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A letter from the publisher: RRadio Network surveys began in October, 2001. Since then, more than 45,000 online radio listeners have given their opinions on questions revolving around four categories: Personal Information The act of listening to radio online Their perception of advertising Online activities As a General Manager for Metro Networks I worked directly with founder David Saperstein in those first years of growth. He taught a valuable lesson about introducing something new: Success can take years of persistence. Today media buyers show the same resistance to buying online radio advertising as they did when the :10 traffic report commercial was introduced. There is a direct parallel between selling traffic reports and selling online radio advertising: Worth must first be demonstrated so there’s justification for moving ad money to it. It is through the persistence of RRadio Network surveys to deliver a psychographic portrait of the online radio listener that media buyers will see value in this audience. Ken Dardis President, Audio Graphics, Inc. 440-564-7437 RRadio Network Online Radio Survey - “It’s All About the Audience” Overview RRadio Network is a growing community of online radio stations that aggregate their audience for sale to advertisers. Our roster includes some of the biggest names in online and broadcast radio. An updated listing is at www.RRadioNetwork.com/agencyinfo.htm Since October 2001, listeners to RRadio Network stations have responded to surveys covering a wide array of questions about their personal lives, online activities, internet connectivity, their feelings on advertising and advertisers, etc. Former MediaPost journalist Larry Dobrow best sums up the content of these reports: "There's more information contained here about online radio, and especially its listener base, than anywhere else." Analysis is derived from 45,000+ responses received over thirty-one RRadio Network station surveys. This report delivers facts based on these responses. Each survey is branded with the serving station’s logo. Since RRadio Networks stations represent a diversity of radio formats, our data may be applied to the online radio world at large. Methodology The information contained in this report was collected between October 12, 2001 and May 31, 2005 from 31 surveys presented to online radio listeners. The first six asked three questions each; the remaining ones had four questions for each participant. Surveys 1 through 8 were each based on a 500person sample. Every survey 9 through 14 queried 1,000 participants. Each remaining survey delivered answers from 2,000+ persons. The total number of returns across all surveys came to 45,000+. Four categories of questions concentrate on the online radio listeners’ personal lives, their online activities, the act of listening to radio online, and perceptions of advertising. At the conclusion of each survey (as the next was posted) , participants were requested by e-mail to return to their station for additional questions. This created a lengthy database. Extrapolation of data, cross-referenced against a person’s e-mail address, allowed us to drawa profile of participants that’s unequaled in a single survey session. Note: Through Survey 23, demographic breakouts were in categories of male/female 12-17, 18-34, 35+. From Survey 24 on, demographics are presented in the standard broadcast format: male/female 12-17, 18-24, 25-34, 35-44, 45- 49, 50-54, 55+. RRadio Network Online Radio Survey - “It’s All About the Audience” Highlights ! 57.7% hold a college or post-graduate degree ! 45.1% have an annual household income of $50,000+ ! 46.8% work in technology, management, medical, or professional positions ! 56.1% find "most new music" on internet radio ! 82.4% connect to the internet via broadband ! 40.9% listen for 3 hours+ each listening session ! 81.6% claim their online station satisfies expectations by 80% or more ! 57.6% listen during morning, mid-day, afternoon, and late afternoon ! 56.1% online advertising "frequently" or "sometimes" helps them make an offline purchase ! 80.7% "frequently" or "sometimes" discuss online radio with friends and co-workers RRadio Network audience of males 18-24, 25-34 and 35-44, made up 55.4% of Survey 31's respondents. The chart below shows the gentle fluctuation in demos with each survey. Source: Surveys 27 through 31 - October 30, 2004 to May 31, 2005 RRadio Network Online Radio Survey - “It’s All About the Audience” The Online Radio Listener Online radio listening is a worldwide event. In the early days, 82.8% of listeners resided in the U.S. Since then, two additional RRadio Network surveys show an average of 62.6% listeners living in North America. The audience is educated; 57.7% hold a college or post-graduate degree. Source: RRadio Network Survey 26 - 2,047 respondents from July 12 to August 21, 2004 RRadio Network Online Radio Survey - “It’s All About the Audience” Online radio listeners are also affluent, with 45.1% living in households earning $50,000+ annually, a 2.6% increase since November 2002. Source: RRadio Network Survey 30 - 2,467 respondents from March 15 to April 22, 2005 Survey 7 - 509 respondents from September 1 to November 1 , 2002 As for marital status: 41% of 1,999 respondents said they’re single; 39.6% said “married.” Source: Survey 27 - 1,999 respondents from August 21 to October 30, 2004 2.6% - Abstained Divorced Engaged Married Separated Single Widower % Females Only 11.03 6.30 38.52 2.62 39.22 2.27 % Males Only 6.33 5.59 42.28 2.01 42.72 1.04 % Females of Total 3.15 1.80 11.28 0.75 11.20 0.65 % Males of Total 4.25 3.75 28.38 1.35 28.66 0.70 Totals 7.50 5.55 39.66 2.20 41.02 1.45 RRadio Network Online Radio Survey - “It’s All About the Audience” The online radio audience is primarily Caucasian, 61.5%. Source: RRadio Network Survey 28 - 1,898 respondents from Oct. 30, 2004 to Jan. 30, 2005 As might be expected, the audience comes from diverse religious backgrounds: Source: RRadio Network Survey 28 - 1,898 respondents from Oct. 30, 2004 to Jan. 30, 2005 Agnostic Atheist Buddhist Hindu Jewish Lutheran Muslim Orthodox Protestant Catholic Shinto Other 26.98% female 1.57 2.12 0.48 0.21 0.54 0.59 0.38 0.38 4.02 7.29 0.05 9.35 72.15% male 5.22 10.06 1.14 0.43 1.19 2.66 1.03 0.76 12.89 17.30 0.21 19.26 99.89 - total 6.85 12.18 1.63 0.70 1.74 3.31 1.46 1.14 17.02 24.80 0.27 28.83 RRadio Network Online Radio Survey - “It’s All About the Audience” 76.1% of RRadio Network’s audience report they vote in elections. Of these, claimed party affiliations are: 36.0% Democrat 30.1% Republican 30.8% Independent (3.1% abstained from identifying