The Road Ahead: Media And Entertainment In The Car

In the face of a rapidly changing in-car landscape, broadcast radio dominates the choices for information and entertainment in the car, according to the new national survey from Arbitron Inc. (NYSE: ARB), Edison Research, and Scarborough Research titled The Road Ahead: Media and Entertainment in the Car. At the same time, there is significant interest in the many new digital entertainment and information options for driving that are being developed every day. The Road Ahead was debuted this morning at The Radio Show, hosted by the National Association of Broadcasters and the Radio Advertising Bureau in Chicago.

The Road Ahead, conducted in July 2011, looks at consumer usage of sixteen different in-car media and entertainment choices. The study also weighs consumer interest in newly introduced “telematics” features. Telematics technology enables a variety of applications that share data between the vehicle and information and entertainment networks.

The Road Ahead updates a similar study conducted in 2003, to provide a unique look at the changes and challenges in the in-car landscape over the past eight years, combined with a peek into the future of this crucial media space.

Key findings of The Road Ahead: Media and Entertainment in the Car:

  • AM/FM radio continues to be the top choice for in-car media and entertainment, with 84 percent of all drivers or passengers reporting use of AM/FM radio in-car — compared to the next highest device, the CD player, at 68 percent.
  • When share of time spent while driving is measured, AM/FM radio dominates with nearly two-thirds of all ‘in-car time’ (64 percent). The CD player is in second place at 21 percent; all other devices combined make up 15 percent.
  • While various digital options such as satellite radio and connecting one’s iPod to the car system remain rather small, they are growing and very well-loved by those who use them.
  • In-car AM/FM radio usage is strongest in the key buying demos it has long targeted, reaching nearly 90 percent of adults age 25 to 54.
  • One in four (24 percent) persons age 18 and older have used their iPod/MP3 player to listen to audio in their car; more than half (55 percent) of 18-24s have done so.
  • Six percent of persons age 18 and older and one in five persons aged 18 to 24 (19 percent) have listened to Pandora on their cell phone in the car.
  • There is a high level of interest in newly developed vehicle telematics. More than 60 percent say they are interested in accident response features, stolen vehicle recovery systems, parked vehicle tampering alerts, and remote car unlocking capability.
  • There is also significant consumer interest in several in-car media applications: 41 percent are interested in pause, rewind and replay functionality for radio in-car and 40 percent are interested in built-in wireless internet for the car.

Watch the presentation slides:

Video Interviews

In addition to conducting a significant national quantitative study, our research team supplemented this work with a series of interviews and observational research with in-car media consumers. Video highlights of these interviews are presented below:

On Smartphones:

On Satellite Radio:

On Telematics:

On The Internet-Enabled Car:

On The Future of Radio:

How the study was conducted

A total of 1,505 persons ages 18+ were interviewed in July 2011 to investigate Americans’ use of in-car media and information. The telephone interviews were conducted among previous Scarborough Research respondents age 18 and older chosen at random from a national sample.

About Edison Research
Edison Research conducts survey research and provides strategic information to radio stations, television stations, newspapers, cable networks, record labels, Internet companies and other media organizations. Edison Research is also the sole provider of election exit poll data for the six major news organizations: ABC, CBS, CNN, FOX, NBC and the Associated Press. Edison Research works with many of the largest American radio ownership groups, including Entercom, Clear Channel, Citadel, CBS Radio, Bonneville and Westwood One; and also conducts strategic and opinion research for a broad array of companies including Time Warner, Google, Yahoo!, Sony Music, the Voice of America, See Saw Networks and Zenithmedia. Edison Research has a seventeen year history of thought-leadership in media research, and has provided services to successful media properties in South America, Africa, Asia, Canada and Europe.

About Arbitron
Arbitron Inc. (NYSE: ARB) is an international media and marketing research firm serving the media–radio, television, cable and out-of-home; the mobile industry as well as advertising agencies and advertisers around the world. Arbitron’s businesses include: measuring network and local market radio audiences across the United States; surveying the retail, media and product patterns of U.S. consumers; providing mobile audience measurement and analytics in the United States, Europe, Asia and Australia, and developing application software used for analyzing media audience and marketing information data. The Company has developed the Portable People Meter ™ (PPMTM) and the PPM 360™, new technologies for media and marketing research.

