Some people seem to think that Digital music pureplays like MOG, Spotify and Pandora are the future of Radio and music consumption, but they are wrong. Today’s article from radioinsights.com gives very good reasons why.
Traditional, terrestrial radio has been weathering the storm of gloomy forecasts about it’s future, but continues to show strength. As the Radio industry continue’s to expand in the Digital space with apps like iHeartradio and Radio.com, we are seeing that listeners and advertisers are using their favorite stations through multiple distribution platforms and enjoying it.
For advertisers, the strength lies in the combination of real radio, streaming and campaign activation on radio station websites and social media. Listeners just like being able to have more access to their favorite stations. It appears that only a small percentage of early adopters have jumped into the world of Digital Radio, but they mistakenly think that everyone is like them and going to embrace Digital offerings.
It’s one of those cases where so much attention has been showered onto Digital Radio and Digital pureplays that people took a good long look and figured out that, as great as they are, they just aren’t that big of a deal.
Read the article for more and check radioinsights.com regularly for, well, great Radio insights.
Funny how that works out huh?
She’s got it right. Pandora’s listenership is a scam. Go get ’em Mary Beth!
Arbitron pledges to have a product that will give a complete reporting on audio consumption across devices, channels and platforms by sometime in 2012. That will be interesting.
Pandora announced it’s version of AQH ratings in the top 10 U.S and other select markets for September and their results are surprising for a couple of reasons. The first surprise is that they (Pandora) are claiming that they have an audience that is similar in size to many top traditional radio stations in the markets they surveyed. I doubt that this is true in any major market. By focusing on a very broad daypart (Monday-Sunday 6a-12m) and a metric that’s hard for most people to understand (AQH rating) they are muddying the waters to make a point, but I doubt they will fool anyone in the world of marketing and media. Pandora isn’t a blip on any local market’s radar screen yet and won’t be for a long time.
The second surprise is that they have the courage to make these claims and send their salespeople out into the local market with this misleading monkey on their back. Most media buyers I know could look at Pandora’s statements and see that they are not credible. It’s just my opinion but I think that Pandora is further hurting it’s already damaged marketing product perception by opening this local market can of worms without divulging more about their real number of local market listeners.
In Houston, Pandora has made the outlandish claim that rankwise, they are comparable to heritage radio stations like KODA FM (Sunny 99.1), KTBZ FM (94.5 The Buzz), KBXX FM (97.9 The Box) and KRBE FM (104.1 FM). It looks crazy, but I am anxious to read more so I can be sure. So far, Pandora has been evasive and I beleive they will continue to be. It’s hard to be transparent when you’re purpose is to deceive.
With the audience measurement tools available today, Pandora should be able to quote their cumulative audience size, which would be a much better statement about their actual audience size. To not address their cume audience is a signal that they have a small one and that they cannot quote one that would be impressive.
In summary, while Pandora is trying to say “we are as big as real radio stations, please take us seriously at the local level”, I think the message they are sending to the marketing community is “we have a tiny audience size locally so we’re making fantastic claims in hopes that people don’t see the truth”. It’s going to be interesting watching Pandora and iHeartradio compete.
iHeartradio will win and it will be a joy to watch!
Music personalization and custom digital radio is an extension to the world’s most effective, popular and easy to consume medium, Radio. All of us at nickpeterson.net salute Clear Channel in taking radio’s next evolutionary step and squashing Pandora and the rest of the posers in the process.
I am noticing more display and gateway ads on Pandora. It makes sense, but once my company ( Clear Channel Radio) launches our new iheartradio app, with all of our brands and all of our personalities behind it, I just doubt Pandora will be able to compete. They’re still in the “fake it til we make it” stage, but appear to be making some smart moves. Thankfully, Radio (real Radio) has the smartest marketing professionals, client focused salespeople and most creative programmers and Radio has the infrastructure and heritage to continue to lead the way.
Yes, many people love the option of having all their favorite music easily accessible. The thing that people love about radio is the variety and the personalities. Spotify and lastfm don’t offer that and Pandora is too plagued with issues. I have chosen Spotify for my music library service (i chose premium so I can listen on my ipad2) and of course for radio, the only choice is iheartradio. I listen to stations from all over the country with iheartradio and I love it.
Bob Pittman understands how to make a media company successful. His comments in Radio Ink (click the picture of Bob below for article) are dead on. I think the world has been wowed by the technology behind internet radio, but Pandora’s customizable station offerings are just a small part of what people want from Radio. Once they realize that all Pandora offers is a playlist with limited features, they have a “Really? Is this all there is to this? This rinky-dink playlist is what all the hype is about?” feeling.
People like playlists and the surprise of what’s coming up next, but what keeps them engaged with a station is the local feel, the personality’s and the feeling of being a part of a social network. A Radio station’s listening audience is an offline social network. Well, it was offline, now is a hybrid and eventually one day will be almost exclusively online…I think. Anyway. Clear Channel, the world leader in radio broadcast excellence, is doing the right things for the future of “America’s Companion” (a.k.a. Radio).
Pandora reached an important milestone when they received their 10 billionth “thumbs up” for a song. Reportedly, the song that received the milestone thumb was Jason Derulo’s “Ridin’ Solo” and it occurred on April 24th at 4:46pm. Tim Westergren, Pandora’s founder, posted a letter on the website marking the occasion. Pandora’s genome project is the backbone of personalized Internet radio. The problem is that listeners enjoy the personality aside of radio just as much as they do the personalized playlist. Pandora is fancy online jukebox and a great one, but traditional radio (now available online and mobile) gives listeners the other critical element that radio provides…an emotional connection with a personality and the lifestyle group that a radio station serves. Pandora is one part of the radio universe…and a part whose shiny newness will fade over time.