their political party.) Source: RRadio Network Survey 8 - 532 responses from November 2, to December 14, 2002 They work hard: 42.6% put in more than 40 hours each week at their jobs. Source: RRadio Network Survey 22 - 2,146 respondents from Feb. 12 to March 20, 2004 46.8% work in technology, management, medical, or professional positions. RRadio Network Online Radio Survey - “It’s All About the Audience” Other professions represented in the online radio audience are as follows: Total Abstained Technology Professional 1.69 Professional Service Support Industry Management Retail Medical Manufacturing Other Total Female 3.34 3.39 4.08 2.54 2.89 1.74 4.28 0.54 11.72 Total Male 13.76 10.42 1.24 5.98 5.73 3.44 2.39 4.03 15.46 Totals 17.10 13.81 5.32 8.52 8.62 5.18 6.67 4.57 27.18 Source: RRadio Network Survey 23 - 2,005 respondents from March 20 to April 22, 2004 Of course, to work they need business clothes: 23.2% spend over $500, 14.6% over $750 yearly 45.1% spend from $250 to $1,000+ yearly 8.4% shell out over $1,000 each year “How much do you spend on business clothing each year?” Source: RRadio Network Survey 22: 2,146 respondents from Feb. 12 to March 20, 2004 RRadio Network Online Radio Survey - “It’s All About the Audience” With 45.1% living in households earning $50,000+ annually, the online radio audience has disposable income. Here’s how they responded when asked what their “next big purchase” will be. Source: RRadio Network Survey 26: 2,047 respondents from July 12 to August 21, 2005 But big purchases do not a life make. Owning an MP3 player is also on the shopping list of today’s consumer. While publicity makes it seem that everyone owns an MP3 player, only 32.3% of RRadio Network’s online radio audience have them. Source: RRadio Network Survey 28 - October 30, 2004 to January 30, 2005 RRadio Network Online Radio Survey - “It’s All About the Audience” The ownership of MP3 players by online radio listeners may be curtailed since many use CDs. “Will you buy a CD of songs in the next ninety days?” elicited these responses: Source: RRadio Network Survey 17 - 2,018 respondents from August 14 to Sept. 10, 2003 Perhaps the many claiming to purchase CDs are motivated by their exposure to new music - exposure resulting mostly from listening to radio online. For the chart at right, the question respondents were asked to complete was: “Lately, I’ve been find most new music on...” Broadcast Radio Internet Radio Satellite Radio File Swapping Services Legal Music Service Other As % of Females Only 34.17 49.36 3.16 1.68 5.06 6.54 As % of Males Only 16.42 42.95 2.82 4.30 2.47 5.26 Females as % of Total 8.21 11.89 0.75 0.4 1.20 1.55 Males as % of Total 22.26 57.47 3.85 5.85 3.37 7.16 RRadio Network Online Radio Survey - “It’s All About the Audience” One item that every working person needs is a vehicle, and online radio’s audience is no different. Survey 20 addressed two issues involving the purchase of a car, truck or SUV: (1)whether the person would be purchasing one in the next year, and (2) what type of vehicle was being considered. Of those planning to buy... Of those planning to buy a “new” vehicle... One reason for purchase could be that nearly a third will be driving to their vacation destination. “How will you get to your vacation this year?” Source (for above graphs): RRadio Network Survey 20 2,079 respondents from Nov. 15, 2004 to Jan. 7, 2005 Source: RRadio Network Survey 30 2,467 respondents from March 15 to April 22, 2005 RRadio Network Online Radio Survey - “It’s All About the Audience” Vacations are important to people who work hard. For the online radio audience, the vast majority plan their own. Source: RRadio Network Survey 21 - 2,049 respondents from January 7 to February 12, 2004 Vacations are not the only means of relaxation, though. When asked “Are you a gamer?” 51.5% of our audience said “yes.” They also identified what types of games they play. Console Games Games on Cellphone Handheld Games Online Games Other PC Games Abstained As % of Females Only 16.04 4.11 2.88 38.27 9.46 23.04 5.76 As % of Males Only 21.99 1.40 1.40 18.67 3.45 50.51 2.55 Females as % of Total 3.78 0.95 0.75 9.17 2.20 5.49 1.35 Males as % of Total 16.65 1.04 1.05 14.11 2.49 38.28 1.92 Totals 20.43 1.99 1.78 23.28 4.69 43.77 3.27 RRadio Network Online Radio Survey - “It’s All About the Audience” One of the most important attributes of our surveys is that they allow us to ask specific questions about specific areas of responsibility. From responses to the question "For your company's purchase of office imaging equipment, how much influence do you carry?" we uncovered the following: 26.8% actively take part in deciding what type of copier, printer, or scanner their company will purchase. Another 17.7% are asked their opinion before a purchase of this type is made. Source: RRadio Network Survey 23 2,005 respondents from March 20 to April 22, 2004 Through the questioning here, online radio advertisers can get answers indirectly from consumers relative to the purchase of their products or services. No other media is doing this! This report’s objective is to paint a concise picture of your typical online radio listeners. The preceding 14 pages give direct answers to many personal questions regarding ethnicity, education, income, political persuasion, and lifestyle. As RRadio Network has reported over its 3.5 years of conducting these surveys, people who listen to radio online are more affluent and educated than what mainstream media is capable of delivering. This audience also possesses more disposable income. We believe the proof is above. Our next section looks at what your typical online radio listeners do while online, how long they’ve been using the internet, and what their online purchasing habits are. RRadio Network Online Radio Survey - “It’s All About the Audience” Online Activities The majority of online radio’s audience has been online for over 5 years, according to RRadio Network’s Survey 11. Source: RRadio Network Survey 11988 respondents from March 10 to April 20, 2003 RRadio Network stations are asking this question in the current survey. Comparisons will be offered in version 3 of this report. That broadband seems to follow online experience is not profound. The longer people use the internet, the more likely it is they will be on a broadband connection. Here is what 640 online radio listeners reported in an April 2002 RRadio Network survey: T1 Line 7.5% Broadband/DSL Work 22.65 Cable Modem Work 6.56% Broadband/DSL Home 16.56 Cable Modem Home Total - DSL Line 39.21% Total Cable 25% 31.56% 56k Work 3.59 56k Home 14.37 Total Dial Up 17.96 Total the numbers; 78.2% used broadband, 17.9% dial-up. The