Content-Type: text/html SEASONALITY AND TALK RADIO AUDIENCES Jeffrey S. Wilkinson, Assistant Professor Department of Broadcasting The University of Tennessee at Knoxville Knoxville, TN 37996-0333 (615) 974-4291 (fax: 974-2814) Internet: [log in to unmask] August E. Grant, Associate Professor Department of Radio/TV/Film CMA 6.118 The University of Texas at Austin Austin, TX 78712 (512) 471-6640 (fax: 471-4077) Internet: [log in to unmask] March, 1995 Paper submitted to the Media Management and Economics division of the Association of Educators in Journalism and Mass Communication. Seasonality and Talk Radio Audiences Abstract It is important for advertisers and radio station managers to understand the cyclical nature of audiences. This study examined talk radio ratings in all U.S. markets that are measured four times per year over a five-year-period in order to identify some trends and evidence of seasonality. The findings suggest that some dayparts are more seasonal than others, some seasons benefit certain dayparts over others, and talk radio is influenced by and influential with elections under some conditions. SEASONALITY AND TALK RADIO AUDIENCES The only constant about radio audiences is their inconsistency. Audiences fluctuate with changes in program, listener preferences, and even the seasons of the year. A great deal of research has been devoted to how ratings change as a result of changes in station behavior or listener preference, but almost no research has addressed the seasonality of radio ratings. This seasonality is especially important, because as a cycle, regular variations should be expected in radio ratings. The purpose of this paper is to identify some of the underlying elements contributing to radio's seasonality. The problem with any such exploration is the tendency to treat radio as a homogenous medium, when it actually is comprised of a multitude of formats, serving a variety of roles and goals for listeners. Rather than examining all radio formats, the focus of this paper is upon Talk Radio, because it is designed to fulfill the broadest range of goals, simultaneously informing and entertaining listeners. Seasonality and Cycles The variability in media consumption patterns reflects and is consistent with those found in nature and society (Zerubavel, 1981). For example, television viewing patterns have been found to be both seasonal and cyclical (Barnett, Chang, Fink, & Richards, 1991). Some of the seasonal factors that influence television viewing include weather (Gould, Johnson, & Chapman, 1984) and number of hours of daylight (Gensch and Shaman, 1980). An understanding of the cyclical nature of audiences is important for advertisers, station managers, and researchers because broadcasting companies are especially sensitive to cycles. Davis and Lee (1980) have reported that cycles exist for advertising sales, and sales are the lifeblood of the media--particularly broadcasting companies. Most if not all operating revenues for these organizations come from ad sales (Lavine & Wackman, 1988). Because broadcast media are so dependent on advertising, and advertising is based on audience ratings, both advertisers and managers must know something about regular fluctuations in audience consumption patterns as reflected by ratings data. People have both weekly patterns of media use as well as daily patterns. Two complimentary cycles are evidenced in daily television and radio use. For example, overall radio listening is generally highest in the mornings, while television viewing is generally highest at night. Identification of degree of seasonality in radio ratings, as well as of factors that increase or moderate the effect, is important to both broadcasters and advertisers. In order to interpret ratings, broadcasters need to be aware of the extent of regular variations in listening patterns for their station and their competitors. Understanding seasonality is probably most important for advertisers, who rely upon ratings data in the purchase of commercial time. Since virtually all ratings data are measures of past performance by stations, advertisers are forced to assume that current station performance can best be estimated by past performance. Identifying the degree of seasonality for specific formats will help advertisers make more informed decisions, and maximize their ability to predict the audience reached through a specific buy. Radio is a vibrant medium Radio remains the most common and mobile form of electronic communication. There are well over 11,000 radio stations licensed in the U.S., listened to every day by 77% of the population. Furthermore, approximately 95% of all cars have radios in them, undoubtedly a major contributor to the estimated three-and-one-half hours daily listening time (Radio Advertising Bureau, 1993, cited in Bartlett, 1993). The radio industry can reap tremendous benefits from understanding cycles. Although eclipsed by television in terms of attention and dollars, radio is alive, vibrant, and growing. Recent figures show that 1994 overall radio ad sales were up 11-12% over 