RADIO ON THE MOVE FALL 2018 - A LOOK AT THE AUDIO LANDSCAPE AND IN CAR AUDIO BEHAVIOURS - Radio Connects
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YEAR 10 OF A ROBUST STUDY 3500+ CANADIANS 18+ ONLINE SURVEY IN FIELD NOVEMBER/EARLY DECEMBER 2018 A representative sample of 3,505 Canadians 18+ from Maru Voice Canada. Subsample of 3,145 past week drivers & passengers for questions on in-car audio consumption. Additional insights drawn from the Canadian Podcast Listener 2018 (n=1,534 Canadian podcast listeners 18+); Smart Speakers in Canada Update (n=1,512 Canadians 18+); Radiocentre.org/Audio Now| The Sound Research, MTM 2017-2018; Nielsen 2017 + 2018 Canada year end reports; Spotify IPO; Numeris Fall 2018 Radio Diary Insights. 2 | Radio Connects | Audience Insights | Spring 2019
OBJECTIVES RADIO ON THE MOVE FALL 2018 Investigate How and when audio is being consumed, both in-car and throughout the day. Inform What are the implications for the media and advertising communities. Identify Emerging technologies and the opportunities they present. 3 | Radio Connects | Audience Insights | Spring 2019
GLOSSARY OF TERMS DEFINITIONS USED IN THIS REPORT Paid ad-free Paid subscriptions to pureplay services that allow on-demand access with no advertising Streamed AM/FM Broadcast AM/FM radio streamed Pureplay music streaming Streaming of music services available online $ (e.g., Spotify Premium) either through an app or a station’s only, such as Spotify, Apple Music subscription Ad-supported website. service, and cbcmusic.ca Pureplay service options that include advertisements, but do not have a subscription fee. Owned Music YouTube for Music Podcasts Digital or analog music sources not Using YouTube to listen to music, as opposed Pre-recorded digital audio programs, usually reliant on a subscription. Examples to video content such as comedy, DIY, or long- spoken word, that you can subscribe to in a feed included CD’s purchased MP3’s form programming. Not to be confused with and/or download to listen to later. (from iTunes, etc.) or vinyl. YouTube premium. 4 | Radio Connects | Audience Insights | Spring 2019
CANADIANS ARE LISTENING TO MORE AUDIO THAN EVER BEFORE Technology is generating more listening opportunities for Canadians. Increased use of smartphones and smart speakers are making audio available wherever and whenever people want to listen. 5 | Radio Connects | Audience Insights | Spring 2019
THE AUDIO UNIVERSE IS EXPANDING TECHNOLOGY IS CHANGING HOW CANADIANS MANAGE THEIR PERSONAL MUSIC– FROM OWNING TO RENTING Albums (physical Audio & digital) sales Streams -21% + 50% 2017-2018 2017-2018 Spotify listeners Time AD18+ pay for ad-free spend with audio 2012-2017 63% + 25% 2018 in millions of hours SOURCE: MTM Spring 2017 / Nielsen 2017 + 2018 Canada year end reports / ROTM Fall 2018 6 | Radio Connects | Audience Insights | Spring 2019 * Audio Time = Radio Receiver + AM/FM Streaming + Satellite + Online Audio/Music
THE UNIQUE ROLE OF LIVE RADIO LIVE RADIO EFFORTLESSLY CONNECTS LISTENERS TO THE OUTSIDE WORLD ON-DEMAND AUDIO (E.G., PUREPLAY STREAMING, OWNED MUSIC, PODCASTS) PUTS THE LISTENER IN CONTROL OF THEIR WORLD Provide social currency Broaden my horizons Keep me in the loop 1. Live Radio 1. Live Radio 1. Live Radio Live radio fulfills more 2. On Demand 2. On Demand 2. On Demand needs states for audio than on-demand audio.* Lift my mood Help me escape Amplify the moment 1. Live Radio 1. On Demand 1. On Demand 2. On Demand 2. Live Radio 2. Live Radio *Radiocentre.org/Audio Now |The Sound Research 7 | Radio Connects | Audience Insights | Spring 2019 SOURCE: Radiocentre.org/Audio Now| The Sound Research
A DAY IN THE LIFE OF AUDIO CONSUMPTION Throughout the day, Canadians are tuned to audio. AM/FM is by far the most listened ad-supported audio platform, during the week and on the weekends. 8 | Radio Connects | Audience Insights | Spring 2019
DURING THE DAY AND WHILE AT WORK % of Canadians 18+ Listening to Each Type of Audio in Each Hour (Weekday) AM/FM connects Total AM/FM throughout the Music alternatives (pureplay music streaming, SiriusXM, TV music channels, or music on YouTube) Owned music (mp3s, cds, lps) day. AM/FM dominates when retailers are open for business. People are listening to personal music on “their own time.” B3d. And WHEN yesterday did you listen to each of the following media? 9 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ interviewed Tuesday-Saturday (n=2,383)
WHILE ‘OUT AND ABOUT’ ON THE WEEKENDS % of Canadians 18+ Listening to Each Type of Audio in Each Hour (Weekend Day) People are tuning Total AM/FM into AM/FM Music alternatives (pureplay music streaming, SiriusXM, TV music channels, or music on YouTube) Owned music (mp3s, cds, lps) during their busy weekends. When evening comes, they disconnect with personal music. B3d. And WHEN yesterday did you listen to each of the following media? 10 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ interviewed Sunday-Monday (n=1,122)
AM/FM MOST-LISTENED-TO AD SUPPORTED AUDIO % of Canadians 18+ Listening to Each Type of Audio in Each Hour (Weekday/ Weekend Day) Total AM/FM Music on YouTube Total AM/FM Music on YouTube SiriusXM Podcasts SiriusXM Podcasts Pureplay Music Streaming Pureplay Music Streaming WEEKDAY WEEKEND C1c. And WHEN yesterday did you listen to each of the following media? 11 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+, interviewed Tuesday-Saturday (n=2,383) / Sunday-Monday (n=1,122) *Sirius and pureplay streaming include both ad-supported and ad-free channels/services
