November 2009 Archives

Social media is going to the dogs, the nation is faced with a global waffle crisis, and the Burger King's peasants are revolting. What?!!??!! Is it 2012 already??!!! (nah, it's just Pizza Friday.)

Talking Back to the TV
Get ready for interactive television ads, as companies try to compete with the Web--and get consumers a lot more engaged

A host of nifty technical tricks has brought much-needed razzle-dazzle to Web ads. Now, the once stagnant television commercial is having its star turn.

This month,Burger King Holdings Inc. will roll out an interactive TV ad campaign that is part of the fast-food company's elaborate movie tie-in with "The Twilight Saga: New Moon," the second film in the popular vampire-werewolf series. Viewers of the ads, which will appear on the satellite DirecTV service, will be able to use their remote controls to take a quiz testing their knowledge of the film.

See the whole article from the Wall Street Journal here.

MEDIAPOSTNEWS

ONLINE MEDIA DAILY

Senate: Online Retailers Make Millions Through Aggressive Sales Tactics

by Wendy Davis, Yesterday, 6:56 PM

Web companies have earned more than $1.4 billion in the last 10 years by duping millions of online shoppers into paying monthly fees for services they didn't want, according to a new Senate report. The report, "Aggressive Sales Tactics on the Internet and Their Impact on American Consumers," by the Committee on Commerce, Science and Transportation, focuses on strategies used by the post-transaction companies Webloyalty, Affinion and Vertrue, as well as their business partners, including sites like Classmates.com, Fandango and Orbitz. "In exchange for 'bounties' and other payments, reputable on-line retailers agree to let Affinion, Vertrue, and Webloyalty sell club memberships to consumers as they are in the process of buying movie tickets, plane tickets, or other online goods and services. The sales tactics used by these three companies exploit consumers' expectations about the online 'checkout' process," states the 35-page report. The paper grows out of an investigation spearheaded by Sen. Jay Rockefeller (D-W.Va.) of so-called "mystery charges." The probe was launched in May, after thousands of people complained that they had unwittingly enrolled online in paid membership programs. "American consumers shouldn't have to worry that their favorite websites are ripping them off during the checkout process," Rockefeller said Tuesday. He added that the committee "needs to start thinking about the legislative steps we can take to end these practices." Companies in the post-transaction space target consumers who have just made purchases at sites like Orbitz and Fandango. The companies send pop-up ads to those consumers, offering them discounts. In the past, people who clicked through landed on a site where they could enroll in coupon programs by providing their email address and clicking a 'yes' button. Once they did so, the e-commerce sites shared credit/debit card information with the post-transaction companies, which then began charging consumers monthly fees of between $9 and $12 and sending them coupons and discounts. Many consumers said that they didn't realize that their credit cards would be charged. A group of consumers also filed a class-action lawsuit against Webloyalty that was settled for $10 million in August. Webloyalty recently changed its sign-up procedure to require consumers to re-enter the last four digits of their credit cards. The company also now says it sends at least 5 emails in the initial 30-day trial membership, before consumers are charged, and allows people to easily cancel. After the hearing, the company said in a statement: "We only want members in our programs who want to be members so they can take advantage of the opportunity to save hundreds of dollars a year, and even a few complaints is too many," Rockefeller had pointed criticism for the e-commerce sites that partnered with the post-transaction companies, including 88 online businesses that have each made more than $1 million through these types of deals. "What I find most outrageous about these scams are the reputable online businesses that have been willing to take part in these scams," he said. "We've all heard of these companies, and we've probably shopped at some of their Web sites." The committee identified 19 companies that made more than $10 million each through partnerships with post-transaction companies. That roster includes 1-800-Flowers.com, Classmates.com, Fandango, MovieTickets.com Orbitz, Shutterfly and Travelocity. Classmates.com alone earned more than $70 through such arrangements, according to the report. Since the investigation began, some online retailers have changed their procedures. Orbitz now requires people to enter the 3-digit security code on their credit cards when they sign up for a membership after making a purchase on the site.

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Monday, November 16, 2009

 

According to recent findings from MomConnection, The Parenting Group's research panel of 5,000 moms, 60% of moms report having used a social network in the past 24 hours, turning to online communities and social networks for advice, support and connection.

The most surprising finding, however, despite all of the attention being given to the relationships that moms form online through social media, is that they do not use social networks as a resource when it comes to product decision-making.  Moms are four times more likely to turn to their personal offline network of friends and family than online social networks for product recommendations and buying advice.

