Internet Radio Increases Online, Broadcast Ad Effectiveness

April 14, 2011

This article is included in these additional categories:

Analytics, Automated & MarTech | Brand Metrics | Data-driven | Media & Entertainment | Radio | Retail & E-Commerce | Technology

targetspot-weekly-time-spent-online-apr11.gifInternet radio users are more engaged both online and with broadcast radio, and are also more likely to respond to and recall online and broadcast advertising, according to [pdf] a new white paper from TargetSpot and Parks Associates. Data from the “Internet Radio Advertising & Impact Study” indicates 49% of internet radio users spend 22 or more hours online per week, compared to 43% of non-internet radio users.

In addition, internet radio users have a slightly higher rate of using the internet one to seven hours per week (9% compared to 8%) and lower rates of using the internet eight to 14 hours and 15 to 21 hours weekly.

Internet Radio Boosts Online Ad Recall, Response

targetspot-internet-radio-use-apr-2011.JPGWhite paper data shows online ad recall and response rates significantly increase when combined with internet Radio use. Both groups have roughly the same rate of recalling a single internet ad (more than 75%), but internet radio users have slightly higher rates of recalling a product/service category both aided and unaided, as well as of recalling brands aided and unaided.

The biggest difference, however, occurs in rates of ad response. Internet radio users will respond to an internet ad close to 50% of the time, about twice the response rate of non-users.

Internet Radio Users More Engaged in Broadcast Radio

targetspot-internet-radio-broadcast-engage-apr-2011.JPGInternet radio users show higher engagement rates in broadcast radio, as well. The largest difference is in rates of listening to broadcast radio eight to14 hours per week, which accounts for 28% of internet radio users but only 18% of non-users.

Internet radio users also hold a slight edge in listening to broadcast radio 15 hours or more per week (17% compared to 16%). Non-users are much more likely to listen to broadcast radio one to seven hours per week (67% compared to 55%).

Internet Radio Also Boosts Broadcast Ad Recall, Response

internet-radio-broadcast-recall-apr-2011.JPGBroadcast radio ad recall and response rates significantly increase when combined with internet radio use. The data reveal a 3.5-times difference in ad response between broadcast radio-only listeners and those who listen to both broadcast and internet radio (less than 10% compared to more than 25%). Differences in recall are slightly more pronounced than with online ad recall.

Other Findings

  • Internet radio has reached 39% of broadband households.
  • 86% of study respondents listen to both online-only internet radio and broadcast radio streamed on the internet.

Users spending minimal time listening to internet radio had higher ad response rates than heavy internet-only users.

Arbitron: Network Radio Reaches 74% of Americans 12 and Up

Network radio essentially maintained its reach rate of nearly 74% among Americans age 12 and up, according to the December 2010 Arbitron RADAR 107 report. In December 2010, network radio reached 73.7% of Americans age 12 and up, down about 0.3% from network radio’s 73.9% reach in December 2009. Despite the slight decline in year-over-year network radio reach percentage caused by population growth, network radio actually reached more people in December 2010 than it did a year earlier. In December 2010, network radio reached about 189.7 million Americans age 12 and up, an increase of 819,000 people, or 0.4%, from about 188.9 million in December 2009.

About the Data: TargetSpot’s Internet Radio Advertising Impact Study is an online survey of broadband households in the US. The study was fielded by Parks Associates between January 11- 26, 2011. The sample population included 2,127 US broadband households (ages 18 and up) who listen to broadcast radio and internet radio and use the internet once a month to daily.

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