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1| Radio Connects | November 2018 TRUTH IN AUDIO The audio landscape is ever evolving, and AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial radio is waning – It’s Not. Millennials don’t listen to radio – They Do. Spotify and similar platforms are the new radio – They’re Not. Radio doesn’t build business – It Does.

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Page 1: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

1| Radio Connects | November 2018

TRUTH IN AUDIOThe audio landscape is ever evolving, and AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape.Commercial radio is waning – It’s Not.Millennials don’t listen to radio – They Do.Spotify and similar platforms are the new radio – They’re Not.Radio doesn’t build business – It Does.

Page 2: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

2| Radio Connects | November 2018

RADIO CONNECTSWorking in partnership with members to

create a MORE INFORMED ADVERTISING

AND MEDIA COMMUNITY – one

challenged and informed by a deeper

understanding the role of commercial radio

has within the audio landscape.

Page 3: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

3| Radio Connects | November 2018

RESEARCHKey radio facts, figures, insights and its advertising impact on

business and consumers have been sourced and noted and

comes from syndicated and bespoke research.

Share of Ear Canada 2017Asking over 1200 Canadians about their audio habits.

Radio On The Move Wave 9Expanded panel to 3600 Canadians’ interaction with audio in and out of the automobile.

Radio On The Move 2018 Interim ReportTrending on observations made in Wave 9.

Numeris Reports and othersRTS, PPM and Diary data and syndicated data from Nielsen, and Westwood One.

Page 4: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

4| Radio Connects | November 2018

RESEARCHRC2C

Highlights from RC’s bespoke study – Radio Connects to Consumers

Insights on how consumers segmented by generation relate to radio

Page 5: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

5| Radio Connects | November 2018

Definitions of the terminology used in this report

Glossary of Terms.

AM/FM STREAMINGAny radio station transmitted online as a continuous flow; includes streaming / listening online via computer or mobile phone .

PERSONAL MUSICUse of apps like: Spotify, Amazon Music, Apple Music, Google Music and curated music lists.

PROGRAMMED MUSIC

Use of RadioPlayer Canada, iHeart, TunedIn or local radio station mobile app to listen to music

PODCASTS

Pre-recorded digital audio programs, usually spoken word, that you can subscribe to in a feed and/or

download to listen to later.

Page 6: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

7| Radio Connects | November 2018

RADIO IS OUR COMPANIONRadio is a social experience that has evolved over time. A continuing relationship

between the listener and personalities,

something that doesn't happen with audio streams or music collections.

Page 7: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

8| Radio Connects | November 2018

The audio landscape in Canada is changing rapidly.

8

2014 2015 2016 2017

Google Home Smart

SpeakersJune 2017

Google Play Music

launched: May 2014

Spotify launched: September

2014

Tidal Music launched: December

2014

Apple Music

launchedJune 2015

iHeartRadio app

launched: October

2016

Radioplayer app

launched: March 2017

Amazon Echo Smart

SpeakersDecember

2017

Amazon Prime Music

November 2017

Page 8: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

9| Radio Connects | November 2018

RADIO CONNECTS WITH CANADIANS.Radio connects Canadians with new music, local and global news and keeps them entertained and informed. Apps, smartphones and smart speakers empower listeners to take their favourite stations, personalities and podcasts with them. And audiences keep coming back for more.

Radio Today

Page 9: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

10| Radio Connects | November 2018SOURCE: MTM SPRING 2017 / NIELSEN 2016 + 2017 CANADA YEAR END REPORTS ROTM 2017/2018 W9 * Audio Time = Radio Receiver + AM/FM Streaming + Satellite + Online Audio/Music

The audio universe is expanding with tracking of personal music.

1. Albums (Physical + Digital) Sold: 2016 -> 2017 = -18%

2. # of Streams: 2016 -> 2017 = +71%

3. #1 Reason listening to PurePlays = Listen to Any Song I want when I want

4. >50% of Daily Spotify Listens have Premium Subscription (No Ads)

5. Audio Time* Spent 18+ Canadians - Millions of Hours 2012 -> 2017 = +25%.

294

1663

283

32

151

Radio : Receiver +Streaming

Satellite OnlineAudio/Music

2012 2017

CANADIANS 18+ AUDIO HOURS (MM’s)BY PLATFORM:

Page 10: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

11| Radio Connects | November 2018

Personal music business model is changing from owning to renting.

