800.275.2840 MORE NEWS» insideradio.com THE MOST TRUSTED NEWS IN RADIO THURSDAY, AUGUST 20, 2015 In Smaller Markets, Still Lots of Volume. While radio’s largest markets grab most of the attention (and many of the ad dollars), new research from Nielsen shows radio reaches out and touches a large and qualified audience in medium and small markets as well. According to an edition of Nielsen’s Audio Today Report series focused on listeners in the 215 diary-measured markets, 65 million Americans aged 12+ use radio every week, accounting for more than a quarter of all listeners nationwide. The report shows the majority of consumers in these markets are connecting to radio and spending a lot of time listening. More than 86% of consumers in small and medium markets tune in during the week and spend more than 15 hours of their media time with radio. The Nielsen data also shows radio reaches across genders (with an even male-to-female split) and generations—86.8% of baby boomers (aged 50-74), 86.5% of millennials (12-34) and 89.9% of genXers (35-49) are reached by radio in medium and small cities each week. More than 60% of diary market listeners are in the advertiser-friendly 18-54 demographic. No cell has a larger concentration of listeners in these markets than persons 45- 54, accounting for 19% of the radio audience, followed by persons 55-64 and persons 65+ (17% apiece), persons 35-64 (16%) and persons 25-34 (15%). Persons 18-24 (11%) and teens (5%) represent the smallest slices of radio’s demographic pie in small and medium markets. Tapping Small-Market Audience Poised To Buy. New numbers that quantify and describe radio listeners in America’s small towns and midsize cities arm broadcasters with a flattering picture of their audience to show clients and prospects. The new report indicates radio in the 215 markets measured by ratings diaries reaches qualified consumers close to the point of purchase. Radio listening peaks during the hours when most consumers shop and buy, according to the new study. Its highest Average Quarter Hour ratings occur during the hours of 7am-3pm on weekdays and from 9am until around 3pm on weekends. With almost two-thirds of listening (63%) occurring out-of-home, the study reinforces that radio reaches on-the-go audiences when they’re poised to buy. Three-fourths of radio listeners in these markets are in the work force (59% work full-time) and six in ten attended college. “The power of radio in small and medium markets should not be overlooked,” says Jon Miller, Nielsen VP of research. “In fact, a majority of radio usage in these markets comes from employed consumers who are out of their home and one step closer to the point of purchase. That’s a solid foundation for both programmers and marketers to build on.” Nielsen Defines Smaller-Market Listeners. Radio reaches across generations, from tech-savvy millennials to aging baby boomers, new Nielsen data shows. But there are subtle nuances in how the generations use the medium in small and medium markets. In sheer size, millennials (age 12-34) make up the largest generation of radio users in the 215 diary-measured markets, numbering 24.3 million. They spend 12 hours and 30 minutes per week with radio, their top format is country, their top daypart is afternoon drive (3pm- 7pm) and they’re more likely than any other generation to be listening in the car. In fact, 44% of their radio listening is done behind the wheel, tops among listening locations, while 32% occurs at home and 21% at work. Numbering 22.5 million, Nielsen calls baby boomers (age 50-74) radio’s “most engaged generation,” spending more time with the medium in small and midsize cities than any other—16 hours and 30 minutes. News/talk is their top format and middays (10am-3pm) their most-listened-to daypart. In between the two is genX (persons 35-49). Numbering 14.8 million, Nielsen tags them as “radio’s workforce” since 68% work full-time, higher than any other generation. Also, genXers tune in to radio 16 hours per week. Country is their format of choice and morning drive [email protected] | 800.275.2840 PG 1 NEWS insideradio.com THURSDAY, AUGUST 20, 2015 (6am-10am) their No. 1 daypart. Radio’s penetration is slightly higher among multicultural listeners with 88.4% of all Hispanics tuning in, spending over 16 hours, 30 minutes of time listening each week. Working Hispanic adults spend over 18 hours with the radio—the largest amount of time of any full-time- employed age group or demographic. And more than 87% of African-American consumers in these markets are reached weekly by the radio—listening for 17 hours, 30 minutes. Smaller/Midsize Markets Love Their Country. Unlike PPM