Study Shows Need For Local Radio Stations To Integrate Websites.
August 27, 2005
A MediaSpan study performed by Frank N. Magid Associates of nearly 35,000 radio listeners across all formats in major U.S. markets shows that local radio has an opportunity to grow its relationship with audiences if they further integrate their on-air and online programming and promotions.
“This was a massive study that shows pretty clearly that while radio is still a primary medium for most consumers, other new media forms are changing the way that users, especially younger audiences, relate to radio,” says Mark Zagorski, CMO of study sponsor MediaSpan. “In order for stations to renew and grow their audience relationships with a new generation of listeners, they will need to incorporate new media activities such as podcasts, streaming and integrated music downloads into their daily on-air and online programming.”
Supporting this notion, Zagorski refers to the finding that while 28% of the 18-29 year olds say they download music monthly, only 14% say they are “purchasing” MP3 or electronic music files online on a monthly basis, leaving one to surmise that file sharing may make up the activity gap. Zagorski says this points to an opportunity for the radio community to continue to work with the music industry to stem the tide of illegal free downloads and music file transfers. “It’s still a significant challenge no matter how you look at it, but a radio station loyalty program that also offers free music downloads in conjunction with record labels is an example of a mutually beneficial partnership that may enhance listener loyalty while helping reign in the illegal transactions.”
The study also found more than a quarter (26%) of 18-29 year olds download ringtones monthly. While overall, 11% of all respondents say they download podcasts on a monthly basis, 13% say they would use a radio station Web site to download podcasts if they were available. This and ringtone downloads are the only two music/radio-related categories where respondents’ likelihood to use/download increases over current monthly use if new content is available.
Ringtone downloading shows the potential to grow from 14 to 17% if madeavailable on station sites. The trustworthiness of radio station Web sites appears to have the potential to draw in new adopters of these activities.
As expected, the study confirmed that listeners access radio station across multiple platforms with 40% of 18-29 year olds (versus 28% of those 30+) listening to streaming music from radio station weekly. Nearly 35,000 listeners of all ages were recruited by Frank N. Magid Associates from 73 station sites across the MediaSpan Network of 1,000+ radio station websites to participate in the study. The study covered listeners in 13 different formats ranging from AOR/Classic Rock/Rock to Sports Talk/Sports, News/Talk/Talk, Country, AC/Lite AC/Lite Rock to Urban/Hip Hop and Alternative/Modern Rock.
Among the other notable findings of the study:
When it comes to e-commerce, MediaSpan radio website visitors are avid online shoppers. Seven in ten have made an online purchase in the last 30 days, and four in ten report spending $100 or more. Spending online among the audience breaks out as follows:
– Spent less than $50 * 18 percent
– Spent $50-99 * 13 percent
– Spent $100-199 * 14 percent
– Spent $200-500 * 16 percent
– Spent more than $500 * 11 percent
Use of the Internet at work is an important characteristic of radio station website visitors, as 69 percent have access at their place of work, whereas only 40 percent of the total Internet population has access at work.
This fact coupled with a Socio-Econonomic-Status figure of nearly 2x the national online average means that radio website surfers are “the cream of the crop” for online advertisers.
News and weather top the list of why listeners go online and are closely followed by content unique to the radio/music category, particularly amongst “millennials.” The study found that in nearly every entertainment-driven category, 18- to 24-year-olds are more likely to go online for the entertainment content than any other age group.
Specifically, areas that 18-24 year olds “over index” (index=100 percent) in weekly online usage include:
– Streaming music * 18- to 24-year-olds over index at 140 percent
– Music news * heavily driven by 18- to 24-year-olds who over index at 145 percent
– Music playlists and music videos * one-third of 18-24s regularly go online to view
– Concert information * nearly four in ten 18- to 24-year-olds seek info online
– Download music * one-third of 18-24s and one-quarter of 18-34s download regularly
“The study clearly showed that on-air radio has a complementary audience, online that is young, affluent, highly attractive to advertisers, and looking for unique content. Stations who can adapt their online programming to meet the demands of these consumers will benefit from higher brand loyalty, greater revenue opportunities and a multifaceted media relationship that goes beyond the radio,” says Zagorski.