Radio Rampant · Mobile access and usage is becoming as prevalent as computer access and usage....

Radio Rampant How the internet is dynamiting the box:Making radio more captivating than ever before.

Contents

Intro Page 3

MobileMarketing

Mobility redefined: Mobile is quickly becoming the dominant radio outlet for consumers. Page 4

Too good to pass up: Mobile advertising gets strong results. Page 6

Get the job done: From branding to traffic driving and everything in between, mobile does it all. Page 8

Time to get creative: Mobile creative options that engage sight, sound and touch are plentiful. Page 10

ConsumerTechnologyDrivers

Changing their tune: Consumers’ radio behavior has significantly changed. Page 12

Dramatic growth: Internet radio explodes onto the scene. Page 14

The socialization of radio: Social networks are the ultimate consumer content sharing site. Page 16

Conclusions Page 17

Radio Rampant How the internet is dynamiting the box: Making radio more captivating than ever before.

The internet and hundreds of new internet-enabled devices have trans-formed radio from both a consumer and marketer perspective. Radio has broken out of the confines of static receivers and is now everywhere in new interactive devices. Radio can be accessed via voice command in cars, via mobile phones, PCs and even TVs. It’s now available in on-demand formats that create more personalized and interactive connections with consumers who access and listen to music whenever and wherever they want. For marketers, this reinvigoration of consumer engagement with the medium gives them new ways to connect and persuade.

This paper explores how radio—through internet and wireless technology—is better enabled than ever before to give marketers what they want: active consumers willing to engage with their brand. While some internet radio is terrestrial radio delivered online with the same programming and same ads, it’s the newer radio services that take advantage of how the internet can make radio relevant and exciting due to:

• Personalization: Radio is becoming an on-demand consumer experience that is customized to user preference.

• Engagement: Through one-to-one-streaming, consumers can design the type of content they want— A consumeraccustomed to their personalized music selections becomes pre-disposed to advertisements in their music stream being equally relevant and compelling.

• Socialization: Radio already is an enhancement to everyday activities, but now with ease of communication and sharing, it’s even better. Consumers discover new music from friends and social networks. Both users and marketers benefit from the powerful connection to music but also from the positive consumer experience and the viral activity that this experience fosters.

The consumer benefits of personalized radio have a positive impact for advertisers: The value exchange of an advertiser supporting a customized, interactive and free service is explicit rather than implicit. Similar to the early days of radio when programs were solo-sponsored and the radio personalities delivered the ads, listeners connect on a more personal level.

Chart1Pandora Hours online vs on mobile

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Mobile Marketing Mobility redefined: Mobile is quickly becoming the dominant radio outlet for consumers.

While there’s nothing new about radio being mobile, smartphones make experiencing radio on-the-go more valuable. Among marketers, it’s not just the growth of smartphone penetration or the new portable media device abilities getting their attention, but the fact that consumers are actually using their smartphones to consume media, act on advertisements and even purchase products via “m-commerce.” Mobile makes it easy to act when the device in is in hand and a short radio ad encourages the listener to tap the screen. Mobile access and usage is becoming as prevalent as computer access and usage. According to a report published by Ad Age in May 2010, typical websites see anywhere between 12% and 18% of their traffic coming from mobile devices. For an internet radio site like Pandora, mobile device usage is even more dramatic: mobile usage grew over 90% since January 2010 (Chart 1). Showing how strong the uptake of mobile can be for online use, by May of this year, more than half of all Pandora hours streamed were done so via mobile devices. Initial activations/ramp-up of new devices is faster than previous ones as consumers become more comfortable adopting and adapting to new mobile options.

Even in the currenteconomic downturn,smartphones have beenone of the few consumer product bonanzas showing strong growth. Nielsennow estimates smart-phones will reach 51% penetration of the mobile market by Q3 of 2011.

