10 minute read
The Velocity of Change
BY FRED JACOBS
A new radio survey points to shifting consumer behaviors and opinions, revealing new ways that stations can transform and succeed.
WHEN YOU’RE LIVING through a true cultural shift, it is often hard to pinpoint how it began and how your life has changed as a result. For many of us, that’s been the case with the Digital Revolution – a period as significant as the Industrial Revolution was to those who experienced it more than a century ago.
Let me jog your memory. Do you remember when you got your first smartphone? Or how you found your long-lost BFF on Facebook after years of drifting apart? Or when you used Google Maps for directions instead of printing out a MapQuest route or waiting for a radio traffic report?
All of these technologies and services have been around for just a couple decades or so, but they’ve changed our lives forever.
Everyone who works in traditional media – radio, TV, print – has had their worlds rocked by the tech tsunami. Like fixing an airplane flying at 35,000 feet, the best and the brightest working in “old school” media have been forced to adapt, often using muscle groups long dormant. CEOs need solutions and answers last week.
And that’s why back in late 2004, Jacobs Media launched its first Techsurvey (originally known as Tech Poll) to help radio broadcasters understand the velocity of change among their core listeners. How quickly are consumers moving to the “subscription economy” to access their preferred content? How are they using digital media to enjoy terrestrial radio stations? How has podcasting rocked audio consumption and on-demand content?
Our latest study among core radio users, TS21, is especially important because the pandemic was in full swing when we conducted our survey during the first two months of this year.
There are hundreds of thousands of data points and crosstabs produced by our analysts, but here are 10 key trends that are especially noteworthy for their impact on traditional and digital media use.
1. The Digital Train Has Left the Station –This year, about 61% of broadcast radio consumption is considered “traditional.” That means listening occurred on “regular radios” in homes, cars, workplaces and schools. Conversely, 35% of station listening took place via “digital” outlets – computer, smartphone, tablet and smart speaker streaming. Station podcasts figured in there, too.
We’ve been asking this same question for nearly a decade. A look back at the tracking reveals that “traditional” radio listening has decreased, while “digital” consumption of AM/FM stations has grown steadily.
This trendline is a clarion call for broadcasters to provide digital delivery. It is essential that radio brands deliver a competitive, seamless streaming experience. 2. Local Matters – One of the consistent findings we see year after year is overwhelming agreement with the notion that “one of radio’s primary advantages is its local feel.” In this year’s survey, a near majority (49%) of these radio fans strongly agree with that statement – a five-year high.
It’s possible that as many mainstream entertainment and information sources are national or even global, there’s an increased appreciation of radio’s connection to its communities. That creates a challenge and an opportunity for broadcasters to step up to the plate and provide quality hometown features, personalities and service.
Yet, so often, broadcasters may be becoming over-reliant on syndicated or “hub” programming at the expense of live and local content.
3. Damn, That Traffic Jam – As mentioned, COVID-19 was still very much with us when this survey was fielded early in 2021. As a result, most respondents said that they were spending less time in cars than usual. And because the car has historically been the No.1 radio listening location, the pandemic wreaked havoc with drive time listening.
Four in 10 (41%) of these regular radio users told us that compared to the prior year, they are spending “a lot less time in car.” Recent Nielsen data, however, indicate radio listening is rapidly returned to its pre-pandemic levels, a welcome sign for radio broadcasters. 4. See You on Zoom – Virtual meetings became a key part of the way we connected during the pandemic. Our Techsurvey results showed that 38% of core radio listeners found themselves on one of these platforms at least weekly.
We also learned that many consumers experienced events such as concerts via streaming video platforms, a reminder to broadcasters that entertainment and information provided to screens is a welcome option for many listeners, even when COVID fears dissipate.
There is no reason to believe the “Zoom meeting” won’t become a fixture as common as conference calls were before.
5. The Rise of the Personality – Radio became a mass medium in no small part due to its high-profile on-air talent. Throughout its history, personalities like Orson Welles, Ronald Reagan, Paul Harvey and Howard Stern have kept America coming back to radio for more.
Each year, Techsurvey measures the degree to which music on the radio compares to the power of personality as a main driver for generating appeal. And as we’ve tracked these two trendlines over the years, the shift to the power of “sticky” air talent continues to grow – apparently at the expense of music, which has been greatly commoditized by streaming services such as Spotify, Pandora and YouTube.
For broadcasters, the impetus to invest in the discovery, development and training of appealing personalities has never been more important, whether stations are licensed in Pensacola, Portland or Philly.
6. Radio and “The Feels” – Given all the options on the competitive media landscape, why do consumers still choose broadcast radio? From a veritable “laundry list” of potential drivers, we learned that emotion plays a great role in choosing to listen to broadcast radio, especially in the year of COVID-19. Of course, bread and butter offerings like music and personalities are table stakes. But a growing number of respondents point to companionship, mood elevation and connection as key motivators for regular tune-in. As playlist streaming services have risen in popularity, radio broadcasters may find that giving audiences “the feels” may, in fact, become the greatest motivator for keeping them tuned-in and engaged.