The study found that the role of social networks in moms' lives is not a channel where most moms are receptive to gathering product information, but rather is largely for entertainment and personal communication. Only 24% of respondents have used Facebook for product information and buying advice, while 5% have used Myspace for product info, and 3% have used Twitter.   

Facebook Is Moms' Social Network Of Choice
Social Network	% of Moms Who Are Members
Facebook	81%
Classmates.com	39%
Myspace	38%
YouTube	36%
CafeMom	31%
Twitter	23%
LinkedIn	21%
Source: MomConnection, November 2009

 

Moms' Sources Of Product Research And Buying Advice
Get Advice All The Time	% of Respondents
Mom-focused web sites	41%
User reviews on shopping web sites	34%
Magazine articles	32%
Source: MomConnection, November 2009

The survey also found that moms interact with brands on a surprisingly high level, actively requesting information and resources from the companies whose products they use.  One-on-one interaction with brands is their preferred way to receive info:

• 81% have visited a brand's web site for more information
• 65% have signed up to receive a newsletter from a brand
• 36% have posted a link or joined a fan group on Facebook

 The research found that nearly all moms are "influencers" in some way, spreading the word once they've formulated an opinion about a product:

• 94% of moms give advice to other moms in at least one product category
• The average mom gives and gets advice in more than 8 product categories
• 69% recommend specific brands by name to other moms
• 54% have rated or reviewed a brand online
• 37% have posted their opinions about a product in an online forum or blog

Popular Subject Areas For Mom-To-Mom Discussion Of Product Choices
Give Advice On:	Percentage Of Moms Who Give And Get Advice In Category
Children's toys and games	86%
Entertainment	84%
Cooking and baking tools	82%
Online/offline shopping	78%
Drugs and remedies	75%
Source: MomConnection, November 2009

Moms are more likely to seek advice, rather than share advice, on product decisions in the following categories:

• Financial services
• Home renovation, repairs and appliances
• Cars and automotive products
• Electronics and home entertainment equipment
• Computers and cell phones

 The research also identified six key characteristics that draw moms to one brand over another.  Moms are most likely to talk about brands that they feel are:

• A good value
• Trustworthy
• Responsive to moms' needs
• High-quality
• A money-saver
• A time-saver

The Mom Network survey was conducted by MomConnection among 583 moms with children under 12 between September 10 and September 24, 2009. 

For more information about the study and the MomConnection, please visit here.

For more information visit www.mediapost.com

This week: beer drinkers in space, virgins in cyberspace, speedskaters in first place, Japanese ballet dancers keeping pace, and Billy Dee Williams in your face. 

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Thursday, November 12, 2009

 

According to findings from Alloy Media + Marketing's 9th annual College Explorer Survey, projected annual technology spending among college students (ages 18-30) has reached an all time high at $6.5 billion, ranking 3rd in overall discretionary spending for college students, just below food and auto. When all platforms were totaled, the study found that students are spending an average of 12 hours daily engaged with some type of media. Nine and a half of those hours are spent with their "tech" gadgets, including computers, mobile devices, MP3 players, and gaming devices.

Comparing platforms, the study found:

• Students are spending twice as much time on their computers as compared to television viewing 
• 33% of 18-24 year old students have increased their consumption of webisodes or user-generated videos since last year, and 30% of 18-30 year olds report frequent video viewing on social networking sites
• 61% of students are watching movies on computers vs. 76% on their television

The growing and influential class of 2013, with 13.8 million college students (ages 18-30) on campus this year, is responsible for a record $250 billion in projected spending power, up nearly 6% over 2008 figures.  Projected discretionary spending shows a comparable gain, with these college students reporting peak figures at $56 billion. When it comes to "tech" purchasing decisions, 70% of college students are the key decision makers when purchasing their cell phones, while 63% make the ultimate choice for their digital camera and 60% do so when deciding on their choice of computer.

Input from friends and family continues to be a strong influence on students' decision-making with respect to brands, products and services, with 62% of students placing particular importance on word of mouth from friends.  44% trust the advice of family, and 40% are influenced by seeing others using products.

College campuse blanket "wireless" coverage has doubled in two years, with 60% of college campuses meeting the demands of today's "totally connected" students. And, for the first time since the College Explorer study's inception, desktop ownership slides below half of the 18-30 year old college student population (46%), while laptops are now the preferred model on campus, with 75% of students reporting ownership. 

