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The Internet Broadcast Audience
Is an Affluent and Compelling Value for Advertisers According
to Arbitron/Edison Media Research
New Study Reveals the Buying Power of Monthly
Users of Internet Broadcasts Represents Forty-Two Percent
of Estimated Online Expenditures
March 24, 2004 - New York, NY - With an
estimated monthly audience of 51 million people, Internet
Broadcasting is an affluent and compelling value for advertisers
with half, (50 percent) living in households with an annual
income of $50,000 or more according to a new study by Arbitron
Inc. (NYSE: ARB) and Edison Media Research.
The study, "Internet and Multimedia 12:
The Value of Internet Broadcast Advertising," also found that
the monthly Internet broadcast audience, people who listened
to or watched Internet radio and television in the past month,
accounts for 42 percent of all estimated online expenditures.
It also reveals that a significant portion
of Internet Broadcast consumers shop and purchase online while
listening to Internet radio:
- Just under half (42 percent) of Internet
radio listeners have listened to Internet radio while researching
a product or service online.
- Twenty-seven percent of people who tune to
Internet radio have listened while making an actual purchase
online.
The study focuses on the opportunity Internet
broadcasting affords advertisers. Sixty percent of monthly
Internet broadcast consumers use programs to block pop-up
advertising online and 43 percent also block banners. Commercials
inserted directly into online programming are not affected
by this software.
"Internet broadcast consumers spend more
time online, shop more often online and spend more money when
they do shop," said Bill Rose, vice president and general
manager, Arbitron Internet Broadcast Services. "The irony
is that these consumers also go out of their way to eliminate
most advertising from their online experience. Internet broadcast
commercials may be the best way to reach these key consumers
while purchasing decisions are being made."
The study also reveals 21 percent (51 million
people) consume Internet broadcasting on a monthly basis compared
to 12 percent (30 million people) that used it in the week
before the survey. "Therefore, advertisers who run their Internet
broadcast commercial schedules for at least one month can
almost double the reach of the their campaign," said Pierre
Bouvard, president, Arbitron New Ventures.
It was also shown that Internet broadcasting
delivers a higher concentration of the elusive young, male
demographic. Fifty-three percent of monthly Internet broadcast
consumers are ages 12-34 compared to 37 percent of the general
U.S. population. Sixty percent of monthly Internet broadcast
consumers are male compared to 47 percent of the general U.S.
population.
"Internet broadcast consumers skew younger
and are more often male," said Larry Rosin, president, Edison
Media Research. "They also spend ten percent less time with
television on a daily basis, making Internet broadcasting
a key medium for reaching this hard to reach audience."
Additional findings from the study include:
- Twenty-four percent of all Americans have
residential broadband Internet access at home as of January
2004. Half of monthly Internet broadcast consumers have
broadband access at home.
- Fifty-four percent of monthly Internet broadcast
consumers say they would be "very or somewhat interested"
in listening to Internet radio on a form of CD walkman or
cell phone.
- One in five Americans (20 percent) owns more
than 20 DVDs.
The findings reported here are based on a January 2004
survey consisting of 2,290 telephone interviews with a randomly
selected national sample of Arbitron's Fall 2003 radio diary
keepers. Since 1998, Arbitron and Edison Media Research
have conducted 12 groundbreaking studies of the Internet
and streaming media—one every six months. This latest study,
as well as previous studies, may be downloaded free of charge
via the Arbitron and Edison Media Research Web sites at
www.arbitron.com and www.edisonresearch.com.
About Edison Media Research
Edison Media 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 Media Research works
with many of the largest American radio ownership groups,
including Entercom, ABC Radio, Infinity, Bonneville and Westwood
One, and also conducts strategic and perceptual research for
a broad array of companies including AOL/Time Warner, Yahoo!,
Sony Music, Princeton University, Northwestern University,
Universal Music Group, Time-Life Music and the Voice of America.
Edison Media Research also conducts research for successful
radio stations in South America, Africa, Asia, Canada and
Europe. Edison Media Research designed and operated the CNN
RealVote election projection system in 2002, and currently
conducts all exit polls and election projections for the six
major news organizations - ABC, CBS, CNN, Fox, NBC and the
Associated Press. All of Edison Media Research's industry
studies can be found on the company's Web site at www.edisonresearch.com
and can be downloaded free of charge.
About Arbitron
Arbitron Inc. (NYSE: ARB) is an international
media and marketing research firm serving radio broadcasters,
cable companies, advertisers, advertising agencies and outdoor
advertising companies in the United States, Mexico and Europe.
Arbitron's core businesses are measuring network and local
market radio audiences across the United States; surveying
the retail, media and product patterns of local market consumers;
and providing application software used for analyzing media
audience and marketing information data. The Company is developing
the Portable People Meter, a new technology for radio, television
and cable ratings.
Arbitron's marketing and business units
are supported by a world-renowned research and technology
organization located in Columbia, Maryland. Arbitron has approximately
825 full-time employees; its executive offices are located
in New York City.
Through its Scarborough Research joint venture
with VNU, Inc., Arbitron also provides media and marketing
research services to the broadcast television, cable, magazine,
newspaper, outdoor and online industries.
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