AUDIO STREAMING VARIES BY DEVICE FOR PERSONAL AUDIO , CANADIANS USE THEIR PHONES; FOR STREAMED AM/FM, THEY USE LAPTOPS/DESKTOPS AND SMART SPEAKERS Devices used among past week listeners to each type of audio SMART PHONES LAPTOPS AND DESKTOPS TABLET SMART SPEAKERS Personal Music| Personal Audio YouTube|Radio Audio books Radio Pureplay music streams 60% Music on YouTube 62% Audio books 19% Pureplay music streams 10% Podcasts 58% Streamed AM/FM 45% Music on YouTube 16% Streamed AM/FM 7% Audio books 44% Pureplay music streams 36% Podcasts 11% Podcasts 5% Owned music 37% Owned music 32% Streamed AM/FM 10% Audio books 5% Music on YouTube 35% Audio books 30% Pureplay music streams 10% Owned music 2% Streamed AM/FM 27% Podcasts 29% Owned music 8% Music on YouTube 1% B3e. Thinking back to the PAST WEEK, which devices did you use to listen to each of the following media? 12 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+, listened to each type of audio in the past week, Podcasts (n=507), Audio Books (n=164), Pureplay (n=912), Streamed AM/FM (n=583), Music on YouTube (n=1,326), Owned Music (n=1,364)
IN CAR AUDIO Music apps, streaming services and connected cars are giving Canadians more choice when it comes to audio. Even so, when it comes to in-car listening, AM/FM dominates. 13 | Radio Connects | Audience Insights | Spring 2019
IN CAR TUNING TO AM/FM CONSISTENT MO-SU DESPITE MORE AUDIO CHOICES AVAILABLE, CANADIANS CHOOSE TO LISTEN TO AM/FM MOST THROUGOUT THE ENTIRE WEEK % Share of In-Car Audio Consumption M-F SA-SU M-F SA-SU M-F SA-SU 56%|57% 18%|13% 11%|15% Personal downloaded Satellite radio AM/FM music M-F SA-SU M-F SA-SU M-F SA-SU M-F SA-SU 6%|4% 5%|3% 3%|5% 2%|2% Pureplay music CDs and cassettes Downloaded podcasts Audio books streaming Q.C1a. When was the last time, if ever, you did the following in a private vehicle? 14 | Radio Connects | Audience Insights | Spring 2019 Q.C2. Thinking of all the time you spent in the vehicle yesterday, how much time did you spend doing the following? Base: Canadians, aged 18+, in private vehicle at least once per week (n=3,145)
RADIO LEADS IN CAR LISTENING ACROSS ALL DEMOS ACROSS 18-34, 35-54 OR 55+ DEMOS, AM/FM RADIO HAS LARGEST SHARE OF IN CAR TUNING PERSONAL SIRIUS FALL 2018 DOWNLOADED SATELLITE RADIO MUSIC XM AM/FM A18-34 - 28% A18-34 - 8% A35-54 - 17% A35-54 - 12% A55+ - 6% A55+ - 15% PUREPLAY CDs/ MUSIC CASSETTES STREAMING A18-34 - 10% A18-34 - 5% A35-54 - 6% A35-54 - 4% A55+ - 1% A55+ - 5% A18-34 A35-54 A55+ 40% 56% 71% PODCASTS AUDIO BOOKS A18-34 - 8% A18-34 - 3% Q.C1a. When was the last time, if ever, you did the following in a private vehicle? A35-54 - 3% A35-54 - 2% Q.C2. Thinking of all the time you spent in the vehicle yesterday, how much time did you spend doing the following? Base: Canadians, aged 18+, in private vehicle at least once per week (n=3,145) A55+ - 1% A55+ - 2% 15 | Radio Connects | Audience Insights | Spring 2019
AM/FM AN IMPORTANT FEATURE IN NEW CARS MORE IMPORTANT THAN AUTOMATIC BRAKING, PARALLEL PARKING ASSIST OR APPLE CAR PLAY / ANDROID AUTO iPhone Android % Who Ranked as Most Important Users Users Backup camera 41% 32% AM/FM radio 25% 31% Driver assist features (such as automatic braking) 14% 16% Apple CarPlay/Android Auto 12% 13% Automatic parallel parking 8% 9% After the backup camera (now mandatory in new cars sold in Canada), AM/FM radio ranks as a more important feature in a new car or truck than automatic braking, automatic parallel parking or Apple Car Play and Android Auto among iPhone and Android users. 16 | Radio Connects | Audience Insights | Spring 2019 Q. F7_1. Please rank each of the following features in terms of how important they would be to have in your new car or truck. Base: Canadians 18+ iPhone users (n=1113); Android users (n=1436)
AM/FM A ‘MUST HAVE’ FOR NEW CAR BUYERS MOST CANADIANS WOULDN’T BUY A NEW VEHICLE IF IT DID NOT COME WITH A RADIO 14% “No big deal. I don’t listen to AM/FM In the car much at all.” 30% “I’d miss it, but I’d make 56% do with my CD’s, my iPod, satellite radio or “I wouldn’t buy the car Music from my smart If it didn’t have an Phone.” AM/FM radio.” Q7. To what extent would you miss an AM or FM radio if it wasn't available in the next car you bought? 17 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ who intend to purchase a new car in the next year (n=377)
AM/FM RADIO PROVIDES THE SOUNDTRACK FOR THE LAST MILE IN THE PATH TO PURCHASE Listened to AM/FM Radio While Going To—or Doing This—Yesterday 79% 78% 77% 76% 76% 76% Stopped at the drug store Visited a car or truck Visited a hardware or Went to a movie Went to the bank Serviced car or truck or pharmacy dealership home improvement store 75% 74% 74% 74% 73% 67% Went to a shopping Visited a fast food / drive Stopped for wine, beer, Picked up groceries Pick up lottery tickets Stopped at a coffee shop mall or plaza thru liquor C5d. And still thinking about the time you spent in a private vehicle yesterday, did you do any of these things while driving, or use your vehicle to get there? C5e. Were you listening to AM/FM radio in the car while doing or going to this? 18 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians, aged 18+, in private vehicle yesterday (n=2,752); Did activity yesterday (base varies)