Source: Nielsen 2016 a& 2017 Canada Year-End Reports. On demand audio data from Apple Music, Google Play, Spotify, Tidal, and Slacker * Includes physical and digital albums, as well as TEA (Track Equivalent Albums) from single song sales

Spotify September 2014 Apple Music June 2015

Google Play May 2014 Amazon Prime November 2017

Physical Sales In DeclineBrick and mortar stores and physical album sales have been

in a steady decline.

‘Rented’ Audio LibrariesGrowth of digital platforms has changed how Canadians

manage their personal music libraries.

+

+

Page 11: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

12| Radio Connects | November 2018

Commercial freeHighest amongst both Millennial groups index 118 | 107.

Music to match my moodHighest amongst both Millennial groups index 109 | 103, and Established Gen X 106.

Can access anywhereHighest amongst both Millennial groups index 142 | 126.

53%

55%

45%

Personal music is about disconnecting, particularly for younger generations.

Q27: Thinking of when you’re listening to personal music which of the following are important to you? (Select all that apply)

Page 12: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

13| Radio Connects | November 2018

Personal music is about control and instant gratification for everyone.

Advancing and Established Gen

‘X’ers like to be in control.

Listen anywhere (48%|107),

create own playlists (43%|110),

listen on demand (41%|129)

OAS Boomers use personal

music to follow artists they may

not hear regularly (30%|115).

Like it commercial free

(65%|118), want it to match their

mood (58%|109), access it

anywhere (63%|138), create their

own playlist (54%|138)

Personal music is about instant

satisfaction for Maturing Millennials.

Canadians 55+ want to be able to follow their

favourite artists.

Page 13: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

14| Radio Connects | November 2018

Google Home leads smart speakers in Canada.

HomePod to earliest adopters only. Apple’s HomePod launched in Canada in June when the survey was in field. Could have been acquired via the U.S.

SOURCE: Radio on the MoveQ.F17 Which of the following would best describe your experience with the Amazon Echo and Google Home “smart” speakers? [I already own an X] *brackets indicate Canadian release dateBase: Canadians aged 18+ (n=2035)

2%

3%

2%

2%

8%

Apple HomePod

Amazon Echo

Google Home

Jun 18

Nov/Dec 17

Different picture than the U.S. Google Home was first into the market in Canada and backed it up with a major marketing campaign, unlike the U.S. where Amazon launched first.

Amazon Echo flat. Little or no growth since its launch in Canada just before Christmas.

Page 14: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

15| Radio Connects | November 2018

Smart speakers open new opportunities to listen to audio.

SOURCE: Radio on the MoveQ.F21. How would you say having a smart speaker at home has affected the amount of time you spend listening to each of the following?*non-listeners and those who did not report any changes not shownBase: Canadians aged 18+ who own a smart speaker (n=203)

41%

16% 14%

-3% -5%

Music AM/FM Podcasts

Listening Less Listening More

+40%

+13% +9%

Impact of Smart Speakers on Time Spent with Audio

(by % of owners)

Net increase in listening to music: +40% A total of 41% of early smart speaker owners say they are listening to more music since they got their smart speaker, with just 1% saying they were listening to less music.

Net increase in listening to AM/FM: +13% Smart speakers are the new “radios” for many early smart speaker owners.

Net increase in podcast listening: +9% Google Home in particular provides easy access to most recent episodes of favourite podcasts.

-1%

Page 15: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

16| Radio Connects | November 2018

Nearly tripled since before Christmas. Just one year after Google Home arrived in Canada, more than 1-in-10 Canadian adults own a smart speaker.

More players entering the field.Samsung will soon be joining Google, Amazon, and Apple. Microsoft rumored to be developing their own.

Audio branding increasingly a “thing.”The growth of smart speakers is opening new conversations at ad agencies around audio branding.

4%

11%

Nov/Dec 17 June 18

% of Canadian Adults whoOwn Smart Speakers

SOURCE: Radio on the MoveQ.F17 Which of the following would best describe your experience with the Amazon Echo and Google Home “smart” speakers?/ and Apple HomePod “smart” speakers (June 18)? Base: Canadians aged 18+ (n=2035)

Smart speaker adoption is growing rapidly.

Page 16: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

17| Radio Connects | November 2018

Spotify is the most listened to pureplay service.

