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Saturday, June 16, 2012

How Many Listeners Does Radio Really Have

6-12-2012

(by Ed Ryan) Yesterday, we ran a story from Consumer Electronics Association CEO Gary Shapiro who took some serious shots at radio's ability to do battle with emerging digital competitors. Shapiro cited a study he said indicated radio listenership was headed south. If you listen to Internet pure play companies, they tell us listeners are migrating to the Internet where there are fewer commercials and they get to choose their own music.

And, if you read a lot of the comments we get here on our website, the lack of local and overloaded stopsets are turning listeners off. However, yesterday, Arbitron released its June RADAR report which states that "radio?s audience increased slightly year over year by 590,000 persons aged 12 and older, representing nearly 93% of the population." What's a reader to believe? More importantly, what's an advertiser to believe?   

Those Arbitron numbers in the 90s will be touted over and over again by salespeople, sales managers, even group heads as proof that radio is strong, Shapiro is wrong and consumers are are still with us. But is anyone really listening? Whenever these figures are pushed out, it should also be noted that in the first quarter of 2012 the Radio Advertising Bureau reported a revenue increase of only 1%, many of radio's public companies were flat and the industry as a whole continues to only pull in about 7% of the total revenue pie. So the question we always ask is with listening numbers so high, with listener loyalty so strong, where's the revenue?

According to the latest Arbitron RADAR report, radio attracts affluent and educated consumers.
What advertiser wouldn't want that?
Arbitron says more than 95% of adults aged 18 to 49 with a household income of $75K or more and a college degree, tune in to radio on a weekly basis, that?s 22.5 million listeners in this demographic. 
Why aren't advertiser tripping over themselves to get access to those people?
And, Arbitron says, nearly 34 million, or 93%, of adults aged 18 to 34 with a household income of $75K or more, tune into radio on a weekly basis. 
Wouldn't every car dealer, furniture store, and shoe shop want a customer making $75K? 

Arbitron says, according to its RADAR June 2012 Report, that 242.1 million people, 12 and older, listen to the radio each week. Those numbers just don't seem to be translating to the bottom line. Yesterday, we reported that the Internet, a relatively young industry, generated $8.4 billion in ad revenue in the 1st quarter alone. That industry doesn't even know which ads work, between banners, buttons, pop-ups, ads that slide and push content off the page, etc. Radio, which has been around a few years longer, generated $17.4 billion in revenue in all of 2011.

We've heard for about a year now that radio needs to speak with one voice, get the word out about our effectiveness. So, what's the message?

(6/14/2012 8:49:32 AM)
I can do Three surveys and come up with three different results.
1) The base of a survey is more than asking the first 1,000 people I talk to a question and tabulate and answer. We all know this. And yet we all do what we can to get the answers we want.
2) Yes the Internet will be the main source for many things. Radio just offers Terrestrial service for as long as the consumer uses it.
3) The Internet has a long way to go before its Infrastructure in High speed is up to performancance needed to cover 100% of the country.
4) HD will never grow with the current royalties that must be paid by broadcasters to use the service.
5) The general public is slow at acceptance vs those in the field where progress can not happen fast enough.
As usual, we will fight, we will argue and in the end..whatever the consumer decides is best in cost and servie provided will win.
(6/13/2012 3:52:12 PM)
the listening and advertising world has changed, yet again. today, Apple announced 9 major car companies will feature Siri "Eyes Free" dashboard system --- you can bet Apple won't feature anything but Apple.
once the dashboard is gone, its gone forever.
(6/13/2012 2:33:56 PM)
The article mentions:

"Why aren't advertiser tripping over themselves to get access to those people?"

Because advertisers don't want an audience. They want RESULTS. And for some strange reason, they feel a bit abused when their 30 second ad is buried in the middle of an 8-minute spot set.

If I ever own a business, I'll probably sell ad time on YouTube. As an 25-34'er myself, I know that's the place to grab the audience --- not radio. (And I WORK in radio)

(6/13/2012 12:56:20 PM)
@Gary: "get fully behind HD Radio"

Really? As conversions have stalled, and stations are quietly turning off their HD signals.

(6/13/2012 7:29:02 AM)
take the years from 1900 to 1960 in the media world and list what was created?...take the years from 1960 to 2012 in the media world, list what was created...now list what has disappeared. Its the new kids on the block that continue to state that the old boys are dead but its the new kids that keep replacing the new kids, old boys are still here and making money. now, i agree things need to change as they do in every industry to sustain a long life. the new kids could learn something from the old boys. how to last and not burn out so fast! i look forward to the new pandora replacing the old one and the new myspace and the new facebook and the new pinterest and so and so on. pandora i may see you in 20 years, more likely not!

Shannon Miller
24 years in the Marketing Profession


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