A
new report from Edison Research concludes that radio station streaming is
overstated [link].
Commercial and noncommercial
stations have made significant investments to make their program streams
available. But are audio streams worth it when few people hear it?
According
to Edison’s report, streaming radio audio reaches only around 8% of radio
listeners – the remaining 92% hear radio the old-fashioned way, via
over-the-air signals. Last week, Edison VP Randy Brown presented the data at
the American Association of Public
Opinion Researchers (AAPOR) annual conference in Denver [link]. AAPOR is a
nonprofit trade organization that sets research standards for public polling
and perceptual surveys.
To
be clear, we are not talking about Nielsen Audio PPM ratings – we will get to
that further down in this post. We are talking about private research, particularly
Edison’s Share of Ear studies.
Edison
found anomalies in their own methodology concerning online surveys that
attempt to measure Internet behaviors. The problem stems from the difficulty of
reaching a representative sample of light internet users and the 10% of
Americans still have no online access. You can download Edison’s AAPOR report here. It provides a fascinating
behind-the scenes look at the process Edison uses to compile their Share of Ear studies.
Edison
says that listening to radio streams varies by the type of programming on the
station. News and sports audio streams comprise 12% of the total listening, but
only 6% for music stations.
NIELSEN AUDIO REPORTS
VERY LITTLE LISTENING TO RADIO STATION AUDIO STREAMS
Companies
such as Edison track self-reported behavior and perceptual trends. Nielsen
Audio tracks actual listening and hearing. We reviewed data from all of the
markets surveyed by Nielsen PPM methodology in April 2018 and found very little
listening to noncommercial station streams.
The chart on the left shows estimated weekly listeners to streaming station audio on all eight (8) listed noncom stations in April 2018.
The pattern for commercial stations was very similar.
Fact: There are very few
people listening to station's audio streams.
Three
of the eight noncom stations listed in April book fell below Nielsen’s minimum listening threshold. This standard is hardly arduous. To be included, a station must have received at least one (1) average-quarter-hour of listening
and must have a Metro Cume rating of 0.495 or greater.
A SEC0ND OPINION FROM AARON REED
A SEC0ND OPINION FROM AARON REED
For
additional perspective we asked Aaron Reed, Director of Information Technology
& Engineering, for his thoughts regarding the Edison study. Reed writes
frequently for publications and lists about changes in media technology. Reed
feels Edison is on the right track but has serious flaws in its own
methodology:
"Very broadly speaking, I
think the overall point that there is a lot more listening happening via AM/FM
than internet is probably correct. However, I also think these studies'
methodology is so flawed that you can't take them terribly seriously."
Aaron Reed |
"If you read the full
presentation Edison is pretty up-front about exactly how this data was
gathered. Personally, while cautioning that statistics is NOT my strong
suit, the data gathering methods seem so inexact as to be a questionable
usefulness at all. Virtually everything relies on self-reporting in a
diary by participants. That's a recipe for terrible data as the human
mind is very bad at accurate self-reporting."
"What immediately comes to
my mind is how many people hopelessly confuse the difference between different
content delivery systems. "HD Radio" vs satellite radio
(SiriusXM) is a good specific example, but more broadly: people have a lot of
trouble distinguishing between which method within their smartphone they
consume media through. For example, they might remember listening to
their iPhone vs listening to an FM broadcast...but they won't remember which
app they used on the iPhone: a custom app by the radio station? The
iHeartRadio app? TuneIn? Youtube? Soundcloud? iTunes?
These details matter to content distributors & creators but it's often too
much to ask consumers to really remember them."
"To break this down a
little: Nielsen says Rhode Island Public Radio's most recent AQH was around
2,300 if I recall correctly. I just checked our webcast stats and a
typical weekday swings between about 150 and 500 listeners, with the peak
coming around 8am. Call it a "weighted" average of 300
listeners since the peak time is relatively short. 300 is about 13%
of 2300 so while that doesn't quite line up with Edison's assertion, it's
pretty close. Does that mean Edison is right? No, not really.
Statistically we have an interesting coincidence but I don't think we have
anywhere near enough confidence in the methodology to start making business
decisions on this data."
