2
OUR GOAL: Provide a snapshot of radio’s capabilities in 2011 and into the future
RADIO
• On Air – A mass medium capable of easily delivering your message to many people
– Targetable (by demo, lifestyle and geography) to assure the right people are
exposed to your message with little waste
• Online – Digital capabilities offering interactive opportunities to complement and
enhance your campaign and reach consumers using multiple touch points
• On Target – An environment that delivers consumers who are engaged and passionate
about the content
– Exposure to your message when and where consumers are ready to buy or shop
3
radio On Air. Online. On Target.
4
TODAY’S RADIO AUDIENCE
Sources: RADAR 110 September 2011, Arbitron (Persons 12+, Monday-Sunday 6a-12Mid Weekly Cume Estimates, % of Population Reached)
241,362,000 The Weekly Broadcast Radio Audience
Increase of almost 9 million over 4 years ago
Increase of nearly 1 million over 2010
5
TODAY’S RADIO AUDIENCE
What percentage of America
listens to radio each week?
6
TODAY’S RADIO AUDIENCE
93%
Sources: RADAR 110 September 2011, Arbitron (Persons 12+, Monday-Sunday 6a-12Mid Weekly Cume Estimates, % of Population Reached)
of Americans 12+ every week
27%35%
64%77%
94%
Magazine Newspapers Internet Broadcast Radio Television
% Daily Reach P18+
41
Minutes Per User
109
77
22
331
Source: ―How U.S. Adults Use Radio and Other Forms of Audio‖, 2009; an Analysis of the Consumer Mapping Study by the Council of Research Excellence
Note: Internet usage excludes e-mail: TV usage excludes time-shifted viewing
8
PEOPLE CONTINUE TO SPEND TIME WITH RADIO
% Daily Reach of Audio P18+
40%
9%10%12%15%
37%
77%
Other AudioStreaming on
Computer
MP3s Stored on
Computer
iPods /
Portable MP3
players
Satellite RadioCDs/TapesBroadc ast
Radio
72
65 81
69
109
67
53
BROADCAST RADIO IS THE DOMINANT SOURCE FOR AUDIO CONTENT
9
Minutes Per User
Source: Council for Research Excellence, Consumer Mapping Study, ―How U.S. Adults Use Radio and Other Forms of Audio‖, 2009;
Note: ―Other Audio‖ includes background music at
restaurants, retail, elevator music, etc.
BROADCAST RADIO CAPTURES MORE THAN 14 HOURS OF TUNE-IN EACH WEEK
Source: RADAR 110 September 2011, Arbitron (Monday-Sunday 24-Hour Weekly Cume Estimates)
10
Hrs. & Min. With Radio
13:16
15:39 14:16
P18-34 P35-64 P65+
Hrs. & Min. With Radio
13:48 15:37
W18+ M18+
ETHNIC RADIO CAPTURES MORE THAN 15 HOURS OF TUNE-IN EACH WEEK
Source: RADAR 110 September 2011, Arbitron (Monday-Sunday 24-Hour Weekly Cumes and Time Spent Listening Estimates)
• Slightly higher listening levels when looking at African-American
and Hispanic listeners
• African-Americans are heaviest users
11
18-34 35-64 65+
13:16
15:39
14:16 13:17
16:21 15:20
General Market African-Americans
18-34 35-64 65+
13:16
15:39
14:16 13:50
16:29 15:22
General Market Hispanics
Hrs. & Min.
With Radio
radio On Air. Online. On Target.