1993 figures (Radio & Records, January 6, 1995). According to Duncan's American Radio, total radio station revenues may have surpassed the $10 billion-dollar mark for the first time ever. The Radio Advertising Bureau has further noted that the industry has enjoyed over two years of solid growth and sales increases (Broadcasting & Cable, November 7, 1994), and many believe that this growth will continue. There are some who believe that radio sales are more sensitive to fluctuations in the economy (Broadcasting & Cable, October 24, 1994), but little research has explored changes in audience beyond dayparts. The notion that "radio audiences are largest in the morning, smaller at mid-day, larger in the afternoon, and disappear at night" is well-known and supported by ratings figures. But if cycles have been identified for television viewing (Barnett et al, 1991), it is logical that such cycles also exist for radio listening. If these cycles also exist for radio, then it is important for practitioners and researchers to identify and understand them. This information could be used to help advertisers schedule messages, and even lead to discussions of whether some message approaches work better than others, depending on what part of the slope the overall audience listening cycle is located. All of these issues are the rationale for investigating the seasonality of radio listening. The Rise of Talk Radio Radio was forced to adapt when television came on the societal scene 40+ years ago. In order to survive, radio stations turned to niche programming and the notion of "the format" was born. Today there are dozens of formats, some of them virtually indistinguishable from the other. Radio listening patterns shifted dramatically in the late 70's and early 80's. AM radio listenership plummetted, as listeners migrated to the FM band. Despite roughly equal numbers for commercial AM and FM stations (roughly 5,000), the audience share for AM radio is at best one-fourth of the total listening audience (Keith 1993/1994). Not all radio stations have been created equal. Bates (1995) found that daytime-only AM stations are handicapped in terms of station value. This handicap is estimated to reduce the value of those stations by one-third to one-half that of comparable full-time AM stations. This effect was even more pronounced in large-market AM/FM combos, where it appears that the daytime-only frequency contributes nothing to the overall value to the combination (p.22). Recently there have been some encouraging signs for AM stations. Listenership levels appear to be no longer dropping, and in fact, may be increasing. Talk Radio is leading the recovery for AM, and many programmers point to the phenomenon of Rush Limbaugh as a prime factor (Radio Only, 1994). Limbaugh is credited with turning many marginal operations into successes, and has been found to have brought a substantial number of new listeners to the AM band (xxxxxxxxxxxx, 1995). The success of the Talk Radio format (which includes the hybrid News/Talk as well) on AM makes it of special interest to researchers. Talk Radio has found a niche that links listeners to government, information, and topics in ways that music formats have not or cannot. Talk Radio is extremely personal (Tramer & Jeffres, 1983), and involves its listeners to a greater extent than other formats (Warner & Buchman, 1993). Talk Radio is also inextricably linked to political speech. In fact, one of the socially-defined seasonal cycles for Talk Radio stations may be in their coverage of political activity. For example, talk show host Rush Limbaugh generated enough controversy for Congress to discuss the possible reinstatement of the Fairness Doctrine. More recently, talk show hosts broadcast their programs from Capitol offices provided by House Speaker Newt Gingrich (Radio & Records, January 6, 1995). Of all the AM formats, Talk Radio may be arguably the most successful. In many of the largest markets, the highest-rated AM station offers a Talk or News/Talk format (Keith, 1993/1994). In fact, this type of format is frequently the ONLY AM station ranked in the top-10 in terms of audience ratings. The successes of the AM Talk Radio format and the role of seasonality and cycles in listening are the focus of this study. Hypothesis The hypotheses are based upon the notion that there are fluctuations in radio audiences as there are in television audiences. This seasonality must be considered by managers and consultants because it directly impacts on estimated station worth and value. Although radio is a mobile medium and probably not dependent upon environmental factors in the same way television viewing is, Media System Dependency Theory suggests that the result will be the same. According to this theory, people will turn to the media for help during times of ambiguity and threat (Ball-Rokeach, 1985). Talk radio, by virtue of its political and opinion-driven content, probably fulfills this function better than other types of radio formats. Media system dependency also suggests that dependency relationships at one level of