Monthly Archives: January, 2010

Study: Radio Lifts Brand Browsing By 52%

A new study released by the RAB in the UK suggests that radio advertising can boost brand browsing by an average of 52%. Radio: The Online Multiplier is a report based on research conducted with a random sample of people who were exposed to 23 radio campaigns. There is no indication that any of these campaigns were Internet radio based, I think they were all broadcast radio advertising campaigns.

The most exciting finding is that listeners who are online and hear an ad are 52% more likely to browse for the brand they hear an ad for. What’s more, 58% of that browsing takes place within 24 hours of hearing an ad, indicating that radio can have an immediate and positive impact for brands.

More mature online categories such as travel, insurance, and telecom, where consumers have become accustomed to shopping and doing research online, saw the most lift from radio. The best performing ads had a clear call to action with a url or simple web address.

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iheartradio Launches New Channel

Clear Channel’s relationship with Verizon will put the broadcaster’s iheartradio digital platform on Verizon’s FiOS high speed network, available to FiOS customers, according to a report in Inside Radio. It’s a move that expands upon a strong relationship between Verizon and Clear Channel that put iheartradio on VCast, Verizon’s mobile entertainment platform, in December.

Clear Channel COO Gerrit Meier tells Inside Radio (which is owned by Clear Channel) that iheartradio has established itself as a brand over the past year, and they’re ready to expand the places where it is available. They’re also expanding the platform’s offerings – this time with CBGB Radio – a new channel devoted to the New York Club that was founded in 1973 and launched the careers of the Ramones, Blondie, Talking Heads, Patti Smith and other big names in punk and new wave music. The new channel will feature music, artist interviews and commentary from those associated with the club formerly located on Bleeker Street.

It’s a great concept – taking an iconic club from music history and recreating it online. The club closed in October 2006, but lives on at iheartradio.com .

Study: Kids listen to Internet Radio As Much as Broadcast Radio

Kids 8-18 are spending more time than ever with electronic devices, according to a new study by the Kaiser Family Foundation that studies media in the lives of 8 to 18 year olds. There’s a bunch of information about how overloaded kids lives are with entertainment electronics – in total kids spend over 53 hours per week watching tv, listening to music, being entertained online. Summarized by Mediapost8-18s are spending more than an hour a day with video games, an hour and a half on a computer, more than two and a half hours listening to music, and four and a half hours watching television.
Of course, I’m focused on the statistics that are relevant to online music listening:

  • Music in the lives of kids has increased to more than two and a half hours a day since the last study.
  • Among 15- to 18-year-olds, just under half (45%) say they have ever listened to the radio through the Internet.
  • On an average day, an 8-18 year old spends 32 minutes listening to music online, 32 minutes on (broadcast) radio.
  • They dedicate the same portion of listening time to Internet radio as they do to broadcast radio (23%).

The main conclusions of the study focus on the fact that young people’s lives are “filled to the bursting point with media,” as they pack nearly 11 hours of media content into 7.5 hours per day (thanks to multi-tasking). According to the study, “The transformation of the cell phone into a media content delivery platform, and the widespread adoption of the iPod and other MP3 devices, have facilitated an explosion in media consumption among American youth.”

You can read more about the study at RAIN.

New Audience Data Shows Pandora’s Mobile Audience

AndoMedia has released December Webcast Metrics reports on Internet radio audience for December 2010. The most noteworthy change in the ranker over the past several months is the inclusion of mobile listeners as part of Pandora’s data. Although it’s not broken out to show the station’s mobile audience on its own, Pandora’s total week (monday – sunday 6am-mid) audience grew by 45 million sessions from November to December – increasing that number to 150,821,223 session starts in the month. Average Active Listeners for total week for Pandora grew over 30% to 261,714.

Ando’s press release pointed out that December data shows a decline toward the end of the month due to the reduction of in-office listening. Despite the prolonged holiday in December, several stations/groups saw audience grow, including CBS Radio, Clear Channel, Entercom and Cox. Online station Digitally Imported’s number grew to reflect the incorporation of sister stations Sky.fm and JazzRadio.

AccuRadio, an online station that offers a wide variety of holiday programming saw a boost of 30% in its average active listener number.

Webcast Metrics December 2010 All Streams Total Week

Study: One in Five Online Are Listening to Internet Radio

A study by Media Consulting Firm L.E.K. advises advertisers to consider Internet radio as part of its new media strategy. The study, which interviewed 2,000 US households, found that “Among active radio listeners, 32% use Internet radio services on a weekly basis, logging an average of 5.8 hrs per week per user.”

