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AG News:
Tuesday - 6/29/2010
Audience Movement from Broadcast to Internet Radio
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Tracking the radio industry online shows a direct correlation between it and the broadcast radio industry relative to the introduction of PPM.
This is not an extreme scientific analysis but a simple comparison between the introduction of PPM measurement, the response by terrestrial stations to its numbers, and a reflection of audience movement in a particular format - jazz. Digest this data. It shows how the internet radio industry gains traction in a format when broadcast radio pulls away.
It's no secret that for broadcast radio, jazz-formatted stations have taken a hit since PPM was introduced. The disturbance began around July 2009, as Arbitron began its aggressive rollout of digital measurement. A synopsis of Arbitron's position is stated in their press release dated August 18, 2009, "Arbitron Details July 2009 Sample Quality Metrics for PPM Markets." The content speaks of reports averaged across 20 markets where PPM was already established as the "currency" metric.
Only, let's take a look at a set of corresponding metrics that shows how jazz, as it was being abandoned by broadcasters, started a climb at online radio stations.
The graph telling the story comes from RadioRow.com. Prior to PPM making its way into mainstream broadcast radio, many of this genre's audience were finding what they needed on the dial. View the months of May through August 2009 to see how interest in finding internet radio stations featuring jazz music was running rather scarce (averaging approx. 4,514 visitors monthly).
Following the move to PPM in mid-summer of 2009, when we began seeing jazz radio stations switch formats after disastrous PPM books, the number of individuals visiting RadioRow's jazz format page increased - on average - to 12,453 each month.
There is nothing left to be said that isn't explained in the above graph. It displays a 175.8% increase in visitors to the RadioRow jazz station page since the radio industry began switching off its jazz-formatted stations.
If anyone is looking to identify the motivation to move from a terrestrial station to its internet counterpart, here it is. When the broadcast radio industry stops servicing its audience, that audience looks elsewhere for the content it loves. As for jazz - people are finding it online in greater numbers.
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