About Scarborough Research
Scarborough Research measures American life. Our consumer insights reflect shopping patterns, media usage across platforms, and lifestyle trends for adults. Media professionals and marketers use Scarborough Research insights to make smarter marketing/business decisions on things like ad placement, multicultural targeting, and sponsorship opportunities. The company’s core syndicated consumer insight studies in 77 Top Tier Markets, its Multi-Market Study and its national USA+ Study are Media Rating Council (MRC) accredited. Other products and services include Scarborough Mid Tier Local Market Studies, Hispanic Studies a! nd Custom Research Solutions. Scarborough Research measures 2,000 consumer categories and serves a broad client base that includes marketers, advertising agencies, print and electronic media (broadcast and cable television, radio stations), sports teams and leagues and out-of-home media companies. Surveying more than 210,000 adults annually, Scarborough is a joint venture between Arbitron Inc. and The Nielsen Company.

Portable People Meter™, PPM™ and PPM 360™ are marks of Arbitron Inc.

The Infinite Dial 2011 – Navigating Digital Platforms

Smartphone Ownership Doubles Year Over Year to Nearly One-Third of Americans Says New Arbitron/Edison Research Study

Study Also Reveals That Facebook, Multi-Computer Homes Cross 50% Threshold

The percentage of Americans age 12 and older who have a smartphone has more than doubled in the past year, from 14 percent to 31 percent of the population according to the new national survey from Arbitron Inc. (NYSE: ARB) and Edison Research, The Infinite Dial 2011: Navigating Digital Platforms.

The study, released today, is the 19th in a series of studies dating back to 1998. Among the many other findings:

* Facebook is now being used by a majority of all Americans age 12 and over (51%); this number was only 8% when Arbitron/Edison Research first measured the social media phenomenon in 2008.

* A majority of American households now have two or more computers (51%); as compared to 24% of households in 2002.

* Usage of online radio is up significantly, with weekly usage of all forms of online radio having doubled in the last five years; self-reported weekly time spent with online radio is now nearly 10 hours (9 hours 47 minutes).

* Daily time spent with TV, Radio and the Internet combined has increased by 20 percent in the last ten years, with self-reported daily usage now at 8 hours 11 minutes compared to 6 hours 50 minutes in 2001.

* Just under one-third of all Americans (31%) have plugged an MP3 player such as an Apple iPod into their car stereo systems.

* One in ten Americans report listening to Pandora Internet Radio in the week before they were surveyed.

* Among the 81% of American households with Internet access, two-thirds now have a Wi-Fi network installed.

* More than one-tenth of all cell phone owners have listened to online radio streamed in their cars by connecting their phones to their car stereo system.

“When you consider the rapid growth in ownership of smartphones in context with the continued rise in the use of social media it becomes increasingly clear that these platforms are fueling fundamental changes in consumer expectations and how they use media,” said Bill Rose, Senior Vice President of Marketing, Arbitron Inc.

“What’s fascinating about the Internet over the past ten years is the additive effect it has had upon the American media diet, which continues to expand,” said Tom Webster, Vice President of Strategy and Marketing, Edison Research. “Rather than crowding other forms of media off the plate, so to speak, digital media is being consumed simultaneously with offline media, and in venues and opportunities where media might not have been consumed previously.”

Since 1998, this notable research series has reported on and analyzed consumer use of the Internet, digital platforms and their impact on radio.

“This study provides further evidence of radio’s continued resilience and relevance in today’s digital landscape,” said Arbitron’s Rose.

“The ubiquity of social media usage — and Facebook, in particular — has had an enormous impact upon the ways in which people communicate with each other – which has profoundly affected not only how companies market themselves, but also how they hire and train internally,” said Webster from Edison Research.