remaining 3.8% were on dial-up, but planned to get broadband. Compare these figures with a survey taken in late 2003 (graph on next page). RRadio Network Online Radio Survey - “It’s All About the Audience” Connectivity As of November 2003, 82.4% of online radio listeners used broadband, 17.5% dial-up. Source: RRadio Network Survey 19 - 1,990 respondents from October 5 to November 15, 2003 In April, 2005, Nielsen//NetRatings reported 57.7% of the U.S. online audience use broadband. Online radio listeners are connected by broadband 42.8% more than the average for Americans, making them a primary Rich Media advertising target. Having a higher access to broadband means people who listen to radio online are also more responsive to internet advertising. Nielsen’s new MegaView Online Retail Service reports that “69% of all online retail purchases were conducted over broadband connections in November 2004”; “Broadband users also visited online retail sites more frequently...”1 Take the question appearing in section one, “How do you plan or book your vacation?” 74.7% reported they did it “themselves.” How many reserved a hotel room online? RRadio Network’s survey found that in November, 2003: 43.8% did, with 27.7% doing so in the previous six months. Source: RRadio Network Survey 19 - 1,990 respondents from October 5 to November 15, 2003 RRadio Network Online Radio Survey - “It’s All About the Audience” 1 ClickZ Article: http://www.clickz.com/stats/sectors/retailing/article.php/3463191 In regards to online radio listeners purchasing airline tickets online, 48.3% responded they had, with 36.3% having done so multiple times. Source: RRadio Network Survey 19 - 1,990 respondents from October 5 to November 15, 2003 With 74.7% of RRadio Network’s audience saying they book their own vacations, there is plenty of room to capture sales for either of the above industries by reaching out with advertising. Here are results from the question “Have you made an online purchase in the last 30 days?” 55.1% made a purchase, ...and 79.5% of these people made an online purchase of more than $35. Of those who made a purchase: 21.5% of ALL respondents spent $100 or more online last month! 26.2% of ALL respondents made a purchase of over $75. 30.1% of ALL respondents dropped $60 or more. 35.6% of ALL respondents spent $45+ online. No Online Purchase 1-$15 $15.01 - $30.01 - $45.01 - $60.01 - $75.01 $30 $45 $60 $75 $100 $100+ Totals As % Females Only 49.58 4.38 7.67 7.94 4.38 3.28 5.20 17.53 99.96 As % of Males Only 46.46 2.99 6.56 6.73 5.81 4.07 4.65 22.69 99.96 Females as % of Total 11.52 1.01 1.78 1.84 1.01 0.76 1.20 4.07 23.23 Males as % of Total 35.58 2.29 5.02 5.15 4.45 3.11 3.56 17.37 76.57 - total 47.16 3.30 6.81 7.0 5.53 3.88 4.77 21.51 99.96 Source: RRadio Network Survey 31 - 1,990 respondents from April 22, to May 31, 2005 RRadio Network Online Radio Survey - “It’s All About the Audience” Prior to the 2004 holiday shopping season, 1,999 RRadio Network listeners were asked: “Do you plan to shop online for the 2004 holiday season?” “If yes, how much will you budget for holiday shopping online?” $10-150 Holiday Budget $151-300 Holiday Budget $301-450 Holiday Budget $451-600 Holiday Budget $601-750 Holiday Budget $751-900 Holiday Budget $901 + Holiday Budget No Holiday Shopping Online 4.85 % Abstained 1.10 1.10 0 0 1.10 0 0.05 0.65 % of Females Only 16.69 10.83 14.20 4.44 2.30 1.95 1.95 47.60 % of Males Only 15.54 11.59 13.79 5.45 3.56 3.03 3.56 43.44 Females as % of Total 4.70 3.05 4.00 1.25 0.65 0.55 0.55 13.40 Males as % of Total 10.25 7.65 9.10 3.60 2.35 2.00 2.35 28.66 95.14% total 15.05 10.80 13.10 4.85 3.10 2.55 2.95 42.72 While the above figures give the perception online radio listeners do a great deal of shopping while listening, it is clear from responses to the question below that online radio brands an ad’s message for action at a later time. 2,039 persons were asked to finish the following statement: “____________ is what I do most online, while listening to Internet radio.” Only 1.3% said it was shopping. Source: RRadio Network Survey 24 - 2,039 respondents from April 22 to May 31, 2004 Our next graph shows how the online radio audience responds with post ad-impression action. RRadio Network Online Radio Survey - “It’s All About the Audience” Central to internet advertising’s history is the click-through, immediate response brought on by an ad. A click-through is secondary, though, for those listening to radio online. “View-through” rates are of growing importance. 63% report online advertising helps them make an offline purchase “sometimes” or “frequently.” Does online advertising help you make an offline purchase? Source: RRadio Network Survey 16 - 2,102 respondents from July 23 to August 14, 2003 Sometimes internet radio listener surveys explode the myths of online consumers. Two examples of press release hype being dampened by response from RRadio Network surveys revolve around satellite radio and podcasting, both receiving high amounts of publicity today. According to the audience of online radio stations, neither one is as far along as the press presents them to be. Of 1,582 respondents to Survey 24, only 63 subscribed to satellite radio - 3.9%. When asked “Have you listened to a "podcast" in the last 30 days?” slightly over one third of 1,418 online radio listeners (36.2%) in Survey 31 reported “yes.” Neither result is worthy of the hype given to either audio media. Online music services may be doing better than what you’ve heard, though. Of 2,018 surveys returned, only 25.9% reported they subscribe, but 21.8% say they are thinking about using download music sites. Source: RRadio Network Survey 17 August 14 to September 10, 2003 RRadio Network Online Radio Survey - “It’s All About the Audience” Listening to Radio Online In this report’s first two sections we learned about who listens to internet radio, and how these people spend their time online. Now let’s look at the act of listening, defining habits and actions. 50% of respondents to Survey 11 reported having listened to radio online for over a year. Nearly a third (31.5%) have been listening for 5 months or less. This April 2003 response from 988 persons showed a surprisingly high percentage had already developed the online radio habit. It also pointed to a segment of audience who were just discovering listening to radio on the internet. That listeners’ online radio stations attracted them with quality programming is demonstrated by the number of days each week this group listened. 