SOURCE: Radio on the MoveQ.F13 Overall, thinking of all locations, how often, if ever, would you say you listen to [service]? Base: Canadians aged 18+ (n=2035)

Spotify – 1 in 5 Canadians listen. One in five Canadians listen to Spotify’s ad-supported and ad-free services weekly, up 3 points from 16% in November/December 2017. Daily listening is up 1%. Overall growth due to increases in paid, ad-free subscriptions.

Google Play + YouTube Music. In May of this year, Google announced the launch of a new premium service, YouTube Music, and has confirmed that it will replace Google Play Music in 2019.

19%

14%

7%

10%

6%

3%

Spotify

Apple Music

Google Play Unlimited

Listen weekly

Listen dailyApple Music – growing faster than Spotify Apple Music, solely an ad-free paid subscription service, is showing more robust growth than Spotify, with weekly listening up 6 points from 8% in late 2017.

Page 17: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

18| Radio Connects | November 2018

Who’s listening to Spotify and why.

SOURCE: Radio on the MoveQ.F13 Overall, thinking of all locations, how often, if ever, would you say you listen to: Spotify?Base: Canadians, aged 18+ (n=3470)

Early adopters most likely to subscribe to music platforms.18-34 year old’s are also the most likely to use ad-blocker technology.

19%

34%

23%

5%10%

24%

8% 1%

All adults 18-34 35-54 55+

Listen to Spotify ( Ad Free + Ad Supported ) 1+ x/weekListen to Spotify ( Ad Free + Ad Supported) daily

On demand access the priority. 65% of Canadians who use pureplay services do it to have immediate access to songs.

Curated playlists less important. Only 1/3 of pureplay streamers name curated playlists – radio’s domain – as a main reason for listening.

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19| Radio Connects | November 2018

Heaviest weekly use is by 18-34 year old's. But only 1 in 6 of them use ad-supported platform.

SOURCE: Radio on the MoveQ.F13 Overall, thinking of all locations, how often, if ever, would you say you listen to [service]? Base: Canadians aged 18+ (n=2035)

Spotify Daily 18-34 Listeners is 24% but 62% pay for an ad-free subscription. One in four A18-34 Canadians listen to Spotify’s daily, up 4 points from November/December 2017. Ads only reach One in Eleven ( 38% of 24%) of daily listeners.

Google Play + YouTube Music. In May of this year, Google announced the launch of a new premium service, YouTube Music. Largest Weekly Growth (+5%) with a decline in daily.

Apple Music. Apple Music, solely an ad-free paid subscription service, is showing a decrease in Daily usage for 18-34 but weekly growth of +3%.

7%

9%

20%

6%

7%

24%

10%

13%

32%

15%

16%

34%

Google Play Unlimited

Apple Music

Spotify

Weely Sp'18 Weekly F'17 Daily Sp'18 Daily F'17

Page 19: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

20| Radio Connects | November 2018

Spotify is growing with Paid ( Ad Free ) Subscriptions

SOURCE: Radio on the MoveQ.F13 Overall, thinking of all locations, how often, if ever, would you say you listen to [service]? Base: Canadians aged 18+ (n=2035)

4%9%

3% 1%4%

1%4%

4% 5% 3%

6%

15%

4% 1%5%

7%4% 8% 4%

2%

A18+ A18-34 A35-54 A55+ BC AB MB/SK ON QC AtlanticCanada

Neither Ad supported Ad free

Listen to Spotify Daily : By Subscription Type

Page 20: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

21| Radio Connects | November 2018

Millennials listen to AM/FM radio 9x more than Ad supported Spotify.

SOURCE: Radio on the MoveQ.F13 Overall, thinking of all locations, how often, if ever, would you say you listen to [service]? Base:Q.E1 Thinking of all the time you may listen at home, in the car, or at work, how much time in total do you spend listening to AM or FM radio stations during a typical

weekday? Canadians aged 18+ (n=2035)

18-34 year old’s are 9x more likely to hear an ad on AM/FM radio vs. Spotify.

89%83%

92% 91%

4%9%

3% 1%

All adults 18-34 35-54 55+

Listen to AM/FM on "a typical weekday"

Listen to Spotify daily

+9x

Page 21: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

22| Radio Connects | November 2018

Most of pureplay streaming reach is duplicated.

Close to 90% of pureplay music streamers still listen to AM/FM Radio daily.