markets, where news/talk is typically ranked No. 1, country reigns supreme as radio’s top format in small and medium markets. With an enormous 15.9 share of total listening, nothing else even comes close. News/talk is second with an 11.1 share, followed by CHR (8.6), AC (7.2), classic rock (5.4), classic hits (5.4), contemporary Christian (4.2), hot AC (3.9), urban AC (3.9), rhythmic CHR (3.7) and urban contemporary (3.7). Classic rock, classic hits and contemporary Christian rank appreciably higher in small and medium markets, while hot AC performs better in PPM-measured markets. Nielsen’s new drill-down into small and medium cities also uncovers daypart differences. While middays (10am- 3pm) is radio’s top daypart among listeners in all markets, morning drive scores the highest AQH rating in every demo in diary-measured markets. Middays are second among persons 18-49 and persons 25-54, while afternoon drive ranked second among persons 18-34, followed closely by middays. HD Radio’s Big Increase In Auto Traction. Among the roughly 250 million registered vehicles driving along America’s highways, approximately 25.1 million—10%—are equipped with HD Radio, according to iBiquity Digital estimates. But with more new vehicles offering HD Radio as a standard feature, along with the continued rollout of after-market product offered by audio manufacturers, iBiquity sees its Q3 road paved with good extension. Joe D’Angelo, senior VP of iBiquity Digital, quoting that 10% figure, tells Inside Radio, “We are currently installed in approximately 40% of all new cars sold in America. We expect that trend to continue and increase in the coming years, increasing the percentage of HD Radio equipped vehicles on the road.” D’Angelo declines to get specific about how much and how soon that percentage will be amped up. (“We don’t provide forward-looking estimates or forecasts,” he says.) But he is at least willing to tally some other numbers, namely, that HD Radio Technology is available in 208 different vehicle models from every major auto manufacturer. And most impressive, HD is standard in 110 of those models. The remaining 98 offer it as part of upgrade packages. And 2016 models added to the lineup include Honda HR-V, Honda Pilot, Hyundai Veloster, Mercedes GLA and Nissan Maxima. HD Radio is also continuing to roll out features that are perhaps more valuable—or at least more apparent— than the promise of digital-quality sound. Its Artist Experience uses HD Radio’s available data stream to align artist photos or album art with the song or audio being played. It would also allow for commercial images such as sponsor logos and/or advertising related to a marketing campaign. For HD Radio, After-Market Needed a Pioneer. Pioneer’s just-announced series of after-market receivers are loaded with all the bells and whistles one can imagine packing into the car dashboard—including HD Radio. And this inclusion of HD Radio in the company’s 2015 line is an important marker for HD developer iBiquity, as it continues to work toward critical mass in vehicles. Pioneer’s six new CD receivers and one digital media receiver (notice—no CD player), announced Tuesday, are all “designed to complement the consumer’s connected lifestyle,” according to the manufacturer. A new survey conducted by Harris Poll on behalf of Pioneer in May says that three in five vehicle owners are behind the wheel of a car that is at least 6 years old, while 34% say their jalopies are between 6-10 years old. That means that after-market HD Radio [email protected] | 800.275.2840 PG 2 NEWS insideradio.com THURSDAY, AUGUST 20, 2015 options remain paramount to iBiquity’s efforts. “Things are moving very well with HD Radio,” says Joe D’Angelo, senior VP of iBiquity Digital. “Based on lifetime sales to date, we estimate that over 25.1 million HD Radio technology-equipped vehicles are on the road today, with either a factory-installed or after-market HD Radio receiver.” Primarily working to align smartphone functionality within the vehicle, Pioneer’s new line offers features such as Bluetooth pairing; USB connectivity for an iPhone or iPod and portable USB drives for Android devices; Siri “Eyes Free”; a simpler Pandora station creation mechanism; and direct connectivity for SiriusXM Radio subscribers. Its DEH-X5800HD model features built-in HD Radio and is priced at $110. Other new models are priced from $95 to $120. Most hit retail this month. Looking To Increase Radio HD Traffic By Covering It On the Road. Of 2,200 AM and FM stations currently broadcasting with HD Radio, 700 nationwide support the Artist Experience service, according to Joe D’Angelo, senior VP of iBiquity Digital.