digital audio usage trends: a highly engaged listenership · help marketers, agencies, and media...

Digital Audio Usage Trends: A Highly Engaged Listenership

A Parks Associates white paper developed for

Forewords Provided By:

1

© 2011 TargetSpot, Inc. — Research by Parks Associates | All rights reserved.

White Paper | Digital Audio Usage Trends: A Highly Engaged Listenership

A Paradigm Shift

forEworD

The Interactive Advertising Bureau is excited about the rise of digital audio as a medium. In early

2010, we started a committee within the IAB to help educate marketers about and establish best

practices for digital audio advertising. In my role at the IAB, I’m always excited by new research

delivering strong insights on the interactive marketplace. So, it was doubly exciting for me to work

with the TargetSpot team as they designed the research presented in this paper. The IAB believes these findings will

help marketers, agencies, and media companies alike get a better handle on digital audio usage patterns, and we hope

that this work inspires others to take a closer look at this dynamic and fast-growing sector of the interactive landscape.

Joe Laszlo, Deputy Director, Interactive Advertising Bureau

Broadcast Radio—the original portable electronic medium—continues to evolve through

Digital Audio delivered via a proliferating number of devices including computers and laptops,

iPods and MP3 players, mobile phones and smartphones, and most recently, tablets.

While remaining steadfastly loyal to Broadcast Radio1, audiences are also increasingly seeking

audio content online, with the number of monthly Online Radio listeners up 27% from 2010 to 2011.2

The combined momentum generated by consumer interest and enhanced delivery options has made Internet Radio

(comprising online-only Radio stations and streamed Broadcast Radio) one of the fastest-growing online media categories.

The Radio Advertising Bureau is pleased to introduce new research findings from TargetSpot on a new “Super Demo-

graphic,” representing a target that advertisers want and need to reach—an audience that is tuned-in, highly-engaged

and influential to their friends, family and colleagues.

TargetSpot’s Digital Audio Usage Trends: A Highly Engaged Listenership details how to reach this cohort. Their companion

study, Internet Radio Advertising Impact Study demonstrates how marketers can capitalize on the significantly higher

brand recall and response rates a mix of Internet Radio with Broadcast Radio and/or Online advertising will generate.

Internet Radio and Broadcast Radio are key components of an advertisers media mix.

1 Radio reaches 241,923,000 listeners weekly, or 93% of the U.S. 12+ population (P12+ Mon-Sun 24-Hr. Cume Estimate), Source: Arbitron RADAR 108, March 20112 Source: Arbitron Inc./Edison Research—3/11, The Infinite Dial 2011: Navigating Digital Platforms—(Monthly Online Radio listeners @ 89M vs. 70M in 2010)

Radio Advertising Bureau

2



KEY fINDINGS

Digital Audio listeners are heavy content consumers overall, and spend significant time listening to Internet Radio.

Digital Audio usage is synergistic with Broadcast Radio while representing a highly engaging platform on its own.

Advertisers can increase their impact by placing campaigns on both Internet Radio and Broadcast Radio, and by using

multiple Internet Radio stations.

At the start of 2011, Digital Audio use has reached critical mass, reaching 39% of U.S. broadband households.

New research from TargetSpot offers important insights into Digital Audio usage trends and behavior. The findings

reinforce the conclusion that Internet Radio is an attractive medium for listeners and a powerful vehicle for advertisers.

TargetSpot’s Digital Audio Usage Trends: A Highly Engaged Listenership evaluates the following elements of Internet

Radio listenership:

• Digital Audio (Internet Radio) includes both online-only

Radio stations and Broadcast Radio stations streamed

on a computer, mobile/smartphone or tablet device.

• Digital Audio attracts an audience that generates

significant amounts of tune-in time each day.

• Digital Audio usage is additive, not substitutive, to

Broadcast Radio use.

• Digital Audio listeners interact with the medium,

frequently checking their media players for song

titles or names of artists.

