While terrestrial radio reaches over 90% of the U.S. public weekly, the generation gap is painfully apparent in this recent data compiled by eMarketer.
A survey conducted by Fabrizio, McLaughlin & Associates found that Baby Boomers (42-62) still dominate as the generation that follows radio the most. Further down, but not too far behind, are the Gen-Xers (32-41) who listen to 1.88 mean hours of radio a day according to the study. And at the bottom of the pack are the Echo Boomers (18-31) who listen to a paltry 1.79 mean hours.
As advertisers look to target younger demographics, this explains one of the reasons why radio's revenues have been flat over the past six years.
But what does this mean for Sirius or XM? Should they target the older generations who've grown up with radio and are more accustomed to the medium? Or is it a sign that there's an opportunity to pick up the pieces that terrestrial radio has left behind?
Satellite Radio has the ability to conduct cross marketing with different demographics. After all, both XM and Sirius has something for everybody. But XM, and to a small extent, Sirius, is not up to par in the marketing arena.
Cerainly Both has done good with sports marketing, but not necessarily targeting those who have other interests.
And these radio listening figures are proof that the wonderful "hits-based" radio formats are wearing thin. It's time for satellite radio to step up, drown the traditional hits formats, and develop new ways to bring new music to the ears of the youth of today and tomorrow. XMU could certainly be seen as a start to this... and 20on20 with its voting features could be a piece of the puzzle as well... satellite radio could become the next FM if they try to be a little more experimental with their "hits" formats. Break the molds!
The truth is they should target whoever is willing to take a chance on this still new "frontier" media.. But the "Gen-X" and the "baby boomers" are legit targets because we still will turn a radio on and try to tune something in.. Satellite makes tuning a channel a lot easier..