americans had listened for at least one time an
online radio station
2000
5,009 AM Stations8,298 FM Stations
2010
33 Million Listeners
Sterling and Kittross (2001)Radio Spectrum Policy Group (2010)
RADIO BACKGROUND
Arbitron and Edison Media Research (2008)XAPP Media Report (2015)
2014
ü 30 billion listening hours (USA)
ü 42.7% expected growth over a three-
year period
2016
“Digital Switchover” in
Europe
ONLINE RADIO
2016 - USØ 155m Listeners/Month Ø 136m Listeners/Week
Ø 2018: 183m Listeners/Month
Media Reach Weekly79% of 12-24 65% of 25-54
XAPP Media Report (2015)Edison Research and Triton Digital (2016)
ONLINE RADIO ADVERTISINGInteractive Advertising Bureau (2016)Radio Advertising Bureau (2015)
v Advertising Revenues (USA, 2015): $59.6 bn• Q3: $14.7 bn• Q4: $17.5 bn
v 20.4% Growth from 2014 to 2015
v 15% of publishers choose Internet Radio Advertising
ONLINE RADIO ADVERTISINGInteractive Advertising Bureau (2016)Radio Advertising Bureau (2015)
Top Radio Spot Categories
• Auto Dealers and Rentals• Communications Services
• Financial Services • Health Care Services
Top Spenders
• Walmart• Verizon Wireless
• Hyundai • Burger King
ONLINE RADIO ADVERTISINGInteractive Advertising Bureau (2016)Radio Advertising Bureau (2002)
v 9 to 20 spots/hour
v 3 minute blocks
v Rates based on:• Day Part• Time • Seasonality of Demand• Seasonality of Offer
ONLINE RADIO ADVERTISINGInteractive Advertising Bureau (2016)Radio Advertising Bureau (2002)
Types of Radio Commercials
Ø JinglesØ Live CommercialØ Public Service AnnouncementØ DramaØ HumorØ Informative AdvertisementØ Combination
Research Questions
RQ 1: What are the characteristics of professional radio station managers?Age, gender, years of broadcasting experience, employment status and education level
RQ 2 : What are the characteristics of professional online radio stations?Years of active broadcasting, location of the station, staff and show hosts involved, revenue estimation
RQ 3 : Is the country of broadcasting related with differences on the managers’ perceptions?Policies on broadcasting, fees on music rights and availability of certain music platforms vary from country to country
Research Questions
RQ 4: Could the gender of the manager be related with differences on the managers’ perceptions?Studies have shown differences in leadership styles and gender characteristics related to job performance (Roth, Purvis & Bobko, 2010)
RQ 5 : Is the employment status of the manager related with differences on his/her perceptions?Differences of job satisfaction between self employed and employees (Millán, Hessels, Thurik & Aguado, 2011)
RQ 6 : Are radio stations of different revenue estimation per month statistically different?
Methodology Ø Exploratory
Ø Quantitative • Construction of an Online Questionnaire• Distributed with SurveyMonkey links• Analyzed with SPSS v.23
Methodology + Less expensive + Less time consuming
than interviews+ Easy To distribute
(Kumar, 1999)
- Low response rate- Difficulty to clarify the
questions during the survey(Berenson, Levine &
Krehbiel, 2001)
Why was the Questionnaire chosen?
Methodology
Questionnaire Design
Thematic Sections
1. Radio Station’s Characteristics 2. Radio Advertising on the Online Radios3. Ways of Approaching Advertising 4. Perceptions of the Advertisers’ Perspective on a new
commercial 5. Perceptions of the Radio Stations’ Perspective on a
new commercial 6. Revenue Streams for an Online Radio Station 7. Promotion Tools Used 8. Perceived Competition in the Music Broadcasting
Industry
Demographics of the Respondents
Radio Station’s Characteristics
ü Type of Contentü Years of Broadcasting ü Country of Operationü Number of staffü Number of Show Hostsü Monthly Revenue
Estimation
Nominal & Ratio Scales
Radio Advertising on the Online Radios
ü Type of Advertising
ü Number of paid spots weekly
ü PSAs Broadcasting
Nominal & Ratio Scale
Perceptions of the Advertisers’ Perspective on a new commercial
5-point Likert Scale
Importance of radio station’s characteristics
Perceptions of the Radio Stations’ Perspective on a new commercial
5-point Likert Scale
Importance of requirements
Revenue Streams for an Online Radio Station
5-point Likert Scale
Frequency of Selecting Alternative revenue streams
Demographic Questions
Nominal Scale & Ratio Scale
ü Gender ü Ageü Level of educationü Employment statusü Years of broadcasting experience
Methodology Participant Qualifications
a) Either have the ownership of an online radio station or be managers with experience in online radio stations.
