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Radio 2015 Formats’ Fortunes and Future

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Radio 2015 Formats’ Fortunes and Future Today, our ears are crowded, given the many additional choices for our listening time, compared to traditional radio of just a few decades ago. Our smartphones are packed with downloaded songs and albums and apps that provide us with access to streaming music services, such as Pandora, Spotify and iTunes Radio. In addition, all these choices are available in most new cars, including Sirius XM satellite radio. This has resulted in the state of the traditional radio medium to be essentially the same as Radio traditional broadcast (and even cable) TV: Both continue to hold their strong positions as major sources of news, entertainment, sports and other content and major generators of network and local advertising revenues, but digital is quickly closing the gap. If media ad spending is any measure of consumers’ interaction with any specific medium, A Special Report from THE MEDIACENTER then digital will remain radio and TV’s biggest 2015 challenger moving forward. For 2015, ad spending in digital media will increase 13.0 percent, but just 1.8 percent for radio and 1.7 percent for TV. In addition, as radio and TV’s share declines through 2018, digital’s will increase, finally surpassing TV during 2018 and having more than 5 times the share of radio. It’s absolutely critical that you, as a TV account executive, understand the current state of radio. Not just because it is a competing medium, but maybe, more importantly, because you’ll have an advantage over your competition when you present yourself as a local media consultant and expert to your prospects and clients. Being able to share insights and data about radio’s strengths and weaknesses will put you in a better position to influence how and where local businesses allocate their advertising budget – and, with the support of THE MEDIACENTER will make you a winner in the long run. THE MEDIACENTER 7000 Kennedy Blvd. East, M-9 Guttenberg, NJ 07093 866-921-1026 [email protected] Loyal Listeners Just as TV can show an almost ubiquitous penetration of American life, radio delivers Radio similar numbers, with 243 million Americans, 12+, listening to radio each week, which calculates to more than a 91-percent weekly penetration rate. The daily reach of radio for persons, 12+, was 66.2 percent and the total weekly time listening was 13 hours, 24 2015 minutes, according to Nielsen’s June 2015 RADAR® report. Radio’s Daily Reach by Age and Gender, 2015 Age Range Persons, 12+ Men Women 12+ 66.2% 66.9% 65.4% 12–17 56.0% 53.1% 59.0% 18+ 67.2% 68.4% 66.0% 18–24 61.2% 59.2% 63.4% 18–34 64.6% 63.2% 65.9% 18–49 67.6% 67.3% 68.0% 25–54 70.1% 70.7% 69.6% 55+ 65.1% 68.6% 62.2% 35–64 71.3% 73.0% 69.5% 65+ 60.6% 64.2% 57.8% Radio Advertising Bureau (Nielsen RADAR), June 2015 Parts of the table above are highlighted to bring attention to the fact that teens and male teens, specifically, have the lowest radio penetration rate while the highest is among adults, 35–64. Radio’s almost total penetration is further revealed when comparing more detailed data of the three primary generations – Millennials, Generation X and Baby Boomers – and two of the major ethnic groups – Hispanics and African Americans. Comparison of Three Major Generations’ Radio Use, Q4 2014 Millennials Generation X Baby Boomers Metric (18–34) (35–49) (50–64) Total weekly listeners 66.6 million 57.9 million 57.9 million Men 53% 53% 53% Women 47% 47% 47% Weekly penetration 91.3% 94.0% 93.5% Total weekly time listening 11:26 13:45 15:06 Top daypart 3pm–7pm 6am–10am 10am–3pm Top format Country Country Country Listening in the home 27% 27% 34% Listening outside the home 73% 73% 66% Nielsen, State of the Media: Audio Today, March 2015 www.mediacenteronline.com Comparison of Two Major Ethnic Groups’ Radio Use, Q4 2014 Another important data point is the amount of time the African full-time employed of the three major generations and two Metric Hispanics Americans major ethnic groups listen to radio weekly: Millennials, Total weekly listeners 39.9 million 30.9 million 12.25 hours; Generation X, 13.7 hours; Baby Boomers, 15.25 hours; Hispanics, 14.0 hours; and African Americans, Men 53% 48% 12.75 hours. Women 47% 52% Weekly penetration 93.1% 91.0% On an annual basis, radio listening peaks during the spring and fall months. For the entire 13-month period from January Total weekly time listening 12:43 12:59 2014 through January 2015, however, the range was very Top daypart 10am–3pm 3pm–7pm narrow, with January 2015 having the smallest number of Mexican Urban Adult listeners, at 10.3 million persons, 6+, for an average quarter Top format Regional