12
RADIO IS SPONSORED AUDIO CONTENT
AUDIO
iPHONE®
iPAD®
iPOD®
iTUNES®
PODCASTS
IN-DASH INTERNET RADIO
DIGITAL MUSIC SERVICES
HD RADIO®
STREAMING INTERNET RADIO
BROADCAST RADIO
LISTENER- DRIVEN RADIO
13
RADIO’S PLACE IN THE DIGITAL LANDSCAPE CONTINUES TO EXPAND
Broadcast Radio is the second most used device/platform in American’s lives
Source: The Infinite Dial 2011 – Arbitron Inc. Edison Media Research
14
% of American 12+ Who Own/Use
Platform or Device
25%
31%
31%
35%
36%
49%
51%
54%
56%
70%
84%
93%
98%
Audio Podcasts
Smartphone
iPod
Video on Demand
Digital Video Recorder
YouTube®
Facebook®
Online Video
Online Radio
Broadband Internet
Cell Phone
Local AM/FM Radio
Television
RADIO’S PLACE IN THE DIGITAL LANDSCAPE CONTINUES TO EXPAND
Radio is available in many of these growing digital formats
Source: The Infinite Dial 2011 – Arbitron Inc. , Edison Media Research
15
% of American 12+ Who Own/Use
Platform or Device
4%
4%
7%
8%
9%
9%
11%
12%
13%
17%
20%
22%
23%
24%
Location-Based Services
iPad
E-Readers
Twitter®
iPhone
BlackBerry®
Satellite Radio
Android™ Smartphone
MySpace
Hulu™
Video Podcasts
MP3 player (other than iPod)
Pandora
WEEKLY ONLINE RADIO AUDIENCE AT ALL-TIME HIGH
0%
5%
10%
15%
20%
25%
Jan '01 Jan '06 Jan '11
Source: The Infinite Dial 2010 & 2011 – Arbitron Inc. , Edison Media Research
16
89 million monthly listeners 12+ in the U.S.
AUDIO STREAMING MIRRORS THE WORKDAY
0
5000
10000
15000
20000
25000
30000
35000
Mo
-Fr
6A-7
A
Mo
-Fr
7A-8
A
Mo
-Fr
8A-9
A
Mo
-Fr
9A-1
0A
Mo
-Fr
10A
-11A
Mo
-Fr
11A
-12P
Mo
-Fr
12P
-1P
Mo
-Fr
1P-2
P
Mo
-Fr
2P-3
P
Mo
-Fr
3P-4
P
Mo
-Fr
4P-5
P
Mo
-Fr
5P-6
P
Mo
-Fr
6P-7
P
Mo
-Fr
7P-8
P
Mo
-Fr
8P-9
P
Mo
-Fr
9P-1
0P
Mo
-Fr
10P
-11P
Mo
-Fr
11P
-12A
AQ
H P
erso
ns
6+
Local Broadcast StreamingAudience (29 stations)
Source: Jul2011 – Local Streaming Station Audience as Reported in Arbitron Monthly PPM Data for Persons 6+ (29 stations from 21 metros)
17
ONLINE RADIO LISTENING IS A COMPLEMENT TO OVER-THE-AIR RADIO, NOT A SUBSTITUTE
Listening to Broadcast Radio
Listening to only Online Radio89% 11%
Source: The Infinite Dial 2010 & 2011 – Arbitron Inc. Edison Media Research
% of weekly online radio listeners who listened to broadcast radio
versus those who did not
18
DIGITAL GROWTH IN 2011
More than 2,000 stations broadcasting in HD
Projected 6,000 streaming stations by 2012
Source: Inside Radio/M Street Corp., The Radio Book 2010-2011; iBiquity/HD Radio Alliance; Arbitron/Edison Research: Infinite Dial 2011
19
31 million Americans have downloaded a podcast in the past month
THE EVOLVING DASHBOARD EXPANDING RADIO’S VISUAL CAPABILITIES
In-dash technology offers listeners:
• HD Radio
• Multicast stations offering exclusive
sports and music formats
• News, sports and weather on demand
• Navigation system offering real time
traffic
• Song-tagging
• Applink – Pandora, Twitter, Facebook
20
AM/FM RADIO IS STILL THE MOST ESSENTIAL IN-CAR DEVICE
21
Sources: Arbitron-Edison-Scarborough Study 2011; The Road Ahead; BASE: use at least one audio device in car
“Think about the time you spend in your primary car.