b) Agree to participate in this study
c) Complete the whole questionnaire as to consider it valid
Methodology v Convenience SamplingDistributed Online at:• Radiojar Newsletter & Social Media Platforms• Radio- Related Forums • Facebook and LinkedIn Groups
Ø 154 Respondents (76% Full Response Rate)
Data Analysis
• SPSS v. 23• Excel v.15
Statistical Analyses:
Ø Descriptive Statistics: Sample Profile
Ø Independent-samples T-tests
Radio Manager’s Profile
q Males (83,8%)q Owners of at least one radio station (60,4%)q Bachelor graduates (81,7%) q Employed: 50% | Self-Employed: 47% | Retired: 3%
Radio Stations’ Profile
q 4 to 10 years (50%) –1 to 2 years (25%)
q Up to 5 Admins (95%)q 8 to 15 show hosts
(46.1 %)q 11 stations with no
shows q 69.5% have paid
commercials
Radio Stations’ Profile
q 73.8% make offers to companies directly
q 60% is negative on approaching advertising agencies
q 68.2% have a positive attitude on business while networking
Positive Agreement with all statements
Perceptions of Managers on the advertiser's perspective when making a deal
Alternative Revenue Streams
ü 51.6% use buy URL on website
ü 25.5% use buy URL on application
ü 73.2% do not use any banner advertising
ü 50% use advertising visuals on the player
ü 23.5% use in-show product placement
ü 17% co-create content
ü 15.7% curate events
Results
Marketing Strategies for Promoting the Station
ü 51% of stations use a website
ü 52% have a dedicated mobile application
ü 55% can be found on a music directory
ü 22.2% offer media sponsorship
ü 28.5% curate promotional events
ü 25% use social media marketing
! 2.6% do not use any type of marketing
Results
Competition in the Broadcasting Industry
1. Web TV channels
2. Streaming Services, e.g. Spotify/Pandora
3. Terrestrial radio stations (FM/AM)
4. TV
5. Online Radio Stations
6. Directories, e.g TuneIn/ e-radio
Results
Country and Radio Advertising
Music category
Accepting offers & Making offers directly to companies
Website and Media Sponsorships
Loyal listeners’ base and Personal relationships
Using visuals and buy URLs on app
Various genre
Making offers to advertisers
Getting listed in directoriesLocal niche of listeners, Reliability of Reporting and Gaining experience
Using buy URLs on website, banners & in-show product placement
Manager’s Gender and Radio Advertising
♀ Locality of listeners♀ Third Party Company Manager
♂ Visuals on Player♂ Buy URLs on Mobile App♂ Co-create Content♂ Event Organizing
Managers’ Employment Status and Radio Advertising
Employed for Wagesü Making offers to advertisers &
Letting the show hosts makingads decisions
ü Locality of listeners & PersonalRelationships
ü Visuals on Player, Co-create Content & Organizing events
Self Employedü Music Only
ü Reliability of Reporting
ü Website & Social Media Marketing
Revenue Estimation of the Station and Radio Advertising
2501 – 5000$Third party service managing the advertising
Importance of loyal listeners
Organizing Commercial Events
More than 5001$Importance of Reliable reporting
Use of visuals
0 - 1000$Advertising Experience
Use of Website Buy URLs & in-show Product Placement
1001 – 2500$Use of Radio promos
Importance of loyal listeners & local listeners
Use of Application Buy URLs
Conclusions
Ø Difference of Top Categories: Online Radio vs Terrestrial
Ø Perceptions of Competition
Ø Gender of Manager
Ø Spending Power of the Radio Station
Ø Exploratory research
Ø Time and budget constraints
Ø Relatively small sample (N=154)
Ø May not be applicable in related business sectors
Limitations of the Research
Ø More countries involved
Ø Correlation in the perceptions between online radios, digital radios & podcasts professionals
Ø Priorities of advertisers and third party companies
Future Research Proposals