THE STREAMING LANDSCAPE Platforms like Spotify are relatively new to the Canadian audio landscape. However, after an initial period of rapid growth, Canadians are catching up, and pureplay music streaming is settling in to the ever expanding audio landscape. 19 | Radio Connects | Audience Insights | Spring 2019
PUREPLAY MUSIC STREAMING CONTINUES TO GROW THE BUSINESS MODEL CONTINUES TO EVOLVE FROM ‘OWNING’ TO ‘RENTING’ MUSIC LIBRARIES YEAR OVER YEAR SPOTIFY WEEKLY YOY APPLE MUSIC WEEKLY YOY GOOGLE PLAY UNLIMITED WKLY YOY 12% 16% 19% N/A 8% 9% N/A 5% 5% Fall 2016 Fall 2017 Fall 2018 Fall 2016 Fall 2017 Fall 2018 Fall 2016 Fall 2017 Fall 2018 SPOTIFY DAILY YOY APPLE MUSIC DAILY YOY GOOGLE PLAY UNLIMITED DAILY YOY 5% 9% 9% N/A 4% 5% N/A 2% 3% Fall 2016 Fall 2017 Fall 2018 Fall 2016 Fall 2017 Fall 2018 Fall 2016 Fall 2017 Fall 2018 F13. Overall, thinking of all locations, how often, if ever, would you say you listen to: 20 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+: 2018 (n=3,505); 2017 (n=3,470); 2016 (n=2,026)
STREAMING MUSIC ADDS TO TIME SPENT WITH AUDIO ITS OVERALL IMPACT IS LARGELY ADDITIVE OR NEUTRAL ON OTHER AUDIO CONSUMPTION Among Canadian Adults who Listened to Pureplay Music Services in the Past Month 56% 46% 36% 24% More than half of Pureplay streamers say Just over a third of Fewer than one-in-four pureplay music they are now spending pureplay streamers pureplay streamers say streamers say these more time listening to saying they are now these services have services do not replace audio in general. spending less time with replaced time they any other forms of audio owned music spend listening to AM/FM F16c. How would you say that the time you spend listening to music streaming services has affected the amount of time you listen to music or audio in general? F16d. What other types of audio has listening to music streaming services replaced? 21 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ who listened to music streaming services in the past month (n=1,201)
KEY REASONS TO LISTEN TO PUREPLAY STREAMING ON-DEMAND ACCESS TO A LARGE LIBRARY OF PERSONAL FAVOURITES ARE THE KEY DRIVERS FOR PUREPLAY MUSIC STREAMING \ 66% 58% 45% To listen to any song Access to big library of Discover new music when I want to hear it music 36% 33% 30% 14% Have something to listen For the playlists they To get songs/artists I To share songs I like with to on my phone offer can’t get on the radio others F16b. Which of the following reasons best describe why you listen to music streaming services? 22 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ who listened to music streaming service in past month (n=1,201)
PUREPLAY STREAMERS LISTEN TO AM/FM TO CONNECT PUREPLAY STREAMERS LISTEN TO RADIO MUCH LIKE OTHER CANADIANS. UNLIKE PERSONAL MUSIC, RADIO PROVIDES CONNECTION. 86% of past week pureplay streamers say they listen to AM/FM on “a typical weekday” 26% are heavy AM/FM listeners (2+ hrs/typical weekday) Why Listen to AM/FM? (Past week Pureplay Streamers Who Listen to AM/FM 2+Hrs/Day) 71% 61% To get practical To hear what’s happening info in general 51% 46% For the local For the human connection connection F16e. Given all the other ways you have to listen to music, which of the following reasons best describe why you still listen to AM or FM radio? 23 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ who listened to music streaming service/YouTube for Music in past month AND listen to 2+ hours of radio on typical weekday (n=650)
SPOTIFY Canadians are using the free ad-supported and paid Spotify platforms and its user base is growing. However, more and more Canadians are choosing to pay for Spotify, allowing them to disconnect and listen to their personal music with no ad interruptions. 24 | Radio Connects | Audience Insights | Spring 2019
SPOTIFY IS AT ODDS WITH ITSELF IN THE ADVERTISING SPACE SPOTIFY’S BUSINESS MODEL DOES NOT SUPPORT AN ADVERTISING MODEL € 0.4 “Listen without ads. “Reach your audience Enjoy nonstop music.” where visual media can’t” € 0.3 Billion (euros) Aggressive promotion € 0.2 of the paid ad-free € 3.7 Spotify Premium Spotify gets 90% of its € 0.1 € 2.7 service reduces both global revenues from € 1.7 the quantity and paid subscribers. € 1.0 quality of the Ad revenue is low. audience reached by 2014 2015 2016 2017 advertisers. Paid subscription revenue Ad revenue Source: Spotify IPO (https://www.sec.gov/Archives/edgar/data/1639920/000119312518063434/d494294df1.htm#rom494294_12), Summarized by Recode (https://www.recode.net/2018/2/28/17064460/spotify-ipo-charts-music-streaming-daniel-ek) 25 | Radio Connects | Audience Insights | Spring 2019
CANADIANS ARE DISCONNECTING FROM SPOTIFY ADS THE MOST DESIRABLE TARGETS ARE NOT BEING REACHED BY ADS Daily Spotify Listeners who Choose Paid Ad-Free vs. Ad-Supported Spotify Subscription 63% 66% A18+ A18-34 66% 70% 62% Canadians living in Canada’s Homes with HHI $100K+ University Grads largest cities of Tor.|Mtl.|Van. F16a. You mentioned listening to Spotify. Which of the following best describes your Spotify subscription? 26 | Radio Connects | Audience Insights | Spring 2019 Base: Daily Spotify listeners (n=309) *excludes those without a subscription (6% of total).