68% say they tuned in 5 or more days each week. 25.3% 7.5% 35.1% 7.7% 10.3% 4.9% 5.1% Source: RRadio Network Survey 5 - 485 respondents from June 28 to September 5, 2002 40.9% boast an average listening session of more than 3 hours, while another 27.4% listen between 1-2 hours each time they tune in. Source: RRadio Network Survey 27 1,999 respondents fromAugust 21 to October 30, 2004 RRadio Network Online Radio Survey - “It’s All About the Audience” When tuned to your online radio station, how long is your AVERAGE listening session? 1.95 - Abstained Listen less than 1 hour Listen 1 - 2 hours Listen 2 - 3 hours Listen 3 hours + As % Females Only 12.58 21.89 12.58 52.93 As % of Males Only 13.44 30.72 18.46 37.37 Females as % of Total 3.65 6.35 3.65 15.35 Males as % of Total 9.10 20.81 12.50 25.31 Totals 13.10 27.46 16.50 40.97 Source: RRadio Network Survey 27 - 1,999 respondents from August 21 to October 30, 2004 Low tune out is another indication that online radio is serving a special blend of programming. When asked “How many times a day to you tune to a different internet radio station?” 52% reported sticking with one station all day. Source: RRadio Network Survey 18 2,153 respondents from Sept. 10 to October 8, 2003 “How does this radio station rank in satisfying your expectations?” When you compare results to this question from Survey 17 (2,018 respondents) with that of our most recent Survey 31 (1138 respondents), you see little difference in the extreme satisfaction that online radio listeners show their primary stations. Survey 31 Satisfaction levels: 81.6% say their online station satisfies expectations by 80% or more. 5.3% say 70% 3.2% - 60% 2.2% - 50% 0.5% - 40% 0.9% - 30% 0.7% - 20% 0.1% - 10% 1.4% - 0% RRadio Network Online Radio Survey - “It’s All About the Audience” Higher levels of listening satisfaction create longer listening sessions. When the question of listening-session length was asked relative to all online radio listening, 40.9% of respondents claimed 3 hours or longer. But RRadio Network changed the question to “What is the average time you spend listening to YOUR online station?” and the percentage of those listening 3+ hours grew to 47.3%. These online P1 listeners show a loyalty that is not common in other forms of radio. Source: RRadio Network Survey 14 1,012 respondents from June 21 to July 5, 2003 Analyzing how long a person has been listening to one station shows the following: Although a large percentage may identify a station as their favorite, their tenure for listening is short. Plenty of room exists for individual stations to increase their audience. Asking the question about how many days a listener spends each week with online radio also brings impressive results when inquiring about the listener’s radio station. “Over the past week, how many days did you listen to THIS radio station?” 41.3% - 5 or more days 50.9% - 4 or more days 62.6% - 3 or more days Source: RRadio Network Survey 15 2,070 respondents from July 5 - 23, 2003 RRadio Network Online Radio Survey - “It’s All About the Audience” This loyalty issue is put into perspective by Survey 16's quetion: “Do you consider THIS station your primary online radio station?” Source: RRadio Network Survey 16 - 2,102 respondents from July 23 to August 14, 2003 Finding New Stations Before an online station can become a “favorite,” it has to be found. Search engines, friends’ referrals, and radio station portals came out on top as answers when we asked online radio listeners (between March 15 - April 22, 2005) how they find stations. The above shows the importance of optimizing online radio web sites for high search-engine ranking, creating promotions, and programming worthy of word of mouth/viral marketing. Being listed on as many radio station portals as possible is also vital. RRadio Network Online Radio Survey - “It’s All About the Audience” What the Audience is Listening for To help understand the growth of online radio’s audience, consider it in part a search for an alternative to traditional radio and in part a search for what’s new. Early in our surveys we asked online radio listeners to identify “why” they listen to internet radio. 744 respondents replied as follows: 33.3% - Broadcast radio doesn't play the music I want to hear. 28.2% - Internet radio is new and fresh. 25.4% - Broadcast radio has too many commercials. 13% - Broadcast radio's signal is weak in our building. Source: RRadio Network Survey 4 - May 28 to June 28, 2002 Another question asked about the “when” of listening. Breaking this into day parts (with "Combined Daytime" the total listing that occurs during morning, mid-day, afternoon, and late afternoon): RRadio Network Online Radio Survey - “It’s All About the Audience” An idea of how radio listeners divide their time between online and broadcast is demonstrated in the charts below. Listeners were asked: “If you label your TOTAL radio listening, what percentage of time do you spend with broadcast radio? What percentage with radio online?” While females 12-18 spend the largest portion with broadcast (46.2% divide their time 90% with terrestrial radio and 10% with online), 16% of males 19-34 claim to spend 10% with broadcast and 90% with radio online. 15% of 19 to 34-year-old males say they spend 20% with broadcast; 80% with online radio. Gender aside, here is the split: In reading the charts, the first percentage number reflects the amount of listening to broadcast radio; the second, percentage to radio online. Therefore in the 10%-90% split, 12.7% spend 10% of their time listening to broadcast, and 90% of their time with radio online. Breakouts by gender follow: 5.6% Abstained from question 90%- 80%- 70%- 60%- 50%- 40%- 30%- 20%- 10%100% 10% 20% 30% 40% 50% 60% 70% 80% 90% Broadcast 100% Online Radio Total Abstained Age 0 0 0. 0 0 0 0 0 0 0.1 0.5 .6 As % of Females Only 16.0 7.7 8.3 5.8 16.0 5.4 9.5 10.2 10.4 5.2 4.9 99.9 As % of Males Only 11.3 7.3 8.7 7.5 11.8 6.7 12.4 13.3 12.9 1.6 5.9 99.9 Females as % of Total 4.4 2.1 2.3 1.6 4.4 1.5 2.6 2.8 2.9 1.4 1.3 27.3 Males as % of Total 7.6 4.9 5.8 5. 7.9 4.5 8.3 8.9 8.6 1.1 3.9 66.5 Totals 12.1 7.07 8.2 6. 12.4 6. 10.9 11.8 11.5 2.5 5.3 93.8 Source: RRadio Network Survey 24 - 2,039 respondents from April 22 to May 31, 2004 RRadio Network Online Radio Survey - “It’s All About the Audience” Programming To put this aspect of our report in perspective, consider that the following answers were given during Survey 9, which ended January 29, 2003; this was at the height of a backlash against broadcast radio that involved complaints of homogenized and shortened playlists. Radio online’s audience was being built as a result of dissatisfaction with local radio stations. We wanted to know if online radio’s audience was, in part, built on its ability to deliver music not found on broadcast radio. 