Download “The Infinite Dial: 2011” Presentation Slides
Download “The Infinite Dial: 2011” Executive Summary

How the study was conducted

A total of 2,020 persons were interviewed to investigate Americans’ use of digital platforms and new media. From January 4 to February 2, 2011, telephone interviews were conducted with respondents age 12 and older chosen at random from a national sample of Arbitron’s Fall 2010 survey diarykeepers and through random digit dialing (RDD) sampling in geographic areas where Arbitron diarykeepers were not available for the survey. Diarykeepers represent 46% of the completed interviews and RDD sampled respondents represent 54% of the completed interviews. The study includes a total of 480 cell phone interviews.

About Arbitron

Arbitron Inc. (NYSE: ARB) is a media and marketing information services firm primarily serving radio, television, cable, advertising agencies, advertisers, retailers, out-of-home media, and online media. Arbitron’s core businesses are measuring and estimating network and local market radio audiences across the United States; providing application software used for analyzing our media audience and marketing information data; and providing consumer, shopping, and other media usage information services. The Company has developed the Portable People MeterTM, a new technology for media and marketing research.

About Edison Research

Edison Research conducts survey research and provides strategic information to radio stations, television stations, newspapers, cable networks, record labels, Internet companies and other media organizations. Edison Research is also the sole provider of election exit poll data for the six major news organizations: ABC, CBS, CNN, Fox, NBC and the Associated Press. Edison Research works with many of the largest American radio ownership groups, including Entercom, Clear Channel, Citadel, CBS Radio, Bonneville and Westwood One; and also conducts strategic and opinion research for a broad array of companies including Time Warner, Google, Yahoo!, Sony Music, the Voice of America, See Saw Networks and Zenithmedia. Edison Research has a seventeen year history of thought-leadership in media research, and has provided services to successful media properties in South America, Africa, Asia, Canada and Europe.

Edison Research Releases The American Youth Study 2010 – Part One: Radio’s Future

One In Five 12-24s Listened To Pandora Last Month
Teens and young adults report nearly three times more daily Internet usage in 2010 than in 2000
Somerville, NJ – September 29, 2010
Edison Research today announced the preliminary results of the American Youth Study: 2010, a nationally representative survey of the media and technology habits of young Americans. This study is the sequel to a similar study released in 2000 by Edison, and presents both a look at today’s 12-24 year-olds, and a cohort from the 2000 study, today’s 22-34 year-olds. This study was sponsored by Radio-Info.com, and was debuted at the 2010 RAB/NAB Radio Show in Washington, D.C. on September 29th.
According to Edison President Larry Rosin, the original 2000 study “was a real wake-up call to traditional media companies, particularly the radio industry. Now, with this 2010 data, we have an opportunity to see just how teens and young adults have changed over the past decade, and which media are best poised to be competitive in the near term.” Rosin went on to point out that radio was still the leading source for music discovery, but other outlets, including YouTube and social networks, have grown to be significant as well.
Principal findings from this study include the following:

12-24 year-old Americans reported Internet usage of two hours and fifty-two minutes per day, roughly triple this age group’s reported usage from 2000 (59 minutes).