SPOTIFY IS GROWING, BUT ONLY AMONG PAID AD-FREE SUBSCRIBERS REACH OF ADS DECLINES AS THE % OF CANADIANS LISTENING TO AD SUPPORTED SPOTIFY DAILY DROPS FROM 3.8%-2.9% SPOTIFY USAGE Daily Spotify Listeners Weekly Daily among all Canadians aged 18+ Fall 2017 0.5% 3.8% 4.3% 2017 16.0% 8.6% Fall 2018 0.5% 2.9% 5.9% 2018 18.6% 9.4% Listen to others' subscriptions Ad supported Paid ad-free F13. Overall, thinking of all locations, how often, if ever, would you say you listen to Spotify? F16a. You mentioned listening to Spotify. Which of the following best describes your Spotify subscription? 27 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+, Fall 2017 (n=3,452) Fall 2018 (n=3,505)
SPOTIFY LISTENERS ARE ALSO AM/FM LISTENERS THE VAST MAJORITY OF DAILY AD-SUPPORTED SPOTIFY LISTENERS SAY THEY ALSO LISTEN TO AM/FM RADIO “ON A TYPICAL WEEKDAY.” Adults 18+ Adults 18-34 Unduplicated Unduplicated audience audience 0.1% 0.4% 88% 2.9% 81% 5.8% Listen to some AM/FM Listen to ad-supported on “a typical weekday” Spotify Daily E1. Thinking of all the time you may listen at home, in the car, or at work, how much time in total do you spend listening to AM or FM radio 28 | Radio Connects | Audience Insights | Spring 2019 stations during a typical weekday? Base: Canadians 18+ (n=3,505) and 18-34 (n=1,078), Daily listeners to ad-supported Spotify 18+ (n=98), and 18-34 (n=48)
SPOTIFY REPLACES OWNED MUSIC FOR PAID AD-FREE SUBS THE #1 REASON TO PAY FOR SPOTIFY IS TO DOWNLOAD SONGS TO PLAY OFFLINE 41% 36% 23% Download songs to listen No commercials To have access to almost offline any song on demand F16a_2. You mentioned earlier that you have a paid subscription to Spotify. Please rank, in order of their importance to you, what makes having a paid subscription better than having a free version of Spotify? 29 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ with a paid subscription to Spotify (n=278)
YOUTUBE FOR MUSIC YouTube is the #1 source for streaming music in Canada. More than half of Canadians use YouTube for music monthly, mostly to find a specific song they want to hear. 30 | Radio Connects | Audience Insights | Spring 2019
MOST CANADIANS ACCESSED YOUTUBE FOR MUSIC IN THE PAST MONTH MUSIC FANS AGED 18-34 ARE ESPECIALLY LIKELY TO USE YOUTUBE FOR MUSIC 9 out 58% 82% of 10 Canadians 18+ listened in the past month Canadians 18-34 listened in the past month More than half of Canadians streaming pureplay music services 42% 65% report that these Canadians 18+ listened in the Canadians 18-34 listened in the services do not replace past week past week other forms of audio B3b: [Music on YouTube] When is the most recent time, if ever, you listened to the following types of audio on ANY DEVICE? 31 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ (n=3,505), 18-34 (n=679)
SONGS, ON DEMAND, ARE A KEY DRIVER FOR USING YOUTUBE FOR MUSIC NEARLY 2/3s OF USERS SAY THEY STREAM YOUTUBE FOR MUSIC TO LISTEN TO ANY SONG THEY WANT WHEN THEY WANT IT Reasons to Stream YouTube for Music 9 out 65% 33% To listen to any song I want To have access to almost any of 10 when I want to hear it song ever recorded 28% 14% More than half of Canadians streaming pureplay music services report that these services do not replace To discover new music For the playlists they offer other forms of audio F16b3. Which of the following reasons best describe why you STREAM YOUTUBE to listen to music? 32 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ who streamed YouTube to listen to music in the past month (n=1,948)
FRANCOPHONES HAVE OTHER REASONS FOR USING YOUTUBE ALTHOUGH LIKE ANGLOPHONES, NEARLY 42% OF FRENCH SPEAKING CANADIANS USED YOUTUBE LAST WEEK Reasons to stream YouTube for music 33%|122 Index 23%|110 Index To discover new music To get songs/artists I can’t hear on AM/FM radio 16%|123 Index 20%|55 Index For the playlists it offers For French Canadians, access to almost any song available isn’t a driver F16b3. Which of the following reasons best describe why you STREAM YOUTUBE to listen to music? 33 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ who streamed YouTube to listen to music in the past month English (n=1,636) French (n=312)
SOME ARE WATCHING VIDEOS; OTHERS ARE ONLY LISTENING ABOUT HALF THE TIME SPENT WITH YOUTUBE FOR MUSIC IS SPENT LISTENING, NOT WATCHING VIDEOS Average % of Time Spent Watching vs. Listening Only when Using YouTube for Music (Past Month Users) 9 out A18+ A18-34 of 10 55% 52% 45% 48% More than half of Canadians streaming pureplay music services report that these services do not replace other forms of audio Watching videos Listening only Watching videos Listening only B3B. When is the most recent time, if ever, you listened to the following types of audio on ANY DEVICE? F10b. [Mean Summary] Of all the times you spend going to YouTube for music, approximately how much of that time would you say you spend: 34 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ (n=3,505). 18-34 (n=679) / who streamed YouTube to listen to Music in the past month 18+ (n=1,948) 18-34 (n=554)