What percent of the time would you say you listen to…”
RADIO’S DIGITAL PLATFORMS: HYPERLOCAL SITES
Branded and non-branded
station sites serving as an
entertainment source
delivering local events, news
and sports updates
22
RADIO’S DIGITAL PLATFORMS: ON-DEMAND AUDIO
• Offering sports, music, information and entertainment
downloads whenever the listener wants it
• News, weather, sports, private events, pre- and post-concerts
videos, etc.
23
RADIO’S DIGITAL PLATFORMS: AUDIO ON MOBILE
• 23% of mobile phone owners listen to music or some other form of audio each month
• An average of 4 hours per week is spent listening to audio content on a cell phone/smartphone
– 18- to 34-year-olds listen an average of 5 hours per week
• Radio apps consistently among the Top 10 free app downloads
– 7.5M+ listeners have downloaded apps for AOL Radio, Yahoo! Music™ and Last.fm
– 11.5M+ listeners have downloaded the iheartradio app
Sources: Arbitron-Edison Infinite Dial Study 2011; Simmons 2010 Mobile Consumer Report; Bridge Ratings Device Usage Update – Sample Size 1956; CBS Radio and Clear Channel Online Music & Radio; iheartradio.com
24
RADIO’S DIGITAL PLATFORMS: MOBILE APPS FOR YOUTH
Radio Disney App allows listeners to gain access anytime, anywhere, plus
interact with Radio Disney for FREE with features including:
• Listen to live on-air, multi-task listening, song requests, shout-outs, recent
playlists, listen to on-air activity and learn about local events
25
RADIO’S DIGITAL PLATFORMS: LISTENER INTERACTIVITY
Listener Driven Radio
• Offers listeners real-time control of a radio station's programming
• Move songs in the playlist queue; recommend songs for airplay; receive SMS text messages, IMs or e-mails when their favorite songs play; song dedications via Facebook
26
―Remote Control Radio‖ – WKLS-FM in Atlanta
• Increase of social media usage by radio
• Listeners can ―program‖ the station by tweeting, texting, etc., and voting about the songs on air—all in real time
RADIO’S DIGITAL PLATFORMS: LISTENER INTERACTIVITY
27
Q: Which method do you use to communicate with any AM or FM radio station or one of its DJs?
Arbitron/Edison National Media Survey 2011 (multiple answers accepted)
27
0% 20% 40% 60% 80% 100%
Telephone
Text message
18-34
Total 12+
Sample size: 536 people who have ever communicated with a radio station (27% of US population 12+)
215
INDEX
170
INDEX
155
INDEX
SOCIAL NETWORK AND RELATIONSHIP MARKETING
• Many stations are integrating Facebook and Twitter with their loyalty clubs
• Loyal listener databases extend the connection that listeners have with their
stations by offering exclusive opportunities and deals
• Databases are virtually untapped by advertisers
28
SOCIAL MEDIA USERS FAVOR RADIO OVER TV AND CABLE
29
RADIO USAGE TV/CABLE
106 HEAVY 63
111 MEDIUM/HEAVY 84
114 MEDIUM 103
98 MEDIUM/LIGHT 120
71 LIGHT 130
Source: Scarborough USA+ Rel 1 of 2011 (12mo) ,Persons 18+ (sample size 77,480)
Social Networking Usage on a mobile device vs Media Quintile
Index of Social Networking Usage (100 is average)
How to read: Light TV/Cable viewers are 30% more likely to be
users of social networking sites like Facebook and Twitter
DATA MINING AND GROUP COUPONING
30
Source: Arbitron-Edison Infinite Dial Study 2010
• Robust database
– Offers insights into programming and
marketing to listeners
– Provides engagement metric with
stations and advertised brands
• 22% of people who visit a broadcast radio
station Web site clip advertiser coupons
RADIO DELIVERS GROUP COUPONING
31
Source: Scarborough USA+ Release 1 of 2011 (12mo) , Persons 18+ (Sample size for internet coupons: 34,985 and e-mail/text coupons: 33,100)
Household obtains ―cents-off‖ coupon from e-mail or text messages
• Radio reaches 94.6% of them each week
• 32.4% NEVER use the Yellow Pages
• 44.0% did NOT read a newspaper in the past 7 days
Household members use the internet for coupons
• Radio reaches 94.4% of them each week
• 33.2% NEVER use the Yellow Pages
• 43.1% did NOT read a newspaper in the past 7 days
radio On Air. Online. On Target.
