Prepared Remarks for RAB President and CEO Erica Farber at the 2014 Radio Show Indianapolis, IN -- Erica Farber, president and CEO of the Radio Advertising Bureau (RAB), provided the following prepared remarks for the 2014 Radio Show Opening Event. The Radio Show is produced by RAB and the National Association of Broadcasters (NAB).
***
Hello everyone, and welcome to this years Radio Show. Its been an awesome year and only the pit crews at the Indy 500 are more coordinated than we are. Special thanks are owed to our partners over at the NAB, Gordon Smith, John David and everyone else who worked so hard to pull it off this year.
None of us would even be here, of course, were it not for the advertisers, who continue to use our medium to underscore awareness and drive action and sales. We feel fortunate to be partnered with a group of advertisers who are so committed to their own goals and so supportive of ours.
In a little while Bob Hoffman is going to give a talk about B.S. As an advertising guru -- some say legend -- hes entitled. Its a provocative stance, and Im sure youre all looking forward to it as much as I am. Before that, though, I want to tell you a love story.
There was a period a few years ago -- lets call it the Dark Times -- when people enjoyed heralding the death of radio. The world is all new, they cried, and radio is an old medium. PowerPoint decks featured numerous pictures of 1950s families sitting around a giant wireless -- remember the old Sylvanias -- tuning into the Lone Ranger while wearing suits and dresses and hats inside the house. Even the children.
Those of us who loved radio were worried. Was our old flame losing its luster? Would we be able to keep the magic alive? Fortunately, it turned out the reports of our death were slightly exaggerated, because we were not alone in our affection for radio.
In fact, far from it.
People love radio. They loved it in the 50s and they love it now. They love music, they love news, they love the social nature of radio, the personalities, the callers, the discussions and even the ads. The good ones, anyway. 244 million people tune in every week, most for more than a couple hours a day.
Its still the number one way people listen to music. In fact, only a few days ago the Wall Street Journal published a story discussing the fact that over 86% of Americans still listen to radio while driving, way more than any other medium. Ill happily agree with them radio remains the king of the road.
In another recently released study, over 70% of respondents described radio personalities as friends who they would truly miss if they were gone.
Sweet, right? And more than sweet. Powerful.
New technology has allowed our listeners to fall even more deeply in love with radio. Now they can text or tweet or follow or like their favorite stations, or personalities. They email, they comment, they interact. This is not just dating anymore, people. This is marriage.
And it isnt just love that makes the future of radio secure. Its also a deep and abiding affection for the technology of radio. Lets face it; weve always been a little bit geeky. From hand built crystal sets to transistors to digital, its all just radio to us. While other industries seemed to scramble when new technology changed their playing field, we just saw more room to play.
And right now digital radio is the best game in town. Its our fastest growing revenue sector: $889 million dollars last year, and up 12% for the first half of this year. There are now over 23 million HD receivers in market, with 2300 stations broadcasting, and the technology is improving and developing every day. Currently, 35 automakers are shipping vehicles equipped with HD Radio Technology, and we all know its only a matter of time before real time traffic and data are part of every in-dash radio experience. Cover art, song tagging... all coming soon to a car near you.
And once the drive is over, you can take it with you. NextRadio has well over 850 thousand downloads, and gets a 4 out of 5 rating in the Google Play store. Users have listened to over 10,300 different FM stations wherever they go, without dipping into their data plans or incurring charges. In fact, were at nearly 1.1million hours of listening -- a monthly increase of over 23 percent from last month. There are currently 27 FM enabled devices with NextRadio available and that number just continues to grow. Incredible. The comments in the app store make it clear -- radio fans are happy to take their passion to go, and now theyll never be lonely again.
While we all know that digital is radios new frontier, we have some work to do. Our trade association partners at the IAB just released a Digital Audio Ad Serving Template and its open for public comment. I encourage everyone to review this document, discuss it with your digital teams, understand the implications to your business and share your opinions. As is always the case in a love story, there are new things to learn and adjustments to be made. This will only help us grow to deliver what our video counterparts already do and it will strengthen our relationships and partnerships with advertisers.
So whos bringing the love this year? Some advertisers stand out. Automotive continues to be our number one category, spending more than numbers two and three combined. Research shows people are keeping their cars longer, so more maintenance --- auto parts and service companies increased their radio spend 14% this quarter. And for those who are looking for a new car, radio continues to be an important influencer in choosing where to buy it. Dealers and their vehicle brands have always depended on radio and were happy to support them.
This past second quarter, political advertising was gearing up, as various states held primaries and contests on state and local issues. Candid
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Prepared Remarks for RAB President and CEO Erica Farber at the 2014 Radio Show Indianapolis, IN -- Erica Farber, president and CEO of the Radio Advertising Bureau (RAB), provided the following prepared remarks for the 2014 Radio Show Opening Event. The Radio Show is produced by RAB and the National Association of Broadcasters (NAB).