ADS TYPICALLY GO UNWATCHED WHEN STREAMING YOUTUBE FOR MUSIC 18-34 YEAR OLDS ARE PARTICULARLY LIKELY TO MINIMIZE THE SCREEN AND SKIP ADS WHEN THEY USE YOUTUBE FOR MUSIC 83% 90% Skip ads A18+ report skipping ads A18-34 report skipping ads “every” or “most” times when “every” or “most” times when streaming YouTube for music streaming YouTube for music 26% 37% Minimize screen A18+ report minimizing screen A18-34 report minimizing “every” or “most” times when screen “every” or “most” times streaming YouTube for music they stream YouTube for music F10a. [Every Time/Most of the Time] How often do you do each of the following when you’re streaming music on YouTube? 35 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians who streamed YouTube to listen to Music in the past month , 18+ (n=1,948) 18-34 (n=554)
PODCASTING The growth of podcasting is contributing to the expanding audio landscape. Canadian broadcasters and advertisers are now taking advantage of the unique opportunity presented by the immersive nature of this emerging medium. 36 | Radio Connects | Audience Insights | Spring 2019
PODCAST LISTENERS LISTEN MAINLY ON THEIR PHONE PAST WEEK PODCAST LISTENERS ARE 2x AS LIKELY TO HAVE LISTENED TO PODCASTS ON THEIR PHONE VS. A DESKTOP/LAPTOP DEVICE USED TO LISTEN TO PODCASTS IN PAST WEEK 9 out 58% 29% On smartphone On desktop/laptop of 10 More than half of Canadians streaming pureplay music services 11% 5% report that these services do not replace On tablet On smart speaker other forms of audio B3e. [Podcasts] Thinking back to the PAST WEEK, which devices did you use to listen to each of the following media? 37 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ / Past week podcast listeners (n=507)
MOST PODCAST LISTENING TAKES PLACE AT HOME ON AVERAGE, PAST MONTH PODCAST LISTENERS DO MOST OF THEIR PODCAST LISTENING AT HOME; 18-34 LISTENERS ARE MORE LIKELY TO LISTEN ON THE GO, WITH MORE LISTENING OUTSIDE THE HOME Average % of time spent listening to podcasts 58% 18% At home In the car 12% 7% 4% At work On transit Another location F9. Of all the time you spend listening to podcasts, what proportion is…? 38 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians aged 18+ who listen to podcasts in the past month (n=834)
CANADIAN PODCAST LISTENING INCLUDES AM/FM CATCH UP PODCASTS MORE THAN 4-IN-10 PAST MONTH PODCAST LISTENERS (41%) INCLUDE AM/FM SHOWS AS PART OF THEIR PODCAST LISTENING. AM/FM PROGRAMS ACCOUNT FOR MORE THAN ¼ OF THE TIME THEY REPORT SPENDING WITH PODCASTS. Average % of time spent listening to podcasts (among past month podcast listeners) 26% 74% Programs you can also hear on AM/FM Programs not played on radio F10_2. [Mean Summary] Of all the podcasts you listen to, what proportion are…? 39 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ who listened to a podcast in the past month (n=834)
ADS ON PODCASTS AND AM/FM RADIO ARE LEAST LIKELY TO BE AVOIDED MONTHLY PODCAST LISTENERS ARE MUCH LESS LIKELY TO SAY THEY AVOID ADS ON PODCASTS THAN ON OTHER DIGITAL MEDIA Avoid ads most/ all of the time (Monthly podcast listeners) Podcasts 45% AM/FM radio 45% Print newspaper/magazines 53% TV 54% Direct mail 65% Email advertising 65% Online video 69% Online banner ads 70% Online pop-up ads 74% Source: Canadian Podcast Listener 2018 [A4A] When you come across ads in each of the following places, how often do you actively avoid those ads by skipping, 40 | Radio Connects | Audience Insights | Spring 2019 blocking, tuning out, turning away, throwing away or otherwise avoiding the ad? Base: Monthly podcast listeners age 18+ (n=1,534)
LOW-REZ SMART SPEAKERS In a little over a year, smart speaker penetration in Canada has grown from 4% to 19%. Being first to market in Canada has given Google a solid lead over Amazon’s Echo. In the U.S., Amazon leads Google. 41 | Radio Connects | Audience Insights | Spring 2019
NEARLY ONE-IN-FIVE CANADIAN ADULTS NOW HAVE A SMART SPEAKER ONE-IN-TWELVE CANADIAN ADULTS (7%) REPORTED RECEIVING SMART SPEAKERS AS A GIFT OVER THE 2018 HOLIDAY PERIOD CV ANY SMART SPEAKER GOOGLE HOME AMAZON ECHO/ALEXA APPLE HOMEPOD January 2019 19% January 2019 14% January 2019 6% January 2019 2% Fall 2018 12% Fall 2018 8% Fall 2018 6% Fall 2018 2% June 2018 11% June 2018 8% June 2018 2% June 2018 1% Fall 2017 4% Fall 2017 3% Fall 2017 2% F17. Which of the following would best describe your experience with the Amazon Echo and Google Home Amazon Echo /”Alexa”, Google Home and Apple HomePod “smart” speakers? 42 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ (n=1,512), January 2019 / *Canadians 18+, Radio on the Move, Fall 2018 (n=3,505), June 2018 (n=2,035), Fall 2017 (3,470)
COMPACT SPEAKERS TOPPED THE 2018 HOLIDAY GIFT LIST BY A 3-TO-1 RATIO, CANADIANS RECEIVED FEATURE-PRICED COMPACT SPEAKERS OVER THEIR FULL-SIZED COUSINS; MEANWHILE, GOOGLE MAINTAINED THEIR DOMINANCE OVER AMAZON AND APPLE. Among Canadians Receiving a Smart Speaker Holiday Gift 62% 18% Google Mini Home Google Home 15% 5% 3% Amazon Echo Dot Amazon Echo Apple HomePod Q6. Which, if any, of the following did you receive as a gift over the holidays? 43 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ who received a smart speaker over the holidays (n=94), January 2019