Streaming music on smartphones is also a part of the “app” phenomenon. Apps are simply software applications de-signed specifically for mobile devices. Apple fostered the market with their app store, which now features over 240,000 distinct items. As of September 9, 2010, Apple announced that 6.5 billion apps have been downloaded since the app store launched in the US in June of 2007. While Apple pioneered the app market, it is quickly becoming a crowded space with a number of competitors, including Android, BlackBerry, Palm, Nokia (Ovi). Comparing app adoption over the first few months after launch, Android adoption grew at a faster rate than iPhone when initially launched (Chart 2). A dynamic mar-ket, smartphone app domination and market share changes quickly. Data from comScore shows that Android and Apple usage of apps is nearly identical and in Q1 ’10, Android overtook Apple, becoming number two in market share of smart-phones at 28% compared to BlackBerry’s 36% and Apple’s 21% according to NPD, which tracks retail sales.

Chart2Android: fastest mobile platform to 5 million Pandora downloads

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Typical radio stations play nine minutes of ads per hour according to a 2006 study and in a study ofclutter on radio it wasreported to be as high as 20 minutes per hour on some stations*. A service like Pandora currently runs a maximum of three audio ads or less per hour and banner ads only appear ona device when a phone is not locked or dimmed thus only when the consumer is interacting with the device.

*Sources: Myth of Cluttered Radio; Radio’s Clutter Conundrum:

Better Memory for Ads, Worse Attitudes Towards Stations.

Chart3Compared to early online norms and video, mobile ads outperform for ad awareness, message association and purchase intent.

Source: Dynamic Logic’s MarketNorms; ONline (2000-2002). N=616 campaigns; Online Video MarketNorms (2002-2004), N=34 campaigns; AdIndex for Mobile Norms through Q1/2009, N=46 campaigns, n=46,691 respondents. Delta (∆)

Mobile Marketing

Too good to pass up: Mobile advertising gets strong results.

Likely due to lower levels of clutter and higher engagement than either terrestrial radio or online, mobile ads have high levels of recall, purchase intent and follow through. As compared to online display, mobile display shows higher average norms according to Dynamic Logic—the leader in the ad impact research space (Chart 3). Click through rates also tendto be five to six times those for online display, as published by Quattro.

It’s also important to remember that the environment where an ad runs influences the way people experience it. Sincemobile devices are so personal, the way people experience mobile advertising is very different. Using a mobile devicebecomes a lean-forward experience, creating a whole new aspect of engagement and discovery to both mobile content and advertising.

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Aided Brand Awareness Ad Awareness Message Association Brand Favorability Purchase Intent

TypicalRadioStationClock

Likewise, in-stream audio advertising on a mobile device has significant benefits in terms of the advertising impact as compared to other forms of radio. While the typical radio experience has been considered something that accompanies rather than focuses activity whether at work, at play or at home, the experience of radio on a mobile device is fundamentally different. These differences contribute to higher engagement:

• Personal Connection to the Device: People are passionate about their phones and have a one-to-one connection with them and the things they can do on their phone, unlike just about any other consumer electronics device.

• Radio the Way the Consumer Wants It: Internet radio offers a level of both choice and personalization that terrestrial radio and even satellite radio cannot match.

• Consumer Focus that Comes with Discovery: With personalization there is a level of attentiveness and discovery that has not existed with terrestrial radio since it was a unique entity in the ‘20s and ‘30s and during the pre-formatted rock ‘n roll era of the ‘50s and early ‘60s.

• Interactivity: Consumers can interact and drive their experience as well as interact with the advertising, providing instant gratification on multiple levels.

• Low Clutter Leads to High Impact: With less advertising clutter, messaging stands out.

:60 Commercial

:60 Station Promo:30 Commercial

:30 Network Radio

Music20 Minutes

Music20 Minutes

Chart4Mobile marketing has a place throughout the purchase funnel

Mobile Marketing

Get the job done: From branding to traffic driving and everything in between, mobile does it all.

If we think of the iconic purchase funnel also representing media and its impact on consumers, mobile advertising has the potential to impact all levels (Chart 4).

• Reach: Mobile devices have even higher penetration rates than online—second only to television for reach potential. Internet radio can provide national reach or local market targeting.