Radio continues to be the medium most often used for music discovery, with 51% of 12-24 year-olds reporting that they “frequently” find out about new music by listening to the radio. Other significant sources include friends (46%), YouTube (31%) and social networking sites (16%).
20% of 12-24s have listened to Pandora in the last month, with 13% indicating usage in the past week. By comparison, 6% of 12-24s indicated they have listened to online streams from terrestrial AM/FM stations in the past week.
More than four in five 12-24s own a mobile phone in 2010 (up from only 29% in 2000), and these young Americans are using these phones as media convergence devices. 50% of younger mobile phone users have played games on their phones, 45% have accessed social networking sites, and 40% have used their phones to listen to music stored on their phones.
Music tastes have shifted among 12-24s over the past decade: those radio listeners who indicated that Top 40/Pop stations were their favorite have more than doubled, while Alternative Rock stations were selected by half as many listeners in 2010 as in 2000.
Today’s 22-34s have significantly changed their media consumption habits since the first study in this series 10 years ago. In 2000, 44% of 12-24s most often began their day by listening to the radio. Today, radio continues to lead, with 29% of that same cohort (today’s 22-34 year-olds) reporting that radio is the medium they use most in the morning, while Television (25%) and the Internet (23%) have gained significantly.
A complete set of slides from the RAB/NAB presentation of these results is available on the Edison Research website on this page: The American Youth Study 2010 – Part One: Radio’s Future.
METHODOLOGY STATEMENT
A total of 1,533 respondents were interviewed to investigate interest in, and consumption of, traditional and new media among American youth. From September 8 to September 13, 2010, interviews were conducted online with respondents age 12 to 34 chosen at random from a national sample of Knowledge Networks’ “KnowledgePanel,” an online panel that is representative of the entire U.S. population through its use of dual-frame sample recruitment and a known published sampling frame. Data from this year’s study is tracked with the 2000 Edison Research study, “Radio’s Future: Today’s 12 to 24 Year-Olds,” which was conducted via telephone.
ABOUT EDISON RESEARCH
Edison Research conducts survey research and provides strategic information to out-of-home media companies, radio and television stations, newspapers, cable networks, record labels, Internet companies and other media organizations. Edison Research is also the sole provider of election exit poll data for the six major news organizations: ABC, CBS, CNN, FOX, NBC and the Associated Press. Edison’s global network of 11,000 interviewers executes hundreds of consumer exit poll and out-of-home media measurement projects every year, providing valuable decision support for marketers, advertisers and brands. Edison also conducts strategic and opinion research for a broad array of companies including Time Warner, Google, Yahoo!, Sony Music, Princeton University, AMC Theaters, Disney, Universal Music Group, Time Life Music and the Voice of America. Edison Research has a sixteen-year history of thought-leadership in media research, and has provided services to successful media properties in South America, Africa, Asia, Canada and Europe.
ABOUT RADIO-INFO.COM
Owned by Chicago-based in3media, inc., Radio-Info.com was founded in 1999 as a radio discussion forum, and has since evolved into a full-service radio information site known as “Radio’s Online Community.” While continuing its lively and popular message board forums, which net thousands of posts from readers each day, the site has added news, expert commentary and the most credible music charts in the industry via a partnership with Nielsen BDS. The company publishes several widely read newsletters, including Taylor On Radio-Info. Those newsletters collectively reach more than 14,000 subscribers a week.

The Infinite Dial 2010: Use of Social Media Explodes

Almost Half of Americans Have Profiles Says New Arbitron/Edison Research Study

Study Also Reveals Younger Consumers Eager to Adopt Mobile Digital Radio

The percentage of Americans age 12 and older who have a profile on one or more social networking Web sites has reached almost half (48 percent) of the population in 2010 – double the level from two years ago (24 percent in 2008), according to the new national survey from Arbitron Inc. (NYSE: ARB) and Edison Research, The Infinite Dial 2010: Digital Platforms and the Future of Radio.

The new study, released today, also reveals that consumer use of social networking sites is not just a youth phenomenon. While nearly eight in ten teens (78 percent) and 18 to 24s (77 percent) have personal profile pages, almost two-thirds of 25 to 34s (65 percent) and half of 35 to 44s (51 percent) also now have personal profile pages. The study also shows that 30 percent of Americans age 12 and older, who have a profile on at least one social networking Web site, use those sites “several times a day” compared with only 18 percent one year ago.

“The use of social networking sites has expanded beyond younger consumers, with substantial numbers of Americans over the age of 35 now using social media,” said Bill Rose, Senior Vice President of Marketing, Arbitron Inc.

“Social networking has become a part of mainstream media behavior,” said Tom Webster, Vice President of Strategy and Marketing, Edison Research.

Since 1998, this notable research series has reported on and analyzed consumer use of the Internet, digital platforms and their impact on radio.

“Americans continue to hold radio in high regard, with nearly eight in ten saying they plan to listen to as much AM/FM radio in the future as they do now – despite advances of technology” said Arbitron’s Bill Rose.

“Younger consumers show interest in radio on mobile phones,” said Tom Webster from Edison Research. “More than four in ten mobile phone owners age 12 to 24 say they would listen more to FM radio if a tuner were built into those phones.”

STUDY INSIGHTS:

Key Findings about Radio and Digital Platforms:

Nearly one in four Americans has listened to audio from an iPod or other MP3 player connected to a car stereo: Although consumers often have to deal with myriad adapters and other barriers to in-car listening, 54 percent of iPod/MP3 player owners have listened to their device in their car; this equates to 24 percent of all persons age 12 and older having listened to an iPod, iPhone or other MP3 player while connected to a car stereo.