At the same time, the MP3 player has more than doubled to a total of 74% ownership, while digital camera ownership also jumped to almost three-quarters (74%) - a 28% increase since 2006 and a clear reflection of the daily documentation taking place on social networking sites and blogs, that now seems a prerequisite to campus life.

the study delved into exactly how much time multi-tasking students were engaging with their preferred media on a daily basis, for any purpose. The daily tech "media diet" includes 9 ½ hours out of 12 hours of media consumption.

College Student Daily Media Consumption
Product	Average Daily Hours of Use
Computer	5.0
Television	2.5
Cellular device	2.4
MP3 player	1.3
Gaming device	0.75
Source: Alloy media+marketing College Explorer, 2009

Students' increasing interest in online video has been clearly shown by this year's study, which shows a rise in online viewing habits for  TV shows, user generated videos and webisodic programming as compared to the previous year.

• 33% of  18-24 year old students have increased their consumption of webisodes or user-generated videos over the past year
• College males are watching more webisodes than they did last year, as compared to their female counterparts 
• 30% of 18-30 year olds report they frequently watch videos when visiting social networking sites
• 61% of students who watch full movies do so on their computers, while 76% watch them on their television
• 60% of college students who use technology devices to shoot, send or receive video content report doing so on their computers, with 45% conducting this activity on their cell phone, Smartphone, or PDA.

While pop-up ads or banners are not widely accepted by this group, 53% of college students are not avoiding webisodes or pre-roll ads while online.  And, 68% don't avoid online promotions. One in five students stated that advertisements in the form of online promotions were most useful to them.

Andy Sawyer, SVP, Media Services for Alloy Media + Marketing, concludes that "... advancements in technology have clearly given students increasing control and ease... to socialize, communicate and be entertained on demand... (the study) offers marketers key insights... "

The 2009 Alloy College Explorer study was conducted online within the United States by Harris Interactive between April 1 and April 27, 2009 among 1,521 U.S. 18-34 year old college students (2-year, 4-year and graduate students, including 1,433 18-30 year old college students). Results were weighted as needed for age, sex, race/ethnicity, region and school status. Propensity score weighting was also used to adjust for respondents' propensity to be online.

For additional information, please visit Alloy here.

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Wednesday, November 11, 2009

 

According to new findings from the 3rd annual Edelman Consumer Study, 57% of consumers globally say a company or brand has earned their business because it has been doing its part to support good causes, with Asian countries coming in highest with China at 85% and India at 84%. 67% globally also say they would switch brands if another brand of similar quality supported a good cause, peaking in Brazil at 83% and Italy at 74%.

The study also found that 83% of people are willing to change consumption habits if it can help make the world a better place to live, indicating a startling consumer shift and trend away from traditional status markers like big houses and luxury cars and toward identification with social purpose brands. The findings overall show that

• More than twice as many people (67%) would rather drive a hybrid car than a luxury car (33%), with Japan (89%) and France (84%) preferring hybrid cars most.

Globally, the study found that

• 70% of people would prefer to live in an eco-friendly house than merely a big house (30%)
• 68% also now feel that it's becoming more unacceptable not to make noticeable efforts to show concern for the environment (rising to 82% in China) and live a healthy lifestyle (87% in China)
• 69% globally would rather have a brand that supports the livelihood of local producers than a designer brand (31%), North American and most European countries in the study, as well as Brazil, overwhelmingly prefer supporting the livelihood of local producers, with each indicating more than 80% preference

Causes Global Consumers Personally Care About
Cause	% Who Care
Protecting the environment	91%
Improving quality of healthcare	89
Reducing poverty	87
Alleviating hunger and homelessness	86
Equal educational opportunity	86
Promoting societal health and wellness	85
Disaster relief	85
Supporting human and civil rights	83
Building understand and respect for other cultures	81
Supporting labor rights	81
Fighting spread of global disease and pandemics	80
Source: Edelman goodpurposeTM Consumer Study, November 2009

The study results suggest that in both harsh and rebounding economies, brands will continue to benefit from identifying and contributing to a positive social purpose that makes sense for their business, with 64% of people globally saying they would recommend a brand that supports a good cause (up from 52% in 2008, and in the U.S., up 16 points from 47% in 2008 to 63% this year). In addition, 63% of all respondents are looking to brands and companies to make it easier for them to make a difference, with Brazil having the highest expectations at 86%.

