Monday, June 24, 2013

San Diego Jayebitrons Are In And AM-FM Radio Wins By Many Miles

Sometimes multiple data points all appear to converge, calling out for back-of-napkin research.  Your humble correspondent is delighted to do the math for you.

Blogger Jennifer Lane points to an "interesting new study by GroupM Next comparing broadcast and internet radio listeners. (GroupM Next is the “forward thinking, innovation unit” of GroupM, the largest conglomerate of Ad Agencies in the world. The unit studies consumer use of new platforms and provides insight to agencies on usage of such.) 
Earbuds
"The study reveals several positive facts about the Internet radio audience. The average age of an Internet radio listener is 34 years old versus the average age of a broadcast radio listener which is 47 years old. Since the average income was found to be similar in both groups, the Internet radio audience is more affluent given their substantially younger age.


"86% of Internet radio listeners listen to free services and have never paid to listen. They don’t mind ads, and don’t try to avoid them, and are twice as inclined to make a purchase after hearing an ad. In fact, 29% of Internet radio listeners have purchased something they heard advertises, versus 14% of broadcast radio listeners."


Today's Inside Radio reports on a Hivio San Diego presentation by Triton Digital chief strategy officer Patrick Reynolds who said the the entire San Diego market had Average Active Sessions of 5,126 people during the month of May.  The number was about twice that — around 9,500 — during the primetime 6am-8pm daypart.  

That is when I got the napkin out.
  • Say that in an average quarter hour in San Diego roughly 15% of all people are listening to AM-FM radio.  That would be a napkin-calculated average persons of about 354,000.
  • Assume that 90% of the total population of San Diego cumes a radio station at least once in an average week.  That would put the total cume persons using AM-FM radio in an average week at 2.1 million.
Five to ten thousand people vs 354,000, let alone 2.1 million????

Is there any wonder why terrestrial radio is only billing 5-7% of its total revenues from interactive?

No wonder online ad rates are so low.  No one's listening, if you believe my trusty napkin.

Hey, you "forward-thinking innovators:"  caveat emptor!
 
Triton Digital chief strategy officer Patrick Reynolds said the San Diego market had Average Active Sessions of 5,126 people during the month of May.  The number was about twice that — around 9,500 — during the primetime 6am-8pm daypart.   Two-thirds of the sessions were for Pandora, with the remaining third divvied up among all other webcasts, including FM/AM streams.  That portion of the pie is cut into extremely narrow slices — Triton says San Diego residents divided their listening up among 4,754 different stations, including many from outside the market. “They’re listening to a lot of local traditional radio stations online,” Reynolds noted, saying server log data shows stations from markets all over the country showing up.
Triton was also able to detect listening on 60 different devices, including smartphones, gaming consoles and desktop units like Sonos.  “It’s kind of complicated but you have to be in all the places that your people are if you want that audience,” Reynolds said.
He also noted that while about 80% of Pandora listening occurs on a mobile device, most radio groups pull in fewer than 50% of their users that way.  It’s why Reynolds thinks Pandora listening levels are so much higher than for everyone else.  “They’re where people are and they’re getting a big audience,” he said.
- See more at: http://www.insideradio.com/Article.asp?id=2667778&spid=32061#.UciFYYXtjJM
Triton Digital chief strategy officer Patrick Reynolds said the San Diego market had Average Active Sessions of 5,126 people during the month of May.  The number was about twice that — around 9,500 — during the primetime 6am-8pm daypart.   Two-thirds of the sessions were for Pandora, with the remaining third divvied up among all other webcasts, including FM/AM streams.  That portion of the pie is cut into extremely narrow slices — Triton says San Diego residents divided their listening up among 4,754 different stations, including many from outside the market. “They’re listening to a lot of local traditional radio stations online,” Reynolds noted, saying server log data shows stations from markets all over the country showing up.
Triton was also able to detect listening on 60 different devices, including smartphones, gaming consoles and desktop units like Sonos.  “It’s kind of complicated but you have to be in all the places that your people are if you want that audience,” Reynolds said.
He also noted that while about 80% of Pandora listening occurs on a mobile device, most radio groups pull in fewer than 50% of their users that way.  It’s why Reynolds thinks Pandora listening levels are so much higher than for everyone else.  “They’re where people are and they’re getting a big audience,” he said.
- See more at: http://www.insideradio.com/Article.asp?id=2667778&spid=32061#.UciFYYXtjJM

2 comments:

Bob Lefsetz @lefsetz said...

The radio alternatives represent market fragmentation. Because Internet in the car is not yet here on a widespread basis, they’ve had little impact on car listening. … Then again, we’ve experienced tapes in the car, CDs and iPod hookups.

Terrestrial radio listenership is not close to what it once was.

Radio used to dominate; it’s still the biggest player, but its market share has receded dramatically.

Mary Beth Garber, Katz Radio said...

'[Radio’s] market share has receded dramatically.' That is the prevailing perception, thanks largely to people like you with big Internet followings and a disregard for the facts. Several research sources will show you that, for example, 96 percent of monthly listeners to Pandora listened to AM/FM radio in the past week. They’ll show you that music player sites in 2012, including playlist creation services like iHeartRadio — accounted for under 7 percent of all the time spent listening to any radio platform. That is up from less than 3 percent in 2010, but 'dramatic'? Especially when other research shows that the time spent with audio entertainment of any form has increased from seven hours in 2003 to over eight hours a day in 2013. There is more share there to share than ever before.