• Targeting: With registration data often including zip codes, some internet radio targeting is far superior to terrestrial radio, reaching a specific type of person, as well as a device, such as a smartphone. Targeting to the most influential times when consumers are open and receptive is possible by targeting to a specific time of day combined with targeting a specific mood, based on genre of music.

• Interactivity: Similar to online advertising, mobile ads can either drive consumers to take immediate action by clicking through to the advertiser’s site, a landing page or even an e-commerce site. Rich media ads on smartphone platforms can do the same types of things these units do online: engage the user with photos and videos, branded games, product information, retail locations orpurchase engines. Advertising on a mobile device gives interested consumers an easy way to find out more.

• Local Impact: Like newspapers and local terrestrial radio, ads can be targeted by regions either through carrier data or user-supplied data like zip codes, which is a requirement of various music services.

• Point of Purchase/Transaction: A person is one click away from a purchase through their smartphone. Consumers with an iTunes, PayPal or Amazonaccounts can purchase an advertised product seamlessly. Purchasing at physical retailers using a smartphone as a payment device is coming sooner than once projected to the U.S. Soon, marketers will be able to advertise mass market products on mobile devices and consumers will be able to immediately purchase a whole range of goods using their smartphone.

Targeting On Mobile

Targeting ability is a major differentiation point between internet, satellite and terrestrial radio. Across all devices (smartphones, iPods, CE in-home devices, car dashboards), some target-ing options available for mobile advertising are:

•Demographic: When internet radio services like Pandora require users to supply basic demos, advertisers can target their buys by age, sex, and other highly valued demos.

•Device: Devices have distinct demographic skews and marketers can use available info from sources like comScore to focus buys on specific devices. iPhones tend to reach an early-adopter 25 to 34 crowd, iTouch devices are most likely to reach kids and teens through college students - especially those who are heavy gamers. BlackBerry reaches the 35 to 54 more business-oriented demo and depending on the model, have distinct male and female skews - the Pearl and Curve are more popular among women, the Bold and Storm among men. Android phones are currently skewing more male and younger than iPhones but this may be due to the marketing of the device and pent up demand among young men for a non-AT&T touchscreen device. (See comScore’s monthly OEM Report).

•Geographic: Also due to the fact that internet radio users are often required to register with their zip codes, precise geographic targeting is possible.

•Genre: The type of music (genre) consumers listen to say a lot about who they are and their mindset. Genre can be used to reach someone in a particular mood, psychographic, lifestyle or interest cluster.

AwarenessReach:Broad National Reach

Demographics of Print:Target who you want

Interactivity of Online:Product information, video, demo, retail location, rich media brand experience all within the unit

Local Impact of Newspapers:Local targeting by DMA, zipcode

Purchase Ease of Online:One click to purchase/transaction

Due to its unique characteristics,

mobile can be usedto meet media

objectives that go beyond theimpact of

terrestrial radioConsideration

Purchase

Mobile Marketing

Time to get creative: Mobile creative options that engage sight, sound and touch are plentiful.

Advertising on mobile is a combination of the capabilities of online displayalong with standard radio advertising:

• Banner ads: Standard mobile banner ads appear onscreen while the user is listening to music on a mobile device. Services like Pandora serve display ads only when the mobile device is not locked or dimmed, ensuring that theimpression is viewed.

• Rich Media: The sort of rich media that has transformed online displayadvertising experience is also possible on mobile devices. Note: Ads for Apple platforms must be coded in HTML5, while those for all other smartphone app platforms are being focused around Flash. Rich media ads can perform the following functions: • Drag and Drop • Tap to Video • Tap to Call • Tap to Email • Tap to App • Tap to iTunes • Tap to Find a Location • Tap to Expand • Tap to Mobile Web Page

• Audio Ads: Ads from :07 to :30 seconds can be run in conjunction with a display companion or stand-alone. Just as in terrestrial radio, a number of internet radio publishers offer mobile creative services.

• Video Ads: Smartphones are all capable of playing mobile video formats and with more than 45% percent of mobile consumers now on 3G connections (the rough equivalent of broadband), video creative is now a reality. Pre-rolls nowprecede most short form videos viewed on smartphones. This creative can be repurposed from television or online, though some amount of technical re-coding is often needed.

