The State of Radio, Newspapers & Magazines. An In-Depth Look at How Traditional Media Compares to Television
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1 The State of Radio, Newspapers & Magazines An In-Depth Look at How Traditional Media Compares to Television
2 State of Media Summary State of Radio Radio s audience shrinks all daypart cumes down, especially early morning (-9%) Time spent on radio declines down 1 hour (P2+) Top online radio sites are trending down; Computer online is down double digits Radio s ad spending slows projected to grow 1% next year Time spent with TV is 2X the time spent with radio TV s reach surpasses Radio s by far across all demos in primetime State of Newspaper Newspaper circulation projected to decline down 9% by 2018 Ad revenue down; online ad revenue is not covering print ad losses Readership is down across all ethnicities TV triumphs Newspapers in time spent by 15X TV viewers spend significantly more on products/services than newspaper readers State of Magazine Number of magazine brands remains stagnant Ad spending projected to plateau TV triumphs magazine time spent by 19X
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4 Radio s Audience Continues To Shrink - All Daypart Cumes Are Down -9% -4% % Change -5% In Cume Adults 18+ by Daypart (Weekday) (2015 v. 2014) 6AM-10AM 10AM-3PM 3PM-7PM 7PM-12AM 12AM-6AM -9% -5% -4% -3% -6% Source: Radio Cumes: MRI Doublebase 2015 vs 2004
5 Overall, Time Spent With Radio Is On the Decline P2+ Monthly Time Spent With AM/FM Radio (Hrs: Mins) 3Q14 3Q15 (+/-) Composite P2+ 58:53 57:53-1:00 Black P2+ 61:03 59:37-1:26 Hispanic P2+ 58:10 57:01-1:09 Source: Nielsen Total Audience Report; 3Q15
6 and Radio s Listernship Is Projected To Dwindle Even More 28 Daily time spent listening to the radio per capita (in minutes) * 2016* 2017* Source: ZenithOptimedia; Nielsen; P2+
7 Are Viewers Migrating To Online Radio? Online Desktop Radio is Struggling Especially Among The Young % Change in Online Radio Total Unique Visitors (Nov 15 vs Nov 14) P2+ P13-24 P18-34 P18-49 P25-54 M13-24 F13-24 M18-49 F % -16% -16% -18% -17% -17% -17% -16% -21% Source: comscore: Radio category ; Desktop Only(defined group in ComScore includes Pandora, iheartradio, TuneIn, Spotify etc..)
8 Pandora, Top Online Radio Source Is in Decline 1400 Average Minutes Spent Per Visitor Pandora TuneIn iheart Radio Slacker.com Nov-2014 Dec-2014 Jan-2015 Feb-2015 Mar-2015 Apr-2015 May-2015 Jun-2015 Jul-2015 Aug-2015 Sep-2015 Oct-2015 Nov-2015 Source: ComScore, Avg. Min per Visitor for Ranked Online Radio sites; Desktop only
9 Advertising 36 Overall, Radio s Ad Spending Slows Projected To Increase Only 1% Over The Next Year Radio Advertising Spending (in billion) * 2016* 2017* 2018* 2019* Source: PwC
10 Time Spent With TV Dominates Radio; 2X The Time Among Young Adults Weekly Time Spent In Hours: Min P2+ P18+ T12-17 A18-24 A25-34 A35-49 A50-64 A65+ RADIO 12:09 12:41 6:54 9:53 11:17 13:24 14:51 12:00 TV 29:26 32:02 17:00 15:30 21:10 28:41 39:21 47:33 Source: Nielsen Cross Platform; 3Q15
11 23 In Primetime, TV s Reach Surpasses Radio By Far 93% 91% 93% Reach % in Primetime 90% 93% 95% 97% 97% 86% 81% 56% 55% 56% 62% 62% 61% 61% 58% 46% 40% Radio TV Source: Nielsen Audio; Radio Advertising Bureau; TV Reach=Npower 6/15
12 TV Is Top Choice For Breaking News Among the Internet, Newspapers, Radio and Television, which one do you turn to first in the event of a major news story? % 40% 6% 3% Television Internet Radio Newspaper Source: Edison Research; Base: Total Population, 12+;2015
13 and TV Is Paramount For Keeping Consumers Up To Date & Entertained 32 Radio TV 83% 57% 44% 43% 64% 63% 51% 30% Good source of learning Pure entertainment Keeps me informed/up to date Relaxes me Source: 2015 GFK MRI Database
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15 Newspaper Circulation Projected To Drop; Down 9% by 2018 Year Newspaper Circulation (in Millions) Source: SNL Kagan Media Trends
16 Print & Online Newspaper Ad Revenue Projected to Decline 4% in Next Two Years Total Daily Ad Revenue (Print/Online) (in Millions) 2015 $19, $18,688 Ad Revenue By Sector (in Millions) 2017 $18, ,380 2,677 $8, $18,062 All Main Sectors Down ,474 2,721 3,582 2,778 $8,470 $8, ,706 2,851 $9,070 Retail ad revenue Classified ad revenue National ad revenue Source: SNL Kagan Media Trends