Three in ten 12 to 24s are “very interested” in online radio in the car and on mobile devices: Among those age 12 to 24, 30 percent are “very interested” in listening to online radio in-car, while 28 percent are “very interested” in listening to online radio on mobile devices.

Consumers say radio station Web sites are improved but TV and print sites are leading the local battle: Nearly half of people age 12 and older give credit to radio for improvements in their Web sites. Forty- eight percent say that radio station Web sites have gotten more interesting compared to 17 percent believing them to be worse or less interesting. However, monthly visitation to radio station Web sites (16 percent) among persons 12+ lags visitation to local TV and local newspaper Web sites.

Other key findings:

The Internet passes TV as most essential medium in Americans’ lives: For the first time, more Americans say the Internet is “most essential” to their lives when given a choice along with television, radio, and newspapers; 42 percent chose the Internet as “most essential,” with 37 percent selecting television, 14 percent choosing radio, and 5 percent said newspapers. While television still leads among those over the age of 45, Internet dominates among younger persons age 12 to 44.

More than six in ten households with Internet access have a Wi-Fi network at home: Sixty-two percent of homes with Internet access have wireless network set-ups in their homes, more easily enabling the consumption of digital media in any room of their home, as more and more devices feature built-in Wi-Fi such as the new Apple iPad.

Texting has become a daily activity for nearly half of all mobile phone owners: Nearly half of mobile phone owners (45 percent) age 12 and older text multiple times a day. Three quarters of teens (75 percent) and persons age 18 to 24 (76 percent) text multiple times a day compared with nearly two thirds (63 percent) of 25 to 34s; and four in ten (42 percent) 35 to 44s and 45 to 54s (37 percent).

Broadband access has leveled and growth has stabilized for some digital platforms: Growth of residential broadband has leveled off, with 84 percent of homes with Internet access having broadband connections. The slower growth of residential broadband is associated with little year over year change in weekly usage of online radio (17 percent) and online video (29 percent). The study suggests that expanded use of use of mobile devices and in-car Internet may spark the next wave of growth.

This study, as well as previous studies, may be downloaded free of charge via the Arbitron and Edison Research Web sites at www.arbitron.com and www.edisonresearch.com.

How the study was conducted

A total of 1,753 people were interviewed to investigate Americans’ use of digital platforms and new media. From January 25 to February 22, 2010, telephone interviews were conducted with respondents age 12 and older chosen at random from a national sample of Arbitron’s Fall 2009 survey diarykeepers and through random digit dialing (RDD) sampling in certain geographic areas where Arbitron diarykeepers were not available for the survey. Diarykeepers represent 51% of the completed interviews and RDD sampled respondents represent 49% of the completed interviews. The study includes a total of 371 cell phone interviews.

About Arbitron

Arbitron Inc. (NYSE: ARB) is a media and marketing information services firm primarily serving radio, television, cable, advertising agencies, advertisers, retailers, out-of-home media, and online media. Arbitron’s core businesses are measuring and estimating network and local market radio audiences across the United States; providing application software used for analyzing our media audience and marketing information data; and providing consumer, shopping, and other media usage information services. The Company has developed the Portable People MeterTM, a new technology for media and marketing research.

About Edison Research


  


Edison Research conducts survey research and provides strategic information to radio stations, television stations, newspapers, cable networks, record labels, Internet companies and other media organizations. Edison Research is also the sole provider of election exit poll data for the six major news organizations: ABC, CBS, CNN, FOX, NBC and the Associated Press.  Edison Research works with many of the largest American radio ownership groups, including Entercom, Citadel, CBS Radio, Bonneville and Westwood One; and also conducts strategic and opinion research for a broad array of companies including Time Warner, Google, Yahoo!, Sony Music, Princeton University, Northwestern University, Universal Music Group, Time Life Music and the Voice of America. Edison Research has a sixteen year history of thought-leadership in media research, and has provided services to successful media properties in South America, Africa, Asia, Canada and Europe.

