the audio medium - media group online · according to nielsen’s q1 2018 total audience report;...

The Audio Medium: To Radio and BeyondA Special Report from Media Group Online, Inc.

Radio Rules Reach Much as TV is now part of the larger visual media environment (and still the largest part), radio must also share people’s ears with newer audio choices, such as streaming music services and podcasts.

TV may still command the largest amount of the average daily time adults 18+ spend with all media outlets, according to Nielsen’s Q1 2018 Total Audience Report; however, radio still rules audience reach, at 92% compared to TV’s 88%.

Weekly Reach of Users 18+, by Media Percentage, Q1 2018

Media Platforms Percent

Radio 92%

Live+time-shifted TV 88%

App/Web on smartphone 79%

Internet on a computer 60%

App/Web on a tablet 47%

Internet-connected device 35%

Game console 15%

DVD/Blu-ray device 15%Nielsen, July 2018

Comparing the total adults 18+ provides another indication of radio’s reach.

Weekly Total Users 18+, by Medium, Q1 2018Media Platforms Total

Radio 228.5 M

Live, DRV and time-shifted TV 216.5 M

App/Web on smartphone 203.8 M

Video on a smartphone 127.6 M

Streaming audio 68.5 M

Satellite radio 35.7 M

Podcasts 21.9 MNielsen, April 2018

Another perspective on radio’s reach is how the monthly number of AM/FM radio listeners 18+ compares to various types of Websites.

Monthly Total Users 18+, AM/FM Radio vs. Websites, June 2016–November 2017

Source Total

AM/FM radio 243.38 M

Search sites 197.51 M

Social media sites 179.22 M

Video sites 143.56 M

E-commerce sites 143.55 M

News sites 105.12 M

Sports sites 57.65 MNielsen, April 2018

Despite being the oldest broadcast medium, radio is still one of Americans’ favorite daily media choices and this Special Report from Media Group Online explores how it maintains its importance within the burgeoning audio world.

The Audio Medium: To Radio and Beyond

Tune-in TimeAn examination of AM/FM radio’s monthly reach by selected generations, age groups and gender reveals all exceed 90%.

Total Persons and Monthly Reach of AM/FM Radio, by Selected Demographics, March 2018

DemographicsTotal

PersonsMonthly Reach

Millennials (18–34) 71.61 M 95%

Generation X (35–54) 80.56 M 97%

Baby Boomers (55–64) 41.23 M 98%

Teens (12–17) 23.59 M 94%

Adults (18–49) 131.60 M 96%

Men (18–49) 65.65 M 95%

Women (18–49) 65.95 M 97%

Adults (25–54) 123.40 M 97%

Men (25–54) 61.30 M 97%

Women (25–54) 62.11 M 98%Nielsen, April 2018

Nielsen research has also found 87% of Americans listening to AM/FM radio have just three favorite stations, and 58% listen to just one favorite station, with 19%, second favorite; 10%, third favorite; and 14%, least favorite stations.

Given the amount of time Americans are outside the home – commuting, working, shopping, leisure activities, etc. –, it shouldn’t be surprising that 65% of them listen outside the home from 6am to 7pm weekdays.

AQH AM/FM Radio Listening by Location and Daypart, 2017

Daypart HomeOutside Home

Mon–Sun 6am–midnight 32% 68%

AM drive 6am–10am 35% 65%

Midday 10am–3pm 26% 74%

PM drive 3pm–7pm 25% 75%

Evenings 7pm–midnight 43% 57%

Weekends 6am–midnight 41% 59%Nielsen, December 2017

In addition, 76% of radio listeners 18–64 work and those who are employed full-time listen 2.5 hours more per week than the unemployed. Of course, the peak times of the day in terms of average quarterly hour (AQH) for radio listeners employed full-time are 7am, at approximately 16.5, and 4pm, at approximately 15.3. For those unemployed, the AQH peaks are 12pm and 3pm, both times approximately an 11.0 rating.

Ad RevenuesBIA/Kelsey 2018 US Local Advertising Forecast reported local radio ad revenues would be $15.7 billion, or a 10.4% share, placing it fourth behind direct mail, $38.5 billion; local TV, $20.8 billion; and mobile, $19.0 billion.

Local radio ad revenues will only increase 1.3% from 2017, with online’s increase from $1.3 billion to $1.5 billion, or +15.4%, primarily responsible. Local radio will continue to experience these modest gains during the next few years, with a projected 2022 total of $16.7 billion.

