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FROM:
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Fred Jacobs
May 14, 2007 TECH SURVEY III: HD RADIO FINDINGS |
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The bad news: Major barriers to purchase HD Radio remain
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Jacobs Media’s third annual Technology Web Poll, conducted among more than 25,000 Rock radio listeners around the U.S., paints a mixed picture for the future of HD Radio.
While there are some positive aspects to this data, especially where it concerns overall awareness and a better grasp of the technology, confusion about HD Radio remains. An overall lack of knowledge continues to be a major barrier in taking the plunge and purchasing an HD Radio.
Key Findings
On the one hand, the extensive marketing that has taken place on hundreds of radio stations across the country has been effective. Overall awareness of HD Radio has increased significantly, rising from 18% in ’06 to 45% in this new poll. Men, Alternative fans, and 18-34s are most likely to know about HD Radio.


In order to assess whether these respondents have a solid understanding of HD Radio, five true/false questions were created to test their knowledge. In ’06, those who were familiar with HD Radio were correct 57% of the time; in the ’07 survey, accuracy has increased to 70%.

Overall, however, only 1% of the sample owns an HD Radio, but there is some interest in purchasing one in the $150-200 range. Among those familiar with HD Radio, one in ten (11%) says they would be very likely to buy a receiver at this price point, while a third (33%) say they would be somewhat likely to do so.

What are the most positive qualities of HD Radio? Among those familiar with HD Radio, no subscription fee is the most appealing aspect, singled out by nearly one-third of respondents (31%), particularly women. One-fourth (25%) opt for the digital quality, a more important feature for men. One-fifth (20%) point to fewer commercials on HD Radio, especially 18-29 year-olds, while 13% mention new/HD2 stations, and 9% are enamored by more variety.

The barriers to purchasing an HD Radio are considerable at this early point in this technology’s development. But the biggest issue is an overall lack of knowledge about HD Radio, mentioned by four of every ten participants (42%) familiar with this new technology. Additionally, about one-third (32%) contend that the radios are too expensive.
Other roadblocks have to do with a basic lack of exposure to HD Radio. Notably, nearly one-third (32%) say they haven’t actually heard HD Radio yet, while one-fourth (26%) say they don’t know anyone who owns one, and 14% say they don’t know where to purchase an HD Radio.
Additional negatives include the perceived need to have an HD Radio in multiple locations (19%), general confusion about this new technology (15%), and concerns about whether HD Radio will be around in the future (10%).

There is moderate interest in having HD Radio in cars and trucks. We provided a list of features that respondents would find desirable in their next vehicle purchase. Among the newer technologies, mp3 player connectivity and GPS navigation are the leaders. About one in ten (10%) expresses strong interest in HD Radio in their next car or truck.

Observations
A key issue involves exposure to HD Radio. Many people either haven’t heard it or don’t know anyone who owns one. Given the importance of trial and the value of word-of-mouth advertising, HD Radio is not benefiting from peer recommendations. Additionally, because most people haven’t ever heard and experienced HD Radio, they simply don’t feel they have enough data or experience to strongly consider a purchase.
The HD Radio "asset hierarchy" points to some significant findings for the HD Alliance, iBiquity, and terrestrial broadcasters. Among this Rock-based audience, the lack of subscription fees is the standout advantage, while additional stations and variety are far down the list. This suggests that future HD Radio advertising and marketing might focus on strategic benefits, some of which can be effectively segmented to different target consumers. Men, for example, are more interested in the digital quality, while women are more apt to be attracted to the lack of subscription fees.
Other barriers are not insignificant either. Aside from the intense competition from iPod-like devices (more and more available in vehicles), and satellite radio’s significant lead, HD Radio also has to contend with concerns about its long-term future, the need for receivers in multiple locations, and their expense.
Jacobs Media’s Technology Web Poll III is the largest study of its kind, conducted in late February/early March 2007, among more than 25,000 respondents across 69 different Rock-formatted stations. It is the third annual Technology Poll, conducted among Rock radio listeners who are predominantly members of station email clubs. Participating stations represent Mainstream/Active Rock, Classic Rock, Alternative, and Triple A outlets in markets around the U.S.
Of course, this is a web poll, and cannot replicate all radio listeners or even all Rock radio listeners. As with all Internet-based research projects of this kind, the results reflect only those who chose to participate in the survey, and do not necessarily represent the views of all Rock radio listeners in the country. Still, the 69 radio stations that invited their listeners to take the survey are a broad cross-section of Rock stations, from large and small markets, as well as those that play the newest Rock music and those that play only Classic Rock.
Jacobs Media is the largest Rock radio consulting firm in America, providing research and consulting services to major radio broadcasting companies. The company created the Classic Rock format, and works with Alternative, Active Rock, and Triple A formatted stations.
For more information, please contact:
Fred Jacobs
fredjacobs@jacobsmedia.com
Paul Jacobs
pauljacobs@jacobsmedia.com
248-353-9030




