Study paints streaming radio listeners as younger, more affluent, and more receptive to ads on online radio

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Issue Date: 
Jun 19 2013 - 12:50pm

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There's a new study out from GroupM Next that it says shows Internet radio listeners are younger, more affluent, listen in more places, and are more open and responsive to ads (on online radio) than those who listen mainly to AM/FM.

According to the research, avid Internet radio listeners averaged 34 years of age, with the typical broadcast listener at 47. Yet both groups have the same average income -- meaning the Net radio fan attained his/her level of affluence 13 years earlier.

Inside Radio today reported on the white paper, called "The Internet Radio Marketplace: Who Listens, Where, and Why You Should Care." GroupM Next, by the way, is the firm that said it found 34% of respondents it surveyed would switch from their current favorite webcast service to the forthcoming iTunes Radio from Apple, sight-unseen (reported here).

More than 40% of Internet radio listeners reported listening to streaming radio at every location listed in the study ("home, work, car, gym and/or while running errands"). GroupM Next calls the workplace and the gym the emerging "earbud markets."

"Smartphones are freeing consumers to listen to Internet radio in more locations, with greater privacy and less distraction," the report comments.

Of course, AM/FM's traditional stronghold is the car. The company's Steve Sherfy blogged about another finding of the study: "The inclusion of in-dash digital audio increased consumers' auto purchase intent by 14%. There are very few, if any, non-performance features that have similar sway over a potential buyer's checkbook."

GroupM Next says their data shows Internet radio listeners are more open to receiving advertising, and less likely to take measures to avoid it, than broadcast radio listeners. And for the ads they do hear, Net radio fans are twice as likely to have purchased a product which they hear advertised on Internet radio in the last month, compared to broadcast partisans.

See the paper from GroupM Next here, and read Sherfy's blog here.

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