MORE HOUSEHOLDS NOW HAVE MULTIPLE UNITS IN JANUARY 2019, MORE THAN 1/3 OF SMART SPEAKER HOUSEHOLDS HAD MULTIPLE SPEAKERS; 13% HAD 3+ SPEAKERS One smart speaker in the home 70% 67% 63% Sum’18 Fa’18 Win’19 Win’19 Smart Speaker in the home Two smart speakers in the home 11% 12% 19% 17% 22% 23% Sum’18 Fa’18 Win’19 Sum’18 Fa’18 Win’19 Three+ smart speakers in the home 13% 12% 13% Sum’18 Fa’18 Win’19 F20b. In what room(s) in your home do you currently have your smart speaker(s)? F20a. In total, how many of these "smart" speakers do you have in your home? 44 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ who own a smart speaker, Summer 2018 (n=213) / Fall 2018 (n=403) / Jan 2019 (n=288)
LIVING OR FAMILY ROOM PRIME LOCATION FOR A SMART SPEAKER SMART SPEAKER OWNERS WITH MULTIPLE UNITS OFTEN PLACE THEM IN THE BEDROOM OR KITCHEN 59% 30% 29% Living or Family Kitchen Bedroom Room 9% 5% 4% 7% Office Den Workshop Other 45 | Radio Connects | Audience Insights | Spring 2019 F20b. In what room(s) in your home do you currently have your smart speaker(s)? F20a. In total, how many of these "smart" speakers do you have in your home? Base: Canadians 18+ who own a smart speaker, Summer 2018 (n=213) / Fall 2018 (n=403) / Jan 2019 (n=288)
SMART SPEAKERS BRING MORE AUDIO INTO THE HOME MUSIC STREAMING AND AM/FM RADIO ARE WIDELY LISTENED TO BY SMART SPEAKER OWNERS Listened in past week on smart speaker 66% 46% 19% Pureplay Music Streaming AM/FM Radio Podcasts Q5a. When was the most recent time, if ever, that you listened to the following types of audio ON YOUR SMART SPEAKER? A streaming music service (e.g., Spotify, Amazon Music Unlimited, Apple Music); AM/FM radio; podcasts 46 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ with a smart speaker in the home (n=288)
SMART SPEAKERS CREATE NEW OPPORTUNITIES TO LISTEN TO AUDIO Net increase in listening to music: +38% Impact of Smart Speakers on Time Spent with Audio More than 4-in-10 smart speaker owners say they are listening to (by % of owners) more music since they got their smart speaker, with just 3% +38% saying they are listening to less music. Listening More Listening Less Net increase in listening to AM/FM: +11% Smart speakers are the new “radios” for many smart speaker +11% +11% owners. 41% Net increase in podcast listening: +11% 21% 21% Google Home in particular provides easy access to recent episodes of favourite podcasts. -3% -10% -10% Music AM/FM Podcasts SOURCE: Radio on the Move W10 Q.F21. How would you say having a smart speaker at home has affected the amount of time you spend listening to each of the following? *non-listeners and those who did not report any changes not shown 47 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians aged 18+ who own a smart speaker (n=375)
PEOPLE ARE USING SMART SPEAKERS BEYOND AUDIO CANADIAN SMART SPEAKER OWNERS ARE EXPLORING OTHER USES FOR SMART SPEAKERS Past Week Usage of Smart Speakers Fall 2017 Fall 2018 Instant access to music 38% 52% Weather info 29% 48% Setting alarms 26% 35% Wikipedia-style questions 23% 31% Checking the time 20% 26% Access to news 21% 24% Control other smart devices 16% 22% Making shopping / to-do lists 16% 21% Sports scores / schedules 17% 18% Traffic info 14% 11% Stock market info 13% 5% F19. Which of these things would make you most interested in having one of these “smart speakers”? 48 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians aged 18+; owned a Google Home or Amazon Echo or Apple Homepod (n=417)
MANY CANADIANS ARE STILL ON THE SIDELINES FOR SMART SPEAKERS NEARLY 2/3s OF CANADIANS SURVEYED IN JANUARY 2019 SAID THEY ARE UNLIKELY TO BUY A SMART SPEAKER IN THE NEXT 6 MONTHS 62% 17% 2% Unlikely to buy in Somewhat likely to Very likely to buy in the next 6 months buy in next 6 months next 6 months Q2. How likely are you to buy one of these devices, or others like them, within the next 6 months? 49 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ (1,512) who do not own a smart speaker (n=1,224), January 2019
PRIVACY CONCERNS REMAIN A BARRIER TO ADOPTION “TO WHAT EXTENT, IF AT ALL, ARE YOU CONCERNED ABOUT YOUR PRIVACY BY HAVING A “SMART SPEAKER” IN YOUR HOME?” “Very Concerned” about Privacy by Having a Smart Speaker in Home 40% Four-in-ten Canadians who are unlikely to buy a smart speaker in the next 6 months are very concerned about privacy if they had a smart speaker at home. 18% 11% Have Smart Speaker Likely to Purchase Unlikely to Purchase F21_2. To what extent, if at all, are you concerned about your privacy by having a “smart speaker” in your home? 50 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ who have heard of smart speakers AND have a smart speaker (n=417), don’t have but are likely to purchase (n=542) don’t have and are unlikely to purchase (n=2,456)
RADIO CONNECTS Radio reaches more Canadians than any other media. And it uniquely connects with listeners. With influential personalities and low ad avoidance, radio motivates action and drives to digital activity. 51 | Radio Connects | Audience Insights | Spring 2019
RADIO REACHES CANADIANS NUMERIS FALL DIARY RESULTS SHOW THAT RADIO REACHES 85% OF CANADIANS AGED 12+—MORE THAN 27 MILLION—PER WEEK Millions of Canadians reached weekly (A12+) 26.9 26.6 26.7 27.0 27.2 27.3 27.4 27.4 27.3 27.3 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 52 | Radio Connects | Audience Insights | Spring 2019 Source: Numeris Radio Diary, Fall Surveys, Mo-Sun 5a-1a, A12+. Note: Fall 2016 ORD introduced.