32
RADIO DOMINATES THE RETAIL DAY
0%
5%
10%
15%
20%
25%
30%
35%
40%
Broadcast Radio Television Internet Magazines Newspapers
Source: Gfk MRI - MediaDay 2009 Single Year (Fieldwork 08-09/Spring Respondents) Weighted to Population (000) Base All; A25-54
33
% of Media Time Spent per Day
A25-54
RADIO REACHES LISTENERS OUTSIDE THE HOME WHEN THEY ARE READY TO BUY
Source: Arbitron Spring 2011, Persons 12+, National Regional Database
42% 28% 28%
51% 63%
58% 72% 72%
49% 37%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
M-F 5A-10A M-F 10A-3P M-F 3P-7P M-F 7P-12M M-F 12M-5A
Proportion of Listening at Home Proportion of Listening Away From Home
34
RADIO REACHES CLOSEST TO THE POINT OF PURCHASE
Radio is the most-used medium just prior to shopping • 62% of shoppers listened to radio 13 minutes
prior to purchase
• 90% of consumers are in their vehicles less than 6 minutes before shopping
–Audio captures 89% of in-car media time
Source: ―Video Consumer mapping Study,‖ Center for Research Excellence, June 2010 – Adults 18+
35
RADIO MOTIVATES BEHAVIOR
• Radio drives sales – On air personalities were given KINECT for XBOX 360 prior
to launch. The buzz they generated led Microsoft to increase their forecast by 40%. XBOX 360 sales doubled.
• Radio builds brand trust – Wells Fargo coached radio personalities to evaluate their
investments for retirement on the air. Campaign generated 50,000 inquiries for investment information.
• Radio engages consumers – Guitar Center’s ―Get Schooled‖ program used radio to
create a one-of-a-kind experience which led to 10,000 visitors to each event and outstanding reviews in the press
Source: Local Radio Case Studies
36
LISTENERS HAVE EMOTIONAL CONNECTIONS TO THEIR FAVORITE RADIO PERSONALITIES
8.4
8.1
8.0
7.9
7.7
7.6
Makes me laugh
Cares about his or her listeners and fans
Is genuine
Talks about things that I like toshare/discuss with my friends
Is a credible source of information
Makes me think or reflect on a certaintopic
My Favorite Local Radio Personality...
Source: Katz Marketing Solutions: 2008 Starcom Mediavest GM Study
Based on 1-10 Agreeability Scale
37
PERSONALITIES VALUED WITHIN THE COMMUNITY
Listeners are loyal to their
broadcast radio personalities,
have an emotional connection,
rely on them for entertainment
Listeners see radio personalities as
―heroes‖ within their community who
have helped support organizations
and cause-related events
38
RADIO ADS ARE MORE PERSONALLY RELEVANT THAN OTHER MEDIA
Source: ―Personal Relevance Two: Radio’s Receptive Ad Environment‖ (2006), Harris Interactive/Wirthlin Worldwide; Radio ads compared to average of other media
39
Consumers perceive radio ads are more relevant and local
than newspapers, TV or Internet ads
0%
10%
20%
30%
40%
50%
60%
Local Products Reach People Meant For Connected to Community Reaching You Personally
Radio
Other Media
% Who Agree Strongly or Somewhat Agree
RADIO BOOSTS UNAIDED RECALL
Source: ―The Benefits of Synergy: Moving Money Into Radio‖ with PreTesting Company (2004); Approximately 100 Respondents per Group
40
100
134
100
280
0
100
200
300
TV &
Rad
io
New
spap
ers
New
spap
ers
& R
adio
34% Better
Recall for
Radio Mix
Rec
all S
core
Ind
ices
Unaided Brand Recall
Two TV/Newspaper Ads vs. One TV/Newspaper Ad Plus Two Radio Ads
When radio is included in a TV or newspaper campaign,
brand recall significantly increases
Test Advertiser Categories:
• Fast Food
• OTC Allergy Medicine
• Auto