Best Practices For Mobile Display Creative:

Think about the screen size and design and optimize ads for it. Insight Express did an analysis of a variety of creative that tested brand impact and came up with the following:

•Keep it simple. Copy should be limited and direct: a maximum of 16 words on the largest units and around five on the smallest.

•Make the logo very apparent. For smaller units, the logo or brand name takes up about a third of the ad unit and should be placed on the left side.

•Use eye-catching graphics rather than just plain copy.

•Try to incite a desire or make a connectionusing words like ‘get’ or ‘you’ (i.e., Get clarityon investments).

•Just like with online display, “reveal ads” or ads that cleverly try to engage the user with multiple panels, have the least impact. Don’t make people work to understand or register what you are trying to tell them.

•As all ads are clickable, you should createa mobile optimized landing page for eachcampaign so that the precisely desiredoutcome of the ad is achieved.

Best Practices For Mobile Audio Creative:

•Audio ads should be short. Try to stay under 15 seconds - seven to 10 seconds produces better results.

•Principles of radio creative established by the Radio Ad Lab can also apply to mobile.

•Strong beginnings make a difference.Especially in such a short format, make it strong and simple.

•Remember that words are sensory laden, emotional and empowering. Write copy reflecting this.

•Remember to mention the brand atleast twice.

•TV audio soundtracks can either be evocative or take away from the message. Use with caution. Time is valuable, use it well. Start strong and sustain interest throughout the ad.

•‘Location-aware’ is a hot trend. Include thisad feature only when a client has the abilityto deliver a quality experience to listeners.

Mobile Marketing

Time to get creative: Mobile creative options that engage sight, sound and touch are plentiful.

Mobile advertising is now also highly tactile. You can reach out and touch, shake, swipe and play with mobile advertising. When Apple launched what Steve Jobs called “a magical and revolutionary product at an unbelievable price” more than three million people stepped right up within the first 80 days of launch to spend a minimum of $499 for an object without a truly defined purpose. Part of the excitement of the iPad is that it has the intuitive touch functionality of the iPhone AND that no one knows what the predominant activity on it will be. One thing that early adopters do want to do on it is listen to music. The consumer electronics press that moves product (Gizmodo, Mashable, PC Magazine, Walt Mossberg from the Wall Street Journal and David Pogue from The New York Times) all commented on the re-imagined Pandora for a bigger screen which suddenly makes the concept of “behind the music” relevant again.

Standard banner with branded mixtape

Standard banner with branded mixtape

Mobile optimized page

Mobile optimized pageApp downloadStandard clickable banner

Chart5Nielsen Mobile reports that Pandora is among the most popular apps on all smartphone platforms

Chart6Musical preferences vary from wired to mobile streaming

Pandora Mobile Close Up:

Since the launch of Pandora’s iPhone app, mobile traffic to Pandora has exploded. Mobile use today now accounts for more than 50% of all Pandora usage (internal stats). Pandora is one of the top three most downloaded apps from the Apple app store and consistently ranks in the top five most used apps in the BlackBerry and Android stores according to a study released from Nielsen in June 2010 (Chart 5).

Pandora usage among apps is also unique. In contrast to the majority of apps that are used one to two and half times and then abandoned, the Pandora app is used on average 11 times per month. Mobile users are also distinct from online users. There is only a 10% overlap of people using both online and mobile.

Pandora mobile usage is viral in the most positive sense of the term: 98% of mobile users have recommended it and the average mobile Pandora user recommends it to 11 people. Eighty-one percent are extremely or very satisfied according to a user survey conducted in August of 2009. There is also a distinct shift in musical preferences from online to mobile users: mobile users are more likely to prefer Rap and R&B music genres (Chart 6).

Source: Nielsen

Source: Pandora internal statistics, August 2010

Pandora one of the top 5 apps across platforms.

