One of the exciting things about looking over the master spreadsheet for a mega-study like Techsurvey10 is discovering new data and findings that you’ve never seen before
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So over the next few weeks, you’ll see some key takeaways highlighted in this space and in the industry trades, but one finding that is truly recurring has to do with the shift to digital. And I’m not just talking about how brands like Pandora, YouTube, and Snapchat are changing the way that consumers entertain themselves.
The fact is, more and more people are accessing broadcast radio on digital devices. And many programmers are still trying to wrap their heads around it. First, it represents an entirely different usage paradigm. And second, there’s that gnarly topic of how it’s going to be measured and sold.
I can tell you that over the past few weeks as I’ve made my way through Radiodays in Dublin, the Worldwide Radio Summit, and the NAB in Vegas, the broadcasters are different but the theme is the same. There is a growing realization that digital is becoming the dominant mode of media transportation and yet, radio is still sitting around, waiting for the bus.
That’s because radio lacks the measurement standards that would tie it all together, providing advertisers with a true picture of overall consumption in both traditional and digital outlets.
If you talk to as many PDs as we do, they’ll tell you they’re conflicted. On the one hand, studies like ours and others that you see in your email boxes day in and day out confirm that streaming is growing, fueled by the increasing percentage of consumers who are purchasing smartphones and tablets. The app revolution is in full swing, and more radio fans are seeking out their favorite content on sources that were nonexistent just a decade or so ago.
A great example is Sports Radio. Now here’s a format that is very male-centric as we know. And their appetite for all things sports is seemingly insatiable, fueled by sports leagues that are smart, savvy, and excited to provide even more tools to access information, background, highlights, interviews, and behind the scenes content. From ESPN to MLB to the NFL, the content is excellent, accessible, and now a part of millions of fan content menus as they navigate the odds, the pundits, the trades, the fantasy leagues, the signings, and of course, the scores.
So when you look at the Sports Radio stations who participated in TS10 – 14 of them, producing more than 2,800 respondents – you can see that digital tipping point coming to life. Nearly 30% of listening to these sports-centric brands is occurring in the digital space, adding more credence to the importance of data that captures this usage. And not surprisingly for the entire study, young people’s media habits are moving even faster into the streaming, mobile, and social arenas.
But on the other hand, this consumption isn’t being measured or merged in ways that benefit radio marketers and their clients. The truth is that more people are listening to the radio on different devices, and yet, we’re still out there selling our cost per points based on terrestrial listening. And we continue to market our products to mostly traditional radio advertisers. As Gordon Borrell pointed out (once again) at the Worldwide Radio Summit, the radio industry is missing out on incredible amounts of dollars because we continue to chase “radio dollars.”
That’s why our “3 M” recommendation from TS9 not only holds water but is even more relevant today. It simply affirms the value of measurement of this non-traditional (that is, digital) usage, merging that data with listening that continues to take place on “regular radios,” and then monetizing that consumption by working in partnership with advertisers to provide more value and results.
And as Radio Ink and other sources have reported lately, that’s what the Nielsen team is working to accomplish. It is essential that stations be given proper credit for the totality of usage, making it acceptable for programmers to aggressively promote their streams, apps, podcasts, and other content portals – without feeling they’re losing meters in the process.
For everyone working today in radio, it can’t come a moment too soon.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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I get that radio isn’t getting full credit for streamed listenership, But is it possible to monetize it profitably given the current streaming royalty situation? Sports is easy – no music licensing fees, but is there a way to do it with music? And the answer isn’t more philosophy – if it can be done, some one has to back the claim up with numbers.
This is a huge issue – much bigger than phone chips and fixing it won’t be easy, but I can’t help but thinking that radio’s future is riding on it. Not just streams of terrestrial radio, but streaming music of any kind.
There are lots of gnarly parts to this, Bob, and you raise a big one. But as consumption moves to the streaming arena, bolstered by smartphones, tablets, and “connected cars,” an industry solution is essential. And it starts with measurement. Thanks for getting the ball rolling today.
I agree on the measurement issue, but its just the tip of the iceberg. All that measurement will do now is verify what can’t be moentized profitably.
I find it interesting that radio’s leaders are still fixated on and writing about things that will have little or no impact on its future – everything from whether Pandora is radio to HD radio to phone chips..while none seem compelled to tackle or even comment on the growing streaming phenomena that could make or break today’s radio companies.
Maybe the answer is in your Letterman post from last week. Perhaps radio’s leaders are too entrenched in the past and out of touch to successfully tackle this challenge. Radio probably needs less Leno and Letterman and more Fallon and Kimmel and it’s probably be time for new leadership from people who already understand and embrace technology. The clock is ticking and once Apple and Google run the center stack it will drastically more difficult for radio to reassert itself.
Bob, excellent question and one everyone should be asking. The simple answer is, “yes”. I did it for 10 years heading up digital sales for two radio companies. We were profitable every single year and made significant $$$. The key is not to treat it as just another speaker for your on-air programming. It is radio’s “At-Work-Daypart”…and the only way we can introduce our advertisers to our audience and let them begin a conversation. The next big question, “but does it work for advertisers?” Again, a big yes. My teams had 100+ success stories.
All doable, Craig. And essential for radio’s future. Thanks for the comment.