87% 89% 90%

Daily pureplaystreamers

Weekly pureplaystreamers

Monthly pureplaystreamers

% who listen to AM/FM Radio on “a typical weekday”

SOURCE: Radio on the MoveQ.E1 Thinking of all the time you may listen at home, in the car, or at work, how much time in total do you spend listening to AM or FM

radio stations during a typical weekday?Base: Canadians, aged 18+; pureplay streamers in past 24 hours (n=457); pureplay streamers in past week (n=781); pureplay streamers

in past month (n=1,004)

Page 22: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

23| Radio Connects | November 2018

89%

When you buy ads on AM/FM, you get almost all of Spotify’s audience for free.

Ad-supported subs also tune AM/FM. In fact, an even higher % of ad-supported subs who listen to Spotify weekly reported listening to at least some AM/FM on a typical weekday (95%, compared to 89% of all Canadian adults).

% of all adults delivered exclusively by Spotify

0.4%

Listen to some AM/FM on a “typical weekday”

% of all Canadian adults

Ad-supported subs listening to Spotify weekly

8.3%Similar picture in 18-34 demo. A total of 92% of 18-34 year-olds with an ad-supported subscription who listen to Spotify weekly said they also listen to some AM/FM on a typical weekday. % of all 18-34s delivered exclusively by Spotify: just 1.2% (down from 1.8% in Nov/Dec ‘17).

SOURCE: Radio on the MoveQ.F13 Overall, thinking of all locations, how often, if ever, would you say you listen to [service]? Base: Canadians aged 18+ (n=2035)

Page 23: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

24| Radio Connects | November 2018

Canadian AM/FM radio dominates audio at WORK.

24

63%

13%

11%

6%

4%

2%

AM/FM Radio

Owned Music

StreamingAudio

Sirius XM

Podcasts

TV Mus. Ch.

Time Spent:

Source: Edison Share of Ear Canada 2017; U.S: Edison Research, “Share of Ear,” Q2-Q4 2017, Q1 2018.

CANADIAN AM/FM RADIOHAS 89% SHARE OF AD

SUPPORTED AUDIO AT WORK

Page 24: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

25| Radio Connects | November 2018

Canadian AM/FM radio dominates audio in the CAR.

25

73%

12%

11%

2%

4%

AM/FM Radio

Owned Music

Sirius XM

Podcasts

Streamed

Time spent:

Source: Edison Share of Ear Canada 2017; U.S: Edison Research, “Share of Ear,” Q2-Q4 2017, Q1 2018.

CANADIAN AM/FM RADIOHAS 96% SHARE OF AD

SUPPORTED AUDIO IN THE CAR

Page 25: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

26| Radio Connects | November 2018

Canadian AM/FM radio dominates audio at HOME.

26

14%

11%

10%

3%

3%

AM/FM Radio

Owned Music

Streamed

TV Music

Other

Podcast

Time spent:

Source: Edison Share of Ear Canada 2017; U.S: Edison Research, “Share of Ear,” Q2-Q4 2017, Q1 2018.

CANADIAN AM/FM RADIOHAS 87% SHARE OF AD

SUPPORTED AUDIO AT HOME

59%

Page 26: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

27| Radio Connects | November 2018

Canadians choose to spend time with radio more than any other audio.

SHARE OF EAR® CANADA 2017

Source: Edison Research Share of Ear ® 2017 Canada | Avg. Daily Listening P13+ | AM/FM includes over the air streams | Owned Music includes CDs, digital music files etc. | Streaming Audio includes pureplays such as Spotify, Apple Music, Google Play etc.

Page 27: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

28| Radio Connects | November 2018

Canadians are connected to audio.

83%Feel AM/FM Radio is very important to Canadians.

95%Say it is important to keep up with what’s happening in their local community.

95%Say it is important to keep up with latest news.

95%

55%

23%

AM/FM Radio Streamed Audio Podcasts

Listen to AudioPast 7 days / week

RC2C Q: 1 Have you listened to a AM/FM RADIO STATION PAST 7 DAYS? 2. Have you listened to / streamed audio content on the internet in the past 7 Days? 10. How often, if ever do you listen to podcasts?

Page 28: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

29| Radio Connects | November 2018

All like know what’s happening in their city.

They all keep up with the latest news.

Keeping up with the latest music is important for all Millennials and Gen X’ers.

95%

95%

61%

Radio keeps all Canadians current regardless of age.

