Online Listening Grows Amongst the Radio's Millennium Generation

For a while now, I’ve been telling anyone who will listen, (and there aren’t many of these people) that the UK’s push towards digital radio is more likely to be driven by online listening, rather than DAB or DTV. That radio apps such as RadioPlayer are free, smartphones and tablets are booming, home based internet strength increasing, 3G evolving to 4G and so on just make it a more obvious alternative to the DAB set.

Today, RAJAR’s Quarter 4 2013 radio audience results are upon us and, while not exactly a seismic shift, there are some interesting signs which are indicating that we are turning more towards online and apps for our radio listening. (Click or tap Infographic to enlarge or download as PDF)

One of the first numbers I look for when the fieldwork is complete and data processed, are the platform splits. This time around, at the end of 2013, the weekly reach of all digital platforms is 52%, an increase of 1.5% points on the previous quarter and around 4% points against the final quarter of 2012. Growth in the share of listening hours is slightly more modest at 3% and 0.4% comparing the same periods and now stands at 36%. Overall by platform, AM/FM reach is 58%, DAB 23%, DTV 5% and Online/Apps 6%.

This is all well and good and the chipping away at the national target of 50% share continues, it’s some trends under the surface which offer some insights into possible changing of habits.

Most noticeably, the platform of listening amongst sub-sections of the RAJAR sample changes quite dramatically. In particular listening amongst the 15-24 year old ‘Millennium Generation’ or ‘Tomorrow’s Listener’ – whatever you want to call them. What is clear (and probably quite obvious by now) is they are more interested mobile devices, and more in the smartphone sphere than tablets.

When looking at listening by platform among 15-24s, the splits are markedly different to the overall. The platforms of listening are far closer in terms of the percentage of people listening on each – this shows that they are far more diverse in how they listen. There is a higher portion of listening on AM/FM than on the overall population – 71%. The point that interests me most though is the online figure – 28%! That’s nearly one third of 15-24s listening online or on an app – to reiterate that compares to the 6% for all adults.

What’s more, it’s overtaken DAB amongst this age group – 27% of 15-24s listen on a DAB – still higher than the overall 23%, but what this shows is that online listening is more popular amongst 15-24 year old radio listeners. This has happened once before, a year ago when the percentage reach was the same on both platforms (26%) and a marginally higher number of listeners tuned in online.  DAB however came back over 2013 and managed to keep a couple of percentage points ahead.

This time I just think a preference of online listening over DAB might be sustained and has more potential to grow. DAB listening is likely to stay at the same level, after all the hardware is in place. However, we are another year on – smartphones and tablets in particular have continued to strengthen their grip on the nation’s younger generation. By the end of 2013, 81% of males and 80% of females aged 15-24 own a smartphone while 28% and 26% own a tablet of some description. This is a significant increase compared to the end of 2012 – particularly in tablet ownership which has nearly trebled over the last 12 months (at the end of 2012 Ipsos MediaCT research was showing that 71% of males and 76% of females owned smartphones and just 13% and 10% owned a tablet).

2014 will also see RadioPlayer partnering up with Ford and their new SYNC AppLink technology to allow more online listening in cars. The price of tablets has come down significantly and what you get for your money has increased. With such ubiquity of connected devices and means to access the radio thereby, I do think that online listening stands a good chance of remaining the platform of choice for the next generation of radio listeners.

Andy Haylett is Director at Ipsos MediaCT.