Mitch Markson, Edelman's chief creative officer, president of its brand consulting group, notes that "...People are demanding social purpose, and brands are recognizing it as an area where they can differentiate themselves ...not only to meet governmental compliance requirements, but also build brand equity... "

• Brazil proved to have the highest expectations on brands with 89% of Brazilians expecting brands today to do something to support a good cause, and 61% are most likely to say they are more involved in good causes this year
• More than seven in 10 Consumers in India and China say they would switch brands if a different brand of similar quality supported a good cause
• Japan fell short of many of the global results, with the exception of choosing social purpose over social status, overwhelmingly preferring hybrid cars (89%) and eco-friendly houses (87%)
• More than three out of four people in the UK, France, Germany and Italy were willing to change their own consumption habits if it can help make tomorrow's world a better place to live
• Americans, too, overwhelmingly indicate they are willing to change consumption habits to make the world a better place to live (85%) and are looking to companies and brands to make it easier for them to make a difference (65%)

While the global recession has created limitations, with 70% of consumers saying their ability to give money to community causes has been limited, people are still giving of their time:

• 33% have given less financial support due to the current economic downturn (rising to 51% among U.S. respondents)
• 31% are more involved in good causes than a year ago
• 53% have given more time in support of good causes this year because they have not been able to give as much money
• 56% have tried to do more to support good causes in the past year because charities and other nonprofit organizations have suffered in this economic environment

While the study reveals that social purpose is becoming increasingly crucial to a brand's success, 66% of people believe that it's no longer enough for corporations to merely give money away, but that they must integrate good causes into their day-to-day business.

The report says that the biggest global social changes include:

• 83% of respondents are willing to change consumption habits if it can help make the world a better place to live
• 71% of respondents think brands and companies spend too much on advertising and marketing and should put more into good causes - up almost 10%age points
• 64% would recommend a brand that supports a good cause - up from 52% last year globally
• 59% would help a brand promote its products if there was a good cause behind it - up from 53% last year
• 44% are aware of brands that actively support good causes through their products and services - up from 33%

Markson concludes that "Companies that become catalysts for social change and respond to rising consumer expectations... will not only survive, but also thrive in ways their competitors will not... "

Please visit Edelman here for more information.

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Monday, November 9, 2009

 

According to a Nielsen analysis of a media study conducted by the Council for Research Excellence, 77% of adults are reached by broadcast radio on a daily basis, second only to television at 95%. The study found that Web/Internet (excluding email) reached 64%, newspaper 35%, and magazines 27%.

And, in a deeper analysis of audio media titled "How U.S. Adults Use Radio and Other Forms of Audio," Nielsen found that:

• 90% of consumers listen to some form of audio media per day
• The 77% who listen to broadcast radio surpass the 37% who listen to CDs and tapes and the 12% who listen to portable audio devices.
• Almost 80% of those aged 18 to 34 listening to broadcast radio in an average day.

While the recent emergence of portable audio devices like the iPod and other MP3 players was considered a threat to traditional forms of audio, this study's evidence suggests that the new technology has had a positive effect on radio consumption. Radio was found to have a higher reach (82%) among those who listen to portable audio devices, compared to the average reach for all audio consumers.

Jeff Haley, President and CEO of the Radio Advertising Bureau (RAB), concludes that  "... this... observational study of today's consumer proves that the primary source of new music is the radio."

Another key takeaway from the reports is that broadcast radio is the dominant form of audio media at home, work, and in the car. Exposure to audio listening falls into four tiers in terms of level of usage among listeners:

• Broadcast & satellite radio (79.1% daily reach; 122 minutes daily use among users)
• CDs and tapes (37.1% daily reach; 72 minutes)
• Portable audio [ipods/MP3 players] ( 11.6% daily reach; 69minutes), digital audio stored on a computer such as music files downloaded or transferred to and played on a computer (10.4% daily reach; 65 minutes average use), and digital audio streamed on a computer (9.3% daily reach; 67 minutes)
• Audio on mobile phones (<2% daily reach; 9 minutes)