The goals of the study were to “uncover new opportunities for media companies and advertisers to consider, expose several major myths about new media usage, and confirm several of today’s media market realities.”

It’s an all encompassing study that weighs in on many traditional and new media categories. Among some of the other findings, the study notes that e-Readers are driving new consumption in the book and magazine market, physical newspapers are losing relevance, 52% of music consumption is via radio, and the 50+  demographic spends more time online than the 25-39 age group.

Offering just a few conclusive recommendations, the study emphasizes that “as consumers continue to multi-task more and more, advertisers should consider Internet radio as an up-and-coming media outlet since 19% of people spending time online for various purposes are simultaneously listening to music via the Internet.”

L.E.K. Consumption Media Study December 2009

So, to reframe for purely Internet radio perspectives:

  • 32% of radio listeners are listening to Internet radio weekly
  • They are listening for an average of 5.8 hours per week
  • 19% of the online population are listening to Internet radio while doing other things online

In case you want to put that in your powerpoint, the summary of the study is here.

Australian Service Guvera Gets $20 Million, Sets Sites on US

Australian music service Guvera burst on the digital music news scene this week with an announcment that it has raised $20 Million in investor funds. This, following $10 Million they got in 2009.

The service is not yet available in the US, but they expect to open up to beta testers in the next month or two here in the US. It offers free streaming or downloads.

In addition to lots of funds, and the most curious name I’ve heard for an online music service, Guvera has a unique revenue model. Something that, to my knowledge, has not been tried thusfar.

Guvera will sell channels to advertisers, who will sponsor channels with content that gets selected by the brands (or the agencies representing them) based on “personality”; there’s an assessment tool companies can use to determine which artists or specific songs fit their brands and target audiences best. (The actual songs are not chosen by the advertiser, but are tagged for use reaching certain target customer criteria.) Advertisers can add other criteria such as location and then set a price they are willing to pay per listener on their channels. The revenue generated is shared between Guvera and the music labels (of course). Techcrunch reports that advertisers include McDonalds, Johnson and Johnson, and Harley Davidson.

Guvera plans to do deals with all the record labels as well as movie studies and television networks, and offer all the content using the same ad-sponsored channel delivery model. They just announced a deal with Universal Music Group. David Ring, executive vice president of business development & business affairs at Universal Music Group’s eLabs, said the hope is that Guvera will attract people who simply won’t pay for music online. “What I think is incumbent on us in the new world that we’re living in is to make sure we try to segment the market,” and have something to offer the segment that’s getting its music free — and illegally — online,”

In a recent interview, Guvera CEO Claes Loberg explained that this ad model is not about cost per click or cost per thousand impressions, instead it’s about the cost of engaging a target customer. He says the service is an engagement tool for advertisers.

Engagement is the elusive goal of most advertiser’s campaigns. CPMs and CPCs are definitely inadequate standards for measuring engagement and the idea of putting the focus more on buying a customer’s attention is a good one. The challenge will be in teaching the old dogs new tricks – agency media folks like their metrics just-the-way-they-are-thank-you. Nonetheless, letting advertisers participate in selecting and pricing their audience? I’m definitely intrigued…

Text Messages Make Giving To Haiti Easy

It’s been a difficult week to watch the news. The suffering in Haiti is all consuming, casting a shadow on everything else. As my daughter and I watched “Cloudy with a Chance of Meatballs” the other night, we wished that giant hamburgers and hotdogs could actually fall from the sky over Haiti. The silly theme of the movie – a kid invents a machine that can rain fast food over a town – seemed almost obscene in the midst of the real crisis that Haitians are experiencing.

The Red Cross, working with an organization called mGive Foundation that links charities with mobile carriers to enable people to text and donate, has found a unique and easy way to connect with youth. By texting the word HAITI to 90999 they can donate $10. So far, they’ve raised over $10 million dollars – with no credit cards.

“It’s microdonations by millions of people, adding up to an amount that can make a difference,” said Tony Aiello, senior vice president at mGive. Aiello said that many donors see the images of the disaster on television or on the Internet and are motivated by the ease with which they can contribute. So many people now recognize they can use their mobile phone to donate, it’s an impulse give.”