• Digital Audio listeners typically listen to multiple

stations daily.

• The strong connection to content enhances

engagement with advertising: 52% of Digital Audio

listeners recall hearing or seeing an Internet Radio

ad and 40% of those report responding to an ad.

• Ad exposure across multiple Internet Radio

stations increases response rates by 2 to 3x

compared to response rate to an ad from a single

Internet Radio destination.

• Device affinity

• Content delivery preference

• Location of use

• Content type preference

• Consumer engagement

• Attitudes toward advertising

• Internet Radio listener

segmentation

• Demographic and audience

composition

• Time spent listening

Internet Radio is a form of Digital Audio, which includes both online-only radio stations and Broadcast Radio stations

streamed on a computer, mobile/smartphone, or tablet device.

rESEArCH oBJECTIVES

3



Consumers and advertisers alike are gravitating to the digital domain, which offers ever-expanding media content

options via a growing variety of devices.

Digital Audio is a large part of this new media world:

• Digital Audio’s audience is rapidly growing (Figure 1)

• The listening audience for Digital Audio avidly consumes content via multiple devices:

» 96% listen to Internet Radio on a desktop/laptop computer

» 15% listen on a tablet device

» 45% listen on a mobile/smartphone

• Time spent listening to Digital Audio is significant across all delivery devices (Figure 2):

» 25% of those who listen on a tablet device tune in 4+ hours daily

» 23% of those who listen on a desktop/laptop computer tune in 4+ hours daily

» 16% of those who listen on a mobile/smartphone tune in 4+ hours daily

• Digital Audio growth has little effect on Broadcast Radio listening time

• 80% of Digital Audio users listen to both Internet Radio and Broadcast Radio for 1-3 hours daily

• 73% of Digital Audio listeners change stations multiple times a day, which mirrors listening patterns reported

over the years for Broadcast Radio

DIGITAL AUDIo’S ENGAGED LISTENErS

Digital Audio growth has little effect on current Broadcast radio use:66% of Internet radio listeners listen to the same or more Broadcast Radio as a result of their current Digital Audio use

4



LISTENING To INTErNET rADIo IS GrowING…

weekly Time Spent Listening

Daily Time Spent Listening

INTErNET rADIo LISTENING IS UBIqUIToUS, ACroSS ALL DEVICES

1-7 hours 8+ hours

Source: TargetSpot Digital Audio Usage Trends: A Highly Engaged Listenership© 2011 TargetSpot, Inc. — Research by Parks Associates


Figure 1

Figure 2

Figure 3

Figure 5

Figure 6

Figure 8

Figure 9

Figure 7

Figure 4

59%

66% of INTERNET RADIO listeners listen to the same or more BROADCAST RADIO as a

result of their current digital audio use





No change/day,

27%

6x or more/day,

7%

% who “Agree”

1-2x/day,

42%

3-5x/day,

24%

41%

37%63%

Listen to INTERNET RADIO on computer/laptop (n=684)

Listen to BROADCAST RADIO (n=812)

0% 50% 100%

1-3 hours 4+ hours


75% 25%

23%77%

84% 16%

20%80%

Listen to INTERNET RADIO on computer/ laptop (n=684)

Listen to INTERNET RADIO on mobile /smartphone (n=312)

Listen to INTERNET RADIO on tablet device (n=108)


0% 50% 100%

1-2 hours 3+ hours


65% 35%

25%75%

80% 19%

20%80%

INTERNET RADIO on computer/laptop (n=684)

INTERNET RADIO on basic mobile phone or smartphone (n=312)

INTERNET RADIO on tablet device (n=108)

BROADCAST RADIO stations (n=812)

0% 50% 100%

0%

29%

48%

61%

34%

46%

27%

17%

Listen to di�erent stations based on my mood

Listen from around the U.S. based on the type of content

Often look at the media player to see the name of the song/artist

Always try new INTERNET RADIO stations

Use di�erent INTERNET RADIO websites because I get tired of the station(s) I’ve created

Listen from around the U.S. because I like a certain DJ

30%10% 20% 40% 50% 60% 70%


% who Agree with statement

0%

44%

51%

64%

46%

45%

25%

I tell my friends, family, or co-workers about new products or services that I’m happy with.