analysis will affect those at other levels. In this case, our focus is on the relationship of the individual listener to the talk radio medium. In considering this relationship, we must also consider the macro-level dependency relationships, specifically between talk radio and the political system. Ball-Rokeach (1985) specifies that the media system is dependent upon the political system for legitimation, judicial and legis lative protection, and for "political decision makers' capacities to generate conflict and drama that is grist for the media mill." (pp.491-492). Therefore, summer months are typically a "slower" time in terms of political, economic, and even media activity. At the same time there is less activity among these institutions, personal activity also tends toward increased leisure time which corresponds to greater available daylight time. More vacations are taken during the summer, which further breaks the regular listening or viewing routines. All of these personal, social, and natural factors result in decreased dependency on media, and therefore, reduced media use during summer months. Therefore, our first hypothesis addresses this issue: H1: The seasonality in talk radio audiences follows the same pattern of television viewing in that warm weather listening (Spring and Summer) will be least while cold weather (Fall and Winter) listening will be greatest overall. A second consideration regarding talk radio audiences is the variable of market size. A functionalist approach would suggest that "big city" talk radio listening may serve a different purpose from that of "small town" talk radio. Media System Dependency Theory hints that the relatively unstable nature of the large, supposedly impersonal metro makes the media (and talk radio) more important to its consumers than the alleged more personal nature of living in a small town. If Talk Radio is more important in the big city, then listeners will use greater effort to listen on a regular basis, resulting in greater seasonality. However, one may suggest the same argument could hold true for smaller markets. This is based on the notion that, as the number of stations in a market goes down, format duplication disappears and the station assumes a different role in the community. In the larger markets, there may be more than one talk, news, or newstalk station competing with dozens of other signals. But in the smaller markets, there may be only one station carrying this programming because Talk Radio is more resource intensive (expensive) than programming music. Since there is no direct competition for that audience, the small market Talk Radio station better serves as a local barometer for goings-on in the community. One may argue that this would result in higher dependence and therefore, greater seasonality based on regular listening cycles. Despite the competing notions of whether large or small markets are subject to greater seasonality, this paper chooses to side with the media system dependency model rather than "conventional wis dom" on this matter, suggesting that a second hypothesis would be: H2: Larger markets (those with more stations and presumably, more than one Talk or News/Talk station) will show MORE seasonality than smaller markets (with fewer stations and therefore fewer Talk or News/Talk stations). The larger the area population, the greater the change from season to season. Within the larger framework of seasonality in ratings, listening patterns should also exhibit both daily and weekly cycles. For example, because listening is greatest in the morning, this time period should be least sensitive to events and social changes because of the greater numbers involved. Morning listening may be perceived as ritualized listening, and should therefore should remain relatively stable over the course of time. Therefore, the next set of hypotheses focus on specific dayparts: H3a: Morning drive times will show least seasonality compared to mid-day, afternoon, or evening periods because morning listening is habitual listening. Another listening period that should show seasonality is evening listening. Talk radio listeners who listen at night have probably supplanted television viewing with this type of leisure activity, therefore: H3b: Evening listening will show greatest seasonality. A final area of interest would be to examine cyclical infuences from another sphere of social life. Every two years there is a major political election season, and every four years Americans elect a new President. Because Talk Radio has become an influential and popular outlet for political speech, it would make sense that these stations would become even more popular during election periods. As mentioned earlier, the Rush Limbaugh program has brought new listeners to AM talk radio, and also helped revive interest in American politics (Lewis, 1993). Because this program airs during mid-days in most markets, it suggests a link between the mid-day time slot and recent election-period ratings. This leads to our final hypotheses; H4a: Talk Radio ratings overall will be significantly