1,021 persons were asked this question: “Would you like it if your online radio station played fewer or more new artists?” To get an idea of whether they would like independent artists, the same survey asked listeners: “Are you interested in hearing music from unsigned bands?” This response was similarly overwhelming. Source: RRadio Network Survey 9 - 1,021 respondents The audience is calling for a more diverse musical voice. Online radio programmers should use these figures as guidance in determining play lists. RRadio Network Online Radio Survey - “It’s All About the Audience” While hearing fresh, new music is a high priority for the online radio audience, its desire for news is waning. Responding to “I would like to hear more news on my internet radio station...” 60.7% replied “no.” From this group of 988 persons, 33.5% said “yes.” As % of Gender Want More News Do Not Want More News Female/Male 12 - 18 7.9/4.7 7.1/7.7 Female/Male 19 - 34 19.7/20.1 35.9/34.6 Female/Male 35 + 9/9.7 20.1/22.8 Source: RRadio Network Survey 10 - 1,021 respondents from January 29 to March 10, 2003 Those listening to radio online were asked what media players they favor in order to hear what they want. A majority of 52.7% use Windows Media Player. Source: RRadio Network Survey 21 2,049 respondents from January 7 to February 12, 2004 Getting the sound from their computers to their ears is done mostly by speakers, with only 10.6% of listeners reporting they use headsets. Source: RRadio Network Survey 18 2,146 respondents from Sept. 10 to Oct. 8, 2003 RRadio Network Online Radio Survey - “It’s All About the Audience” As for whether work-place restrictions prevent online radio listening, over half of the 2,146 persons responding to Survey 22 reported their employers allow listening. Total abstain 5.57% Company allows internet radio Company allows limited internet radio Company says no to internet radio I listen on the sly Abstain 0.19 0.04 0.24 0.14 Total female 19.06 2.15 8.11 4.30 33.62 Total male 32.11 3.76 16.37 7.91 60.16 24.28 12.21 99.75 Total all 51.17 5.91 Source: RRadio Network Survey 22 - 2,146 respondents Total - Feb. 12 - March 20, 2004 With this much listening going on in the workplace, you’d expect conversations about internet radio among co-workers, and there’s plenty of that: 80.7% report they “sometimes” or “frequently” talk with friends and co-workers about radio online. RRadio Network Online Radio Survey - “It’s All About the Audience” Over 80% of RRadio Network’s audience claim to discuss internet radio with friends and co-workers, and a significant number of those friends/co-workers also listening to radio online. When asked "How many of your friends listen to online radio?” most respondents claimed 5+ in each of these gender/age groups: Here’s a comment from a 19 to 34-year-old female about online radio: I really enjoy listening to radio on-line. It gets me through the day here in the office. My boss wants me to put on some jazz or classical music cd's but I prefer to listen to radio on-line. Some of the music that is played on there really gets me going, gives me a spurt of energy. I've had several of our patients ask me what radio station I'm listening to because they want to put it on at their work & I just tell them that it's on the computer & give them the website name. Thank you and keep up the good work!!! :) Word of mouth is how 24.1% of listeners report finding new online stations, coming in second to search engines (24.9%). Source: RRadio Network Survey 30 2,467 respondents from March 15 to April 22, 2005 Does this interest and buzz mean subscription stations have a chance? Most probably not, as revealed by 525 persons answering Survey 7, taken 8/21 - 11/1, 2002. When asked what they’d be willing to “pay to listen to online radio,” here’s how listeners responded: 75.7% - Nothing 15.2% - Any reasonable price 9.1% - $4.95/month 0.3% - $9.95/month This unwillingness to pay for radio online can be seen in responses to a similar question in a follow-up survey, discussed on the next page. RRadio Network Online Radio Survey - “It’s All About the Audience” Much later, RRadio Network stations asked: “If internet radio were available on your cellular telephone for a reasonable fee, would you pay to listen?” Overall response was close to that received earlier about radio online. What’s in the future? While consideration must be given that RRadio Network is surveying an audience of online radio listeners, it’s still startling to see that over 58% report “internet radio” when asked, “By this time next year, what do you see yourself listening to most?” Source: RRadio Network Survey 29 2,038 respondents from Jan 30 to March 15, 2005 Broadcast Radio Internet Radio Satellite Radio Portable MP3 Player Cable Music-Only Channels Other As % of Females Only 22.61 51.88 7.98 10.42 1.99 5.09 As % of Males Only 13.63 60.58 8.16 11.78 1.34 4.47 Females as % of Total 5.40 12.42 1.89 2.61 0.51 1.7 Males as % of Total 10.18 45.33 6.07 8.79 0.97 3.32 Totals 15.68 58.49 7.96 11.55 1.48 5.02 RRadio Network Online Radio Survey - “It’s All About the Audience” Audience Perceptions A few myths were shattered by RRadio Network’s audience response, one being that the online audience wants commercial-free music. The reason given by 25.4% of Survey 6 respondents for listening to internet radio concerned “too many commercials on broadcast radio.” The same survey showed 77.9% of respondents saying that “internet radio stations need advertising to survive.” The online radio audience is open to an advertiser’s message. Listeners even guide us on what are acceptable forms of advertising and the types of products they’d like to see advertised, plus how to best reach them with banner and audio ads. When asked to name what “online advertising is not acceptable...” respondents gathered into these groups: Source: RRadio Network Survey 6 965 respondents from August 13 to Sept. 5, 2002 Between May 21 and June 21, 2003, we discovered what products the audience would most like to see advertised. *Here is an example of the interactive properties available through online radio advertising. No other media allows the audience to relay their preferences on what products they would like advertised. No other media can produce surveys of its audience and deliver realtime results to clients. RRadio Network Online Radio Survey - “It’s All About the Audience” “On your Internet radio station, what type of products would you most like to see advertised?” Automotive Beer/ Clothing Financial Home Insurance Motorcycles Liquor Services Improvement Movies Pharmaceuticals Songs Artists As % of Females Only 3 6.7 10.1 2.7 7.3 0 1.2 16.5 1.2 50.9 As % of Males Only 7.2 10.5 4.1 3.4 5.6 0.4 4.4 16.8 0.8 46.4 Females as % of Total 0.9 2.7 3.2 0.8 2.3 0 0.3 5.3 0.3 16.4 Males as % of Total 4.8 7 2.7 2.2 3.7 0.2 2.9 11.2 0.5 31% Totals 5.9 9.3 6.1 3.1 6.2 0.2 3.3 16.6 0.9 47.9 Source: RRadio Network Survey 13 - May 21 and June 21, 2003 *To demonstrate consumer survey capabilities of online radio advertising relative to a specific product, Survey 15 asked “Are you interested in seeing informative advertising on Sirius or XM Satellite Radio?” 