80%
100% 60%
80% 40%
60% 20%
40% 0%
20%
0%
85% 80% 81% 77% 74%Traditional Home Station Listening Platform Tr 70% end: Tr 65% 65% 61% Digital adional vs. Digital
85%
80% 81% 77% 74% 27% 70% 31% 65% 32% 65% 35% 61% 14% 17% 17% 20% 22%
2013 2014 2015 2016 2017
2018 2019 2020 2021 14% Percentage of time spent with Preset 1 station in a typical week via traditional platforms (an AM/FM radio at home/school/work or in a vehicle) vs. digital platforms (computer, mobile, smart speaker, podcast) 17% 17% 20% 22% Among those who listen to AM/FM radio, percentage who say this is a main reason they listen
27% 31% 32% 35%
2013 2014 2015 2016 2017 2018 2019 2020 2021
Percentage of time spent with Preset 1 station in a typical week via traditional platforms (an AM/FM radio at home/school/work or in a vehicle) vs. digital platforms (computer, mobile, smart speaker, podcast)
Among those who listen to AM/FM radio, percentage who say this is a main reason they listen
80%
80%
60%
60%
I want to hear my favorite songs/artI like particular DJs/shows/hosts. Over Time, the Appeal of Music on the Radio Is ist. 70% 64% 66%Becomming Secondary to the Appeal of Personalities
67% I like particular DJs/shows/hosts. 59% 59%60% I want to hear my favorite songs/artist.
61%
57% 70% 55% 67% 58% 64% 56% 66% 58% 60% 57%
55% 55% 59% 59% 61%
40% 57%
2014 2015 55% 2016 58% 2017 56% 2018 58% 57%
2019 2020 55% 2021 55%
40%
2014 2015 2016
SOURCE: Jacobs Media Techsurvey 2017 2018 2019 2020 2021
7. Podcasting Giveth and Taketh Away – Among our core commercial radio respondents, nearly three in 10 (29%) listen to podcasts at least weekly – the highest level ever. And many broadcasters have responded with the creation of their own podcast divisions or even standalone companies charged with creating and producing successful on-demand programming. But Techsurvey also reveals an inconvenient truth about podcasting. That is, 30% of consumers who listen to podcasts on a weekly basis say they’re reduced their radio listening
time as a result. Audio consumption, for many, is a zero-sum game. And that means SOURCE: there are only so many hours in a day to listen Jacobs Media Techsurvey to content, whether it is on-demand or on-air. Podcasts represent key digital content that is erosive to real-time broadcast listening. 8. The Subscription Economy Is Booming –Accentuated perhaps by the pandemic and the stay-at-home work environment, the willingness to pay for content on a subscription basis has never been greater. All told, 85% of respondents now pay for a video streaming service like Netflix or Amazon Prime Video, and 60% shell out money
THE SURVEY’S METHODOLOGY
The Techsurvey research studies focus on core listeners of commercial radio stations. (There are companion studies among those who favor public and Christian music radio.) The sample is provided by hundreds of radio stations across the U.S. and Canada that allow us to tap into their email bases or social media pages to access audiences willing to take the survey.
This year’s Techsurvey included 42,224 respondents delivered by 470 commercial radio stations across North America: big markets, small markets, stations owned by big companies, stations owned by mom and pops.
The survey is cross-tabbed by 14 different radio formats, providing insight of how fans of Adult Contemporary behave differently than partisans of News/Talk, Country, Rock along with 10 other format genres.
monthly for a music service like Spotify or Pandora. What’s more, 22% subscribe to satellite radio for news, music and talk content.
On the other side of the spectrum, a frequently mentioned reason for tuning in broadcast radio is that “it’s free” – an often-overlooked advantage AM/FM has over a growing number of subscription outlets. As credit card statements are increasingly crammed with monthly subscription fees, radio’s “free” value proposition may grow in importance.
9. Online Shopping Is Exploding – Many of the trends already taking shape preCOVID have only intensified as a result of the pandemic. And a great example is e-commerce. A strong majority (59%) say they did “all” or “most” of their 2020 holiday shopping in front of a screen, rather than visiting a brick-and-mortar store. For advertising media of all stripes, this key trend has strong implications. Which product categories will continue to market via broadcast outlets? Which will shift to online for sales and marketing? And can radio and TV sellers assist unknowledgeable local retail businesses in the setup and development of e-commerce engines and web landing pages? The 2021 holidays will be here before we know it.
PRIVACY AND BIG TECH CONCERNS
TECHSURVEY ALSO EXPLORED how core radio listeners feel about their privacy, their data and the big companies managing this information.
More than eight in 10 (81%) agree or agree strongly with the statement: “I’m concerned about the ways in which tech companies are using my personal data.” Increasingly older consumers express the highest level of concern.
And not surprisingly, a majority (52%) now concur that “some technology companies are too big and should be broken up” — a significant increase from the previous year. Men, Baby Boomers and members of the Great Generation are most likely to agree with this sentiment.
10.Connection to Radio Remains Strong – While COVID instigated new media usage habits, loyalty to broadcast radio among its existing audience strengthened in some ways. For example, Techsurvey measures how users are recommending radio stations via word-of-mouth. In this year’s data, those scores achieved a 16-year high.
Additionally, more than a third (37%) of respondents revealed that since the outbreak, they feel a strong sense of connection to their favorite radio station – higher than we’ve seen before.
This year’s Techsurvey is of particular importance, due in no small part to shifts influenced by COVID-19. The data suggest that familiar, warm, personal and community are all attributes smart broadcasters can mine in order to nurture strong audience relationships. But it requires a commitment to providing a quality service to local listeners.
A deck of key findings is available on the Jacobs Media website, jacobsmedia.com, within the “Research” drop-down menu.
Fred Jacobs is president of the research and consultancy firm Jacobs Media. He can be reached at fredjacobs@jacobsmedia.com or (248) 353-9030.
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