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News INSIDE >> Thursday, February 20, 2014 GET MORE NEWS & UPDATES @ INSIDERADIO.COM >> FRANK SAXE [email protected] >> PAUL HEINE [email protected] (800) 275-2840 Thursday, February 20, 2014 THE MOST TRUSTED NEWS IN RADIO More buyers eyeing web radio, survey shows. Six-in-ten ad buyers say they’re more interested in streaming radio than they were a year ago. That’s according to a new survey by STRATA among agencies that use its media buying software. The growing interest in online radio comes as the survey shows just 8% said they’re more excited about over-the-air radio ads than they were last year. That’s the lowest figure in the 20 quarters that STRATA has been conducting its surveys. The high point was coming out of the recession — in late-2010 nearly one-in-four agency buyers said they were giving radio a fresh look. Of course dollars and interest are two very different things, with streaming still netting just a fraction of what FM/AM radio bills in a year. “In the advertising industry, the buzz often comes before the pay off,” notes STRATA EVP Joy Baer. The latest survey shows radio still ranks third behind TV (51%) and digital (35%) for which medium agency clients are most interested in. Just 6% of buyers said radio — the lowest since early 2009. STRATA based its results on a sample of 75 agency media directors and agency executives. It’s not just web radio that’s capturing more interest. The survey shows web video and social media are not surprisingly brighter features on buyers’ radar. Meanwhile ad agencies are less worried about clients cutting media budgets. It was previously cited as a top concern, but budget cuts have dropped dramatically, with only 8% of agencies calling it their biggest challenge. Big pharma may find radio easier to swallow if FDA okays disclosure change. The flood of disclosures that fill pharmaceutical ads can be alarming and oddly humorous at the same time, but they’re also a deterrent keeping some drug companies from using radio. Now the Food and Drug Administration is preparing to launch a study on the impact of the risk disclosures on radio and television ads. The goal is to determine whether it’s feasible to limit disclosures to the more serious and likely complications. While shorter disclosures will no doubt be welcomed by sales reps working to bring pharmaceutical dollars to radio, the FDA’s goal is to make drug commercials more accurate and less complicated for the public. In a statement, the agency says the blur of possible medical reactions is “often too long, which may result in reduced consumer comprehension, minimization of important risk information and, potentially, therapeutic noncompliance due to fear of side effects.” Yet the FDA says there are some in the medical field who think radio and TV ads leave out important information. It sees limiting the on-air disclosures to the most “serious and actionable” side effects as a potential middle ground. The FDA says one possible closing for a radio spot could be: “This is not a full list of risks and side effects. Talk to your doctor and read the patient labeling for [drug name] before starting it.” As it prepares to launch a field study upon which to base its decision, the FDA is signaling it’s leaning toward a less-is-more approach, hypothesizing that limited risk warnings will “promote improved consumer perception and understanding.” The study is not yet in the field, and the FDA is collecting public comments on how it will be conducted through April 21. The category has traditionally not been one of the biggest for radio, although new rules could help change that. Kantar Media calculates pharma companies spent $21.5 million in 2012 on radio ads. “The category hasn’t been great for radio and we’ve heard frustrations from pharmaceutical clients and their agencies due to the disclaimers and subsequent limitations,” Radio Advertising Bureau president Erica Farber says. She says the RAB is committed to “finding ways to better serve the ad category as we know our listeners are their prime audience.” Radio is tops among young country fans but other media outlets aren’t far behind. As country radio enjoys a renaissance not seen since the early ‘90s, a new study sheds a news INSIDE >> light on the generation largely responsible for the format’s current surge in popularity. Meet >> The Millennials, presented yesterday by Edison Research at the Country Radio Seminar in Gen Ys favorite way to Nashville, shows both the percentage of 12-to-24-year-old listeners who “listen regularly” to contact a radio station MORE NEWS >> INSIDERADIO.COM PAGE 1 NEWS Thursday, Feburary 20, 2014 country and those who listen to a country outlet as their most-listened-to radio station have doubled since 2000. Country fans’ predisposition to FM radio, combined with an