17 Online Revenue Growth Not Covering Print Ad Losses % Growth/Loss 1.5% 1.6% Print Online 1.7% 1.8% 1.9% % -3.4% -2.8% -5.5% -8.6% For Every Digital Ad Dollar Gained, 15 Print Ads Lost Source SNL Kagan; total print+online
18 Newspaper Readership Steady Decline Persists - Among All Ethnicities 70.0% Share of consumers who read daily newspapers White African American Asian Hispanic Other 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Source: Pew Research Center; Nielsen Scarborough; percentage nationally who read any daily newspaper the day before
19 and Time Spent With Newspapers Is Projected To Drop 18% By Time Spent Reading Newspaper Per Capita Daily (In Minutes) * 2017* Source: ZenithOptimedia; Various sources (Media Dynamics);* Forecasts
20 Online Newspaper Readership Is Down Across The Board % Change in Online Newspaper Category: 11/15 v. YAG Unique Visitors A18+ -6% A % A % A % A % A50+ -5% Top Online Newspaper Brands % Change in Unique Visitors A18+ 11/15 v. YAG The New York Times -17% Washingtonpost.com -40% Mail Online/Daily Mail -13% Hearst Newspapers -11% The Guardian +18% Source: comscore desktop only; 11/15 v. 11/14
21 31 TV Triumphs Newspapers in Time Spent by 15X Daily time spent with Newspaper v. TV in Oct 15 (in minutes) Newspaper, 17 min TV, 251 min Source: emarketer; U.S. Oct 2015, A18+
22 TV Branded News Networks Provide The Latest Breaking News Around The Clock Online & Offline and Ranking in the Top 5 General News Category Online Top 5 Online General News Category A18+ A18-49 A18-24 A25-54 ABC News CNN Buzzfeed ABC News CNN ABC News CNN CNN NBC News NBC News CBS News NBC News CBS News CBS News NBC News CBS News USA Today USA Today CBS News USA Today Source: VAB analysis of multi-platform comscore data, November 2015
23 and Out of 1 Million + ipad Apps, Ad-Supported TV Brands are Among the Top 5 Downloaded From Over 1,000,000 Apps: Top 5 ipad Apps Downloaded For News 1. FOX News 2. BBC News 3. CNN App for iphone 4. Google News and Weather 5. Flipboard ource: Apple app store 9/18/15; Most popular ipad apps by category search term (excluding gaming apps)
24 For Breaking News, TV Is Top Choice Among the Internet, Newspapers, Radio and Television, which one do you turn to first in the event of a major news story? % 40% 6% 3% Television Internet Radio Newspaper Source: Edison Research; Base: Total Population, 12+;2015
25 In General, Newspapers Only Have a Modest Push On Consumer s Action Action Taken As A Result of Reading Newspaper/Last Month: A18+ Shopped At Advertised Store 20% Purchased Advertised Product 17% Requested Add. Info on Product 14% Cut Ad Out For Later 2% Source: MRI Doublebase 2015
26 and Few Consumers Read Beyond The Front Page - Especially A18-24 Source: MRI Doublebase 2015 % Of Weekday Newspaper Sections Read A18+ A18-24 A18-49 Main news/front page Local News Weather International/National News Sports Entertainment/Lifestyle Comics Editorial Page Food/Cooking Circulars/Inserts/Fliers Health Classified Advertising Business/Finance Advertisements Movie Listings & Reviews TV Listings Home/Furnishings/Gardening Science & Technology Travel Fashion 7 4 4
27 Targeting Millennials? Newspapers Under-Delivers; TV Has Practically 2x As Many Newspaper Reader Television Viewer A % A % A % A % A % A50+ 46% A % A % A50+ 66% A % 6 out of 10 readers Are over 50+ Source: MRI Doublebase 2015
28 and TV Is Top For Entertainment and Keeping Consumers Informed 32 % of A18+ 83% Newspapers TV 54% 57% 52% 64% 63% 10% 10% Good source of learning Pure entertainment Keeps me informed/up to date Relaxes me Source: 2015 GFK MRI Database
29 In General, TV Viewers Spend More Money On Products/Services TV Viewer Index Newspaper Reader Index Spent Last Year -Marine/Boating Attire $ Women's Spent Last Year-Cloth Coat $ Shoes Spent Past Year-Basketball Shoes $ Men's Designer Jeans Past Year $ Cologne for Men Spent Past Year as a Gift $ Most Recent Vehicle Purchase/Lease $50, Gasoline Spent Last Month $ Source: MRI Doublebase 2015; index to gen pop
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31 Number of Magazine Brands Has Remained Stagnant 8000 Number of magazines ,234 7,188 6,325 6,734 6,809 7,383 7,110 7,163 7,179 7,390 7,240 7, , Slowdown of Magazine Launches # of Magazine Launches Source: number of magazines=mpa; Magazine Launches=Oxbridge Communications
32 Magazine Ad Spending Projected To Plateau Magazine Advertising Spending (in billions) Print Digital * 2016* 2017* 2018* Source: emarketer