RC2C Q29: How important is it to you…?(very and somewhat important)

Page 29: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

30| Radio Connects | November 2018

An emotional connection.

Radio is constant in its emotional connection to Canadians.

RC2C Spring 2018Base: Canadians listen to Audio past 7 days aged 18+ (n=5000)

%

46

42 42

71

39

62

13

5

13

54

30

41

34

20

26

36

17

24

To be entertained To lift my mood To relax and unwind

Radio TV Nwsp. Int. Mob. Soc. Media

Page 30: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

31| Radio Connects | November 2018

Radio listeners engage with digital differently.

74 73

5754 52

Check prices Learn things Fill spare time To beentertained

Keep up withnews, gossip,

info

Internet

%

RC2C Spring 2018Base: Canadians listen to Audio past 7 days aged 18+ (n=5000)

A perfect companion to radio, listeners use the internet for research and price checking.

Page 31: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

32| Radio Connects | November 2018

Behaviours change as life stages change.

2017 Millennials measured in 2013 are 21-37 yrs. OldThey listened to 30,422,219 hours of radio in one week. +28% increase from when they were 17-33.

2016 Millennials measured in 2013 are 20-36 yrs. OldThey listened to 29,231,919 hours of radio in one week.

2015 Millennials measured in 2013 are 19-35 yrs. oldThey listened to 27,827,395 hours of radio in one week.

2014 Millennials measured in 2013 are 18-34 yrs. OldThey listened to 25,925,086 hours of radio in one week.

As Millennials age, their time spent with radio increases.

2013 Millennials measured in 2013 are 17-33 yrs. OldThey listened to 23,840,853 hours of radio in one week

18-34yrs. old – 25.9MM hrs/wk

Source: Numeris PPM data | Mo-Su 2a-2a | Total Meter Ctrl Total Radio | Avg. Weekly Total Hours | Calendar Years Jan-Dec, |Demos as labeled.

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33| Radio Connects | November 2018

APPLIES TO TEENS AS WELL

18-2443% of Population 6 Hrs: 42 Min

12-1712% of Population 5 Hrs: 56 Min

Source: Numeris PPM data | Mo-Su 2a-2a | Total Meter Ctrl Total Radio | Avg. Weekly Total Hours | Calendar Years Jan-Dec, |Demos as labeled.

Page 33: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

34| Radio Connects | November 2018

RADIO ENGAGES WITH CANADIAN CONSUMERS

Page 34: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

35| Radio Connects | November 2018

Start at the beginning.

FIND OUT MORENOTICE REMEMBER TRUST

Page 35: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

36| Radio Connects | November 2018

Internet gets the credit when it comes to finding out more about a product or service.

Internet 20%33%

Mobile

15% 14%

10%

Television

Social Media Radio

Q: 44. Every day, you see and hear advertising on various media channels. Thinking about advertising you might hear or see for a NEW or previously UNKNOWN to you product/service/retailer – which of the following media channels does the best job of getting you to find out more about it.

Page 36: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

37| Radio Connects | November 2018

Ads get NOTICED on MASS MEDIA.

On television

The radio

The internet

33%

50%

Social media.

30%

26%

20% MobileQ: 44. Every day, you see and hear advertising on various media channels. Thinking about advertising you might hear or see for a NEW or previously UNKNOWN to you product/service/retailer – which of the following media channels does the best job of getting you to notice the add

Page 37: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

38| Radio Connects | November 2018

Ads are REMEMBERED on MASS MEDIA

On television

The radio

The internet

28%

38%

Social media.

23%

16%

12% MobileQ: 44. Every day, you see and hear advertising on various media channels. Thinking about advertising you might hear or see for a NEW or previously UNKNOWN to you product/service/retailer – which of the following media channels does the best job of getting you to remember the name of the product/service/retailer.

Page 38: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

39| Radio Connects | November 2018

Maturing and Milestone Millennials trust advertisers on radio more than on social and mobile.

Boomer Canadians trust digital platforms

the least and have highest awareness

and recall with mass media.

Amongst Gen X’ers, Television and radio drive awareness and

recall and have highest trust factors.

Mass media drives awareness and aids consumer recall.

