NEW INSIGHTS ON TODAY S COMMUTERS
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1 The State of In-Car Audio NEW INSIGHTS ON TODAY S COMMUTERS With Findings From Edison Research s Hacking the Commuter Code Study APRIL 2016
2 Americans Have A Complicated Relationship With Their Cars So, how do we cope? Sure, the paycheck keeps many of us going. But for most, it s audio that makes commuting more enjoyable. For over 80 years, audio whether radio, a personal music collection or (now) streaming has been a trusted companion to drivers. Especially those who want to make the time pass quickly. What Are They Listening To? Americans love their cars. The freedom. The open road. The wind in their hair. Yet we dislike our daily commutes. The average car commuter spends about one hour on the road each day getting to and from work. And our time stuck in traffic continues to increase each year. A third of audio consumption takes place in the car, equating to 87 min. of listening per day. Luckily, today s commuters have more choices for audio than ever before. Gone are the days of settling for traditional sources, like AM/FM radio. Whether plugging in a smartphone or listening on a connected dashboard, drivers have many audio options at their fingertips. Not only that, but they have come to expect the same kind of personalized listening experience behind the wheel that they enjoy on mobile devices elsewhere. That made us wonder How are people actually spending their time in the car? What audio sources do they listen to most? And how do they interact with them during an average commute? A new study from Edison Research helps us understand in-car listening behaviors. This is valuable information especially for marketers who are looking to capture attention in the car. So, buckle up and hold on tight! (You didn t think we could get through this without one driving metaphor, did you?) Keep reading to discover how you should be thinking about drive time marketing today. 2
3 April 2016 Hacking the Commuter Code On In-Car Audio Edison, which has been studying digital media trends for decades, conducted a first-of-its-kind study of car commuters to understand their in-car audio behaviors and listening preferences. The study, titled Hacking the Commuter Code, featured intensive observations of how real commuters use audio in their cars. In addition to surveying participants, Edison outfitted 101 cars with GoPro cameras pointed at the dashboard controls to record exactly what, and for how long, commuters listen. 3
4 With So Many Options, Why Pick Just One? The typical commuter uses three or more audio sources. Talk about being media hungry! These commuters are looking to be entertained and informed, and they re finding it in many ways. What s clear is that AM/FM radio has been joined by a great number of new audio options. Many drivers now listen to streaming, satellite and other digital audio alternatives. Traditional over-the-air AM/FM Radio 90 CDs 62 Own digital music files Streaming Internet Radio Streaming AM/FM Radio WHILE COMMUTING, DO YOU EVER LISTEN TO? SiriusXM Audiobooks % SAYING YES Podcasts 17 What s clear is that AM/FM radio has been joined by a great number of new audio options. 4
5 What s Driving This Shift in Listening? In-Car Technology. Edison asked its panel to name the audio choice they d have in their car if they could only have one. You can see sharp differences in listening patterns according to the car model-year. 53% of commuters with older cars (2006 model-year and older) would chose AM/FM as the sole medium. Commuters with 2012 model-year or newer cars were 40% less likely to make AM/FM their top choice, and far more likely to choose streaming audio or another digital option. It s not surprising. These newer models feature connected dashboards that make it easy and seamless to favor digital listening. We can only expect more new, connected cars to hit the road in the future and as more drivers experience personalized streaming, services like Pandora will become the natural choice. STREAMING, AM/FM USAGE VARIES Total 43% 12% 45% Model-Year MY 2006 or older 53% 10% 37% Model-Year MY 2012 or newer 32% 15% 53% Streamed during commute 25% 28% 47% Traditional AM/FM Radio Streaming Other (i.e. CDs, satellite, podcasts) 5
6 The Switching Phenomenon Advertisers and broadcasters have long believed that drivers switch their audio choices more frequently in the car than they would in other locations simply because the controls are (literally) within an arm s reach. But until now, there has never been any research to support this thought. Commuters are Switching to Avoid Commercials and Disliked Songs By a significant margin, the top two reasons for switching on AM/FM are the commercials and to skip disliked songs. Commercials 314 Don't like song DJs/Personalities Change kind of music/program WHAT IS THE MAIN REASON TO CHANGE THE RADIO STATION? Lack of interest 23 # OF MENTIONS Don't like topic being discussed 20 6
7 What This Means For AM/FM Advertisers Drivers know that radio stations often play 10 or more commercials in a row. They also know they can avoid them with a simple push of a preset. 7 out of 10 commuters don t listen to the full commercial break, and nearly half of them don t even last through the first commercial. But it s not just the ads that are causing them to switch it s equally due to repetitive, un-personalized playlists. Drivers Switch AM/FM Stations 2x More Per Commute What happens when you combine repetitive playlists with a seemingly endless run of commercials? Restless Finger Syndrome! But seriously, you get drivers who switch stations a lot 22 times in each direction of their daily commute. That s 44 switches just going to and from work! Commuters who listen to other forms of audio (such as streaming, satellite or a personal music collection) only switch a fraction as much just 9 times per commute. Personalized audio in a low-clutter environment simply results in more driver attention. DRIVERS WHO LISTEN TO AM/FM RADIO SWITCH AN AVERAGE OF 22 TIMES PER COMMUTE 7
8 Drivers Aren t Waiting Until They Have a Connected Dash to Stream With commuters favoring more digital audio, cars themselves have become mini media hubs. This is not just because of connected dashboards, but also because drivers can connect their smartphones directly to the car audio system, via a USB, Aux jack or Bluetooth pairing. 40% of commuters told Edison that they connect their phones to their cars regularly in order to hear the songs they want. The Future of In-Car Advertising is Here Automakers have been aggressively promoting connected car technologies and commuters have noticed. 59% of those who plan to buy a car in the next 12 months have identified connected dashboards as an important feature that will impact their purchase decision. Most of the 17.5 million cars sold last year were connected cars. This will only continue to grow as more people upgrade their vehicles and as the demand for digital and streaming increases. Audio advertisers who rely on reaching consumers in the car should take note. OF DRIVERS CONNECT THEIR PHONES TO THEIR CARS REGULARLY IN ORDER TO HEAR SONGS THEY WANT. 8
9 Where AreYou Investing In The Car? Since you began reading this article more than 1,000 new cars have already been sold in the U.S., the majority of which will be equipped with a connected dash. The future is the connected car. And streaming is the solution for reaching engaged drivers. HOW WILL YOUR MARKETING STRATEGIES CAPTURE A GROWING CONNECTED CAR AUDIENCE? 9
10 WHEN PANDORA PLAYS, YOUR MESSAGE WORKS. METHODOLOGY: The selection criteria for the two studies included employed adults, age 18 or older, who drive alone for at least 20 minutes in each direction and listen to audio during their commute. An online quantitative study included answers from 1,117 participants, balanced to match U.S. Census statistics on those who commute to work by driving alone. The Ethnographic (GoPro camera) study included 101 commuters of varying ages, genders, ethnicities and geographic locations around the U.S. Respondents recorded their commute in both directions for one day and returned the cameras to Edison Research for
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