LeNoble's Media Sales Insights

Blogging By Dr. Philip Jay LeNoble discusses the sales and sales management structure of media marketing and advertising including principles, practices and behaviorial theory. After 15 years of publishing Retail In$ights and serving as CEO of Executive Decision Systems, Inc., the author is led to provide a continuum of solutions for businesses.

Saturday, April 9, 2016

Pandora: Consumers Are Not Listening To Radio Ads

Radio Ink - Radio\'s Premier Management & Marketing Magazine
 
April 7, 2016
 
 
 
 
It was less than two weeks ago many media professionals were part of a very lively discussion about how many commercials you should be playing on your radio station. A debate also recanted just how successful an ad campaign could really be when a commercial is 6th or 7th in a long commercial pod. It appears Pandora has just been handed a wealth of data that contributes to the very real belief that you’re playing way too many commercials.
The folks at Pandora have quickly jumped all over Edison Research’s latest data about AM/FM listeners that change stations about 22 times per commute. Pandora has already published a white paper with Edison’s logo and data all over it. In the presentation (READ IT HERE) Pandora states “by a significant margin, the top two reasons for switching AM/FM are the commercials and to skip disliked songs.”

Pandora also claims that 7 out of 10 drivers report that they change the station when they are in the car and listening to AM/FM when commercials come on. If true, that would certainly be bad. After all, everyone knows that most listening is done in the vehicle and the radio industry often touts how important it is to connect with the consumer as he or she gets close to making a purchase. Pandora claims that 7-out-of-10 number was part of the Edison Research study, however we were not provided that data from Edison.
pandora chart
Hitting You Where It HurtsPandora asks what all this AM/FM channel changing means for your advertisers? In its presentation, Pandora says drivers know that radio stations often play 10 or more commercials in a row. “They also know they can avoid them with a simple push of a preset. Seven out of 10 commuters report they don’t listen to the full commercial break, and nearly half of them claim they don’t even last through the first commercial. But it’s not just the ads that are causing them to switch—it’s equally due to repetitive, unpersonalized playlists. And what happens when you combine repetitive playlists with a seemingly endless run of commercials? You get drivers who switch stations a lot—22 times in each direction of their daily commute. That’s 44 switches just going to and from work.”
Pandora, quoting the research from Edison, says commuters who listen to other forms of audio (such as streaming, satellite, or a personal music collection) only switch a fraction as much—just 9 times per commute. “Personalized audio in a low-clutter environment simply results in more driver attention.”

AM/FM Listeners Who Drive….
Change stations 22 times every time they commute, according to data from a new study called “Hacking The Commuter Code” from Edison Research. Edison did not detail why listeners change the station so many times but more detail into the research, provided by Pandora, would lead you to believe it could be the number of commercials you play (see previous story). The research firms says new methodology allowed them to capture the actual, second-by-second behavior of commuters across the country.
And nearly 75% of those who consume audio in the car are likely to switch at least occasionally over the course of their commute. The average user of AM/FM radio switches the station 22 times per commute, while those using other platforms switch an average of 9.3 times. Edison did not detail what the “other” platforms were in its press release.

1,117 employed adults ages 18+ who are employed were surveyed. They commute to work at least twenty minutes in a car or truck, they drive themselves, and listen to some type of audio during that commute. Edison recruited an additional 101 commuters nationwide and asked them to mount a GoPro camera in their cars and record their commutes. Both phases of this study were conducted in the fall of 2015.Edison
Edison says there is a wide variance in behavior among in-car audio users, with results depending on age, the type of content being consumed (e.g., music vs. spoken-word), and access to streaming or satellite radio or integrated multi-media systems.
Edison said it identified three groups in the study:
– The Restless – those who constantly switch (21%)
– The Seekers—those who switch occasionally (52%)
– The Keepers – those who mostly stick one with choice (27%)
“Hacking the Commuter Code” looked into how in-car audio users react to hearing commercials, but no details was provided. The press release from Edison also said, the study found that listeners switch for a variety of reasons—not just in reaction to commercial breaks, but also an ongoing quest for a better song.
 
 
 
 
 
 
Posted by Philip Jay LeNoble, Ph.D at 4:32 PM

1 comment:

Unknown said...

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May 16, 2018 at 5:15 AM

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Philip Jay LeNoble, Ph.D
Littleton, Colorado, United States
Born Atlanta,GA. Educated University of Georgia, Georgia Institute of Technology; California Coast University BS, MBA, Ph.D. Developed System 21© as an academic approach to media marketing for TV, radio and cable companies; completed three years of study at the West Coast Institute of Aromatherapy and earned his Clinical Aromatherapist certification.
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