THE POWER AND VALUE OF RADIO IN SOUTHERN CALIFORNIA NIELSEN & SOUTHERN CALIFORNIA BROADCASTERS ASSOCIATION RADIO EVENT

Transcription

1 THE POWER AND VALUE OF RADIO IN SOUTHERN CALIFORNIA NIELSEN & SOUTHERN CALIFORNIA BROADCASTERS ASSOCIATION RADIO EVENT October 30, 2014

2 TODAY S TOPICS The power of radio in a fragmented world Southern California s radio landscape Connecting listening + buying = RADIO ROI Radio s new precision targeting Digital audio measurement Q&A 2

3 THE POWER OF RADIO NATIONWIDE

4 243 MILLION AMERICANS USE RADIO EACH WEEK MORE THAN 91% OF EVERYONE AGE 12 AND OLDER Source: Nielsen RADAR 122, September Mon Su Mid Mid, Persons 12+ 4

5 RADIO IS STRONG IN A FRAGMENTED MEDIA WORLD The average US adult consumes 66 hours of content each week across TV, radio, online and mobile HRS Watching Traditional Television 13.1 HRS Listening to AM/FM Radio 6.5 HRS Using any App/Web on Smartphone Source: The Nielsen Cross Platform Report Q / Base: Total US Population P HRS Watching Time Shifted Television 5.7 HRS Using the Internet on Computer 1.6 HRS Game Console 20% of their time is spent listening to radio. 1.5 HRS Video on the Internet 5

6 RADIO REACHES CONSUMERS AWAY FROM HOME WHEN THEY RE READY TO BUY. Nationwide radio listening by location AWAY FROM HOME AT HOME M SU 6AM MID 64.5% 35.6% AM DRIVE 6AM 10AM 53.6% 46.4% MID DAY 10AM 3PM PM DRIVE 3PM 7PM 73.5% 74.1% 26.5% 25.9% EVENINGS 7PM MID WEEKENDS 6AM MID Source: Nielsen Audio Today Report, Q National AQH Composition, Persons % 57.4% 40.6% 42.6% 6

7 AFOCUS ON SOUTHERN CALIFORNIA The combined population of Los Angeles, San Diego and Riverside is 16 MILLION Source: Nielsen Audio Fall 2014 Metro Populations 12+ 7

8 94% OF SOUTHERN CALIFORNIANS ARE REACHED BY RADIO EACH WEEK Source: Nielsen National Regional Database, Spring 2014, Mon Sun 6a Mid, Persons 12+ THAT S 14.9 MILLION LISTENERS 8

9 DESPITE FRAGMENTATION, THE RADIO AUDIENCE IN SOUTHERN CALIFORNIA IS GROWING SPRING MILLION SPRING MILLION SPRING MILLION Source: Nielsen National Regional Database, Spring , Mon Sun 6a Mid, Persons 12+ Weekly Cume The weekly radio audience has grown by more than 300 THOUSAND in the last two years 9

10 RADIO S REACH EXTENDS ACROSS ALL MAJOR DEMOGRAPHICS IN SOUTHERN CALIFORNIA Weekly Radio Listeners 4.5 Million Listeners 94.5% of Millennials use radio 3.8 Million Listeners 95.9% of Gen X use radio 3.2 Million Listeners 94.3% of Boomers use radio MILLENNIALS (18 34) Source: Nielsen National Regional Database, Spring 2014, Mon Sun 6a Mid, Persons 12+ GENERATION X (35 49) BOOMERS (50 64) 10

11 AND RADIO REACHES A DIVERSE AUDIENCE Weekly Radio Listeners HISPANICS (12+) AFRICAN AMERICANS (12+) 6.4 Million Listeners 96.8% of Hispanics use radio Source: Nielsen National Regional Database, Spring 2014, Mon Sun 6a Mid, Persons Million Listeners 91.1% of African Americans use radio 11

12 12.6 MILLION SOUTHERN CALIFORNIANS USE RADIO AWAY FROM HOME DURING COMMUTING HOURS Source: Nielsen National Regional Database, Spring 2014, Mon Fri 6a 10a + 3p 7p, Persons

13 THIS AUDIENCE WOULD BE THE 7 TH LARGEST STATE IN AMERICA 1. California 37.2 million 2. Texas 25.1 million 3. New York 19.3 million 4. Florida 18.3 million 5. Illinois 12.8 million 6. Pennsylvania 12.7 million 7. SOCAL Commuter Listeners 12.6 million 8. Ohio 11.5 million AND IS BIGGER THAN EVERY OTHER MARKET IN THE UNITED STATES EXCEPT NEW YORK. Source: Nielsen National Regional Database, Spring 2014, Mon Fri 6a 10a + 3p 7p, Persons US Census State Populations. 13

