A Positive Perspective of Radio and Its Future
Radio in the USA: Thriving
Presented by:Mary Beth Garber/Katz Radio Group
Carol Hanley/ Arbitron Inc
You Hear It All The Time
� Radio is Dead or Dying
� New Technologies are Diminishing Time Spent with Radio
� Young People Don’t Listen to Radio Anymore
� Radio isn’t Keeping Up With the New Ways People Communicate
As New Technology Develops…
20052000
2001
201020092007
2001
2001…Radio Reach Remains Big and
Listening Levels Remain Consistent2004
Changing Technology Has Affected How and Which Media People Own or Have Access To – But Radio and
TV (Free Access) Remain Primary
% Population/Household Penetration
Source: TV HH, Nielsen May 2011; wkly Radio Arbitron RADAR 108; Mobile Web comScore Feb 2011 via mobiThinking; DVR, Nov, 2010 NielsenWire; Cable & ADS July
2011 Nielsen Report; iPods/MP3s and Social Net Usage Edison Media Infinite Dial: 2011; Video Game Consoles from Lichtman Rseearch June 2010; Video Game
Console, Internet usage, Wireless Cell Phone, Hi speed Internet Access from Pew Internet & American Life Project Dec 2010, May, June 2011
Time spent with all media is at an all time high. People are not using new devices at the expense of radio.
New Technologies definitely havenot “killed the radio star” –
Several industry studies support that fact
Three 2011 Research Studies Concur –Digital Audio Listening Is In Addition To, Not Replacing AM/FM
Radio Listening
� Time spent listening remains consistent among rock Radio listeners over four years
TechSurvey 7, June 2011 survey of 20,000+ rock format radio
listeners
� Among Women 18-54, those who listened to online streaming spent the same or more time listening to over
the air radio stations “Here She Comes 2011” survey of 2,020 women
18-54 in June 2011
� Digital users spend as much time with Radio as the average (not less)
“The Infinite Dial: 2011”
Source:RADAR 88-108, P12+, M-SUN 12M-12M
On-air Program Highlights
Radio Usage – Six Year Trends -- People 12+
Radio’s Reach Remains Level Despite New Audio Devices In Use
Nearly Everyone Uses Radio. In Real Time. Every Week.
Source: RADAR 109, June 2011
Radio reaches over 93% of virtually every segment of the population. That that has been true year after year and remains true today.
But isn’t Radio Losing Listening Time?
� More people – of all ages – listen to radio now than ever
before. And on more platforms than ever before.
� Both electronically measured (PPM) and Diary measured
perceived usage reporting show little or no change in reach
or time spent listening in the past three years.
� Radio is NOT dying. Far from it.
NO.
KATZ RADIO GROUPKATZ RADIO GROUP
Radio Usage Remains
Consistently BigAmong All Key Demographic
Segments
• Look at PPM (17 markets)
• Diary Markets (235 markets)
• 3 Year Trend
Radio Remains Relevant To People
© 2011 Arbitron Inc.
Persons 12+ Weekly Cume and Time Spent Listening Among 17 PPM Markets that have been Currency 3+ Years
PPM Measured Markets: Radio’s Reach of 12+ is Consistent
And 60% of that time is spent with just ONE station.
© 2011 Arbitron Inc.; NY, LA, Chi, Phil, SF, Hou, RSB, Atl, DFW, Det, DC, Bos, MFL, Phx, SD, Min, Sea
© 2011 Arbitron Inc.
Diary Measured Markets: Radio’s Reach of P12+
Persons 12+ Weekly Cume and Weekly Time Spent Listening Among 235 Diary Measured Markets, M-Su 6A-Mid based on Arbitron
National Regional Database (NRD)
Radio Usage By People Continues To Be Big And Consistent
KATZ RADIO GROUPKATZ RADIO GROUP
Radio Usage Remains
Consistently BigAmong All Key Demographic
Segments
Because of the stations.
� We found great radio stations from the 17 PPM
� We asked a selection of them for their secret
� Similar elements, different execution
� Focused on lifestyles, listeners and culture
Why Big and Consistent?
It Is Branding 101That Sets These Stations Apart
� Innovation and the creation of new categories of
information and entertainment. Think Apple.
� When you provide relevant content, your listeners
become engaged on all levels
� When your listeners are engaged, you deliver value for
your advertisers
� You have become relevant to the lives of the listener
Use Your Assets
The Keys To Making Neighborhoods Revolve Around Relevance
Characteristics of Relevant Neighborhoods
� Differentiation - create a unique, amazing customer experience
� Customer Relations - Give them what they want
� Create Community -- Personalities are the heart of your local
neighborhood
� Matter –be a force for good in the Community
� Authentic Newness – Pioneer new ways of doing things
� Passion – Be a true friend
© 2011 Arbitron Inc.