Most popular used Apps...past 30 Day App Downloaders

Top 5 Ranking:

iPhone OS

Android OS

Blackberry OS

All OtherSmartphones

#5

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RockR&BElectronicaRap/Hip HopAlternativeCountry

Mobile users more likely to embrace R&B and Rap

Web

21%10%9%8%6%5%

Mobile

14%17%7%

18%5%5%

iPad standard banner iPad companion audio banner

iPad optimized page

Chart7In an increasingly fragmented media world, traditional radio has declined the most in terms of mindshare

Source: Bridge Ratings, LLC

Consumer Technology Drivers

Changing their tune: Consumers’ radio behavior has significantly changed.

Changing their tune: consumers’ radio behavior has significantly changed as technology makes it easier than ever to get what they want, when they want.

Within home, work and commuting, significant behavioral changes are going on. The impact on broadcast (or non-internet) radio consumption is most concentrated among younger demographics: 32% of those 12 to 17 and 32% of those 18 to 24 report spending less time with broadcast radio—a chilling figure to those in the broadcast radio arena if this behavior increases as listeners age. Other research sources also report declines in broadcast radio usage. Forrester, in their annual Techno-graphics survey of 2009, showed an 18% decline in radio usage over the past five years, with a 117% increase in using the Internet. And, earlier this year, Bridge Ratings reported identical results to Forrester: an 18% decline in radio consumption.

Bridge Ratings has also been looking at what they call “mindshare of media.*” The Bridge survey shows that terrestrialradio has declined the most while online video and smartphones increased the most (Chart 7). Smartphones — that perfect complement of communication (talk + text) and entertainment (apps + music) have grown in parallel to each other.

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Chart8Cell phones and AM/FM radio have most far-reaching usage

For a category that didn’t exist 15 years ago, it’s remarkable that nearly half (49%) of all Americans over 12 years listen to radio via an internet-enabled device (Chart 8).

• Bridge Ratings conducted a survey of over 2,000 consumers 12+ who were asked to name as many media as they could which they use for at least five minutes per week and to rate them on a scale of 1 to 10, where 1 equals “never top of mind in my weekly choices” and 10 equals “always top of mind in my weekly choices”.

Source: Arbitron, Inc / Edison Research

% of Americans Aged 12 and Older Who Use/Own Platform/Device

Satellite Radio

Audio Podcasts

MP3 Player (other than iPod)

iPod

Online Radio

Cell Phone

Local AM/FM Radio

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28%

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92%

Chart9Radio Landscape Today: internet radio a reflection of terrestrial radio

Chart10Over 43 million now listen to online radio according to Arbitron


Dramatic growth: Internet radio explodes onto the scene.

The radio landscape today is significantly different than it was ten years ago.Internet radio has quickly taken hold in as many and more different places asterrestrial, now mirroring the new ways of delivering terrestrial radio (Chart 9).

How does the reach of internet radio compare to other forms of digital music consumption? On a monthly basis 69 million U.S. adults have used internet radio and 49% of the total population has experienced it. Satellite radio, once thought to be the next great radio innovation of this century, has not fulfilled the promise of becoming the next radio delivery mechanism. While satellite radio reaches one out of five radio listeners, internet radio has already surpassed it in reach. Internet radio reaches 32% of active radio listeners on a monthly basis as compared to satellite, which reaches 21%. Terrestrial radio still leads with 83% reach of active radio listeners, but given internet radio’s growth rate, it seems poised to be the clear leader of the digital delivery pack. Internet radio currently reaches 43 million consumers weekly according to Arbitron and continues to grow: Since 2000 reach has grown more than 8 fold, and it grew four points (over 30%) in reach in the last two years (Chart 10).

Terrestrial Radio

GamingDevices

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% Who Have Listened to Online Radio in the Past Week

Base: Total Population 12+

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Both satellite and HD radio are on the sidelines of the chart as their usage is small compared to terrestrial radio and internet radio.

Who’s listening?

Internet radio users tend to be more affluent and educated than the U.S. population as a whole (index of 160 for HHI $100K plus) and more educated (index of 127) and more likely to be employed (index of 126) — probably due to the high propensity for consuming streaming audio at work according to Arbitron.