"Heck, to start with we
had to drink Nielsen's koolaid and trust their reports that our AQH was
2,300. I don't really trust Nielsen's methodology...in large part because
they won't reveal any part of it and historically any service, product, or
procedure that relies on a "trade secret" to be useful has almost
always been proven to be false, if not fraudulent, once the "trade
secret" is exposed. And while Streamguys can provide firm statistics
that X number of playback clients were connected to the server at a given time,
that doesn't mean anyone was actually listening to the webcast at that
point. I don't mean it "on in the background", I mean someone
could've fired up our app in the bedroom, listened for two minutes, then walked
out to the kitchen to make breakfast but left the phone...still playing but
nobody to listen...in the bedroom."
- Aaron
KALW UPDATE: NEW GENERAL
MANAGER HIRED
Tina Pamintuan |
For
over a year, KALW in San Francisco has been searching for a new General Manager
to replace departing GM Matt Martin.
Last week the station announced they had hired Tina Pamintuan for the
job.
Pamintuan
worked at NPR in the late 1990s and early 2000s, first as an intern and then as
an editorial and production staffer. While at NPR, she worked with Morning Edition’s Radio Expeditions and
various assignments for NPR’s Cultural Desk.
In
2006 she became Director of Radio at City University of New York’s Graduate
School of Journalism. Pamintuan has been a mentor in NPR’s Next Generation
project since 2002. She has no previous experience in management at a radio station.
Pamintuan
will be facing considerable challenges as GM of KALW. As we reported in March [link],
KALW lags far behind KQED in audience size, the number of members and revenue
raised from the community. In that story, we said KALW’s new GM while need to
turn around the station’s sleepy corporate culture. The status quo is deeply
ingrained at KALW and there may be resistance to change.
We
wish Pamintuan well in her new gig and we hope she makes KALW shine.
Thanks to Ken for publishing my commentary. I'd like to add something I thought of today well after I sent him my thoughts...
ReplyDeleteWhile I have several well-known concerns about the Nielsen PPM system, I do want to give it credit. PPM is a strong attempt to solve the very problem I raised with Edison's methodology. It gets away from relying on self-reporting...which as any psychological researcher, pollster, or even readers of "Freakonomics", knows is highly problematic at yielding useful, accurate data...and tries to get more at the reality of what people are hearing.
Sure, there's gonna be tradeoffs. People often are quick to point out that PPM only measures *exposure* whereas diaries (self-reporting) measures *retention*. That's not an idle difference, but I can live with that difference just fine. Exposure is valuable to know, too, and I think it's more important to get objective listening rather than the memory of listening.
My real concern with Nielsen is that we're given no reason to have faith in their methodology. Okay, the PPM system itself is a little iffy, but we can gleam enough from the hardware to make educated assessments about its efficacy. And yeah, the sample size is arguably too small but while (as I said) statistics isn't my strong suit, I know that often you can accurately gleam trend information from a surprisingly small sample set. And Nielsen deserves a tremendous amount of credit for how much information they collect about the people in the sample set. The granularity of the data they have about those people holding the PPM's is astounding. Everything down to their preferred wines to drink.
But what we DON'T know is how Nielsen "processes" the raw data collected by the PPM system and turns that into ratings books. And thanks to Voltair, we now know that there was clearly a PROBLEM with the system. Stations that installed Voltairs suddenly saw 40 to 60% increases in listenership practically overnight. (!!!!)
Logically, that means either the ratings information was incorrect before Voltair, or it's incorrect after Voltair, or it was incorrect both before AND after Voltair, just in different ways. It has to be one of those three. But Nielsen has steadfastly asserted that the ratings information was correct BOTH before AND after Voltair. That logically cannot be true, and that's the source of much of my skepticism of Nielsen's assertions.
And one more thing about the Edison research: it's important to remember that the broad trend might be that "radio" listening is still primarily through actual AM/FM broadcasts and not the web...but it can vary quite a bit depending on your format, your market, and your audience.
For example, I think of KQED's "pledge-free webcast" which is a system that probably wouldn't have worked if weren't in the Bay Area. A place with very, very devoted public radio listeners AND listeners with access (and inclination to use) a lot of high-level technology well before the rest of the country. I would bet that public radio listeners in general are a little more willing and able (operationally and financially) to listen via non-AM/FM means, like smart speakers. I'm not sure of the details here; these are just guesses, but they're good things to keep in mind when digesting these studies and applying them to your own station's plans.