PPM Measured Markets: Radio’s Reach of 12-24s is Big and Consistent
Persons 12-24 Weekly Cume and Time Spent Listening Among 17 PPM Markets that have been Currency 3+ Years
P12-24 Weekly Cume Time Spent
Radio Continues to be the Dominant Form of Audio Entertainment Among Young People
© 2011 Arbitron Inc.; NY, LA, Chi, Phil, SF, Hou, RSB, Atl, DFW, Det, DC, Bos, MFL, Phx, SD, Min, Sea
© 2011 Arbitron Inc.
PPM Measured Markets: Radio’s Reach of 18-34s is Consistent
Persons 18-34 Weekly Cume and Time Spent Listening Among 17 PPM Markets that have been Currency 3+ Years
P18-34 Weekly Cume and Time Spent Listening
Young People Rely On Radio
© 2011 Arbitron Inc.; NY, LA, Chi, Phil, SF, Hou, RSB, Atl, DFW, Det, DC, Bos, MFL, Phx, SD, Min, Sea
“Young People are more likelyto have a radio in their bedroom
than ANY other media device including TV, CD players and the Internet.”
Kaiser Family Foundation Report Center on Media & Human Development June 2011, as reported in Inside Radio
El Banda Recodo
La Quinta EstacionEnanitos VerdesAlejandro Fernandez
Pepe Aguilar
Paulina Rubio
Aleks Syntek
Jaguares
Juanes
Beto Cuevas Thalia
Ricky MartinReyli
Los Hombres G
Camila
Wisin y Yandel
Calle 13
MANA
Belanova
Alejandra
Guzman
Julieta Venegas
Super Estrella Events
� Psychologists call it Para-Social Interaction -- a very real, emotional connection to a celebrity or fictional character. Industry studies find the same results:
– Personalities matter to radio listeners
– Listeners care about them, relate to them, feel an emotional connection, as if the personalities are actually part of their social network
– “Even though such one-way friendships are based on illusion of interaction via television or radio rather than actual social interaction, a bond of intimacy is created and viewers [or listeners] feel they really know the media character.”
� 90% of radio listeners said they would be disappointed if their favorite radio station were no longer on-air
� Only Radio can offer advertisers product endorsements by on-air personalities
� Those endorsements lifted brand awareness by 50% in a study conducted by a major small appliance advertiser in 2010
Radio can share this relationship with its advertisers
Radio Offers Personalized Connections to Listeners
Sources: Freda D., Lewis (2000). Getting by: Race and Parasocial Interaction in a Television Situation Comedy. Dissertation.com. ISBN 1-58112-105-9. , cited from Wikipedia.com; The Infinite
Dial: 2011 by Arbitron and Edison Research and Alan Burns & Assoc Study 2011 of w18-54; Critical Mass Media April – June 2010
Radio Usage By Young People Continues To Be Big And Consistent
Authentic Newness – Give The Listeners Control
Great Radio StationsRevolve Around Relevance
� They define and differentiate themselves
� They understand the listeners, give them what they want and give them
access in the ways they want it
� Their Personalities are the heart of their local neighborhood
� They become part of the fabric of the Community, working to do good
� They embrace an authentic newness – grasp and get in front of change
– bring it to their listeners, trust and allow listeners to help run the
show
� Great Radio Stations do all of this with a passion that feeds the
familiarity that makes listeners believe this is a true friend
� They enable their advertisers to become part of the neighborhood, too
And Everyone Thrives
What is True About Radio
� Radio reaches 9 out of 10 people in every demographic segment – in real, not delayed time – every week
� Radio reach and listening levels have remained big and consistent for virtually every demo including young people
� More people listen to the radio than use the internet--and they use radio more everyday than they use the internet each day
� Digital devices and online listening are in addition to, not instead of regular radio – heavy users of digital audio are also heavy radio listeners
� Radio provides personal, emotional connections that can benefit advertisers
� Radio offers psychographically and demographically targeted environments that remain consistent and available 24/7
� People hear and respond to Radio commercials
� A Radio commercial has the same as or more impact as a TV commercial
� Radio is by far the device most used and most valued in the car by every age
� Radio gets your message to the most consumers just before they shop
Sources: RADAR 109 June 2011; Arbitron Q2 2009, 2010, 2011 PPM ratings M-Su 6a-mid 17 markets with 3 year trends available; 2008, 2009, 2010 Arbitron Diary ratings from NRD, M-Su 6A-Mid; comScore June
2011; The Infinite Dial: 2011 by Arbitron and Edison Research, Jacobs Media Tech Survey 7 2011, Target Spot 2011 study and Alan Burns & Assoc Study 2011 of w18-54;
Critical Mass Media April – June 2010; OTX Studies 2011 for 3 advertisers; RadioAdLab.com 2007 Study; Arbitron/Coleman/Media Monitors Study Dec 2005;
“The Road Ahead” Arbitron/Edison Oct 2011; Nielsen, /Council of Research Excellence 2010