Advertisers are expected to spend more money with audio streaming services, as during the first half of 2018, Pandora’s revenues increased 66% and Spotify by 40%.

www.mediagrouponlineinc.com

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Radio’s Most Loyal FansEdison Research and Triton Digital, in their Heavy Radio Listeners Report (April 2018), define “heavy radio listeners” as those persons 12+ who “listened to radio for more than one hour during the past 24.” These were 30% of respondents in the survey while those who listened to radio for one hour or less were 37% and those who did not listen to radio during the past 24 hours were 33% of respondents.

When viewing the following information, it’s important to remember that “listen to radio” doesn’t necessarily refer to AM/FM radio. Edison and Triton allowed respondents to define “listen to radio” themselves.

Men indexed higher than women as heavy radio listeners, or 108 and 92, respectively. Unsurprisingly, adults 55–64 had the highest index compared to other age groups.

Indices of Heavy Radio Listeners, by Age Group, January/February 2018

Age Group Index

12–17 51

18–24 89

25–34 104

35–44 114

45–54 120

55–64 125

65+ 74Edison Research/Triton Digital, April 2018

Other demographic indices for heavy radio listeners include:

• Employment – Full-time, 118, and not employed full-time, 84

• Ethnicity – Caucasian Americans, 97; African Americans, 106; and Latinx Americans, 109

• Education – High school or less, 93; one to three years of college, 103; four-year college degree, 115; and some graduate credits or advanced degree, 92

• Income – Less than $50K, 98; $50K to $100K, 99; and more than 100K, 106

Clearly, “heavy radio listeners” does mean more than just AM/FM radio to those in this group, as more than 60% listened to online audio.

Weekly Online Audio Listening Among Heavy Radio Listeners, January/February 2018

Source Percent

Listen to online audio 63%

YouTube* 44%

Pandora 29%

Streams of AM/FM 20%

Podcasts 17%

Spotify 16%

iHeartRadio 13%

Apple Music 9%

Amazon Music 6%Edison Research/Triton Digital, April 2018 * includes listening to music and music videos only


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Hot FormatsAccording to Nielsen’s Audio Today 2018 report (April), the Country music format, which includes Country and New Country, was the top format, with 13.2% of total listeners 12+ during fall 2017. News/Talk Combined (commercial and non-commercial) was second, at 12.3%; followed by News/Talk Commercial, 8.3%; Adult Contemporary (Adult Contemporary and Soft Adult Contemporary), 8.1%; and Pop Contemporary Hit Radio (CHR), 7.1%.

A comparison of Adult Contemporary and News/Talk audience shares from February 2017 to February 2018 reveals an increase for Adult Contemporary and a decrease for News/Talk among the three age groups measured.

Adult Contemporary and News Talk Audience Shares, by Age Groups, February 2017 vs. February 2018

Age Group

Adult Contemporary

News/Talk

News/Talk

Feb. 2017Feb. 2018

Feb. 2017

Feb. 2018

Persons 6+ 7.7% 8.4% 10.5% 10.4%

Persons 18–34 7.1% 8.1% 4.7% 4.2%

Persons 25–54 7.3% 8.2% 7.9% 7.3%

Nielsen, March 2018

Nielsen’s data then reveals the favorite AM/FM radio formats among selected demographics during March 2018, based on average quarter hour share.

During most summers, Classic Hits and Classic Rock compete for the top format of the June–August period, compared to the first five months of the year. Not only was Classic Rock the fastest-growing format during summer 2016 and 2017, but also achieved a 5.2 share during June 2018.

Classic Hits performed even better during June, with a 5.9 share in PPM markets, the highest since Nielsen began tracking national format ratings. Classic Hits was the fastest-growing format during summer 2014 and 2015.


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Top Three AM/FM Radio Format, by Selected Demographics, March 2018Millennials

18–34Share

Gen X 35–54

ShareBoomers

55–64Share

Country 15.6% Country 12.6% News/Talk 15.0%

Pop CHR 12.9% News/Talk 9.4% Country 12.8%

Urban Contemporary 6.7% Adult Contemporary 7.9% Classic Rock 9.1%

Teens 12–17

ShareAdults 18–49

ShareAdults 25–54

Share

Pop CHR 19.1% Country 14.0% Country 13.1%

Country 12.7% Pop CHR 10.7% Pop CHR 8.7%

Hot Adult Contemporary 8.5% Adult Contemporary 7.2% News/Talk 8.3%Nielsen, April 2018


The Multicultural AudienceWith the projected increases in US ethnic populations during the next 30 years, it’s important to understand the composition of their audio use.

The ethnic composition of the national radio audience (persons 12+) as of June 2018 was African Americans, 13.6%; Latinx Americans, 16.8%; and other, 69.6%, which includes anyone who is neither African American or Latinx American.