33 Time in minutes Consumers Are Spending Less Time With Magazines Daily time spent reading magazines per capita (in minutes) * 2016* 2017* Source: ZenithOptimedia; Various sources (Media Dynamics);
34 and Spending Less Money On The Publications Average annual expenditure per consumer unit (in U.S. dollars) Newspaper, magazine by subscription Newspaper, magazine non-subscription Source: Bureau of Labor Statistics
35 Top Online Magazines Erode Down Double Digits A18+ Nov 2015 vs Nov 2014 Online Magazine Total Unique Viewers (000) Taste of Home -18% Southern Living -11% Reader s Digest -19% Woman s Day -18% National Geographic -9% Family Circle -28% Source: November 2015 v 14, ComScore % Change Media Trend
36 Comparing To TV - TV Triumphs Magazine In Time Spent by 19X Daily time spent with Magazine v. TV in Oct 15 (in minutes) TV Magazines Source: emarketer; U.S. Oct 2015, A18+
37 Overall, TV Is Top For Entertainment and Keeping Consumers Informed 32 % of A18+ 83% Magazines TV 54% 57% 64% 63% 32% 24% 26% Good source of learning Pure entertainment Keeps me informed/up to date Relaxes me Source: 2015 GFK MRI Database
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39 Television Captures More Than Half of Consumers Total Media Time In An Average Week Time Spent Per Week (Hrs:Min) Among P18+ 32:02 12:41 8:19 6:00 1:28 1:11 0:54 0:21 Source: Nielsen Total Audience report 3Q15; Print= newspaper+magazines emarketer, 4/15
40 Television s Reach Remains Undeniable Across The Board Total Day Reach % P2+ CH2-11 T12-17 A18-34 A35-49 A50-64 A65+ Source: Nielsen Npower, 9/22/15-12/27/15
41 TV Is Top Spare-Time Activity For Most - Especially Among Millennials Listen to Music Read Watch TV Connect with Friends/Family Travel 37% 38% 42% 42% 40% 27% 23% 19% 31% 28% 27% 20% 18% 21% 24% 30% 29% 28% 22% 22% 19% 29% 25% Generation Z (15-20) Millennials (21-34) Generation X (35-49) Boomers (50-64) Silent Generation (65+) Source: Nielsen Generational Lifestyle Survey, Q1 2015
42 Ads On TV Are Most Trusted Advertising Format Percent of Global Respondents who Trust Advertising Format (Completely or Somewhat) Ads on TV Paid Traditional % Difference from % Paid Online/Mobile 2015 Text Ads on Mobile Phones 38% Difference from % Ads in Newspapers 60% -1% Online Banners Ads 42% -1% Ads in Magazines 58% +2% Ads on Mobile Devices 43% -2% Billboards and other outdoor advertising 56% +1% Ads on Social Networks 45% -2% TV Program Product Placement 55% 0% Ads Before Movies 54% -3% Ads in search engine results 47% 0% Ads on the Radio 54% -2% Online Video Ads 48% -1% Source: Nielsen Global Trust in Advertising Survey, Q & 2013
43 TV Ads Are Powerful, Driving Consumers To Take Action Percent of Global Respondents who Completely or Somewhat Trust Advertising Format Percent Who Always or Sometimes Take Action on Format Action Exceeds Trust Trust Action Consumer Opinions Posted Online Ads on TV Ads in Newspapers s I signed up For Brand Sponsorships Ads in Magazines TV Program Product Placements Billboards and Other Outdoor Advertising Ads Served in Search Engine Results Ads on Social Networks Online Video Ads Online Banner Ads Ads on Mobile Devices Text Ads on Mobile Phone 63% 60% 63% 56% 63% 62% 58% 62% 39% 55% 56% 58% 47% 58% 46% 56% 48% 53% 42% 50% 43% 50% 36% 46% 68% 69% 69% 68% Source: Nielsen Global Trust in Advertising Survey, Q & 2013
44 Largely, TV Ads Have Strong Impact On Buying Decisions Buying decision Influence Recommendations from a friend/family/known acquaintance Television ads Online review or recommendation from someone within your social media circle Online review by someone you do not know in real life In-theater advertising (pre-movie) Magazine ads Products or services/featured in a TV show or movie A reseller or channel partner website Manufacturer or vendor website Newspaper ads Radio ads An from a company/brand Billboards and posters Ads delivered through social media platforms Video game advertising (all forms of games) An endorsement from a celebrity An endorsement from an online personality Ads delivered on mobile apps, including location-based ads SMS/Text Message ad A tweet/post by someone you do not already follow (not and ad) A Tweet/Post by company/brand you do not follow High Influence Medum Influence Source: Deloitte Digital Democracy Survey 9 th edition; Question: To what defree do the following influence your buying decisions?
45 For More Information Visit Us Online TheVAB.com Follow Like us: facebook.com/videoadvertisingbureau
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