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Internet Radio for Marketers
1. Internet Radio for Marketers
Understanding a new era of music listening
Remy Wainfeld
Intern, Digital Integration & Innovation
2. Growth of Online Radio
22%
12%
5%
2001 2006 2011
% of people who have listened to online radio within the past
week
*US population, ages 12+
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3. Internet-Only Radio versus Online Radio
Online Radio
AM/FM
Internet-only
broadcast
radio stations
streams
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6. Listening Platforms
96% listen on a
desktop/laptop
computer
45% listen on a
15% listen on a
mobile/
tablet
smartphone
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14. Listeners are Influencers
64% • I tell my friends, family, or co-workers about new
products or services that I’m happy with.
51% • My friends, family, or co-workers ask me for
advice on the latest technology.
46% • My friends, family, or co-workers usually want my
opinion on what type of products they should buy.
44% • My friends, family, or co-workers come to me for
recommendations on restaurants, travel, etc.
25% • I maintain and update a personal or work-related
blog on a regular basis.
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16. Listening Behaviors
Listen to different stations based on my
61%
mood
Don't keep player minimized throughout
59%
listening session
Often look at the media player to see the
46%
name of the song/artist
Always try new internet radio stations 34%
Click on ads 28%
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17. Social Behaviors
Rate songs 42%
Recommend a station, artist/band, or
38%
song
Review station recommendation lists 35%
Look at what others are listening to 32%
Link profile to social networks 29%
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23. Increased Customer Engagement
52% of people recall
and internet-radio ad
40% of people respond
to an internet-radio ad
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24. Costumer Engagement Comparison
Visited advertiser's website 11%
18%
Searched for more information online 8%
15%
Purchased product/service-retail store 4%
10%
Purchased product/service online 3%
8%
Became a fan on a social network site 1%
6%
Sent email/text to company 1%
5%
Called for information 1%
5%
Internet users Online radio listeners
*US population, ages 18+
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25. Targeted Advertising
• Registration data
• IP targeting
Geographic
• Registration data
Demographic/ • Type of audio content
that the internet-only
Contextual radio station delivers
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26. Metrics
Average Quarter Hour (AQH)
• The average number of persons listening to a particular station for at least five minutes
during a 15-minute period
Average Active Sessions (AAS)
• The average number of streams of one minute or longer that are active within a time
period
Session Starts (SS)
• The number of streams of one minute or longer that are started within a time period
Average Time Spent Listening (ATSL)
• The average number of hours for each session lasting longer than one minute within a
time period
TSL (Time Spent Listening)
• The amount of Time Spent Listening before changing the station/stream or closing the
online audio program
Unique listeners
Ad impressions and Interactions
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27. Key Takeaways
• Internet radio is rapidly growing in popularity
• Listeners access internet radio from multiple platforms –
marketers can engage listeners across a variety of contexts.
• Internet radio provides marketers with an opportunity to
engage a younger population.
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28. Appendix I: Most Popular Internet Radio Music Genres
60s-70s pop, classic rock 28%
80s pop, rock 25%
Traditional country 23%
Pop R&B 22%
Mainstream/pop country 21%
Pop alternative 21%
Pop hip-hop 20%
Hip-hop/rap 18%
Pure pop 17%
Modern adult contemporary 16%
*Experian Simmons, “Fall 2010 Teen/Adult Study,”, ages 18+
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Outline:Introduction: what is internet radio?Distinction: online radiointernet-only radio versus AM/FM broadcast streamsI would like to discuss history here—still need some more informationPopularity and growth of online radioI would like to discuss more history here as well—still need some more informationHow does internet radio work? PlatformsListener demographics and characteristicsstill looking for more information**I am unsure about the order of the rest of the presentation. Right now it is as follows:Social listening behaviorsCustomer engagementAd formatsMetrics
**According to Arbitron’s study “The Infinite Dial 2011: Navigating Digital Platforms”In the past 10 years, the proportion of people listening to online radio has grown by more than 500%.Average listening per week has grown 60% since 2008, with people listening to online radio for almost 10 minutes/day on average (from about 6 minutes and 15 seconds/day)**2010: Limewire served with an injuction and forced to disable file trading functionality**2003: Apple release iTunes Music Store $1/song2009: song prices increase to $1.29/song
**According to a 2011 Interactive Advertising Bureau (IAB) Platform Status Report: “A Digital Audio Advertising Overview”34% have listenedto online radio in the past month: an estimated 89 million people13% listened exclusively to internet-only radio: an estimated 34 million people9% listened to both internet-only radio stations and AM/FM broadcast streams: an estimate24 million peopleThat is about 60 million people listening to internet radio!