Radio’s weekly reach among African Americans is the same as the overall population, or 92%; however, among Latinx Americans, it is even stronger, at 96%. (Nielsen includes Asian Americans among its total population data, but not separately.)

Weekly Reach of Radio, by Total Persons 12+ and Ethnicity, 2014–2018

YearAfrican

AmericanLatinx

AmericanOther

2014 31.1 M 40.0 M 172.7 M

2015 31.2 M 40.2 M 173.1 M

2016 31.7 M 41.2 M 173.9 M

2017 32.3 M 42.4 M 174.8 M

2018 32.3 M 42.3 M 173.2 MNielsen, July 2018

African American Radio Data and Demographics

• Gender – Men, 47%, and women, 53%

• Weekly Use – 32 million

• Weekly time spent with radio – 13 hours, 32 minutes (the most of any ethnicity)

• Top daypart – 3pm–7pm, Mon–Fri

• Listening location – At home, 34%, and outside home, 66%

• Employment – Full-time, 52%; part-time, 15%; not employed (retired, student, etc.), 33%

African Americans’ Top Formats, by Age Group, Fall 2017

Age Group Format/Share

Persons 12+ Urban Adult Contemporary/29.6%

Teens 12–17 Urban Contemporary/32.7%

Adults 18–34 Urban Contemporary/32.8%

Adults 18–49 Urban Contemporary/28.2%

Adults 25–54 Urban Adult Contemporary/27.1%

Adults 35–64 Urban Adult Contemporary/33.5%Nielsen, July 2018

Latinx American Radio Data and Demographics

• Gender – Men, 53%, and women, 47%

• Weekly Use – 42 million

• Weekly time spent with radio – 12 hours, 45 minutes

• Top daypart – 10am–3pm, Mon–Fri

• Listening location – At home, 28%, and outside home, 72%

• Employment – Full-time, 58%; part-time, 15%; not employed (retired, student, etc.), 27%

Latinx Americans’ Top Formats, by Age Group, Fall 2017

Age Group Format/Share

Persons 12+ Mexican Regional/16.1%

Teens 12–17 Pop Contemporary Hits/16.7%

Adults 18–34 Mexican Regional/15.0%




Persons 12+ English Dominant

Pop Contemporary Hits/11.2%

Persons 12+ Spanish Dominant

Mexican Regional/26.2%

Nielsen, July 2018


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Sports on the RadioDespite sports fans’ attraction to TV to watch their favorite teams, sports radio formats also attract a fair share of audiences, given a majority of people listen to radio outside the home.

During the June–November 2017 period, audience shares for sports-formatted stations increased more than 30%, even among Millennials. Nielsen attributed these increasing numbers to the start of the fall football season and whenever the Major League Baseball season ends with playoff teams (league championships and World Series) playing all the scheduled games to determine the winners.

Audience Share Trend*: Sports Radio Format, June–November 2017

Month Persons 6+Persons

18–34Persons

25–54

June 4.0% 3.1% 4.3%

July 3.9% 3.0% 4.2%

August 4.1% 3.3% 4.4%

September 4.6% 3.6% 4.8%

October 5.2% 4.4% 5.6%

November 5.3% 4.3% 5.7%Nielsen, December 2017*Average Quarter Hour

Data from recent surveys from The Media Audit reveals some interesting comparisons for cities with “crazed” college and professional football fans.

• Of the three college football cities compared, Columbus, OH (Winter 2018 survey) and its fan base for the OSU Buckeyes have the largest percentage of the base population (adults 18+) listening to the games on the radio during the past 12 months, or 11.2%.

• In Austin, TX (Spring 2018 survey), the home of the University of Texas Longhorns, 6.0% of the population were listening to the games.

• Seattle is the home of the University of Washington Huskies. According to the Winter 2018 survey of the Seattle-Tacoma market, 6.9% of the base population listened to the team’s games on radio.

For professional football, the comparison numbers are for Washington, DC (Summer 2018 survey), New Orleans, LA (Winter 2018 survey) and Pittsburgh, PA (Spring 2018 survey).

• The New Orleans Saints of the NFL attracted the largest percentage of the market’s base population to the radio dial for its games, or 12.7%.

• Of the 2.3 million adults 18+ in the Pittsburgh market, the home of the Steelers, 10.6% listened to the games on the radio.

• Somewhat surprisingly, given the rabid fanbase of the Washington Redskins, just 2.3% of the Washington, DC population listened to the games on radio.