Trust name product of advertiser –Maturing Millennials - Radio 14% (117) Mobile 8% (133), Social 12% (171)

Milestone Millennials – Radio 13% (108), Mobile 8% (133), Social 10% (143)

Trust name or product of advertiser –Advancing Gen X’ers TV 18% (113), Radio 13% (108)

Established Gen X’ers – TV 19% (119), Radio 13% (108)

Trust name or product of advertiser –Freedom 55+ Boomers Mobile 4% (50), Social Media 5% (71)

OAS Boomers – Mobile 3% (50) Social Media 4% (57)

Page 39: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

40| Radio Connects | November 2018

Radio works in tandem with the internet.

Check things on the internet after hearing an ad on the radio.

Radio lets me know about limited time offers.

Radio ads help me discover new stores/services in my town/city.

44%

48%

Radio ads have prompted me to search on the internet for something.

43%

38%

20% Purchased a product online after hearing a radio ad.

Q21: Thinking of AM/FM radio, how much do you agree or disagree with the following statements? (Strongly agree and agree)

Page 40: TRUTH IN AUDIO - Radio Connects · AM/FM radio has been evolving and adapting in pace. Currently there are many misconceptions about radio and its place in the audio landscape. Commercial

41| Radio Connects | November 2018

Radio works.

FOMO for Millennials is alleviated by Radio

because it reminds them of limited time

offers.

From Milestone Millennials through to

OAS Boomers, Canadians are more likely to

purchase a product online after hearing a

radio ad.

Milestone Millennials (24%|120)

Advancing Gen X’ers (21%|105)

Established Gen X’ers (22%|110)

Freedom 55+ Boomers (21%|105)

Reminds all Canadians about

brands/products they might need.

Maturing Millennials (30%|111)

Milestone Millennials (28%|104)

Advancing Gen X’ers (29%|107)

Established Gen X’ers (30%|111)

Maturing Millennials (48%|109)

Milestone Millennials (46%|105)

Advancing Gen X’ers (47%|107)

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42| Radio Connects | November 2018

Radio’s impact on business

Radio connects with consumers on the

path to purchase.

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AM/FM Radio provides the soundtrack for the last mile in the Path to Purchase.

77%

76%

76%

75%

75%

75%

75%

74%

74%

74%

74%

71%

69%

Shopping at a mall or plaza

Grocery shopping

To the drug store / pharmacy

Hardware/home-improvement store

Stopping at a coffee shop

Picking up lottery tickets

Take your car/truck in for servicing

Fast food restaurant or drive-thru

To the bank

To a movie

A casual or fine dining restaurant

Stopping for beer, wine or liquor

Visiting a car dealershipSOURCE: Radio on the MoveC5d. And still thinking about the time you spent in a private vehicle in the past 24 hours, did you do any of these things while driving, or use your vehicle to get there?C5e. Were you listening to AM/FM radio in the car while doing or going to this?Base: Canadians, aged 18+, in private vehicle in past 24 hours who used vehicle for activity in past 24 hours; base varies depending on activity

Listened to AM/FM Radio while going to, or doing this – in the past 24 hrs:

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44| Radio Connects | November 2018

$23

$21

$17

$15

$14

$9

$6

$4

$3

$3

$2

$2

Grocery

Autos & Aftercare

Department Stores

Retail/Mass Merchandisers

Telco

Home Improvement

Snacks

Beer

Candy

QSR

Soft Drinks

Breakfast Bars

AM/FM Radio has positive impact on product sales.

Radio pays back. Key advertising categories were measured over three years to evaluate ROI. In all categories studied, radio surpassed its initial investment when evaluated against sales.

SOURCE: Nielsen studies 2014-2016

$1 to $10 ratio.On average, for each $1 invested, radio advertising yields a $10 return on advertising spend (R.O.A.S.).

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45| Radio Connects | November 2018

After hearing a brand, product or service

advertised on AM/FM radio, more than

half of Canadian adults (53%) acted on

one or more of these things:

PURCHASED IT

TOLD SOMEONE ABOUT IT

WENT ON LINE FOR MORE INFO

AM/FM Radio inspires action.

SOURCE: Radio on the MoveQ.Ad1. Whether listening in the car or elsewhere, have you ever taken any of the following actions after hearing a brand, product or service advertised on AM/FM radio?Base: Canadians, aged 18+, (n=2035)

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46| Radio Connects | November 2018

AM/FM Radio drives digital search.Though typically unattributed to radio, nearly 5-in-10 Canadian adults say

that hearing an ad on AM/FM radio led them to seek out more info online,

48%

38%

25%20%

I've checked things out onthe internet after hearing

them on the radio

Radio ads have promtedme to search for something

on the internet

I visit the websites of thecompanies I've heardadvertise on the radio

I've purchased a productonline after hearing a radio

ad

SOURCE: R2C2 Study Spring 2018

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47| Radio Connects | November 2018

AM/FM Radio activates affluent consumers.