Contemporary hour, and May 2014 having the largest, at 11.4 million. Listening in the home 32% 38% No other medium puts the majority of listeners closer to Listening outside the 68% 62% retailers and other businesses, since the majority of radio home users are not home during all dayparts. Nielsen, State of the Media: Audio Today, March 2015 The Workday’s Companion Radio continues to deliver peak audiences during the Radio Listening Location by Daypart, Persons, 12+, Q4 2014 traditional dayparts: AM drive, 6am–10am; midday, 10am– Daypart Not Home At Home 3pm; and PM drive, 3pm–7pm, with 7am–8am, the highest- Mon–Sun, 6am–midnight 64% 36% rated hour during the weekday and midday, 10am–3pm, the AM Drive, 6am–10am 61% 39% highest-rated daypart. Midday, 10am–3pm 72% 28% In addition, the total number of listeners, 12+, increased PM Drive, 3pm–7pm 72% 28% every weekday during spring 2014: Monday, 176.1 million; Evenings, 7pm–midnight 53% 48% Tuesday, 178.0 million; Wednesday, 177.1 million; Thursday, Weekends, 6am–midnight 55% 45% 186.3 million; and Friday, 184.9 million. The weekend days have the fewest total number of listeners: Saturday, 156.0 Nielsen, State of the Media: Audio Today, March 2015 million, and Sunday, 137.6 million. www.mediacenteronline.com Radio 2015 Formats’ Fortunes and Future News has always been major programming Radio content on all radio stations; however, according to the latest Radio Television Digital News Association (RTDNA)/Hofstra University 2015 Survey, the amount of time stations scheduled for local news and the number of stations with any on-air news reports continued to decline – and has likely done so for decades. Conducted during Q4 2014, the study found local news lost another two minutes from the average weekday time stations scheduled news broadcasts, decreasing to 75.6 minutes. In addition, the number of stations with local newscasts decreased 3.8 percent during 2014, to 66.25 percent of the 868 stations responding to the survey, which is half of 2013’s decrease of 7.7 percent. The number of US all-news stations has also declined from 37 during 2012 to 31 for 2014, and the all-news format is the lowest ranking format on Nielsen’s Top Formats of 2014. Number two on that list is the news/talk/information format. The number of stations with this format has varied during the past five years, from a low of 1,922 stations during 2010 to a high of 1,994 during 2013. There were four fewer news/talk/information format stations during 2014, or 1,990. Country is the clear #1 radio format with a total listening share that is almost 50 percent more than the #2 format, news/talk/information. America’s Top Radio Formats by Total Listening, 2014 Format Percent Format Percent #1: Country 15.2% Rhythmic Contemporary #12: 3.0% #2: News/Talk 10.6% Hit Radio (CHR) Pop Contemporary Hit #13: Mexican Regional 2.6% #3: 8.0% Radio (CHR) #14: Active Rock 2.0% #4: Adult Contemporary (AC) 7.6% #15: Adults Hits + ‘80s Hits 1.9% #5: Classic Rock 5.6% #16: Alternative 1.8% #6: Classic Hits 5.5% Album-Oriented Rock #17: 1.7% Hot Adult (AOR) + Mainstream Rock #7: 5.3% Contemporary (AC) #18: Classical 1.5% Urban Adult #8: 4.3% Spanish Contemporary Contemporary (AC) #19: + Spanish Hot Adult 1.3% #9: Contemporary Christian 3.5% Contemporary #10: All Sports 3.3% #20: Religious 1.3% #11: Urban Contemporary 3.2% #21: All News 1.3% Nielsen, State of the Media: Audio Today, March 2015 Despite the country format’s lofty position, Keith Hill, one of the most experienced and respected radio consultants, created controversy during spring 2015 when he declared that country stations played too many songs by female artists. He said he had the data to prove that when a station’s total playlist is more than 15 percent female, its ratings decrease. According to Hill, whenever he recommends this change to any station that has requested his programming guidance, its ratings increase. www.mediacenteronline.com Ad Sales Angst The findings of January–May 2015 research from Borrell Associates added to the radio industry’s advertising angst. Envision media ad spending as a mountain range. TV and Of the 7,228 small, local businesses (SMBs) Borrell radio are the two tallest peaks. Newspaper once rivaled the surveyed, 37 percent said they wouldn’t be buying any height of TV and radio, but it, and all other traditional media, radio advertising, compared to 23 percent during 2010. have eroded significantly. Although TV and radio have According to these SMBs, even the online/digital medium weathered the ravages of time, there is a new peak growing would receive slightly less of their advertising buys than at a rapid rate – digital – and it is about to stand shoulder to for 2010.
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