All formats – and their core listeners – are not created equal.
In fact, there are key differences between the various radio formats and those who profile as their P1 listeners. This is an area I feel like I’ve written a PhD dissertation over the last decade of Techsurveys. More than a decade ago, AllAccess chieftain Joel Denver convinced me to open our survey up to formats outside the friendly confines of rock radio. And we haven’t looked back.
A key part of Techsurvey is the ability to analyze a wide array of data points based on format. And we include 14 of them in these surveys. The contrast is often striking, as shown in the chart below. It breaks down satellite radio subscribership (or access via a free trial) by format. And it illustrates the vast differences between spoken word fans (Sports and News/Talk) versus those who favor music stations:
As is almost always the case in radio, demographics – gender, age, ethnicity – rarely tell the entire story. Your format preference often speaks volumes about your media habits and content consumption.
That’s why a recent story from Ultimate Classic Rock jumped off my computer screen. Writer Corey Irwin had me with the title:
“Classic Rock Fans Pay More For Concert Tickets Than Anyone Else”
This is not a distinction a format or genre would wish for. But for radio sellers, it might provide a useful way to demonstrate value to media buyers tasked with poking holes in virtually every sales pitch.
As we are rapidly learning, 2022 is shaping up to be an odd economic and cultural year. On the one hand, most of us are itching to get out of the house and back to our pre-2020 lives. The problem is, many of us have this same goal, and that plays right into the law of supply and demand. When it comes to entertainment – especially the price of concert tickets – this year is off the charts. When everyone wants to see the biggest shows, you know what happens.
You want to talk inflation? Have you seen the prices of concert tickets this summer? Smart stations have already budgeted appropriately or cut deals to ensure tactical ticket giveaways for the coming weeks and months. But that’s of no help to the vast majority of us forced to pay escalating ticket prices.
But what do these stats tell us about radio formats and their fans? In radio sales, formats have what’s known as “power ratios.” That is, while ratings generally dictate a radio station’s advertising rates, different formats fetch higher – or lower – per-spot costs. A format with a 1.0 power ratio might earn a 3-share in the ratings. And the ratio indicates they’ll earn a 3-share of market revenue.
But a format with a power ratio of 1.5 generates one-and-a-half times the rates of the average station in a market. If that station has a 5-share in demo, it should produce a 7.5 share of the demographic’s financial value.
So, what dictates a format’s power ratio? To media buyers and planners, the mysterious numbers are often a matter of perception (versus reality). The decisions may be based on factors that include income and occupation, and even historical trends. But there’s no science behind the notion why one format has a higher value than another.
Perhaps that same principal applies to the price of concert tickets. Ultimate Classic Rock quotes a fascinating study by Finance Buzz covering the biggest touring acts from 2017 through 2021 using Pollstar stats. It provides amazing data about concert ticket prices across a variety of measures. I’m a believe the numbers often tell fascinating stories, and that’s the case with this study of how much money various artists command for a live show.
The bottom line? The average ticket price for a Classic Rock artist is nearly $20 higher than buying a seat for a Pop show. Here’s how it breaks down by genre – and by extension, radio format:
A look down this chart reveals how highly popular genres like Country or Comedy bring in a much lower ticket prices than Classic Rock, far and away the most expensive ticket in town.
Much of this differentiation is due to what I’ve referred to in the past as Mt. Rushmore artists – and they’re abundant in the Classic Rock format. In the Finance Buzz study, the priciest night out was Bruce Springsteen’s Broadway shows. The average ticket? Just north of $500. The Boss clearly boosted the Classic Rock average.
The closest in price is in the Pop category featuring Lady Gaga where a ticket goes for just $337. Jimmy Buffet (listed as Folk?) hauls in $131 a seat from Parrotheads, while a performance by Lauren Daigle in the Christian world can be enjoyed for under $60.
Does this data suggest the relative value of a fan based on the type of music she enjoys? At nearly $120 a ticket, a Classic Rocker is paying quite a bit more to see a favorite artist live than performers in every other genre. By extension, is he worth more to media mavens? Leave it to me to ask that question.
But how long will the Classic Rock gravy train last? While aging artists like the Stones and the Who continue to give it a go on stage, many high profile artists like
Bob Seger have stopped touring. And sadly, David Bowie, Tom Petty, and Prince have passed away, ending the ability of their estates to cash in on these inflationary ticket prices.
But now, technology may make it possible for artists to tour posthumously. And I’m not talking holograms. We’re also discovering that media science may allow us fans to enjoy performances when these artists were still in their prime.
How is that possible? That’s the topic of tomorrow’s post, with an inside look at how one of the biggest acts in music history plan to continue their touring career thanks to the magic of creative tech.
In the meantime, how do I get backstage?
Thanks to the great Abbey Konowitch for sharing this story with me…and now you. – FJ
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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Greatpiece, Fred.
I’ll be seeing McCartney at Fenway next week, and I can attest to those prices…and much higher.
But YOLO.
PS. On the backstage thing…not happening.(thanks, covid)
Should be a great show, JC. Sir Paul still brings it.
I really enjoyed this column. We recently passed on seeing The Eagles because with all the fees and Ubers we would have been well north of $1000 for decent seats. And without Glen Frey no less!. Everyone who went said it was the best concert they’d ever seen, but for me, the Eagles aren’t worth a $1000+ ticket. If Bruce comes to town, its another story entirely. The good news is I’m seeing Julia Jacklin for $20/ticket and Sharon Van Etten, Angel Olsen and Julien Baker for $100/ticket.
A “first world problem” to be sure – how many $500 concert tickets can I afford. A year ago it would have been more and I wonder when the impact of inflation will create a concert ticket ceiling. Could you imagine classic rock heroes having to fly commercial? Don Henley and Joe Walsh might have to fly on the same Gulfstream – “Life’s been not so good…?”. The possibilities are endless.
Maybe Don and Joe can ditch the pricey Gulfstream for Joe’s Maseratti. I understand it does 185!
But now he can’t drive, David.
LOL! Oops, I forgot that part…
It’s all a matter of just how bad you want to see a band – or what’s left of them. Bob, check out today’s post and ABBA’s antics to create a virtual experience around their young selves.
Well now, supply and demand seems to work -still-in the concert business. Prices are outrageous but we don’t HAVE to pay ’em, unlike gasoline, food and diapers. More power to the people getting the gold. I hope the artists and all involved appreciate their fans. I’d say they do.
Exactly, Dave. If prices are too high and attendance is lousy, artist management will adjust. But as long as there are enough people willing to shell out mega-bucks…