• Cell Phone Service Provider
• Credit Card
RADIO BOOSTS UNAIDED RECALL
Source: ―Radio and the Internet: Powerful Complements for Advertisers‖ With Harris Interactive (2006); Approximately 100 Respondents per Column
41
Perc
ent
Rec
allin
g B
ran
ds
Unaided Brand Recall
Nearly 4 ½ times greater when radio is added to Internet-only campaign
4 3 3
1
9
4
7
12
30
32
25 27
25
33
20
27
0
5
10
15
20
25
30
35
Brand 1 Brand 2 Brand 3 Brand 4 Brand 5 Brand 6 Brand 7 Brand 8
Two Internet Ads One Internet, One Radio
Test Advertiser Categories:
• Fast Food
• Other Restaurant
• Grocery Meat
• Grocery Canned
• OTC Headache
• OTC Breath
• Travel
• Electronic Device
Generate awareness about
film
Top 20 markets – Summer ’10
29% increase in film
awareness among moviegoers
exposed to radio campaign
RADIO DRIVES TRAFFIC, CONSIDERATION AND BUILDS BRANDS
Increase purchase intent of
brand
Top 40 markets – 4Q ’10
12% increase in purchase
intent among prospects who
were exposed to radio
campaign
Increase consideration and
purchase intent
Top 5 markets – 4Q ’10
20% increase in likelihood of
opening an account among
prospects exposed to radio
campaign
Theatrical (Thriller)
Electronics (Digital Cameras)
Finance (Consumer Banking)
Source: Katz Marketing Solutions, Custom Research Study.
42
Goal
Radio Plan
Results
RADIO’S TACTICAL STRENGTHS
Control by Time of Day and/or Day of Week 96%
Reach People out of Home 89%
Geo-Targeting (Target by DMA or Metro) 82%
Create/Rotate Messages Quickly 79%
Source: Compose 2010; Based on Expert Panel (40 Senior Planners/Researchers From Leading Media Agencies)
43
Brand Equity
Awareness
Promotion
Experiential
Word of Mouth
Social Networking
CONSUMER
Radio across platforms, with
mass reach and local
sensibility fulfills multiple
roles in the marketing plan
RADIO’S ROLE IN THE MARKETING PLAN
44
RADIO
• On Air – A mass medium capable of easily delivering your message to many people
– Targetable (by demo, lifestyle and geography) to assure the right people are exposed to your message with little waste
• Online – Digital capabilities offering interactive opportunities to complement and
enhance your campaign and reach consumers using multiple touch points
• On Target – An environment that delivers consumers who are engaged and passionate
about the content
– Exposure to your message when and where consumers are ready to buy or shop
45
CONSUMING AUDIO HOW, WHERE AND WHEN THEY WANT IT
WAKE UP
#1 Medium from 5AM-5PM
More people listen daily than visit the Web
GETTING READY FOR WORK AT WORK
89 million consumers tune in online every month
AM COMMUTE
Audio captures 89% of in-car media time
TELECOMMUTING
Consumers listen on their mobile device 5 hours/week
PM COMMUTE
90% of PM commuters tune in just before stopping to shop
FOR THE BIG GAME
Listening surges during sporting events
46
FOR ADDITIONAL INFORMATION
• www.arbitron.com/home/radiotoday.htm
• www.raisingthevolume.com ( Katz Marketing Solutions )
• www.rab.com
• www.radioadlab.org
• www.radiomercuryawards.com
• www.researchexcellence.com
• www.thebestofradio.com
47
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for purposes of demonstration only, and the entities associated with the products shown in those images are not affiliated with Arbitron in any way, nor have they
provided endorsements of any kind. No permission is given to make use of any of the above, and such use may constitute an infringement of the holder's rights.