STUDY: RADIO AIRPLAY AND MUSIC SALES

STUDY: RADIO AIRPLAY AND MUSIC SALES 2013

STUDY: RADIO AIRPLAY AND MUSIC SALES A new Nielsen study used to investigate how music exposure relates to music consumption demonstrates a significant relationship between radio airplay and digital song sales. Results indicate that radio is more highly correlated with song sales than any metric studied. o The study included over-the-air radio, on-demand streaming, programmed streaming, satellite radio and music video spins in relation to song sales.

NOTE: The sample above represents the top 15 spun songs from October 29, 2012 to October 27, 2013 Source: Nielsen SoundScan, Nielsen BDS, 2013

NIELSEN RADIO AIRPLAY AND MUSIC SALES STUDY

Results of the study show radio airplay drives music sales and on-demand streaming, beginning with the first week of consistent radio airplay and continuing through the peak sales week. In fact, a significant correlation (r2 = .92) exists between overall radio airplay and song sales. o An even higher correlation was found between radio airplay and peak music sales for Country music (.96), Latin music (.96) and Top 40 music (.94) formats.

Increased radio airplay results in an immediate impact on song sales. o Looking at the performance curve of the songs, the study shows that radio continues to support songs up to and beyond peak sales week, demonstrating radio’s ability to drive song sales and lengthen the lifecycle of a song.

Findings also show that radio drives on-demand streaming. Radio and on-demand streaming peak simultaneously showing radio’s strength as a tastemaker. Another strength for radio is its ability to deliver mass impressions through reach and frequency. This combination is integral to the sales cycle. Data demonstrate that video and programmed streaming lack these attributes.

NIELSEN RADIO AIRPLAY AND MUSIC SALES STUDY

The music discovery process was a major topic of Nielsen’s Music 360 Consumer Study. Results of the Music 360 Study show that broadcast radio is by far the number one method for discovering music. Radio is also very highly rated for being “current” and “knowing what’s popular.” This new study builds upon these findings, showing radio’s power in selling music.

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SOURCES OF MUSIC DISCOVERY