edgier, more energetic sound emanating from Nashville, have helped country become radio’s No. 1 format among 18-34 year-olds. “Country radio is stronger than ever in the broadcast radio universe, especially among younger listeners,” Edison Research president Larry Rosin says. “But broadcast radio no longer is the entire universe.” A majority of Millennials own a smartphone, computer, game console and MP3 player in addition to a radio. While 94% of Millennial country fans indicate they listen to country music on traditional FM radio, other media outlets aren’t far behind. Internet video sites are used by 90% of Millennials, followed by personal audio collections (87%), personalized online radio (86%), on demand music (80%), streamed FM radio (80%) and Sirius XM Radio (79%). “Country radio, like all radio, is in the fight of its life among younger consumers,” Rosin says. Yet the study also debunks the myth that Millennials have an aversion to radio. “Young fans of country music, in particular, are bigger radio users than their counterparts in other formats,” Rosin says. “But they are also bigger users of other new media. Country radio is starting from a position of particular strength, and must use its strengths to stay relevant.” Study suggests Millennials use radio to filter content and keep up with what’s happening locally. By 2020, 46% of the U.S. workforce is forecast to be made up of Millennials, who already account for one third of the 25-54 demo. As radio battles a plethora of media channels for young listeners, a new Edison Research study suggests what this increasingly important generation is “hiring” radio to do. Nearly endless media choices act as both a blessing and a curse, causing Millennials to turn to radio to help filter all that content. Nearly nine in ten (87%) Millennials say they listen to local FM radio to hear their favorite songs, while 78% listen to discover new songs and 80% to discover what the popular songs are. “Country radio is the filter for country music,” the report says. Millennials’ values include other traditional radio strongholds, like local pride and public service. Nearly eight in ten (78%) say they listen because they enjoy hearing personalities and DJs along with the music on local FM radio. And nearly seven in ten agree with the statement that they listen to local FM radio to find out about things going on in the community. With the trend in country radio pivoting toward more national content, the study’s authors make a bold proclamation: “It’s never been more important to play up your localness.” Make everything around the music localized, they suggest, while giving Millennial listeners the “my country feeling.” With research by MTV and the Cassandra Report showing the importance Millennials attach to ethical practices and social cases, the study suggests programmers “make sure Millennials know about the good you’re doing” with community service programs. New face of country radio: more diverse, less one-dimensional. For a format once believed to be dominated by white conservatives, young listeners are giving country a fresh infusion of diversity. While 73% of Millennial county fans are white, other ethnicities are better represented than among older generations. Hispanics comprise 14% of the demo, African Americans account for 8% and Asians make up 3%. Other stereotypes are also negated by Millennial country fans: One third live in cities and only 23% consider themselves to be socially conservative. Edison’s new study recommends country programmers recognize the diversity of their younger audience and appeal to it, suggesting “they’ll love you if you show you’ve taken the time to deeply understand them.” Befitting their diverse backgrounds, young country fans aren’t musically one dimensional. Beyond country, fully eight different formats received a four or five ranking (on a scale of 1-5) by at least half of Millennial country fans, with top 40, classic rock, hip-hop, alternative and hard rock/heavy metal scoring the highest. The study uncovered room for improvement at country radio, especially in fostering one-to-one connections with a generation that values direct engagement. Only three in ten Millennials say they’ve ever communicated with an FM radio station or one of its MORE NEWS >> INSIDERADIO.COM PAGE 2 NEWS Thursday, Feburary 20, 2014 personalities using a phone. The percentages were lower for other channels like Facebook (26%), email (21%), text messaging (21%) and Twitter (17%). Edison’s national online survey included 1,550 12-34-year-olds, augmented by face-to-face interviews with Millennials around the country. View the presentation HERE. Longtime Katz executive Bob McCurdy exits rep firm. After more than three decades at Katz Radio Group, Bob McCurdy is exiting the rep firm.
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