My friends, family, or co-workers ask me for advice on the latest technology.

I often forward emails, online articles, and videos to friends, family, or co-workers.

My friends, family, or co-workers usually want my opinion on what type of products they should buy.

My friends, family, or co-workers come to me for recommendations on restaurants, travel, etc.

I maintain and update a personal or work-related blog on a regular basis.

70%


0%

3x

3.6x

5x

2.8x

5x

3.5x

2.7x more likely than single-site listeners

Visited the company’s website

Searched online for more information

Clicked on the ad

Became a “fan”/clicked “like” on a social networking website

Went to a retail location to see/purchase the product/service

Purchased the product/service

Sent an email/text message

Called the company

20%10% 30%

0%

80%

40%

Listeners of 2+ INTERNET RADIO stations (n=570)

Listeners of one INTERNET RADIO station (n=430)

60%43%

Listeners of 2+ INTERNET RADIO STATIONS (n = 570)

Listeners of one INTERNET RADIO station (n = 430)

30%10% 20% 40% 50% 60%

52% Recall an INTERNET RADIO Ad

40% Responded to an Ad

17% Visited company website

15% Searched online for

product info

13% Clicked on ad

10% Became “a” fan/clicked “like” on social

network

8% Purchased

product from retail or online

7% Sent email/text to

company

5% Called the company

1-7 hours 8+ hours



Figure 1

Figure 2

Figure 3

Figure 5

Figure 6

Figure 8

Figure 9

Figure 7

Figure 4

59%







No change/day,

27%

6x or more/day,

7%

% who “Agree”

1-2x/day,

42%

3-5x/day,

24%

41%

37%63%



0% 50% 100%

1-3 hours 4+ hours


75% 25%

23%77%

84% 16%

20%80%





0% 50% 100%

1-2 hours 3+ hours


65% 35%

25%75%

80% 19%

20%80%





0% 50% 100%

0%

29%

48%

61%

34%

46%

27%

17%







30%10% 20% 40% 50% 60% 70%



0%

44%

51%

64%

46%

45%

25%







70%


0%

3x

3.6x

5x

2.8x

5x

3.5x




Clicked on the ad





Called the company

20%10% 30%

0%

80%

40%



60%43%



30%10% 20% 40% 50% 60%





product info

13% Clicked on ad


network

8% Purchased



company


Time spent listening to Digital Audio is significant across all delivery devices

5



In line with significant weekly and daily time spent listening, one-fourth of Digital Audio listeners spend 3 or more

hours per session with the medium (Figure 3).

• 19% of mobile/smartphone users and over one-third of tablet users listen 3 or more hours, per session.

A SIGNIfICANT AUDIENCE of CommITTED USErS, ACroSS ALL DEVICES

Session Duration

Digital Audio users are highly engaged and typically listen to many different stations throughout the day.

• A large majority of Internet Radio listeners change stations multiple times per day, with 31% changing stations

3 or more times per day (Figure 4).

