Three Things for June 24, 2021
From the Public Impact Group
This is Three Things for public media leaders for June 24, 2021.
Here's what's up this week:
Smartphones and Gen Z
Speaking of Mobile: Wireless and the Infrastructure Plan
Radio Listening Continues Its Comeback — including Weekends!
THING ONE: A Smartphone-focused Strategy for Gen Z
Earlier this month, I reported on the eMarketer research showing the huge bump in time spent with digital media during the COVID-year of 2020. This same study also projected that trend continuing into the next few years coupled with time spent with traditional media (radio\TV\print) dropping by 45 minutes a day in the next 2-3 years.
A deeper dive into digital device usage notes how the smartphone is driving the growth in time spent with media, with the projection that from 2019 through 2023, the average daily time spent on nonvoice mobile devices will increase by 50 minutes a day. Further data from eMarketer projects that this year nearly a third of all time spent with total media will be on a mobile device.
As public media organizations continue to refine their digital strategies, it's more evident than ever -- particularly for public radio -- that our strategies beyond radio should focus on the smartphone as the vehicle to engage new audiences and build loyalty with existing ones.
This is supported by recent research focusing on Generation Z from the mobile advertising and app-monetization company Tapjoy. If public radio is to begin to engage with younger listeners, you start to understand that this generation doesn't know a world without smartphones.
22% of Generation Z got their first smartphone at age 10 or younger, and 61% got theirs between 11 and 17.
Almost half replace smartphones every two to three years.
Their favorite mobile activities are games, social media, and entertainment such as streaming apps like Netflix or Disney+.
The research also suggests that Gen Z prefers humorous brand content. In addition, they show a strong preference for short videos, with 66% listing it as a preferred content type compared to 63% among Millennials and 59% for Gen X.
One of the core characteristics of Gen Z is racial diversity1. A slight majority of Gen Z-ers (52%) is white; 25% is Hispanic, 14% is Black, and 4% is Asian.
While many in the Gen Z generation have yet to complete four years of college, they are on track to have the highest percentage of college graduates of any generation in American history.
Eric Nuzum’s recent column in Current touches on the need for public radio to reach younger audiences recognizing that public radio is not programmed for them. Given what we know about this group, here’s an idea, or as Eric describes it, the “second lane,” although I don’t think that using a transmitter, antenna, and tower is the answer.
This has to take a “network approach” combining national and local resources to create a “service” specifically for younger listeners.
The radio stream will not work with this group that has grown up with choice and control.
If you accept these two points, then I propose using the product we know as NPR One as the vehicle to reach and serve younger audiences.
The saga of NPR One2 is a troubled one for our system, but I still see it with great potential to serve audiences.
A curated approach combining existing content (stories and podcasts) mixed with original material designed to speak to this generation on a platform built for the smartphone might work. We own it, so we also own the data and knowledge to help us learn and serve listeners better. And it also has revenue opportunities - both in membership and sponsorship that mirror our existing broadcast model in many ways. Is this a starting place to focus on serving younger audiences? What do you think?
THING TWO: Mobile Broadband and The Infrastructure Bill
I have no illusions about the priorities for public media when it comes to advocacy for our industry on Capitol Hill. There’s the annual appropriation and the proposed $300 million needed for infrastructure to replace and upgrade aging equipment across our public radio and television. These are vital to maintaining the level of service that our audience expects.
At the same time, I’ve been advocating a more active approach with some of the proposed legislation designed to address the Local News Crisis.
But, I would also like to add one more suggestion for public media to step up its advocacy efforts in Congress. That would be to extend support to re-think how the Federal government is looking at broadband and infrastructure.
A column this week in Forbes by Roslyn Layton3 looks at the broadband proposal in the American Jobs Plan that The White House has released and notes that it’s missing an approach to mobile broadband that could significantly impact the lives of many Americans.
Layton notes that the plan seeks to provide 100% broadband coverage across the country and help economically disadvantaged and greater competition. However, she feels the plan misses the mark because it “discounts, if not dismisses, the role of mobile broadband to achieve these goals.”
And I agree with that sentiment.
One only has to look at the charts in Thing One to recognize how usage is shifting to wireless technologies and that it is much more efficient than laying fiber across rural and remote locations. The added benefit for public media is that perhaps many of our broadcast towers could be used to help extend mobile broadband to unserved portions of the country.
Layton correctly points out that the focus on fiber is a more expensive route to take and is a gift to Netflix, Disney, other streamers, and tech giants.
The last 15 months have taught us how vital broadband connections into our homes are - both for work, play, and educational purposes — but a plan that neglects the direction of where broadband use is headed is short-sighted. This is a moment when we need an innovative approach to ensuring that all Americans have affordable access to a high-speed internet connection.
THING THREE: Radio Audiences Close to Pre-COVID Levels, but …
Last week Nielsen Audio shared the news that “The May 2021 PPM survey saw yet another month of gains in radio listening across the aggregate of markets as America continues to reopen and consumers return to pre-pandemic routines.”
Nielsen Audio estimates from last month report that radio surpassed 122 weekly listeners, the highest levels since March 2020. This is within two million listeners of where radio was before the lockdown from COVID-19 changed the routines and listening habits across the nation.
The increased listening was spread across all key dayparts with AM drive and weekends both at 15-month highs in May. Also of note is that weekend listening in May 2021 in PPM markets had an AQH of 6.6 million, which was higher than it was in March of last year (6.3 million) before the peak of the lockdown.
The News/Talk format is still the overall leader by format across all PPM markets, with a market share of 12.6% in May, down from a 15.2% share in January.
For public radio news stations, the Trump-less news cycle since January has resulted in a loss in market share for most stations in PPM markets. The chart below shows the loss for a selected group of stations (click on the chart for more clarity).
Several of these stations shown in the chart are still performing exceptionally well, with KQED, WAMU, and KOPB at the top of the rankings in their markets.
Two news stations in PPM markets went against this trend. KCUR in Kansas City increased to a 6.1% share in May equaling its peak of January 2021 and WUMU in Milwaukee continued its upward trajectory in May with a 4.6% share, an increase of 35% over its 3.4% share in January,
Is this the new normal as the news cycle settles into a new routine?
The summer months usually result in less listening to news stations, so I expect to continue to see some drop in share over the next few months unless a major news event occurs. With no election taking place this fall, this trend could continue through the calendar year.
It’s during these lulls in the news cycle that separates the smart programmers from the rest of the pack. I would love to hear what tweaks you’re looking to make, whether it’s some creative marketing, schedule changes, or just fine-tuning your sound to keep listeners a little longer.
Next week we’ll look at how music stations are doing as overall radio listening continues to return to pre-pandemic levels.
Thanks for reading. Your comments are always welcome.
Gen Z will be the last generation that is predominantly white.
To begin with, the branding of the product has always been a challenge for some station leaders.
Roslyn Layton, Ph.D., is an international tech policy expert.