28.9% said “yes,” of which: 48.6% Female 50.5% Male 9.9% - 12 - 18 5.7% - 12 - 18 22.2% - 19 - 34 13.7% - 19 - 34 16.5% - 35+ 31.1% - 35+ 0.9% - Abstained age/gender Online radio advertisers also benefit from the audience telling them what type of commercials are most effective. RRadio Network queried 1,999 persons between May 31 and July 12, 2004 with “What in a radio ad is most likely to get your attention?” That same survey also asked “What in a banner ad would most likely cause you to consider its content?” Different approaches matter. “Humor” wins big with audio. “Credible offer”is what works best with banners. Audio Ads Banner Ads RRadio Network Online Radio Survey - “It’s All About the Audience” “What in a radio ad is most likely to get your attention?” “What in a banner ad would most likely cause you to consider its content?” Banner Ads Credible Humor Offer Large Relevant Discount Headline Word “Free” Vibrant Colors Other As % of Females Only 26.10 22.79 10.29 13.41 9.92 6.25 11.21 As % of Males Only 30.87 20.80 11.86 16.29 6.79 2.50 10.86 Total Females - 27.21 7.10 6.20 2.80 3.65 2.70 1.70 3.05 Total Males - 69.98 21.61 14.55 8.30 11.40 4.75 1.75 7.60 2.63 Abstain age/gender 28.76 20.81 11.10 15.10 7.45 3.45 10.70 Audio Ads Discount Forceful Humor Personable Price Offer Delivery Voice Mention Word “Free” Other As % of Females Only 9.17 0.73 36.14 15.77 9.90 14.67 13.57 As % of Males Only 9.27 2.13 37.16 15.47 13.26 10.48 12.19 Total Ffemales - 27.25 2.50 0.20 9.85 4.30 2.70 4.00 3.70 Total Males - 70.11 6.50 1.50 26.06 10.85 9.30 7.35 8.55 0.64 Abstain age/gender 9.0 1.70 35.91 15.15 12.0 13.30 12.25 RRadio Network Online Radio Survey - “It’s All About the Audience” “Where does the ‘most effective’ advertising appear?” is a question with which we’ll end this report. It’s a hands-down win for television in every demo. Newspapers come in a distant second. But notice how close “online” and “local radio” advertising have become in “perception of effectiveness” in a short ten years. Responses M 12-18 F 12-18 M 19-34 F 19-34 M 35+ F 35+ Abstained Total 1.3 Direct mail 0.09 0.04 0.63 0.44 1.27 0.49 2.96 E-mail 0.04 0.09 0.29 0.34 1.42 0.68 2.86 Tune out all 0.54 0.78 3.78 1.17 3.83 1.37 11.47 Newspapers 0.63 0.58 4.81 1.66 9.62 2.79 20.0 Online 0.54 0.78 4.07 1.66 5.74 1.66 14.45 Local radio 0.54 0.83 2.60 2.79 6.38 2.30 15.44 TV 1.62 1.52 7.95 5.40 10.06 4.61 31.16 Source: RRadio Network Survey 20 - 2,036 respondents from Nov. 15, 2003 to Jan 7, 2004 The “most effective” advertising, according to online radio listeners. Advertising online is gaining credibility. With less than 1 percentage point separating it from local radio in every category, online even surpasses local radio in the hard-to-reach male 19-34 demo. There is a change occurring in all media, forced through a combination of audience disappointment with traditional forms and attraction to the multiple offerings found with new media. While it is obvious that TV, radio and newspapers are not going away, it is also advised that astute media buyers be looking at the new gathering place for 135 million online Americans - particularly at the focused groups delivered through independent online radio stations. RRadio Network Online Radio Survey - “It’s All About the Audience” Recommendations for Online Radio Stations 1) Online radio stations need to confront the fact that a little more than a third of their audience come from outside the USA. Target potential advertisers with a worldwide distribution system or companies with high-profile online presence. 2) The online radio audience is more educated and affluent than that presented by any other form of media. In addition, there are high, annual household incomes reported, with income levels that are rising. Concentrate on the quality of audience delivered rather than the numbers reached to give media buyers a more desirable reason to advertise. 3) The ability to download to MP3 players is becoming a programming necessity. If an online station does not have individual programs for download, at the very least it should offer positioning statements, or short explanations, on how the audience may record the station’s programs. On-demand programming may also be considered a new revenue stream via sponsorship sales. 4) Music from unsigned/unknown artists is in great demand online. While traditional label-backed groups are a must-play, online radio stations also need to add new acts to their play list. 5) Movies, music, vacation, and video game advertising should be primary targets for an online radio station’s sales force. 6) Broadband has already arrived as the connection of choice, giving online radio stations great flexibility in offering Rich Media advertising. 7) Advertising with radio online is a branding experience too, 63% of its audience report that “online advertising helps them make an offline purchase.” This is a strong argument for sticking with a cost-per-thousand (CPM) ad rate system. 8) Efforts should be made to optimize online radio station web sites for high search engine rankings. 9) With over 35% of listening time spent between 6pm-6am, dayparting music and programming will help increase online listening beyond work hours. Recycling listeners from one daypart to the next should be a primary concern. 10) Nearly 75% of online radio listeners report using either Microsoft Windows Media Player or the Winamp Media Player as their preferred way to listen. 11) Over 75% of online radio listeners report they are not willing to pay to listen. Nonetheless, deciding if the remaining portion is worth pursuing with a subscription model should be done in this early stage of online radio’s development. 12) Heed consumer advice: Humor works in audio advertising, a credible offer in banners. Carefully-crafted online radio commercials will help set them apart from those being delivered by local radio today. RRadio Network Online Radio Survey - “It’s All About the Audience” Recommendations for Advertisers 1) Online radio is not just for youth. Formats that attract the 24-44 demo may be uncovered through research, and used with an efficiency equal to that of reaching them with traditional radio. 