73% of INTErNET rADIo LISTENErS CHANGE STATIoNS mULTIPLE TImES A DAY

Number of Station Changes

1-7 hours 8+ hours



Figure 1

Figure 2

Figure 3

Figure 5

Figure 6

Figure 8

Figure 9

Figure 7

Figure 4

59%







No change/day,

27%

6x or more/day,

7%

% who “Agree”

1-2x/day,

42%

3-5x/day,

24%

41%

37%63%



0% 50% 100%

1-3 hours 4+ hours


75% 25%

23%77%

84% 16%

20%80%





0% 50% 100%

1-2 hours 3+ hours


65% 35%

25%75%

80% 19%

20%80%





0% 50% 100%

0%

29%

48%

61%

34%

46%

27%

17%







30%10% 20% 40% 50% 60% 70%



0%

44%

51%

64%

46%

45%

25%







70%


0%

3x

3.6x

5x

2.8x

5x

3.5x




Clicked on the ad





Called the company

20%10% 30%

0%

80%

40%



60%43%



30%10% 20% 40% 50% 60%





product info

13% Clicked on ad


network

8% Purchased



company


1-7 hours 8+ hours



Figure 1

Figure 2

Figure 3

Figure 5

Figure 6

Figure 8

Figure 9

Figure 7

Figure 4

59%







No change/day,

27%

6x or more/day,

7%

% who “Agree”

1-2x/day,

42%

3-5x/day,

24%

41%

37%63%



0% 50% 100%

1-3 hours 4+ hours


75% 25%

23%77%

84% 16%

20%80%





0% 50% 100%

1-2 hours 3+ hours


65% 35%

25%75%

80% 19%

20%80%





0% 50% 100%

0%

29%

48%

61%

34%

46%

27%

17%







30%10% 20% 40% 50% 60% 70%



0%

44%

51%

64%

46%

45%

25%







70%


0%

3x

3.6x

5x

2.8x

5x

3.5x




Clicked on the ad





Called the company

20%10% 30%

0%

80%

40%



60%43%



30%10% 20% 40% 50% 60%





product info

13% Clicked on ad


network

8% Purchased



company


DIGITAL AUDIo LISTENErS ArE AN ACTIVE GroUP of CoNSUmErS

6



Engagement and connection to content drive users’ desire to change stations. They change stations to suit their mood

and switch between Internet Radio websites when they get tired of the stations they have created.

Users also listen to content beyond their geographic boundaries. Unlike Broadcast Radio, users choose Internet Radio

stations based on the digital content type, music genre, or DJ personality rather than station geography.

User engagement is also evidenced by the fact that Internet Radio listeners frequently look at the media player to see

the name of the song or artist (Figure 5).

Internet radio Users Are Deeply and Broadly Engaged

1-7 hours 8+ hours



Figure 1

Figure 2

Figure 3

Figure 5

Figure 6

Figure 8

Figure 9

Figure 7

Figure 4

59%







No change/day,

27%

6x or more/day,

7%

% who “Agree”

1-2x/day,

42%

3-5x/day,

24%

41%

37%63%



0% 50% 100%

1-3 hours 4+ hours


75% 25%

23%77%

84% 16%

20%80%





0% 50% 100%

1-2 hours 3+ hours


65% 35%

25%75%

80% 19%

20%80%





0% 50% 100%

0%

29%

48%

61%

34%

46%

27%

17%







30%10% 20% 40% 50% 60% 70%



0%

44%

51%

64%

46%

45%

25%







70%


0%

3x

3.6x

5x

2.8x

5x

3.5x




Clicked on the ad





Called the company

20%10% 30%

0%

80%

40%



60%43%



30%10% 20% 40% 50% 60%





product info

13% Clicked on ad


network

8% Purchased



company


DIGITAL AUDIo’S ENGAGEmENT moTIVATES AD rECALL AND rESPoNSE

Digital Audio use generates commercial impact well beyond the click. Many users move directly from Internet Radio to

the advertiser’s Website or conduct an online search to get more information about the product or service (Figure 9).

Internet Radio advertising provides the consumer with a virtually seamless transition from the advertisement to the

point of purchase.

• A majority of Internet Radio listeners (52%) recall hearing or seeing an Internet Radio ad online, with 40%

responding to the ad either online or offline (Figure 6).

• Internet Radio ad recall increases 17% when Digital Audio users tune in to 2 or more Internet Radio stations—

underscoring the need to incorporate multiple Internet Radio stations into the overall media mix (Figure 7).