RADIO CONNECTS LISTENERS TO THEIR FAVOURITE HOSTS NEARLY 3-IN-10 CANADIAN RADIO LISTENERS (27%) SAY THEY HAVE A FAVOURITE RADIO HOST, DJ OR SHOW Strongly + somewhat agree (among listeners with a favourite) 93% 91% 85% I trust their information They make me laugh They are part of my daily and opinions routine 84% 74% 65% They make me think I’d follow them to They feel like my another station friends/family F16e_2. Do you have a favourite DJ, host or show in AM/FM radio? F16E_3. [Top2box summary] To what extent do you agree or disagree with each of the following statements about your favourite DJ, host or show? 53 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ who listen to radio in a typical weekday (n=3,133) / Have favourite DJ, host or show (n-864)
IN-CAR RADIO LISTENING ACTIVATES PURCHASES COMMERCIALS HEARD ON THE RADIO WHILE IN THE CAR INFLUENCE PURCHASE BEHAVIOURS 33% Recall something they heard on the radio in the car affecting a purchase they were about to make, or a store/location about to be visited. AD3. Has something you heard on the radio in the car ever affected a purchase you were about to make, or a store/location you were about to visit? 54 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ (n=3,505)
ADS ON AM/FM RADIO GENERATE ACTION HALF OF ALL CANADIANS SAY THEY HAVE TAKEN ACTION AFTER HEARING AN AD ON THE RADIO 37% Went online to get more information after hearing an ad on the radio 50% Did at least one of these actions 25% after hearing an ad for a product or Told someone about a product or service on the radio. service they heard on the radio 17% Purchased a product or service they heard advertised on the radio Q.Ad1. Whether listening in the car or elsewhere, have you ever taken any of the following actions after hearing a brand, product or service advertised on AM/FM radio? 55 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+ (n=3,505)
NEARLY 1-IN-5 CANADIANS WENT ONLINE IN THE PAST MONTH TO GET MORE INFO ON SOMETHING THEY HEARD ON THE RADIO HEARING ADS ON THE RADIO DRIVES SEARCH, PARTICULARLY AMONG THOSE WHO LISTEN TO DIGITAL AUDIO = UNATTRIBUTED DRIVE TO DIGITAL 18% 17% 26% 24% Canadians 18+ Canadians 18-34 HH Income $100K+ University + education Past week listeners to digital audio are more likely than the average Canadian to have gone online to get more info on an ad 132 Index 134 Index 171 Index they heard on AM/FM radio in Stream pureplay music Listen to podcasts Stream AM/FM Radio the past month. Q.Ad1. [Gone online to get more information about it] Whether listening in the car or elsewhere, have you ever taken any of the following actions after hearing a brand, product or service advertised on AM/FM radio? 56 | Radio Connects | Audience Insights | Spring 2019 Q.Ad2b. When was the most recent time you went online to get more information about a brand, product or service after hearing it advertised on AM/FM radio? Base: Canadians, aged 18+, (n=3,505)
IN SUMMARY Technology is giving Canadians more choice when it Podcast listening is growing in Canada. This new comes to audio listening. AM/FM dominates. platform gives Canadian broadcasters and advertisers unique opportunities to participate. AM/FM is the most listened to of all ad-supported audio platforms, during the week and on the Nearly 1-in-5 of Canadians now have a smart weekends. speaker, spurring more audio listening at home, including AM/FM. Canadians are relatively late to the party when it comes to pureplay music streaming but it’s now Radio connects. More than 27 million Canadians settling into the ever-expanding audio landscape. listen weekly. Overall, listening to Spotify is growing but daily reach Radio drives purchase. One-in-three Canadians say of ad-supported Spotify is actually declining; almost hearing a radio ad in their car affected a purchase all of it duplicated on AM/FM. or store/location they were about to visit. YouTube is the #1 source for music streaming, but Radio pushes to digital. Hearing ads on the radio 83% of Adults 18+ and 90% of A18-34 usually skip ads leads to online search, particularly among those when streaming YouTube for music. who also listen to digital audio. 57 | Radio Connects | Audience Insights | Spring 2019
APPENDIX Detailed profiles of past week listeners to various audio options. 58 | Radio Connects | Audience Insights | Spring 2019
PAST WEEK USAGE OF DIFFERENT AUDIO OPTIONS, INDEXED TO CANADIAN ADULT POPULATION Pureplay Over-the- Music Ad- SiriusXM Past Week Listeners Air Streamed Streaming Paid Supported satellite TV Music Music on Owned Audio AM/FM* AM/FM Service Spotify Spotify Radio Channels YouTube Music Podcasts Books Sample 2,612 583 912 278 288 525 575 1,326 1,364 507 164 Male 102 98 96 98 106 110 100 106 108 116 106 Female 98 102 104 102 94 90 100 94 92 84 94 A18-29 79 93 200 240 193 87 53 167 107 160 140 A30-44 97 115 142 162 150 92 96 131 119 169 142 A45-54 111 130 95 70 90 120 110 100 110 75 90 A55-64 108 100 50 30 40 100 125 70 95 55 60 A65+ 102 56 28 11 33 106 117 44 67 33 67 30+ minute commute 114 125 132 150 150 118 89 121 104 139 118 TOR/VAN/MTL + Other Large 99 110 108 122 120 86 94 106 108 112 112 Cities (500k + population) University education 105 123 123 127 131 92 81 108 108 162 154 $100k+ HHI 114 139 133 144 106 167 111 94 106 144 122 Heavy radio listeners (2+ hrs/ 131 171 96 79 96 114 129 93 100 93 82 typical weekday) Live in Quebec 97 84 76 64 92 60 140 100 104 84 68 * Listened to over-the-air AM/FM stations via a regular radio B3B. [Past week summary] When is the most recent time, if ever, you listened to the following types of audio on ANY DEVICE? 59 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+, Past week listeners to each media