The brilliance of this system is it’s ability to capitalize on the emotional response that people have to the horror of what is happening in Haiti by enabling a quick, easy, micro-donation using relevant technology. Letting the audience respond by using the tools they prefer. It’s simple, and it feels great

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Clear Channel Creates Contextual Ad Campaigns for Advertisers

One of the most attractive features of online advertising is its targetability. Literally millions of dollars get placed in search or contextual advertising. Now Clear Channel has announced a new scheduling enhancement that enables its stations to offer reliable, automatic ad placements based on the content demands of an advertiser.

Clear Channel says that the proprietary system has been in preliminary operation for the past year and is now available to all national advertisers. Test campaigns for major national advertisers VISA, GEICO and Wal-Mart, produced outstanding results for the advertisers. One of the campaigns sought to boost sales at Walmart for the new AC/DC album Black Ice. MediaVest and Clear Channel Radio devised a program where a Wal-Mart ad for the album would run immediately after an AC/DC song was played on a selection of 106 Rock AC and Album-Oriented Rock stations in 91 markets. If no AC/DC song was currently on the station’s playlist, the 30-second spot appeared after a song by a similar artist.

Wal-Mart moved 784,000 copies of the album during its first week in stores: the second-largest debut week for a new album to date in 2009, according to Billboard magazine.

OMD and Visa diverted television dollars to radio to fund its test of the system, and saw a 10% rise in short-term volume through VISA’s network compared to the same period the previous year. VISA ultimately singled out the campaign as a company-wide best practice.

Geico’s campaign ran spots at 15 after the hour telling listeners to spend 15 minutes to save 15%. No specifics on the lift that Geico enjoyed were given.

It’s hard, reading the press release, to understand whether there’s an actual technology in place here, or a simpler scheduling protocol that enables this approach. Either way, it’s a great idea to boost the effectiveness of an ad campaign by placing it near relevant content. This is the kind of innovation that the industry needs. Hats off to Clear Channel for leading the way.

Study: Teens Are Very Brand Conscious Consumers

PriceWaterhouseCoopers has released a new consumer study suggesting best ways to market to teens. Teens are hugely influenced by their friends however, advertising is considered a credible source of information on a brand. And speaking of brands, teens take them very seriously, and develop a strong affinity for the ones they believe deserve their interest.

Social networks play a critical role in the way teens communicate about brands. Users pass on music playlists, video urls, and opinions about movies, games, sites and services to their friends on facebook and other sites. They also regularly use search engines and pay attention to ads, especially entertaining ones.

Teens listen mostly to their peers, particularly those they consider to be adventurous, cool, confident, good looking, funny, or in-the-know. Often intellectual, creative and male, these influencers can really help make or break a brand. Savvy marketers should understand this group and work hard to capture their (positive) attention.

Best ways to do that include advertising – particularly across several or many online platforms; brand collaboration – working with other brands that engage this age group to enhance an offering (such as Xbox working with Netflix); and free trials. Trials are often this age group’s introduction to a brand. Advertising in exchange for content is acceptable to this group as well. And in case you don’t know one, teens prefer typing and texting to talking.

According to MediaPost, teens wield influence over $176 billion in spending power and have significant influence over friends and family, making them an important segment of any brands online marketing strategy.

Liquid Compass: Stations Get Longer Listening On Our Platform

Streaming services provider Liquid Compass has noticed a positive trend among listeners to stations that use their servicesthey listen longer. According to November 2009 Webcast Metrics rankings just released by AndoMedia, audiences, on average for the month, spent 36 to 39 percent longer per session* listening to Liquid Compass’ online radio broadcasters’ streams.

“Average Tine Spent Listening is significant because it demonstrates online audience interest, engagement and loyalty — best achieved by providing a high-quality listening experience, delivered over a strong, uninterrupted digital stream,” said Zackary Lewis, Liquid Compass CEO. “Our broadcasters rely on the Liquid Compass network to provide just that and thereby support their efforts to extend the audience’s listening time.”

“Our clients can tie together their web, mobile, live/on-demand audio and video streaming initiatives into a total package that will keeplisteners tuned-in and engaged, served by the one of the highest-quality audio and visual streams available online,” Lewis said. He attributes the broadcasters’ success to their innovative programming, interactivity and creative promotional efforts, enabled in part by the company’s Streaming Optimization Platform(TM).

Liquid Compass broadcasters in the Top-20 Domestic Ranker include Bonneville, Greater Media, Lincoln Financial Media, Saga Communications and Salem Communications. While Greater Media does not appear in the publicly released ranker, the other four companies are among the top six stations/groups on the ranker in terms of high time spent listening, showing close to or more than 3 hours of average listening per session. (Domestic ranker, Monday – Friday 6am – 8pm).

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