2) Nearly one-half of online radio’s audience work in the technical, management, medical or professional sectors. 57.7% hold college or post-graduate degrees. Approach them with respect. 3) Avoid spreading your advertising across too many stations of similar format, unless the ad buy can be supported for a long enough time to permit high frequency of message. 4) Use online radio rep firms such as RRadio Network. Companies like this know the landscape of radio online, which stations deliver your target audience, and the numbers of impressions for each. 5) Get in early! Judging from audience satisfaction levels and forecasts of media selection over the next year, online radio will be attracting an increasingly-larger audience. Those advertisers that reach this crowd now will be branded as supporters of this new choice in radio. 6) Don’t neglect a radio station web site’s banner advertisements. By far, banner ads are the least objectionable form of online advertising. That these surveys are conducted solely by a banner ad invitation shows the potential of using graphics on a radio web site. 7) Listen to the consumer! They want to be reached, but they don’t want to be sold. The results of two questions presented above should make you consider how your advertising message needs to be constructed: “What in a radio ad is most likely to get your attention?” (Top choice, humor - 35.9%) “What in a banner ad would most likely cause you to consider its content?” (Top choice, credible offer - 28.7%) 8) The vast majority of online radio listeners use some form of broadband connection (82.4%). This is a much higher percentage than the U.S. online population at large (55%).2 9) “More than eight out of ten internet users have researched a product or service online.”3 Being in the right place when consumers are seeking answers is the essence of good marketing. RRadio Network Online Radio Survey - “It’s All About the Audience” 2 3 Pew Internet & American Life: http://www.pewinternet.org/PPF/r/121/report_display.asp Pew Internet & American Life: http://www.pewinternet.org/pdfs/PIP_Online_Pursuits_Final.PDF Recommendations for Advertisers - Continued 10) 55.1% of online radio’s audience have made an online purchase in the last thirty days. 79.5% of these people spent more than $35. Online radio is a direct road to the consumer and, at this early stage, it may be used to highlight an advertiser in ways unavailable to other media. 11) Use online radio as a branding tool. 12) Online radio’s ability to get reach and frequency is apparent in that 68% of the audience tunes in five or more days each week; the listening session for 40.9% lasts three hours or more. Summary: Online radio is a new form of advertising in a familiar way. While the industry builds its presence the audience is building allegiance, loyalty - a habit of tuning in - and they are responding to those companies that are perceived as supporting radio online. With internet radio, advertisers have a way of reaching out to first movers, those people who are known to respond to cutting-edge technologies, fashions, and trends. All are offered with an accountability that traditional radio lacks, with ROI formulas that are far more advanced than the traditional radio world. The following still are hurdles for radio online: Lack of standard RFPs and trafficking orders, little continuity in pricing, the wrongly-perceived dominance of satellite radio as an alternative to terrestrial radio’s offerings. All of these will be corrected over the short term. Currently there are dozens of top independent online radio stations attracting millions of listeners each month, each with an audience that’s more highly educated, affluent, and with a higher disposable income than the population at large. Reaching this group, on its terms, means going where it is spending time. RRadio Network surveys have shown that place to be radio online. RRadio Network Online Radio Survey - “It’s All About the Audience” Revised Report Questions - In Order of Listing Personal Where do you reside? I have completed the following education... My annual household income is... Are you?...single, married, divorced, etc. Are you?...ethnic group Are you?...religion I vote/don't vote in elections. I consider myself to be Independent/Democrat/Republican. How many hours do you work each week? In what profession do you work? How much do you spend on business clothing each year? Your next BIG purchase will be... Do you own an MP3 player - what kind? Will you buy a CD of songs in the next ninety days? Lately, I've been finding most new music on... Do you plan to buy a car, truck or SUV in the next year? If so, what?...car, truck, SUV How will you get to your vacation this year? How do you plan or book your vacation? Are you a gamer? If yes, which games do you play? For your company's purchase of office imaging equipment, how much influence do you carry? survey 1, 12, 26 survey 2, 12, 26 survey 7, 30 survey 27 survey 28 survey 28 survey 8 survey 8 survey 22 survey 23 survey 22 survey 26 survey 28 survey 17 survey 10, 29 survey 20 survey 20 survey 30 survey 21 survey 25 Page 5 5 6 6 7 7 8 8 8 8 9 10 10 11 11 12 12 12 13 13 survey 23 14 survey 11 survey 2, 10 survey 19 survey 19 survey 31 survey 27 survey 24 15 Online Activities I have used the Internet for... Internet connection - broadband/dial up? Have you reserved a hotel room online? ...or bought an airline ticket online? Have you made an online purchase in the last 30 days? Do you plan to shop online for the 2004 holiday season? ____________ is what I do most online, while listening to Internet radio. 15 16 17 17 18 18 Does online advertising sometimes/frequently/never help you make an offline purchase? survey 16 19 Have you listened to a "podcast" in the last 30 days? Do you download music? Do you use legal, pay-for-your-songs music download web sites? 