There are many different internet-radio services: Pandora, Spotify, Rdio, Last.fm, Songza, iHeartRadio. Most of them provide the same features, although some have various special features (sociability of Spotify, Music Genome algorithm of Pandora, etc.)**According to Arbitron’s study “The Infinite Dial 2011: Navigating Digital Platforms”Of people who listen to both internet-only radio stations and AM/FM broadcast streams, more people in 2011 are listening more to internet-only radio than in 2006 (57% of people listening to internet-only more compared to 48%)
While most people still listen to internet radio from their computer, people are also listening from their smartphone and tablets. Most users listen across a variety of platforms.**According to a 2011 white paper by Parks Associates for Targetspot: “Digital Audio Usage Trends:A Highly Engaged Listenership”The sample population included adults (18+) who listen to Internet Radio at least once a month to daily.
Most internet-radio services are browser-based platforms. Users access the service through a url within their web browser. From left to right (top): Rdio, iHeartRadio, TurnTable.fm. From left to right (bottom): Pandora, Guvera, Grooveshark
Other internet-radio services are application-based, such as Rdio and Spotify. Users must download an application, which connects to the internet, to access music content.
As well, most internet-radio services have mobile platforms. Users can stream music and access their accounts from their smartphones. From left to right: Spotify, Rdio, Pandora.
**According to a 2011 Interactive Advertising Bureau (IAB) Platform Status Report: “A Digital Audio Advertising Overview”Most listeners of online radio are between 18 and 54 years of age, with most listeners in the 25-34 year old age bracket, followed by 12-18**Online radio
Age: 30 years old**http://blogs.wsj.com/developments/2011/01/13/no-mcmansions-for-millennials/**According to Entertainment Weekly, http://insidetv.ew.com/2011/03/15/ratings-by-age/18-34 year old men are watching Family Guy (2 million), American Idol (1.8 million), The Simpsons (1.7 million) and The Office (1.6 million)**According to Cisco World Technology Report, http://www.cisco.com/en/US/netsol/ns1120/index.htmlOn Facebook and Twitter, and check each a few times each dayLaptop and smartphoneValue mobility, access and connectedness (although not necessarily in person)Shop in retail storeUse laptop to get newsDon’t buy booksSmart phone is the most important technology in daily life46% listen at work/ 44% listen to radio in the car
**http://www.cisco.com/en/US/netsol/ns1120/index.htmlGiven a choice between the Internet and social activities such as dating and going out with friends, the largest proportionof College Students (40%) consider the Internet to be most important in their daily life.Laptop is most important technology in daily life46% buy online
**According to a 2011 white paper by Parks Associates for Targetspot: “Digital Audio Usage Trends:A Highly Engaged Listenership”
Marketers ought to be aware of these listening behaviors for internet-radio advertising campaigns.**According to a 2011 white paper by Targetspot: “The Role of Digital Audio in the Evolution of Music Discovery” and a 2011 white paper by Parks Associates for Targetspot: “Digital Audio Usage Trends:A Highly Engaged Listenership”
Marketers ought to be aware of these listening behaviors for internet-radio advertising campaigns.**According to a 2011 white paper by Targetspot: “The Role of Digital Audio in the Evolution of Music Discovery”
**According to a 2011 white paper by Parks Associates for Targetspot: “Digital Audio Usage Trends:A Highly Engaged Listenership”Internet-radio ad response rates, both online and offline, are 2 to 5 times higher when users tune in to 2 or more internet-radio stationsCombining internet-radio with broadcast radio advertising increases response by 3.5 times over broadcast-only ratesCombining internet-radio with online advertising increases response by 2 times over online-only rates
**2011 Interactive Advertising Bureau (IAB) Platform Status Report: “A Digital Audio Advertising Overview”
**2011 Interactive Advertising Bureau (IAB) Platform Status Report: “A Digital Audio Advertising Overview”
**2011 Interactive Advertising Bureau (IAB) Platform Status Report: “A Digital Audio Advertising Overview”
**2011 Interactive Advertising Bureau (IAB) Platform Status Report: “A Digital Audio Advertising Overview”Who listens to 60-70s pop? What kind of advertising would they be interested in?