The use of online video, social networking and mobile services have “exploded”in the past year, and Internet radio is a big contender to join this group in 2009, according to Arbitron Executive VP of Sales Pierre Bouvard, who was speaking at BIA’s Winning Media Strategies conference in Washington D.C.
Online video popped like the Internet popped in 1999,” says Bouvard, noting that it went from 18 percent usage to 27 percent, or 69 million. A second pop is the devotion that consumers have for their cellphone. And a third pop will be with Internet radio this year.
The latter will see usage by 17 percent of Americans, or 42 million. “They aren’t kids. They are 25-54 (years old) and 45-54 is the biggest age sell. “It looks like the big radio demographic,” says Bouvard. “These folks are more likely to be full-time employed, have upper income salaries, and college degrees. The sweet spot is people at work,” which has become an extension of morning drive time. Bouvard adds that people listen to Internet radio for variety and control; few commercials; and its clear signal.
Social networking is also taking off. “Kids were there last year, with over half of 12-24 year olds using one of the services. But look (this year) at 55-64 (year olds).It comes on like a freight train.” Still, Bouvard says it is important to keep in mind the high percentage of people who are not using social services. While Facebook has gone from eight percent to eighteen percent, “that means that 82 percent don’t use it,” he says.
One service that has had more mixed results is video on demand, which has only “moderate” use. Thirty nine percent tried it once, 18 percent used it “last month, and one percent last week,” says Bouvard. It compares poorly compared to the dynamic interest and passion that consumers have for cell phone services, such as getting music on cell phones, maps and video. These results lead Bouvard to conclude that major distributors such as Comcast, Verizon, AT&T and Cox should focus more on mobile applications and less on interactive television services.