On mobile phones, music usage, on average, is popular with people in their late 20’s and at this point skews slightly more male accord-ing to comScore. As smartphones — the devices most capable of multi-media delivery — increase penetration in the U.S., it can be expected that the median age of users will become somewhat younger and the male skew will diminish over time. Data from Pew shows that mobile devices in general have particularly strong impact on urban and ethnic audiences and may be the primary mode for these groups (which have relatively low levels of home broadband penetration) to access the internet.

Chart11Online radio meets consumer demands

Chart12What is the reach of various Internet Radio networks?

Why is online growing so much in usage? It delivers on what the internet has always given to consumers: greater choice and control over of unique content not found elsewhere (Chart 11). The radio industry has been criticized over the past 40 years for the increasingly limited variety and over-formatting of stations, and internet radio offers a new alternative that meets consumer demands.

A mixture of traditional and emerging formats dominates Internet radio. Clear Channel online showed early dominance, but has now been overtaken on a weekly basis by Pandora (Chart 12), which now reaches more than 24 million people on a monthly basis. It should be noted that comScore numbers underestimate reach of internet radio because it only includes online use and does not include usage on mobile or other devices.


Source: comScore

0%

Base: Monthly Online Radio Listeners

5% 10% 15% 20%

Of the following reasons you might listen to Internet radio, what is the ONE main reason you listen?

To listen to audio you cannot get elsewhere 19%

To control or choose the music being played 18%

More music variety 15%

Fewer commercials 15%

To get a clearer signal than over-the-air radio 13%

Less DJ Chatter 6%

Because it’s new 5%

Variety and Control are Top Reasons for Listening to Online Radio

PANDORA.COM

Clear Channel Online

LAST.FM

ILIKE.COM

AOL Radio

JANGO.COM

LAUNCHcast

LIVE365.COM

SLACKER.COM

Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10

PANDORA.COM 6,252 6,127 9,937 11,472 11,729 13,303 12,614 12,556 13,016 13,031 13,364 12,737 13,290Clear Channel Online 8,414 8,482 9,066 9,298 9,732 10,365 9,604 9,164 10,118 9,424 9,816 10,980 11,216LAST.FM 4,614 4,055 4,166 4,570 5,111 5,750 5,758 5,184 7,690 7,729 7,398 6,870 7,506ILIKE.COM 1,148 962 1,006 992 3,213 4,494 4,706 1,897 4,187 4,244 4,645 5,133 5,363AOL Radio 4,384 4,921 5,260 5,034 5,007 5,311 4,900 4,748 4,820 4,301 4,565 4,111 4,329JANGO.COM 2,467 2,349 2,184 2,360 2,261 2,375 2,542 2,653 2,846 2,942 3,292 2,702 2,655LAUNCHcast 1,977 1,589 1,566 1,555 1,499 1,651 1,672 1,349 1,337 1,338 1,036 936 LIVE365.COM 541 594 713 700 858 1,146 728 567 855 712 664 574 722SLACKER.COM 444 485 468 512 500 663 552 528 578 575 528 537 504

0

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Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10


The socialization of radio: Social networks are the ultimate consumer content sharing site.

Social networks—which technologically enhance and enable the word-of-mouth phenomenon—are one of the most common ways consumers discover music today. MySpace started the phenomenon and quickly became the dominant platform for music discovery, however, in 2008 Facebook toppled MySpace from social networking dominance. Through sheer reach alone, Facebook (used by 46% of the U.S. population) has usurped mySpace’s dominance in the music world, despite being much more general in tone.

The connection between music consumption, radio and social networking is so strong that Arbitron worked with Edison Research to produce The Social Habit: Frequent Social Networkers. The study, released in May of 2010, shows the powerful interconnection between frequent social networkers—those who use social networks at least once a day— and their use of mobile phones and radio. Frequent social networkers prefer their mobile devices to their broadband connections, their DVRs and their TVs (Chart 14).

