Radio: The Real Numbers

I spoke to the Plexus jewelers group friday in Wilmington NC and as part of my
preparation for that I called one of the radio industries most fertile minds, Richard Harker
to find out the real state of radio in 2010. Here are the juicy parts of that discussion….

The Radio Facts 2010

You may think you know radio but here are the facts in my recent interview with
Richard Harker, president of the leading radio consulting firm Harker Research
and publisher of Radio Insights the industry’s leading blog:

How many people actually listen to radio today?

According to multiple current studies including Arbitron and Nielson, about 70% of Americans
listen to radio daily, and 90% listen during the week. Of all other mediums only television
has equal reach.

How much time do they really spend listening?

Estimates of time spent listening range from 17 hours to 22 hours per week.
Again, only television comes close. Total computer time–including productivity, games,
recreation, and going on line approach these numbers, but when you look at on-line only,
computer is less than radio.

What about Satellite Radio…Sirius and XM?

Satellite radio is in decline. We find about 10% of listeners in most markets subscribe, but usage
is very low. The most popular channels on satellite are the same formats heard on the radio.

But are young people still listening? What about cell phones and texting?

Arbitron refused to add cell-only households to their sample (to save costs) until Nielsen demonstrated
that cell-only households are a significant portion of young families.
These young families are tech-savvy, and yet actually listen to more commercial radio
than their land-line cohorts. When Arbitron added cell-only households into their ratings,
young demos grew, but I think it is more likely just a more accurate reading of listenership.

But which medium is the most effective at brand building?

Research has shown that radio (along with TV) advertising generates a high level of engagement.
That is, people connect to the advertising better than with (say) print or internet.
Radio is better able to build brand awareness and desire. That strikes me as key in your situation with jewelers.

What about the internet for advertising?

The internet is a good way to reach price sensitive shoppers who know what they want.
It doesn’t make them want it, or be willing to pay a premium. You need engagement for that.

Any more questions? Didn’t think so. You see, it is now, it’s always been about controlling ” The Last Mile”, the one around your store.
Getting your market to come to your store and after 20 years of doing this, nothing still works as well as radio.