PAST WEEK LISTENERS TO STREAMED AM/FM Indexed to Canadian Adults (n=583) 130 99% listen to AM/FM radio on "a typical weekday." 115 100 48% 52% 93 While under-indexing in the 18-29 demographic, streamed AM/FM listeners are younger than the average 56 medium/heavy radio listener.* AM/FM streamers skew slightly towards Canada’s urban centers (Index: 110) and are more affluent and educated than the average. AM/FM streamers are more tech-forward than the 48% / 52% average Canadian, being more likely to own a smartphone A18-29 A30-44 A45-54 A55-64 A65+ (Index 111), smart speaker (175) or wireless speaker (129). 139 123 125 Looking at weekday listening by daypart, streamed AM/FM 114 111 is more likely to be part of the workday or evening than 103 103 100 100 87 94 84 88 over-the-air broadcasts, and less likely to be listened to 79 77 during commute times. % Listening (of those who listened yesterday) 64% 59% 56% 47% 53% 36% 27% 18% 6a-10a 10a-3p 3p-7p 7p-mid OTA AM/FM Streamed AM/FM *Listens to 1+ hours in typical weekday 60 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+
PAST WEEK PUREPLAY MUSIC STREAMING SERVICE USERS Indexed to Canadian Adults (n=912) 200 86% listen to AM/FM radio on "a typical weekday." 142 Canadians who used any of a broad range of online 95 music streaming services in the past week are 50 younger and skew more female than the population 28 as a whole. They are somewhat more likely to have household incomes in excess of $100,000 a year, 47% / 53% and to have completed a university degree. A18-29 A30-44 A45-54 A55-64 A65+ 133 132 Choice of smartphone is one area where pureplay 123 109 115 118 music streamers differ from other digital audio 103 97 100 103 100 consumers, being more likely to have an iPhone. 81 83 76 Phone type, by audio Other 69 iPhone Android listened to past week Smartphone Pureplay music streaming 46% 47% 3% Streamed AM/FM 37% 49% 5% Podcasts 37% 47% 6% Audiobooks 37% 47% 8% Music on YouTube 32% 52% 6% 61 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+
PAID AD-FREE SPOTIFY SUBSCRIBERS Indexed to Canadian Adults (n=278) PREMIUM 240 83% listen to AM/FM radio on "a typical weekday." 48% 52% 162 Compared to their ad-supported counterparts, ad- free Spotify subscribers skew more female, and are 70 younger and more affluent. 30 11 Ad-free members are more frequent users of the 48% / 52% service, with 67% listening daily, compared to 35% A18-29 A30-44 A45-54 A55-64 A65+ of ad-supported members. 144 150 127 130 Regionally, more ad-free members live in large cities 113 115 115 or other urban centres. 94 91 Ad- 80 Ad-free 72 71 75 subscribers supported 64 Market size subscribers 51 Large Cities (500k+ pop) 60% 59% Medium-Sized Cities (100k-500k) 28% 19% Small cities/towns/rural [
AD-SUPPORTED SPOTIFY SUBSCRIBERS Indexed to Canadian Adults (n=275) 92% listen to AM/FM radio on "a typical weekday." 193 52% 48% 150 Compared to Canadians in general, ad-supported Spotify subscribers are younger and more educated. 90 They also tend to have longer commute times than 40 33 the average Canadian. 52% / 48% In contrast with ad-free Spotify subscribers, ad- A18-29 A30-44 A45-54 A55-64 A65+ supported subscribers are more likely to also be 150 daily and weekly users of other paid streaming 131 services. 118 114 113 Ad- 103 97 106 106 Ad-free supported 92 95 92 subscribers 86 91 Daily/Weekly Listening subscribers 59 Daily – Google Play Unltd. 3% 7% Weekly – Google Play Unltd. 7% 14% Daily – Apple Music 5% 14% Weekly – Apple Music 10% 21% 63 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+
PAST WEEK YOUTUBE FOR MUSIC LISTENERS Indexed to Canadian Adults (n=1,326) 167 87% listen to AM/FM radio on "a typical weekday." 131 52% 48% 100 Past week users of YouTube for music are younger 70 than the average Canadian, and skew slightly 44 towards the lower end of the income scale. Rather than it being a replacement for traditional 52% / 48% AM/FM, 42% of those using YouTube for music A18-29 A30-44 A45-54 A55-64 A65+ weekly are medium or heavy radio listeners – in line 121 with the 45% of Canadians 18+ who say the same. 108 111 106 113 98 97 100 103 100 94 94 91 86 Despite lower-than-average household incomes, 79 these individuals are significantly more likely than the average to have smartphones (89% vs. 82%) and tablets (60% vs. 57%). 64 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+
PAST WEEK LISTENERS TO OWNED MUSIC Indexed to Canadian Adults (n=1,364) 119 107 110 89% listen to AM/FM radio on "a typical weekday." 95 53% 47% 67 Listening to CDs, MP3s, vinyl or other owned music sources remains a broad-based audio option. Four- in-ten adult Canadians (39%) say they listened to owned music in the past week—significantly more than the 27% who listened to pureplay music 53% / 47% streaming services. A18-29 A30-44 A45-54 A55-64 A65+ Apart from very few falling into the 65+ 103 108 100 106 104 108 100 100 95 104 91 94 95 100 demographic, the age, education and income of 88 those using owned music is not far off the Canadian population, with men slightly more likely to be weekly listeners than women. Owned music listeners are not technology-averse. They are more likely than the average Canadian adult to have a smartphone (85% vs. 82%) or tablet computer (61% vs. 57%). 65 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+
PAST WEEK PODCAST LISTENERS Indexed to Canadian Adults (n=507) 160 169 89% listen to AM/FM radio on "a typical weekday." 57% 43% Past week podcast listeners, while younger than the 75 average Canadian, are skewed towards the 30-44 55 year olds rather than those 18-29 who typically 33 index highest with other digital audio formats. 57% / 43% Podcast listeners are typically well educated and A18-29 A30-44 A45-54 A55-64 A65+ affluent, with higher than average household 162 incomes. Men are more likely to fall into this age 144 139 138 group than women. 112 106 97 100 103 With 24% owning or having access to a Smart 86 84 Speaker (such as a Google Home or Alexa) in 69 67 75 63 November/December 2018, podcast listeners were considerably more likely than the average Canadian (12%) to have access to this emerging technology. 66 | Radio Connects | Audience Insights | Spring 2019 Base: Canadians 18+
QUESTIONS? Please contact us for more information on this report 647-464-8695 lisa.dillon@radioconnects.ca OR caroline.gianias@radioconnnects.ca Radioconects.ca @ Radioconnects Radio Connects 67 | Radio Connects | Audience Insights | Spring 2019
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