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April 2013 Summary. BROADCAST RADIO vs Pandora. Why Broadcast RADIO . Listeners have a personal connection with broadcast radio through interaction with the radio station and its local personalities via social media, community and local events, etc.! 3.
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April 2013 Summary BROADCAST RADIO vsPandora
Why Broadcast RADIO ... • Listeners have a personal connection with broadcast radio through interaction with the radio station and its local personalities via social media, community and local events, etc.!3 • Broadcast Radio reaches over 92% or 243 million of the U.S. population every week!1 • Listeners utilize AM/FM Radio more than to any other audio source throughout the day!2 • Broadcast Radio is Thriving! Broadcast Radio has continued to evolve making it easier to access over multiple devises. Broadcast Radio remains the top choice to hear breaking new music, as well as reaching younger listeners.4 • Broadcast Radio is accessible! Broadcast Radio accompanies listeners throughout their busy days ... at home, in the car and during activities. • Broadcast Radio Responds! Broadcast radio responds to community needs with specialized events and in times of crisis with important news and information. Source: 1 = Radar 116 March 2013 12+ Population / 2= USA TouchPoints 2013.1 persons 18=64 / 3 = USC Annenberg Study June 2012 people 18-64 / 4 – Scarborough USA Plus Rel 1 2013 and Vision Critical 2013
Radio’s Role is Unique • The entertainment experience of listeners to Radio is very different from that of music-only platforms (like Pandora, Spotify, iPods, cds etc.) • Listeners look for: • Connections to personalities • A place to belong (a neighborhood, a community, etc) • Content curated by a program directors who understands the needs/likes/values of “the neighborhood” • Local information (gossip, news, traffic, weather, opinions, events, opportunities…) • The ability to talk with, communicate with personalities and/or stations and get direct answers or actions • Radio connects listeners and advertisers 3
The Inside Story on • Pandora claims that they have 75% of all Internet Listening ... In reality Pandora’s share of Internet listening is probably 1/3 less. Triton, the primary service for internet streaming ratings, published total audience report includes only the top 20 rated subscribers (of which Pandora is claiming a 75% share) and does not represent “all internet listening”. Missing players from total universe are: Spotify, Rdio, LastFM to name a few. Scarborough reports that Pandora accounts for 50% of all internet radio users monthly.1 That’s 1/3 less than Pandora claims.¹ • Pandora claims its users spend 20 hours a month … Pandora includes overnight and Premium subscriber (no ads) listening. That is 40 minutes a day or less with an average of 3 ads an hour…what are the odds yours is one of the three that get played? How do you build reach and frequency at that rate? • Pandora claims that they reach about 8% of total audio listening ... Using Arbitron RADAR data and Triton total report data for Jan – Dec 2012, Pandora’s share of just radio and streaming listening is only 4.4%. ² Per USA Touchpoints, ALL Internet Streaming among 18-64 accounts for only 5% of total hours spent listening to all radio, including digital, broadcast and satellite. It is IMPOSSIBLE for Pandora to have even half the share total hours spent listening to all radio that they claim to have.³ What is the source for Pandora’s claim– and why won’t they show you the numbers they use to calculate it? • Pandora claims that their market reach is as big or bigger than top rated local stations ... In reality they are combining all their channels and platforms (what they call their Network) together to compete against an individual broadcast radio station. Plus Pandora cannot discern if anyone is listening after initial login . The reminder pop-ups may indicate that no one was listening the previous 20 minutes or hour before the pop-ups appear. • Pandora claims they can target geographically….In reality, Pandora doesn’t check to see if registrants have moved. 70% of 18-34 and 40% of 18+ move over the course of three years.⁴ And if they use IP addresses or cell phone area codes – those don’t necessarily reflect where the listeners is really located. BOTTOMLINE: Pandora can’t really deliver what it says it does and Radio can. Sources: 1 – Scarborough USA Plus Rel 2 2012; 2 – RADAR 116, (Jan – Dec 2012); Triton Digital Report. (Jan 12 ‐ Dec 12); 3 - USA Touchpoints 2013.1; 4– U.S. Census 2010
Capabilities Comparison of Broadcast Radio vs. Pandora 5 Sources: Broadcast Radio includes Internet Streams
Capabilities Comparison of Broadcast Radio vs. Pandora Sources: Broadcast Radio includes Internet Streams * Can pull zips, gender and age but not eliminate coverage of each – which is value added ^ Doesn’t update zips, 88% of people online use false or incomplete data per Blue Inc 2012; *Infinite Dial 2012; **RADAR 116, (Jan – Dec 2012); Triton Digital Report. Assumes Top 20 = 80% of total (Jan 12 ‐ Dec 12); ^^USA Touchpoints 2013.1; **Bridge Ratings March 2012 6
If Pandora is “Radio”, why doesn’t it do what radio does? Because Pandora can’t deliver what Broadcast Radio can.