$100K+ HH more likely to take action. Nearly two-thirds of Canadian adults in these affluent households report having acted on an ad they heard on the radio,

Especially on the last mile in the path to purchase.Canadians in affluent households spend more time in their cars or trucks, making them much more likely than those in lower income households to have been influence by an ad they heard in the car.

43%57%

64%

HHI income <50k HHI income 50-100k HHI income 100k+

Source: The Canadian Podcast Listener—a Landscape Study / Summer 2017 & May 2018Ad1. Whether listening in the car or elsewhere, have you ever taken any of the following actions after hearing a brand, product or service advertised on AM/FM radio? Ad3. Has something you heard on the radio in the car ever affected a purchase you were about to make, or a store/location you were about to visit?Base: Canadians, aged 18+ (HHI <50K: n=731; HHI 50-100K: n=645; HHI 100K+: n=361)

Ever gone online for more info, purchased, or told someone about a product, service or brand after hearing an ad on radio

26%37% 41%

HHI income <50k HHI income 50-100k HHI income 100k+

Ever heard something on the radio in the car that affected a purchase you were about to make / store you were about to visit

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RADIO CONNECTS WITH ONLINE SHOPPING

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49| Radio Connects | November 2018

Shopper types

BROWSERS 55%I enjoy browsing in stores

Female 55% (110), 18-34 31% (114), married/living w partner 61%, 50/50 split kids/no kids, college grad + 67%, uni+ grad 47%, HHI $100K+ 34% (no over index on income)

COUCH SHOPPERS 25%I prefer to shop online than visit retail store

Male 52%/Female 48%, 18-49 74% (141), highest index for those 25-29 (160) and 30-34 (162), single 31% (114), living with partner 19% (126), no kids 57% (117), uni grad+ 52% (110), college + 74% (108), HHI $100K+ 42% (120)

IMPULSIVE SHOPPERS 31%If I really want something, I’d rather buy it on credit than wait

Male 54% (107), 25-39 34% (116), single 28% (103), married 49% (104), 50/50 kids/no kids, uni grad + 50% (106), HHI $100K+ 39% (110)

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Shopper Types

DISCIPLINED SHOPPERS 33%When I go shopping, I only buy what’s on my listMale 57% (114), no age skews, 25-54 58%, single 29% (106), married 46%, 50/50 kids/no kids, college grad+ 71% (104), HHI <$50K 28% (106), HHI $75-99 20% (108), HHI $100K+ 32% (92)

RESEARCHERS 59%Need to be sure I’ve considered all the options before I make a big purchase decision AND have made a purchase online in past monthMale 49%/Female 51%, no age skews 25-54 57%, 18-24 6% (105), no marital status skews,, married 48%, have kids 52%, no edu skews 48% uni grad+, no income skews HHI $100K+ 35%

TRIED & TRUE 27%I only buy well known brandsMale 58%, 18-24 7% (114), 44-49 9% (112), 18-49 55% (106), single 28% (104), married 50% (106), 50/50 kids/no kids, college grad+ 68%, uni grad + 48%, HHI $100k+ 40% (114)

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51| Radio Connects | November 2018

Maturing Millennials 22 - 29 years old

Milestone Millennials30 - 37 years old

Advancing Gen X’ers38 – 45 years old

Established Gen X’ers46 – 53 years old

Freedom 55+54 – 64 years old

OAS Boomers65 – 72 years old

All Respondents 24%

38%

38%

31%

19%

15%

10%

33%

35%

36%

34%

29%

31%

34%

59%

64%

66%

63%

58%

54%

53%

54%

65%

59%

55%

52%

51%

52%

31%

32%

38%

31%

32%

28%

28%

Browsers Couch Shoppers Impulse Shoppers Disciplined Shoppers Research Shoppers Tried and True

27%

29%

28%

28%

27%

24%

25%

Who arethey?

Exhibit 15

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52| Radio Connects | November 2018

What they buy online.