14 100.00% 90.00% REACHING CONSUMERS WHEN THEY RE READY TO BUY: SOUTHERN CA OUTPERFORMS THE NATION Percentage of radio audience listening away from home NATIONAL AVERAGE RADIO AUDIENCE 80.00% 70.00% 77% 79% 74% 74% 60.00% 50.00% 54% 63% 68% 66% 59% 57% 40.00% 30.00% 20.00% 10.00% 0.00% MORNING MID DAY PM NIGHT WEEKEND Source: Nielsen National Regional Database, Spring 2014, Mon Sun 6a Mid, Persons

15 SOUTHERN CALIFORNIA NEVER SLEEPS AND NEITHER DO RADIO LISTENERS Night and weekend away from home listeners are a valuable, sizeable audience THE OUT OF HOME NIGHT AND WEEKEND AUDIENCE IS 12.5 MILLION LISTENERS THAT S MORE THAN A THIRD OF THE ENTIRE STATE OF CALIFORNIA S POPULATION TUNING IN ON NIGHTS AND ON THE WEEKENDS. Source: Nielsen National Regional Database, Spring 2014, Mon Sun 6a Mid, Persons US Census State Populations 15

16 76% OF SOUTHERN CALIFORNIA RADIO LISTENERS ARE IN THE WORK-FORCE THAT s 8.2 MILLION QUALIFIED CONSUMERS LISTENING EVERY WEEK Source: Nielsen National Regional Database, Spring 2014, Mon Sun 6a Mid, Persons

17 THIS AUDIENCE WOULD BE THE 3 rd LARGEST MARKET IN AMERICA 1. New York 16.1 million 2. Los Angeles 11.2 million 3. SOCAL Working Listeners 8.2 million 4. Chicago 7.9 million 5. San Francisco 6.4 million 6. Dallas 5.6 million 7. Houston 5.3 million 8. Washington, DC 4.7 million 9. Philadelphia 4.5 million 10. Atlanta 4.5 million Source: Nielsen National Regional Database, Spring 2014, Mon Fri 6a 10a + 3p 7p, Persons 12+. Nielsen Audio Fall 2014 Metro Populations

18 WHY CONSUMERS ENJOY RADIO IN LOS ANGELES Nielsen Harris Poll October 15 23, 2014 FUN Good Music STAY IN TOUCH Connected Relieves Stress LOCAL TRAFFIC NEWS SPORTS Variety Up to date FEELS LIKE HOME Lighten my mood LISTEN EVERYWHERE Innovative Great at night DIVERSE Balanced CURRENT and fair Relatable ENTERTAINING Companion 18

19 RADIO S LOCAL CONNECTION IN LOS ANGELES Nielsen Harris Poll October 15 23, in 10 agree Radio personalities in LA are entertaining and talk about things meaningful to me. I feel a strong personal connection to the radio station in LA I listen to the most. Radio connects me to local products, stores and events in my community. 19

20 THE VALUE OF RADIO

21 THE NIELSEN ACQUISITION OF ARBITRON RADIO ROI PROVIDED THE FINAL PIECE TO DEVELOP THE HOLY GRAIL 21

22 CONNECTING LISTENING AND BUYING A breakthrough collaboration between Nielsen and various partners creating the first single source ROI tool for radio. NIELSEN AUDIO DATA CONSUMER DATA 22

23 CPG $6:$1 Advertisers achieved over $6 of incremental sales for every $1 spend on radio 23

24 MEDIA Radio demonstrated 16% conversion rate for promos Nearly 1 in 5 listeners who heard the spot tuned into the TV broadcast. 24

25 MEDIA Cable Drama Premier: Promo Campaign. % of campaign reach by platform 14 WEEKS?? In JUST ONE WEEK, radio delivered nearly a quarter of what TV took 14 weeks to reach. 25

26 RETAIL Radio works well for driving loyalty Radio increased retention by as much as 11% for a big box retailer 26

27 We can now link PPM listening data to the actual transactions of more than 125 MILLION consumers and 80% of all American credit card holders. LISTEN BUY Nielsen PPM Panel 125 MILLION Consumers 72,000 panelists SINGLE SOURCE 80% of all U.S. credit card transactions 27

28 PRECISION TARGETING CPG MEDIA TRAVEL RETAIL ENTERTAINMENT TELECOM RESTAURANT 28

29 LOS ANGELES ENTERTAINMENT SPENDING BY FORMAT PPM Data + Spending and Visit Data Annual dining spending, ranked on amount spent. Annual trips to the movies, ranked on # of trips. $1,317 URBAN 5.39 $1,197 $1,190 SPORTS ROCK/ALTERNATIVENEWS/TALK Source: Nielsen Buyer Insights Data, Los Angeles Metro. ROCK/ALTERNATIVE OLDIES/CLASSIC HITS