19 19 survey 31 survey 3 survey 17 19 I have been listening to online radio for... How many days each week do you listen to radio online? How long is your AVERAGE listening session? How many times a day to you tune to a different Internet radio station? How does this radio station rank in satisfying your expectations? What is the average time you spend listening to your online radio station? survey 11 survey 5 survey 27 survey 18 survey 17, 31 survey 14 20 20 20 21 21 22 How long have you been listening to THIS radio station? survey 14 Over the past week, how many days did you listen to THIS radio station? survey 15 22 22 Listening to radio online RRadio Network Online Radio Survey - “It’s All About the Audience” Revised Report Questions - In Order of Listing - page 2 of 2 Page Do you consider this station your primary online radio station? What helps you find new Internet radio stations the most? Why do you listen to Internet radio? Listen during...work/non-work hours or both? What part of the day do you listen to online radio? If you label your TOTAL radio listening, what percentage of time do you spend with broadcast radio? What percentage with radio online? You would like it if your online radio station played fewer/more new artists? Are you interested in hearing music from unsigned bands? I would like to hear more news on my Internet radio station...yes/no My preferred media player is... Do you listen to online radio using a headset or speakers? Does your workplace have restriction on listening to radio online? Do you discuss Internet radio with your friends or co-workers? How many of your friends listen to radio online? I am willing to pay to listen to online radio... If Internet radio were available on your cellular telephone, for a reasonable fee, would you pay to listen? By this time next year, what do you see yourself listening to most? survey 16 survey 13, 30 survey 4 survey 15 survey 14 23 23 survey 24 survey 9 survey 9 survey 10 survey 21 survey 18 survey 22 survey 16 survey 18 survey 7 25 26 26 27 27 24 24 24 27 28 28 29 29 survey 29 survey 29 30 30 survey 6 survey 6 31 survey 13 31 survey 15 survey 25 survey 25 survey 20 32 33 Perceptions of Advertising Internet radio stations need advertising to survive... The following online advertisements are NOT acceptable... On your Internet radio station, what type of product would you most like to see advertised? Are you interest in seeing informative advertising on Sirius or XM Satellite Radio? What in a banner ad would most likely cause you to consider its content? What in a radio ad is most likely to get your attention? The most effective advertising appears... 31 32 32 For information on RRadio Network online radio stations, go to http://www.RRadioNetwork.com/agencyinfo.htm Audio Graphics, Inc. © 2005 For more information, contact: Ken Dardis Audio Graphics, Inc. Box 23575 Chagrin Falls, Ohio 44023 kend@AudioGraphics.com RRadio Network Online Radio Survey - “It’s All About the Audience” RRadio Network stations contributing to this report: 8 Ball Radio 9412 The Rock Station All 80s Radio Beethoven.com Blues 24 BNet Tejano Boomer Radio BNet Radio BNet Tejano Chronix Radio Club 977 Country Bear Radio Dain Bramage Depeche Mode Electric Eye Radio Energy Radio FM Energy 98 Fairfax Sports Network HounDog Radio iDobi Network KBPK FM Killer Oldies Kiss 95.9 FM KNAC.COM KAOS FM MeanStream MetroMix Radio Mix 106.5 FM Nekkid Radio NewsRadio WTAM 1100 AM Pirate Radio Pitt Radio ProSoul Radio2XS Radio-4-Living Radio Del Ray Radio Devil Radio Gets Wild Radio Indy Radio Max Music RadioRow.com Radio 42 Rock-n-Radio SnakeNet SOMA FM Sun Music Net The Beatles Place The Bomb The Dance Station The Rock Radio Toon Radio Net Treasure Island Oldies Ultimate 80s US Sports Radio Voice America - Health Voice America - Business Voice America - Talk WCLV FM WGAR FM WhereveRadio WKRP FM WMJI FM WMMS FM WMSL-UK WRMR - 1420 AM WRPS FM http://www.8ballradio.com http://www.9412.com http://www.all80sradio.com http://www.beethoven.com http://blues24.sytes.net/en http://www.bnetradio.com/tejano/home.htm http://www.boomerradio.com http://www.bnetradio.com http://www.bnetradio.com/tejano/home.htm http://www.chronixradio.com http://www.club977.com http://countrybear.com/Home.htm http://dainbramage.com http://www.prosoul.com/depechemoderadio http://www.electriceyeradio.com http://www.energyradio.fm/index.aspx http://www.energy98stl.com http://www.fairfaxsportsnetwork.com http://www.houndogradio.com http://www.idobi.com http://www.kbpk-fm.com http://www.killeroldies.com http://www.kissfm965.com/main.html http://www.knac.com http://www.kaosfm.net http://www.meanstreamradio.net http://www.metromixradio.com http://www.wmvx.com/main.html http://www.nekkidradio.com http://www.wtam.com/main.html http://www.kqlz.org http://www.pittradio.net http://www.prosoul.com http://www.radio2xs.com http://www.radio4living.com http://www.radiodelray.com http://www.radiodevil.com http://www.radiogetswild.com http://www.radioindy.com http://radiomaxmusic.com http://www.radiorow.com http://www.radiorow.com http://www.rock-n-radio.com http://www.snakenet.com http://www.somafm.com http://www.sun-music.net http://www.thebeatlesplace.com http://www.setechbroadcasting.com/thebomb http://www.thedancestation.com http://www.therockradio.com http://www.toonradio.net http://www.treasureislandoldies.com http://www.ultimate80s.com http://www.ussportsradio.com http://www.health.voiceamerica.com http://www.business.voiceamerica.com http://www.voice.voiceamerica.com http://www.wclv.com http://www.wgar.com/more_splash.html http://www.whereveradio.com http://www.whereveradio.com http://www.wmji.com/main.html http://www.wmms.com/main.html http://www.wmsluk.com http://www.wrmr1420.com/home.php http://www.webradiopugetsound.com Rock Rock 80's music Classical Blues Tejano Multi-format AC Standards Tejano Metal 80's music Country Rock Electronica Rock Dance Dance Sports Country Contemporary Oldies Contemporary Rock Alternative Contemporary Dance Contemporary Rock News Talk Rock Soul Talk Blues / AOR Indie Artists Indie Artists Indie Artists Radio Portal Lounge Music Hard Rock 80's Metal Rock Soul Beatles Music Alternative Dance Rock Cartoon Music Oldies Classic Hits Sports Health Talk Business Talk Contemp. Talk Classical Eclectic Multi-format Oldies Rock Dance Standards Indie Artists RRadio Network Online Radio Survey - “It’s All About the Audience” About RRadio Network RRadio Network (pronounced "R-Radio Network") is a group of independent online radio stations. Our purpose is to aggregate audience for sale to advertisers. Since October 2001, RRadio Network has conducted the only continuous survey of online radio listeners, now with over 45,000 responses. To view our current survey go to http://www.rradionetworks.com/bomrsend/redirect.htm About Audio Graphics, Inc. Founded in 1991, Audio Graphics is a major producer of news and information concerning radio online. Our web sites report how the Internet affects ad sales, and statistical issues about the industry http://www.AudioGraphics.com ...act as a portal for radio stations that stream http://www.RadioRow.com ...assemble quality unsigned artists for exposure to online radio programmers http://www.RRadioMusic.com ******************************************* Our mission is to demonstrate that online radio advertisers have a direct path to affluent, educated consumers. Ken Dardis, President 440-564-7437 kdardis@AudioGraphics.com RRadio Network Online Radio Survey - “It’s All About the Audience”