From the same study, seventy-six percent of frequent social networkers have listened to internet radio — as compared to 52% of the general population. What radio do they listen to? In terms of pure recall, Pandora, the free, personalized internet radio service, was mentioned by 40% of survey participants as compared to AOL Radio, mentioned only by 10% (Chart 15). The latest version of the Facebook interface allows Pandora users to display their favorite artists and songs on Facebook.com. Called the “Open Social Graph” the program enables people in the same social network to automatically share music likes, if they choose to, leading to even greater levels of music discovery.

Chart14The mobile phone has had the biggest impact on the lives of frequent social networkers

Chart15Frequent social networkers most likely to recall ‘Pandora’ among internet-only audio providers


300,000,000

% Who own/use each listed device/service and say it has had a ‘Big Impact’(5 on a scale of 1-5) on their lives

60%

0 20

Frequent Social NetworkersTotal Population 12+

40 60 80

47%

63% 49%

60% 45%

59% 44%

36% 20%

33% 27%

32% 27%

30% 34%

300,000,000

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300,000,000

300,000,000

300,000,000

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300,000,000

Please name all the companies you can think of that provide Interenet-only audio

0% 10% 20% 30% 40% 50%

Frequent Social Networkers Base: Have Ever Listened to Internet-Only Audio

Total Population 12+

40% 28%

10% 6%

7% 4%

7% 9%

5% 3%

Pandora

AOL Radio

Last.fm

Yahoo

Slacker

Conclusion:

They’re playing our song—everywhere, thanks to mobile devices.

Music is a part of our everyday lives; it is part of how people identify themselves as individuals and also connect with their friends and families. We have our own personal theme songs as well as social group music experiences. People socialize around media and connect with it in profound and unique ways. Music is also one of the most powerful forms of entertainment ever created. Every TV show has a theme song, every movie a score. People use music to define the most dramatic moments of their lives: from high school proms, to when they first met their partners, to weddings and to songs they sing to their children.

In addition to a deep connection to music people already love, music discovery is an important part of people’s overall music experience. Terrestrial radio used to be the way to discover new music, but now music discovery has exploded out of the box and is now accessible all around us through the multiplicity of internet-enabled consumer electronics devices. “My music” everywhere has reached a tipping point with smartphones, which are go-anywhere media tools that enable consumption and sharing of all forms of content, of which one of the most popular is music.

Radio was and always will be a way of connecting with consumer passion points. Through mobile devices and services, which enable the user to personalize and enhance their music experience, radio is all the more powerful. The combination of personalization, interactivity and mobility has created an expectation for a future where people expect all media to accompany them and uniquely fit their needs and preferences. But why shouldn’t we expect that and more? While the device world heightened expectations for what can be done with one device, the same can be said for applications on smartphones. When will the best of different applications come together through one application? Soon, personalized radio could be one function of a consumer’s “life” app where people manage everything from enjoying their favorite music and learning about new music, to getting personalized weather, sports, news and more.

Sources

Grateful acknowledgement to the following sources for their data contribution and information on the history and usage of radio and advertising in the US.

Adcult USA: The Triumph of Advertising in American Culture, James Twitchell, Columbia University Press, 1996

Advertising Age: What You Need to Know About Mobile Marketing: Benchmarks and Best Practices for the U.S., May 18, 2010, www.adage.com/whitepapers

Arbitron: www.arbitron.com

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Abouttheauthor:

Kathryn Koegel is a media and marketing specialist with expertise in mobile, Internet, TV and print media and advertising. She has developed both mar-keting and research strategies for companies like DoubleClick, Gemstar TV Guide (Interactive Program Guides and a cable network), US News & World Report, The Online Publishers Association and one of the first Internet ad networks, Phase2Media. At DoubleClick, she was in charge of research and industry development. Her work has been accepted by the ARF and ESOMAR. She is currently contributing to Advertising Age and working on a report on how to make interactive media work for brand advertisers. What You Need to Know about Mobile Marketing, a 40 page Ad Age Insight Report was published in May 2010. Contact her at [email protected].

Radio Rampant · Mobile access and usage is becoming as prevalent as computer access and usage....

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