Internet Study II Radio

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Internet Study IIRadio E-commerce
edison media research
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Edison Arbitrons Industry Research

• 1996 - Newspaper Advertisers
• 1997 - At-Work Listening
• 1998 - Internet I
• - Radio in a New Media World
• 1999 - Internet II
• - Radio E-commerce

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How the Survey Was Conducted

• 1350 telephone interviews (January 1999) with
  Fall 1998 diarykeepers
• Random national sample of diarykeepers 12
• Listening measures from diary
• Data tracked from August 1998

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The Internet
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More than half of all households have a computer
in use
1999
1998
Have a computer at home
Have a computer at home
Do not have a computer at home
Do not have a computer at home
Base Total Sample
6
Household computer penetration varies widely by
format
Page 1
of households with computers
Base Total Sample
7
Household computer penetration varies widely by
format
Page 2
of households with computers
Base Total Sample
8
More than one-third of all households have
Internet access
Have Internet access at home
Have computer, no Internet access
Do not have a computer at home
9
Household Internet access is growing rapidly (35
started last year)
When did you get Internet access at home?
Base Online at home
10
More people plan to go online at home in the next
year
Likely to go online in next 12 months
Have Internet access now
11
Half of all Americans are currently online
Do you currently access the Internet at...
Base Total Sample
12
Where do you access the Internet the most?
Other
Home
School/College
Public Library
Work
Base Access Internet at any location
13
Internet access is growing among all ethnic groups
Base Total Sample
14
Men are more likely than women to use the Internet
Currently access the Internet at any location
Base Total Sample
15
Young people are nearly universally online
Currently access the Internet at any location
Base Total Sample
16
People who are online use it a lot
How frequently do you go online at home?
Several times a day
Less than once a week
Once per day
Once per week
Median usage of 4.0 hours/week
Several times per week
Base Online at home
17
Internet access by Format
Page 1
of P1s online at any location
18
Internet access by Format
Page 2
of P1s online at any location
19
Nights are prime-time for Internet Usage
How often do you use the Internet during each
time period?
Base Online
20
Nights are prime-time for Internet Usage
In what time period do you go online the most?
Midday/10A-3P
Afternoons/3-7P
Mornings/6-10A
Dont Know
Night/7P-12A
Base Online
Overnight/12-6A
21
Because of the time you spend online, are you
spending less time...
Base Online
22
Those online spend less time with radio
Time spent listening to radio Hours/Minutes per
week
2030
1900
Online Diarykeepers
Diarykeepers not Online
Telephone Survey/Arbitron Diaries
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• Internet Radio
• Listening

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More than one quarter of those online have
listened to Internet radio
Have listened to Internet radio
1998
1999
Base Online
25
13 of all Americans have listened to Internet
Radio
Listened to Internet Radio
Have not listened to Internet Radio
Base Total Sample
26
During this past Holiday season, did you purchase
any gifts through the Internet?
Base Total Sample
27

• e-commerce

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How much money did you spend on Holiday shopping
this year?
Median 480
101-250
251-500
51-100
501-1000
Base Total Sample
1000
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How much did you spend on Holiday shopping over
the Internet this year?
Median 175
101-250
251-500
1000
501-1000
Base Purchased Holiday gifts through the
Internet this year
30
Do you use the Internet for....
Shopping
Researching products/services
Base Online
31
How safe is shopping over the Internet?
Somewhat unsafe
Somewhat safe
Not safe at all
Dont know
Completely safe
Base Online
32
Do you use the Internet for shopping?
Total Online
Those who say online shopping is completely safe
33
Compared to traditional shopping, are you more or
less satisfied w/Internet shopping?
Less
Equally
Dont Know
More
Base Have shopped over the Internet
34
Using the Internet to Generate Revenues
35
RadioStationWeb Sites
36
Ever heard a radio station talking about its Web
site on the air?
1998
1999
Yes
Yes
No
No
Base Online
37
Ever visited a radio station Web site?
1999
1998
Have Visited
Have Visited
Havent
Havent
Base Online
38
Radio stations are not delivering regular usage
of their Web sites
Ever visited the Web site of any radio station?
Visited any radio station Web site in the last
month?
Yes
Yes
No
No
Base Online
39
Radio must get more consumers to bookmark their
Web sites
Ever bookmarked any Internet Web site?
Have any radio station Web site bookmarked?
Yes
Yes
No
No
Base Online
40
Interest in visiting a radio station Web site
for...
Information on community events
Concert information
Titles/artists of songs
Listen to the station
See advertisers products
Base Online
Page 1
41
Interest in visiting a radio station Web site
for...
Enter contests
Schedule of programming
Coupons from advertisers
Vote on songs
Buy products/services
Base Online
Page 2
42
Interest in visiting a radio station Web site
for...
Links to advertisers Web sites
Contact DJs
Chat rooms about music
Information/pix. of DJs
Buy station clothing
Base Online
Page 3
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Four Negatives against Radio Advertising

• Not a Visual Medium
• No opportunity for Couponing
• Cannot give a lot of product/service detail
• Measurement of results is difficult

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Consumer use of coupons
Use as often as possible
Almost never use
Use sometimes
Base Total Sample
45
Coupon Clippers will go to your Web site
How interested are you in visiting a radio
station Web site to print out coupons from
advertisers?
Very
Not at all
Somewhat
Base Use coupons as often as possible
46
Interest in visiting a Web site that lists
information on local shopping
Very
Somewhat
Not at all
Base Online
47
Listeners will go to your Web site for detailed
information
How likely would you be to go to a radio
stations Web site for more info on a product
you heard advertised?
Very
Somewhat
Not at all
Base Online
48

• Radios
• Credibility Gap

49
Radio must increase its credibility in order to
fully realize its e-commerce potential
Would you be MORE or LESS likely to click on
advertising from radio station Web sites
More
Less
Dont Know
Equally
Base Online
50
Radio must increase its credibility in order to
fully realize its e-commerce potential
Would you feel MORE or LESS safe making a
purchase from a radio station Web site?
More
Less
Dont Know
Equally
Base Online
51

• Music
• Radios e-commerce
• Opportunity

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How often do you shop over the Internet for...
52
60
59
54
53
28
29
Base Have shopped over the Internet
53
Through a radio station Web site, how interested
would you be in shopping for...
65
51
46
46
48
40
37
37
Base Online
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Arbitrons Next Steps

• Introduction of InfoStream measurement plan
• Expand streaming industry measurement coalition
• Test addition of Internet and Satellite Radio to
  the diary
• Enhance Internet measures in Scarborough
  qualitative service
• 1999 Pathfinder New Media Study

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• even ways for radio stations to make money from
  the Internet

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Recommendations for the Radio Industry

• 1. Make your Web site a compelling place to
  visit every day

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Recommendations for the Radio Industry

• 2. Program your Web site according to
  listener needs

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Recommendations for the Radio Industry

• 3. Use your marketing power to drive
  awareness, cume and time spent on your Web
  site

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Recommendations for the Radio Industry

• 4. Explore different radio
  e-commerce models and put people specifically
  in charge of e-commerce

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Recommendations for the Radio Industry

• 5. Invest in a new Internet organization
• -Internet Program Director
• -Internet Sales Manager
• -Internet Marketing Director

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Recommendations for the Radio Industry

• 6. Develop an e-commerce model to sell music
  through your Web site

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Recommendations for the Radio Industry

• 7. Use audio in your online marketing