Audio Sources by Location (% of Minutes)
	% of Minutes Listened
Source	Own Home	Car	Work
Broadcast radio	46.4%	74.2%	53.8%
Satellite radio	7.2	5.5	12.3
CDs/Tapes	20.6	16.2	4.0
Digital audio stored	8.8	<1.0	5.0
Digital audio streamed	6.7	-	12.6
Portable audio	8.6	3.6	1.6
Other audio	1.7	<1.0	10.6
Source: The Nielsen Company, October 2009

Other findings highlighted in the report include:

• Audio media exposure has the highest reach among those with higher levels of education and income
• Approximately 12% of study participants listened to MP3s and iPods for an average of 69 minutes per day, yet eight-in-ten of these individuals also listened to broadcast radio for an average of 97 minutes per day
• 90% of adults are exposed to some form of audio media on a daily basis, with broadcast radio having by far the largest share of listening time

Considering Portable Audio Devices:

• MP3 and iPod players averaged only 8 minutes of listening per day among the entire observed sample, with just under 90% of the sample not listening at all .
• Among listeners of portable audio devices (11.6%), the highest reach was among those aged 18 to 34 years (20.8%), singles (18.5%), and those who tend to be more technology-savvy (18.2%) 
• Among those who also listened to portable audio devices such as MP3 players or iPods, broadcast radio had a daily reach of 81.6% reach and 97 minutes of average listening time among those who listen to radio

Broadcast radio reaches those aged 18-34 at rates equivalent to the general adult population, with 79.2% of younger adults listening to broadcast radio for an average of 104 minutes a day among listeners. On average, individuals spend almost identical amounts of time during weekdays (454 minutes) as they do on weekends (458 minutes) using one of the five key media sources.  

And, among key "advertising-based" media platforms:

• Live television had the highest reach and daily usage among users (95.3%, 331 minutes)
• Broadcast radio (77.3% reach, 109 minutes)
• Web/Internet [excluding use of email] (63.7%, 77 minutes) 
• Newspapers (34.6%, 41 minutes)
• Magazines (26.5%, 22 minutes)

For additional information from Nielsen, and to access the PDF file of the study, please go here.

For more information visit www.mediapost.com

Numantra is featured in this 2-minute radio interview with John Chriswell and Mike Heronime for "Texas Business Update." The subject is "branding your business in the soft economy." Check it out with this link.  Or read the transcript below.

JOHN: MIKE, WHAT IS THE OVERALL BRANDING AND PROMOTIONAL PHYLOSOPHY OF NUMANTRA?

MIKE: We believe in building relationships between brands and their customers.  So we provide our clients with several strategic services geared towards creating the right brand position and intersecting that message with the lives of their preferred customers.

JOHN: WHAT SUGGESTIONS CAN YOU GIVE SMALL AND MEDIUM SIZED BUSINESS' AS WELL AS NON-PROFITS...THAT WANT TO CONTINUE BRANDING IN A SOFT ECONOMY?

MIKE: The economy won't change your brand.  But it will change the attitudes and behaviors of your preferred customers.  Conduct market research and other programs to initiate conversations with customers and make sure your efforts will continue to be effective.

JOHN: ARE EFFECTIVE BRANDING AND MARKETING EFFORTS ALWAYS THE RESULT OF A SUBSTANTIAL INVESTMENT?

MIKE: It depends on how quickly you want to see a return on your investment.  Many of our clients are learning that their efforts with relatively low cost channels such as search marketing and social media are producing substantial compounding results.

JOHN: HOW DO YOU SEE THE PRIORITY OF BRANDING INITIATIVES AND HOW IMPORTANT IS THE INTEGRATION OF THOSE EFFORTS?

MIKE: Branding has to be your number one priority.  It is your constant.  It must be integrated into everything you do.  Do it right and you will achieve your branding goals simultaneously with your advertising, promotion, and public relations efforts.

What's the buzz?  Social media, interactive print, insights into human behavior, innovative media, and integrated communications.  All piled high on delicious slice of pizza pie.