Portable People MeterTM and PPMTM are marks of Arbitron Inc.

ADM research notes podcast advertising appeals to “unreachable” consumers

Washington, DC – January 28, 2010 – The Association for Downloadable Media, in conjunction with Edison Research, announced today the findings of its recently concluded Podcast Consumer Attitudes study. Respondents to this online study of active podcast consumers indicated that although they are increasingly turning away from some mass media platforms and advertising approaches, they are receptive to advertising and sponsorship messages in downloadable media. These consumers also show a significant tendency to consume podcasts on their mobile phones, highlighting the importance of the channel as a truly portable medium.

According to Edison Research Vice President Tom Webster, “A podcast advertising buy is not a redundant media buy for advertisers and marketers. These are attractive, affluent consumers that mass media is losing.” He also notes, “Ninety percent of these respondents indicated that they had taken some kind of action as a result of podcast advertising or sponsorship, and over 40% reported purchasing behaviors, which indicates that they are receptive to the right message, in the right context.”

PR Graph 1.png

ADM Chairman, Chris MacDonald stated, “This study reinforces what the ADM has always believed, that podcasts and downloadable media provide valuable and effective options to reaching the otherwise unreachable, in ways that work for the consumer.” He goes on to say, “It’s obvious that an online or offline audio or video buy that does not include a podcasting component will miss a very attractive advertising target.”

Other findings of this study included the following:

Nearly 80% of these podcast consumers agreed that “when price and quality is equal,” they “prefer to buy products from companies that advertise on or sponsor” the podcasts they regularly enjoy.

37% of these respondents expressed some positive sentiment about advertising in the podcasts they regularly listen to or watch, compared to only 6% positive sentiment expressed for the advertising approaches of television or commercial radio.

In fact, 78% of these respondents agreed (and 21% agreed strongly) that their opinion of a company is more positive when they hear it mentioned in one of the podcasts they regularly enjoy.

In addition, 72% of these respondents were at least somewhat receptive to sponsorship messages in the podcasts they regularly enjoy, with 5% indicating that they are generally “interested in them and/or often find them useful.” When sponsorship or advertising messages are read by the host(s) of the podcasts themselves, again 72% are receptive, but 20% indicate that those messages are generally interesting and useful.

Presentation materials and a full report are available at www.downloadablemedia.org and www.edisonresearch.com.

Survey Methodology

Respondents in this online survey were recruited using audio/video messages embedded in podcasts from some of the leading aggregators of downloadable media, including NPR, Wizzard, RawVoice and Revison3, during the 4th quarter of 2009. Interviews were conducted from 10/20 to 11/16, with a final tally of 4,787 completed surveys. Raw results from the survey were weighted to reflect the demographic composition of the U.S. audience for audio and video podcasts, as reported from nationally representative data sourced from the 17th Edison Research/Arbitron Internet and Multimedia Study (2009) and The Podcast Consumer Revealed (2009).

About the Association for Downloadable Media

The Association for Downloadable Media is focused on providing standards for advertising and audience measurement for episodic and downloadable media. The organization’s constituents include individual podcasters, media companies, publishers, syndication companies and distributors offering downloadable media, advertising agencies, marketers, technology suppliers, hardware and software manufacturers of portable media products and services, market research firms and audience and advertising effectiveness measurement companies. Through our volunteer membership, we provide leadership in and organization of advertising and audience measurement standards, research, education and advocacy to all those involved in portable media (Podcasts/ATOM/RSS media enclosures) across the Internet, iPods, MP3 players, mobile devices, P2P and other upcoming platforms.

About Edison Research

Edison Research is a global leader in market and consumer research for businesses and media organizations worldwide, and has been the sole provider of exit poll information to the six major news organizations –ABC, CBS, CNN, FOX, NBC and the Associated Press–since 2003. As part of this effort, Edison has conducted exit polls and collected precinct vote returns to project and analyze results for every major primary and the general elections in 2004, 2006 and 2008. Edison provides companies with custom research solutions to measure audience, effectiveness and other key metrics of marketing and advertising campaigns. They are, along with Arbitron, the co-authors of the widely-quoted Internet and Multimedia Research Series, now in its 18th iteration.