• Internet Radio ad response rates, both online and office, among listeners of 2 or more Internet Radio stations are

2 to 5 times higher than among single-site listeners (Figure 8).

• Combining Internet Radio with Broadcast Radio advertising boosts Broadcast ad recall and increases response

by 3.5x over Broadcast only rates.1

• Combining Internet Radio with Online advertising boosts Online ad recall and increases response by 2x over

Online only rates.1

1 Source: TargetSpot, TargetSpot Internet Radio Advertising Impact Study, 2011

7



Internet radio Ad recall Stronger Among Listeners of 2+ Internet radio Statioins

1-7 hours 8+ hours



Figure 1

Figure 2

Figure 3

Figure 5

Figure 6

Figure 8

Figure 9

Figure 7

Figure 4

59%







No change/day,

27%

6x or more/day,

7%

% who “Agree”

1-2x/day,

42%

3-5x/day,

24%

41%

37%63%



0% 50% 100%

1-3 hours 4+ hours


75% 25%

23%77%

84% 16%

20%80%





0% 50% 100%

1-2 hours 3+ hours


65% 35%

25%75%

80% 19%

20%80%





0% 50% 100%

0%

29%

48%

61%

34%

46%

27%

17%







30%10% 20% 40% 50% 60% 70%



0%

44%

51%

64%

46%

45%

25%







70%


0%

3x

3.6x

5x

2.8x

5x

3.5x




Clicked on the ad





Called the company

20%10% 30%

0%

80%

40%



60%43%



30%10% 20% 40% 50% 60%





product info

13% Clicked on ad


network

8% Purchased



company


1-7 hours 8+ hours



Figure 1

Figure 2

Figure 3

Figure 5

Figure 6

Figure 8

Figure 9

Figure 7

Figure 4

59%







No change/day,

27%

6x or more/day,

7%

% who “Agree”

1-2x/day,

42%

3-5x/day,

24%

41%

37%63%



0% 50% 100%

1-3 hours 4+ hours


75% 25%

23%77%

84% 16%

20%80%





0% 50% 100%

1-2 hours 3+ hours


65% 35%

25%75%

80% 19%

20%80%





0% 50% 100%

0%

29%

48%

61%

34%

46%

27%

17%







30%10% 20% 40% 50% 60% 70%



0%

44%

51%

64%

46%

45%

25%







70%


0%

3x

3.6x

5x

2.8x

5x

3.5x




Clicked on the ad





Called the company

20%10% 30%

0%

80%

40%



60%43%



30%10% 20% 40% 50% 60%





product info

13% Clicked on ad


network

8% Purchased



company


Consumer Engagement Drives Ad Recall and Response

8



Listeners of 2+ Internet radio Stations are far more Likely to respond to Ads

INTErNET rADIo LISTENErS ArE INfLUENTIAL

Advertising on Internet Radio builds buzz and word-of-mouth marketing, as these listeners are influential, regularly

recommending products and services to friends, family, and co-workers. This circle of acquaintances also frequently

solicits their advice (Figure 9).

Internet radio Listeners are an Influential Audience

1-7 hours 8+ hours



Figure 1

Figure 2

Figure 3

Figure 5

Figure 6

Figure 8

Figure 9

Figure 7

Figure 4

59%







No change/day,

27%

6x or more/day,

7%

% who “Agree”

1-2x/day,

42%

3-5x/day,

24%

41%

37%63%



0% 50% 100%

1-3 hours 4+ hours


75% 25%

23%77%

84% 16%

20%80%





0% 50% 100%

1-2 hours 3+ hours


65% 35%

25%75%

80% 19%

20%80%





0% 50% 100%

0%

29%

48%

61%

34%

46%

27%

17%







30%10% 20% 40% 50% 60% 70%



0%

44%

51%

64%

46%

45%

25%







70%


0%

3x

3.6x

5x

2.8x

5x

3.5x




Clicked on the ad





Called the company

20%10% 30%

0%

80%

40%



60%43%



30%10% 20% 40% 50% 60%





product info

13% Clicked on ad


network

8% Purchased



company


1-7 hours 8+ hours



Figure 1

Figure 2

Figure 3

Figure 5

Figure 6

Figure 8

Figure 9

Figure 7

Figure 4

59%







No change/day,

27%

6x or more/day,

7%

% who “Agree”