higher during an election season (which tends to occur during Fall of every other year) than during the "off" years (odd-numbered years). H4b: Talk Radio ratings during mid-days will be the highest during the Fall season of election years. Method The method of assessing radio listening hinges on secondary analysis of ratings data. Ratings information was obtained from the Arbitron Rating Archive at the University of Georgia and from Arbitron's own archives. Ratings data from all U.S. radio markets that are rated four times each year were collected (N=94). This resulted in a data set comprised of ratings for each of those markets from Spring 1988 through Spring 1993 (the latest date for which data were available at the time of data collection). It is logical to believe that cyclical patterns in listening would be identifiable over a five year period. In addition to the ratings data, the variable of MSA (Metro Survey Area) was collected from the 1994 Broadcasting & Cable Yearbook. The MSA figures were based on 1993 Arbitron data. After this variable was matched to the ratings data, SPSS-PC+ software was used to test each hypothesis. Seasonality was conceptually defined as the degree of variation between the highest and lowest ratings period of the year. This variable was operationalized by computing the mean rating for each daypart across the five years, then computing the difference between the highest and lowest rated of the four ratings periods (fall, winter, spring, and summer). Results The first hypothesis proposed that seasonality in talk radio audiences will follow the same pattern as television viewing in that Spring and Summer ratings will tend to be lowest, while Fall and Winter ratings will tend to be highest. This hypothesis was supported. The maximum or highest ratings for each individual station occurred during Fall or Winter almost three-fourths of the time (73%), while Spring or Summer produced the highest ratings only one-fourth of the time. The second hypothesis suggested that the larger the market, the greater the change from season to season. This hypothesis was supported. MSA population as a surrogate measure of market (where more people indicates smaller market size) was negatively related to seasonality (r=-.29, p<005). Further research was conducted to explore the relationship between market size and seasonality within each daypart. Strong seasonal effects were observed during the daytime (AM drive, r=-.30, p<.005; Midday, r=-.35, p< .001; PM drive, r=-.24, p<.05), but market size was not related to seasonality of evening and weekend ratings. The third set of hypotheses suggested seasonality predictions for various time periods. Hypothesis 3a predicted that morning drive time will show the least seasonality of the three day periods (morning drive, mid-day, afternoon drive). This hypothesis was not supported. Although morning drive was significantly less than midday and evening time periods, morning and afternoon drive times were not significantly different. Hypothesis 3b predicted that evenings would show greatest seasonality. This hypothesis was supported. Evenings showed the greatest variability of all the time periods analyzed (see Table 1). The fourth area of interest was talk radio listening during elections. It was hypothesized that overall ratings for talk radio would be significantly higher during election years than non-election years. This hypothesis was not supported. The final hypothesis focused on the relationship between election seasons and the recent Rush Limbaugh phenomenon. Specifically, that Limbaugh and the mid-day time period for talk radio would show significantly higher ratings during recent election seasons. This hypothesis was supported. The overall means were significantly higher during election years for the mid-day time periods (t=2.57, df=92, p<.01). Discussion This study sought to identify whether seasonality does extend to talk radio. The answer seems to be a qualified "yes" with several implications for advertisers and station managers. This study found support for the hypothesis that seasonality and cycles exist with radio--specifically Talk Radio--audiences. Market size is significantly correlated to larger ratings figures and greater seasonality. Also, weekends and evenings tend to show more seasonality than the daylight time periods. This analysis was unable to find clear evidence of cyclicality during the morning, midday or afternoon dayparts, and this bears further scrutiny. Examining arbitron ratings in the top 94 markets over a five-year-period does reveal some important things about talk radio listening in America. First of all, the daytime radio listener is different from evening or weekend listening. Daytime listening appears to be linked to social and political trends and events, while nighttime and weekend listening is more ritualized. This suggests that evening and weekend talk radio listeners use the medium in the same cyclical patterns as television viewers use tele vision. But talk radio listening during the day is something entirely different