30 30 LOS ANGELES AUTO BUYING BY FORMAT PPM Data + Polk Automotive Registration Data Source: Nielsen Audio and Polk Automotive Insights, Adults 18+, October 2013, M F 6AM MID 117, , , ,296 1,620 1,944 2,268 2,592 2,916 3,240 3,564 3,888 4,212 4,536 4,860 5,184 5,508 5,832 6,156 6,480 6,804 7,128 7,452 7,776 8,100 8,424 8,748 9,072 9,396 9,720 10,044 10,368 10,692 11,016 11,340 11,664 11,988 12,312 12,636 12,960 13,284 13,608 13,932 14,256 14,580 14,904 15,228 15,552 15,876 16,200 16,524 16,848 17,172 17,496 17,820 18,144 18,468 18,792 19,116 19,440 19,764 20,088 20,412 20,736 21,060 21,384 21,708 22,032 22,356 22,680 23,004 23,328 23,652 23,976 24,300 24,624 24,948 25,272 25,596 25,920 26,244 26,568 26,892 27,216 27,540 27,864 28,188 28,512 28,836 29,160 29,484 29,808 30,132 30,456 30,780 31,104 31,428 31,752 32,076 32,400 32,724 33,048 33,372 33,696 34,020 34,344 34,668 34,992 35,316 35,640 35,964 36,288 36,612 36,936 37,260 37,584 37,908 38,232 38,556 38,880 39,204 39,528 39,852 40,176 40,500 40,824 41,148 41,472 41,796 42,120 42,444 42,768 43,092 43,416 43,740 44,064 44,388 44,712 45,036 45,360 45,684 46,008 46,332 46,656 46,980 47,304 47,628 47,952 48,276 48,600 48,924 49,248 49,572 49,896 50,220 50,544 50,868 51,192 51,516 51,840 52,164 52,488 52,812 53,136 53,460 53,784 54,108 54,432 54,756 55,080 55,404 55,728 56,052 56,376 56,700 57,024 57,348 57,672 57,996 58,320 58,644 58,968 59,292 59,616 59,940 60,264 60,588 60,912 61,236 61,560 61,884 62,208 62,532 62,856 63,180 63,504 63,828 64,152 64,476 64,800 65,124 65,448 65,772 66,096 66,420 66,744 67,068 67,392 67,716 68,040 68,364 68,688 69,012 69,336 69,660 69,984 70,308 70,632 70,956 71,280 71,604 71,928 72,252 72,576 72,900 73,224 73,548 73,872 74,196 74,520 74,844 75,168 75,492 75,816 76,140 76,464 76,788 77,112 77,436 77,760 78,084 78,408 78,732 79,056 79,380 79,704 80,028 80,352 80,676 81,000 81,324 81,648 81,972 82,296 82,620 82,944 83,268 83,592 83,916 84,240 84,564 84,888 85,212 85,536 85,860 86,184 86,508 86,832 87,156 87,480 87,804 88,128 88,452 88,776 89,100 89,424 89,748 90,072 90,396 90,720 91,044 91,368 91,692 92,016 92,340 92,664 92,988 93,312 93,636 93,960 94,284 94,608 94,932 95,256 95,580 95,904 96,228 96,552 96,876 97,200 97,524 97,848 98,172 98,496 98,820 99,144 99,468 99, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 ALL SPORTS CLASSIC HITS POP CHR COUNTRY ALL NEWS ACTIVE ROCK 100 Hyundai Buyers ranked on index Chevrolet Buyers ranked on persons

31 MEASURING DIGITAL AUDIO

32 EXPANSION OF CHOICES CONTINUES TO ACCELERATE THE LAST 50 YEARS THE LAST 10 YEARS THE LAST 5 YEARS THE FUTURE? Vinyl AM/FM RADIO HD RADIO? FM DIGITAL RADIO MUSIC APPS? AM CD TABLETS? MP3 SATELLITE RADIO SMART PHONES CLOUD STORAGE??? 32

33 NIELSEN S APPROACH TO MEASURING DIGITAL AUDIO: THE SOFTWARE DEVELOPER KIT REACH Number of Listeners, Sessions, or Quarter Hours DEMOGRAPHICS Gender & Age by Daypart NIELSEN SDK DURATION Time Spent Listening LOCATION By Metro or DMA 33

34 MEASURING DIGITAL AUDIO NIELSEN SDK COLLECTED DATA: Station ID Duration Time Stamp ADVERTISING IDENTIFIER DEMOGRAPHICS (Facebook) 34

35 NIELSEN S DIGITAL AUDIO SDK TECHNOLOGY IS READY NOW COMPUTER READY NIELSEN SDK ios READY ANDROID READY 35

36 PROGRESS AND MOMENTUM 30+ luminary clients integrating the SDK Accepting all audio clients for onboarding NIELSEN SDK Preliminary data collection and calibration underway Reporting tools in development 36

37 NIELSEN SDK Southern California Radio is Strong SOCAL Radio reaches 90%+ across all key demos Radio Delivers Solid ROI Radio delivers a $6:$1 Return on Ad Spend Nielsen Digital Audio Measurement is on the way Software tested and ready SOCAL Radio Reaches 12.6M consumers when they are ready to shop and buy SOCAL Radio Reaches 8.2M working consumers with money to spend Radio drives listeners to tune in to TV programs Radio delivers repeat shoppers New precision targeting helps focus advertising on the right consumers Top clients integrating the SDK Collecting data now 37

38 Q&A Source: Nielsen National Regional Database, Spring 2014, Mon Sun 6a Mid, Persons