MEDIAPOSTNEWS

ONLINE MEDIA DAILY

Self-Service Platform Bypasses Ad Networks

by Laurie Sullivan, Tuesday, November 3, 2009, 7:01 AM

FatTail plans to unveil a self-service feature Tuesday called PageGage Direct that gives advertisers a direct connection with publishers to book orders for online display ad formats, from banners and rich media to video and mobile. PageGage Direct aims to reduce costs for publishers by cutting out the paperwork and interaction with sales teams required to process media buys. If allows online publishers to set up and install the service to offer a direct sales channel, increase CPMs and revenue, and service customers more efficiently. For small advertisers, PageGage Direct provides a method to connect directly with publishers when buying media space through an ad network isn't an option -- basically, because budgets are too low. Advertisers create targeted ad choices based on context, age, gender and geography, place orders and execute repeat buys. Through a Web browser, advertisers gain access to a dashboard that provides step-by-step directions to access a publisher's available online inventory. More publisher inventory sold direct to advertisers can produce higher returns on the ad space and few remnants because it doesn't go to an exchange or an ad network, according to Steve Pelletier, FatTail CEO. "Think of it as an automated sales channel," he says. Similar to an ATM or at a bank or an online travel site, PageGage Direct allows advertisers to book the ads direct with the publisher. The advertisers can log on and peruse through online ad space to create an insertion order. For most publishers, the impressions are guaranteed, which prevents another advertiser from booking them. PageGage Direct launches with about five publishers, but as more sign up for the service, smaller advertisers will have additional site options to purchase and run ads. PageGage Direct also creates a forecast from data pulled from the ad server. It consists of online advertising inventory, and provides a dashboard that publishers use to configure and manage media inventory and pricing through a series of toolsets that allow publishers to communicate inventory and pricing. PageGage Direct integrates with PageGage AutoBuild, FatTail's sales optimization software for a publisher's direct sales force. The service automates easy transactions, which enable sales teams to focus on customers who require extensive customization. PageGage Direct is not the only self-service, do-it-yourself ad platform -- AdReady has a similar platform. For agencies, AdReady offers a hosted, private-label display advertising platform. For publishers, the platform manages ad operations, trafficking and billing.

 

For more information visit www.mediapost.com

MEDIAPOSTNEWS

ONLINE MEDIA DAILY

Nielsen: Radio Reaches 77% of Adults Daily

by Erik Sass, Yesterday, 5:56 PM

This week brought more good news for radio from Nielsen, which analyzed behavioral data collected by the Council for Research Excellence. In Atlanta, Chicago, Dallas, Philadelphia, and Seattle in 2008, broadcast radio reached 77% of American adults every day, making it second only to television, which garnered 95% daily reach. The Nielsen data bolsters radio's audience claims at a critical time for the medium -- but it's unclear whether these kinds of findings can still sway advertisers. Within the audio category, radio's daily reach far exceeded the percentage of American adults who listen to CDs or tapes -- at 37% -- or listen to portable audio devices like iPods or MP3 players, at 12%. What's more, Nielsen found that the 12% who listen to iPods or MP3 players every day overlap a great deal with the 77% who listen to radio, with radio reaching 88% of the iPod/MP3 group. Compared to other media, on a daily basis radio also beat the Internet -- excluding email usage -- at 64%, newspapers at 35%, and magazines at 27%. Radio scored even better in the coveted 18-34 age group, reaching about 80% of this cohort on a daily basis. This is the latest round of positive findings for radio released by Nielsen, which may be trying to curry favor with radio broadcasters as it promotes its new radio ratings service in mid-sized markets. In September, Nielsen publicized the results of a March and April survey of 119,000 consumers, representing 14 million people in 51 markets across the country -- which found that adults ages 18-34 listen to radio for an average 21.5 hours per week, on par with the rest of the adult population. Even better, the young, tech-savvy consumers that dominate its cell phone-only sample -- 15% of the total sample -- actually listen to radio more than average, clocking 23 hours per week. Other Nielsen findings haven't been so upbeat, however. In June, the research firm released a study of teenage audiences, which found that just 16% of teenagers around the world consider radio their "primary source" of music, with another 21% identifying it as a "secondary source" of music. But the numbers lag far behind MP3 players -- identified by 39% of teenagers as a primary source of music -- and computers, preferred by 33% of teens. In any event, audience size may not be radio's main problem. Over the last decade, Arbitron -- the dominant radio ratings firm -- published a series of surveys which consistently found that radio reaches over 90% of American adults per week, continuing up to the present. But beginning in the second quarter of 2007, radio revenues have dropped just as consistently for 10 straight quarters (counting the current quarter). While some of this is clearly the result of the broader economic downturn, it may also be due to competition from the Internet, which many advertisers perceive as a more measurable medium -- making metrics, rather than reach, the real issue.

 

For more information visit www.mediapost.com