from these "off-hour" dayparts. Apparently, talk radio during the day functions more as a barometer in people's daily lives, and is therefore subject to unpredictable fluctuations. These fluctuations stem from our involvement with our world, so political, social, and economic events may trigger changes in our listening behaviors en masse. With this in mind, it seems this study took a series of ratings "snapshots" over a five-year pe riod to identify some key periods and trends in America (see graph in Figure 1). Throughout 1988 and up to the Summer of 1989, daytime talk radio was mired in a downward slope as fewer people were tuning in. The nadir for talk radio stations was the time roughly between Summer 1989 and Summer 1990, as across the country, overall ratings dipped to even lower levels than the year before. Judging from the downward slope, 1988 was not a banner year for talk radio either. But nationally, Talk Radio showed a dramatic turnaround in the Winter 1991. This may be explained by two factors, one political and one social. The Gulf War riveted people's attention and evoked extreme feelings of partiotism and concern. Because of the ability of talk stations to involve listeners (by entertaining AND informing at the same time), they became key outlets for the community to express its sentiments about the war. This political event translated into listeners (which in turn translated in higher ratings and therefore advertising dollars) much the same as CNN viewership skyrocketed during this period. But the Gulf War may have simply been what triggered Talk Radio's comeback. While CNN viewership gains disappeared after the war (Zoglin, 1992), Talk Radio ratings across the country continued to bounce back to even higher levels. This new acceptance and interest in talk radio was spurred on by controversial hosts like Rush Limbaugh. It is suggested here that, although Limbaugh premiered in 1988, it wasn't until the Gulf War attracted so many people to "tune in" (as dependency theory would predict) that many people (especially conservatives) "found" their spokesperson. Once they tuned in, the behavior became a habit, as Limbaugh successfully tapped into what these individuals desired in a talk show. The past two years do not show an overall seasonality or cyclical pattern for talk radio, in part because new listeners have been brought to the AM band through Limbaugh and others. This would explain why the overall slope continues upward rather than a relatively stable wave of ups and downs. The implications of this study are numerous, and further examination of other radio formats rating data is advised. Because evening and weekend listening is ritualized media behavior, management should arrange their programming so that it matches audience needs. This is good news for syndicators and producers of shows with a track record. Evenings and weekends are not the best time for experimenting with new material, because these times show great seasonality. While some change and experimentation is certainly unavoidable, programs that have become established with their listener will be the most effective, because it's become habitual media consumption. This brings a predictability to ratings that advertisers have long sought. For example, if a campaign must be launched during a time when audiences are traditionally smaller (such as spring or summer), this knowledge allows the advertiser to set more realistic goals for the effectiveness of their radio buy. Another implication of this study suggests that ratings services should consider weighting of ratings to take seasonality into account. This would effectively "level the playing field" in that advertisers could understand that differences in ratings periods can be independent of the station programming. What further study should attempt to do is identify how the ritualized listeners are different from the more "active" daytime listeners. Although the daytime audience tends to be much greater, they are not very seasonal and use the medium for surveillance rather than entertainment and leisure. This should suggest varying strategies for advertisers to appeal to the different needs of each audience group. In conclusion, it appears that talk radio is alive and well, and thriving. By finding evidence of different patterns of seasonality among various dayparts, this study suggests that radio audience fragmentation not only occurs between formats, but with a given format as well. 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TABLE 1 Variable Mean SD t-value df 1-tail Sig ------------------------------------------------------------ Evening 2.16 1.899 AM drive 1.26 .926 4.96 93 p<.001 ------------------------------------------------------------ Evening 2.16 1.899 Mid-day 1.69 .978 2.31 93 p<.05 ------------------------------------------------------------ Evening 2.16 1.899 PM drive 1.12 .877 5.62 93 p<.001 ------------------------------------------------------------ Evening 2.16 1.899 Weekend 1.36 1.126 4.74 93 p<.001 ------------------------------------------------------------ FIGURE 1