3 Studies Find AM/FM Audience Trumps Streaming Services, Advertiser Perception
August 18, 2015 at 3:07 PM (PT)
New studies by NIELSEN, EDISON RESEARCH and ADVERTISER PERCEPTIONS dispute advertiser perceptions about the size of radio's audience. The combined research found AM/FM's audience to be far greater than the audience for streaming services.
The study, commissioned by radio broadcasters such as CUMULUS, WESTWOOD ONE, IHEARTMEDIA, ALPHA MEDIA, BEASLEY MEDIA GROUP, CBS RADIO, COX MEDIA GROUP, EMMIS COMMUNICATIONS, ENTERCOM, GREATER MEDIA, HUBBARD RADIO, RADIO ADVERTISING BUREAU, RADIO ONE, TOWNSQUARE MEDIA and UNIVISION RADIO, INC., found the following:
• Advertisers estimate that 64% of Americans are reached by AM/FM but the actual NIELSEN weekly reach is 93%.
• Advertisers and agencies perceive the audience share of PANDORA and SPOTIFY to be nearly the same as AM/FM. In reality, AM/FM’s audience share is nine times PANDORA and 17 times that of SPOTIFY.
• NIELSEN data also shows that radio reaches 93% of Millennials –- 22% more Millennials than TV. TV misses one in four Millennials.
“Advertisers and agencies drastically underestimate the reach of AM/FM radio,” CUMULUS and WESTWOOD ONE CEO LEW DICKEY said. “This study is the first conclusive evidence of the major gap in actual and imagined performance of AM/FM and streaming outlets.”
"The most recent NIELSEN Total Audience Report showed that radio is now the number one reach medium, surpassing TV with total audience and Millennials by an even greater margin,” iHEARTMEDIA Chairman/CEO BOB PITTMAN added. “This research makes it clear that while TV and new forms of media may get more attention, they don’t come near the reach of radio; radio is truly the mass reach mobile media.”
“Radio’s reach has remained consistent despite new forms of audio programming and an increasingly fragmented media landscape,” CBS RADIO Pres. ANDRE FERNANDEZ said. “Streaming has proven to be a popular platform, but not at the expense of radio’s growing total audience.”
"This study shows that app downloads and user stats don't equal audience. While consumers may have these music apps on their devices, it doesn't mean they use them as part of their everyday radio listening habits,” said MARK A. KALINE, former head of media at FORD MOTOR COMPANY and KIMBERLY-CLARK. "As a marketer, I've always found radio to be a medium that effectively and efficiently delivers reach over an extended period of time, while driving ROI within the total communications plan. But radio has been too low profile with brands, especially in light of other advancements in technology. Radio needs to be more aggressively marketing their story as the leading mass reach media.”
NIELSEN publishes their “Total Audience Report” each quarter on the state of media reach and time spent. Their most recent report was issued for Q1 2015.
ADVERTISER PERCEPTIONS conducted an online study of 327 decision makers between MAY 11th and 14th.
EDISON RESEARCH’s “Share of Ear” is the only study that measures American consumption of all forms of audio. Their Q2 2015 report surveyed 2,000 Americans on their audio use.