Couch Shoppers1. Clothes, shoes, accessories

38% (142)2. Groceries 34% (121)3. Household products 28%

(133)4. Travel 24% (116)5. Entertainment tickets 23%

(119) 6. Beauty products 23% (151)7. Health products 20% (131)8. Financial products 20%

(145)

Researchers1. Groceries 40% (143)2. Clothes, shoes, accessories

38% (144)3. Household products 30%

(147)4. Travel 30% (143)5. Entertainment tickets 28%

(141) 6. Health products 22% (145)7. Beauty products 22% (144)8. Financial products 21%

(148)

Q33: Which type’s of products or services have you purchased online in the past month?

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53| Radio Connects | November 2018

COUCH SHOPPERS RESEARCHERS

ATTRIBUTION

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54| Radio Connects | November 2018

NoticeTV 44% (89)Internet 34% (113)Radio 33% (103)Social 32% (124)Mobile 26% (126)

.

Make a purchase

RememberTV 36% (94)Radio 29% (103)Internet 28% (123)Social 24% (148)Mobile 17% (141)

None 52% (92)Internet 17% (142)TV 15% (95)Radio 13% (113)Social 10% (139)Mobile 8% (144).

TrustInternet 45% (135)Mobile 14% (163)Social 10% (148).

Radio is as strong as internet for driving awareness and recall for Couch Shoppers.

Q: 44. Every day, you see and hear advertising on various media channels. Thinking about advertising you might hear or see for a NEW or previously UNKNOWN to you product/service/retailer – which of the following media channels does the best job of getting you to find out more about it.

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55| Radio Connects | November 2018

NoticeTV 53% (107)Radio 36% (111)Internet 35% (114)Social 31% (117)Mobile 24% (118)

Make a purchase

RememberTV 42% (109)Radio 32% (113)Internet 26% (115)Social 19% (117)Mobile 13% (114)

None 52% (92)TV 17% (106)Internet 14% (115)Radio 13% (110)Social 8% (110)Mobile 6% (104).

TrustInternet 42% (123)Mobile 11% (128)Social 9% (124)

Radio outperforms the internet on recall for Researchers.

Q: 44. Every day, you see and hear advertising on various media channels. Thinking about advertising you might hear or see for a NEW or previously UNKNOWN to you product/service/retailer – which of the following media channels does the best job of getting you to find out more about it.

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56| Radio Connects | November 2018

Radio lets me know about limited time offers.

50%Radio ads have prompted me to search on the internet for something.

44%

Radio reminds me of products I need.

31% 24%Purchased a product online after hearinga radio ad.

Radio lets me know about limited time offers.

51%Radio ads have promptedme to search on the internet for something.

46%

Radio reminds me of products I need.

36%31%

Purchased a product online after hearing a radio ad.

Q14: Thinking of AM/FM radio, how much do you agree or disagree with the following statements? (Strongly agree and agree)

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57| Radio Connects | November 2018

In summaryAM/FM Radio is the dominant audio platform.Radio is thriving in a diverse audio landscape and technology is making it even more accessible across platforms. It dominates in the home, in the car and at work.

01

Audio connects all generations.Each generation has their own reason to listen, whether for music discovery, news and information or to keep them company.

02

Personal music means disconnecting.It’s about control and instant gratification.

04

Technology is changing how Canadians curate music.Personal music business model is changing from owning to renting. Platforms like Spotify, Google Music and others have changed the business model.

03

18-34 year old’s are listening.Millennials do listen to radio, 4 x more than they listen to Spotify and the older they get, the more they listen to AM/FM radio. (Source: Radio on the Move, Wave 9)

05

Radio is interesting and enjoyable. To be attentive is to be engaged.

06

Internet gets the credit. Ads get noticed and remembered most on television and radio.

07

Radio and internet are complementary. Ads on radio drive consumers to the internet.

08

AM/FM Radio inspires action.All shopping types take action when they hear a radio ad.

09

Radio Works.10

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58| Radio Connects | November 2018

It’s been a pleasure to share this information with you. For much more on how AM/FM radio connects with Canadians, please reach out.

Contact us

Radio Connects160 Bloor Street East

Suite 1005

Toronto

Phone: 416 787 7756

www.radioconnects.ca

Caroline GianiasPresident [email protected] 787 7756

Lisa DillonDirector of Consumer and Media [email protected] 484 8695

Chantal LeblancDirect of Client Services Radio Connexions, [email protected] 501 1549

@radioconnects

Radio Connects