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Editorial credit: / Shutterstock.com


Streaming Audio AdvancesA variety of measurement standards generally shows Spotify to be the #1 streaming audio service among Americans, with Apple Music #2. As of the end of October 2017, Spotify had approximately 18.2 million paid subscribers to Apple Music’s 15 million.

During February 2018, various reports forecast the number of Apple Music paid subscribers would equal Spotify by July 2018; and, according to a July report from Digital Music News, Apple Music did exactly that, with both services having approximately 20 million US subscribers. Although Spotify became a public company during spring 2018, it doesn’t have the deep pockets of Apple, Amazon (Amazon Music) and Alphabet (Google Play Music), all of which can afford to operate their music streaming services at slimmer margins and offer low-priced subscriptions.

Apple also has an advantage, given its iPhone is the #1 seller in the world, which has put Apple Music in the #1 position among mobile streaming music users.

Streaming Music Services, by Monthly Mobile Users in the US, March 2018

Service Total

Apple Music 49.5 M

Spotify 47.7 M

Pandora 36.8 M

SoundCloud 34.2 M

Google Play Music 21.9 M

iHeartRadio 19.9 M

Amazon Music 12.7 M

Shazam 10.6 M

SiriusXM 7.6 M

TuneIn Radio 6.6 MStatista, 2018

Among heavy radio listeners, based on the Edison Research/Triton Digital report, the audio streaming services story is quite different, as Pandora is first in monthly and weekly use. iHeartRadio’s streaming service also attracts more heavy radio listeners, most likely because they hear promotions on iHeartRadio-affiliated stations.


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Heavy Radio Listeners’ use of Streaming Audio Services vs. All Radio Listeners, January/February 2018

Audio Streaming Service

Listened During Last Month

Listened During Last Week

All Listeners

Heavy Listeners

All Listeners

Heavy Listeners

Pandora 31% 37% 23% 29%

Spotify 20% 20% 16% 16%

iHeartRadio 11% 18% 7% 13%

Apple Music 10% 10% 9% 9%

Amazon Music 9% 8% 6% 6%

SoundCloud 9% 8%

Google Play All Access 6% 7% 5% 5%Edison Research/Triton Digital, April 2018

Editorial credit: / Shutterstock.com


Innovations and TrendsBecause the car, truck and SUV are where people listen to radio the most, they can be an excellent source of data for many local advertisers, including auto dealerships.

Drive Time Metrics has created relationships with automakers and the third-party suppliers of vehicles’ audio systems to collect data from those with an embedded cellular modem. As of March 2018, approximately 12 million vehicles had this device, but this will increase to 17 million by 2020, or 95% of all purchased vehicles.

Not only does the service measure listening data of broadcast, Internet and satellite radio, but also CDs and stored music. While a vehicle is running, Drive Time Metrics collects data every 60 seconds. Of the greatest potential interest to advertisers is the collected data is both time-stamped and indicates a vehicle’s location via GPS.

Another innovative radio measurement service is Rhiza, which Nielsen purchased during April 2017. It has attracted the attention of auto dealerships too. With Rhiza, a dealership can see an overlay of radio listening with Polk’s data on registration, title information and new vehicle transactions.

The Public Trusts Radio NewsA 2017 Kantar Media study revealed the public trusts “radio news bulletins or programs” more than other media when measuring the impact of hearing “fake news” in political and election coverage.

Public’s Trust in Media When Hearing About “Fake News” in Political and Election Coverage, October 2017

Media/SourceTrust More

Trust the

Same

Trust Less

Radio news bulletins or programs 24% 48% 28%

Printed news magazines 23% 55% 22%

Websites or apps of national newspapers 22% 54% 24%

Websites or apps of news magazines 19% 55% 26%

24-hour news channels 18% 52% 30%

Printed national daily or Sunday newspapers 18% 55% 27%

Printed local newspapers 16% 63% 21%

Websites or apps of TV or radio companies 15% 48% 37%

Television news bulletins or programs 13% 58% 29%

Average across mainstream media 19% 54% 27%

Messaging apps 20% 31% 49%

Online-only news outlets 10% 50% 40%

Social media 11% 35% 54%InsideRadio (Kantar Media), November 2017

Sources: Nielsen Website, 8/18; BIA/Kelsey Website, 8/18; Media Village Website, 7/18; Reuters Institute Website, 8/18; Radio+Television Business Report Website, 8/18; Edison Research Website, 8/18; InsideRadio Website, 8/18; The Media Audit Website, 8/18; Statista Website, 8/18;e Billboard Website, 8/18;Slate Website, 8/18.

Prepared: August 2018

© 2018 Media Group Online, Inc. All rights reserved.


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the audio medium - media group online · according to nielsen’s q1 2018 total audience report;...

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