1-2x/day,

42%

3-5x/day,

24%

41%

37%63%



0% 50% 100%

1-3 hours 4+ hours


75% 25%

23%77%

84% 16%

20%80%





0% 50% 100%

1-2 hours 3+ hours


65% 35%

25%75%

80% 19%

20%80%





0% 50% 100%

0%

29%

48%

61%

34%

46%

27%

17%







30%10% 20% 40% 50% 60% 70%



0%

44%

51%

64%

46%

45%

25%







70%


0%

3x

3.6x

5x

2.8x

5x

3.5x




Clicked on the ad





Called the company

20%10% 30%

0%

80%

40%



60%43%



30%10% 20% 40% 50% 60%





product info

13% Clicked on ad


network

8% Purchased



company


9



86% of respondents listen to both pure-play Internet radio and Am/fm simulcast Internet radio stations

THE SUPEr DEmoGrAPHIC AUDIENCE: LISTENErS of mULTIPLE INTErNET rADIo STATIoNS

Digital Audio is a rapidly growing digital media segment presenting new and impactful ways to reach and connect with

deeply engaged and influential consumers. Marketers who take advantage of the unique properties of this growing

market segment will be able to message this highly valuable audience with deep impact and proven results.

The study demonstrates that the combination of time spent and engagement with Digital Audio translates to high

ad recall and response rates, online and offline, which makes Digital Audio a powerful venue to brand or sell a product

or service.

Users who listen to multiple stations are an especially valuable audience. They are highly engaged in their listening

experience and even more responsive to advertising than single-site listeners.

TArGETSPoT DIGITAL AUDIO USAGE TRENDS: THE HIGHLY ENGAGED LISTENERSHIP, 2011

TargetSpot Digital Audio Usage Trends: A Highly Engaged Listenership is an online survey of 1,000 Internet Radio listeners

in the United States (U.S.). The study fielded December 22-30, 2010. The sample population included adults (18+) who

listen to Internet Radio at least once a month to daily.

CoNCLUSIoN

SoUrCES

10



ABoUT TArGETSPoT

TargetSpot is the largest digital audio advertising network. TargetSpot connects top national brands, regional, and local

advertisers to highly engaged internet and mobile audiences. Advertisers work with TargetSpot’s team or use its self-

service platform to create rich media campaigns delivering high-impact audio, display and pre-roll video advertising

across thousands of online properties. TargetSpot advertisers can target consumers by demographics, listening

preferences, and geography down to zip code level; while benefitting from real time reporting and analytics. TargetSpot

has 80 distribution partners, including CBS RADIO, AOL Radio, Entercom, Live 365, Yahoo! Music, and MySpace Music.

TargetSpot is based in New York City. For more information, please visit www.targetspot.com.

ABoUT PArKS ASSoCIATES

Parks Associates is an internationally recognized market research and consulting company specializing in emerging

consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies

ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom

research, workshops, executive conferences, and annual service subscriptions.

The company’s expertise includes new media, digital entertainment and gaming, home networks, Internet and

television services, digital health, mobile applications and services, consumer electronics, energy management, and

home control systems and security.

Each year, Parks Associates hosts executive conferences CONNECTIONS™, with support from the Consumer Electronics

Association (CEA)®; CONNECTIONS™ Europe; and Smart Energy Summit.

parksassociates.com | connectionsconference.com | connectionseurope.com | connectionsindustryinsights.com

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