Satellite radio listeners have big plans to purchase
Listeners of Satellite radio providers Sirius and XM are likely to be planning purchases of big ticket products but the lack of commercial content may be impacting the ability of these new media options to influence consumers' purchases according to findings from BIGresearch's latest Simultaneous Media Survey (SIMM VII). "It seems to be quite clear, new adopters of media, do not change their relationship of media influence easily", said Joe Pilotta of BIGresearch. "Most early adopters are use to music channels which are virtually free of advertising content and therefore cannot be influenced by it." For example, regarding car/truck purchases 34.4% of Sirius listeners and 36.9% of XM listeners ranked word of mouth as the number one influence on making a purchase. TV/Broadcast was second with 28.3% of Sirius listeners and 29.6% of XM listeners. Read an article was third with 25.8% of Sirius listeners and 26.6% of XM listeners. Interestingly only 9.1% of Sirius listeners and 8.1% of XM listeners said Satellite radio. Similar findings were revealed regarding media influence for home improvement purchases; word of mouth was rated top influence with 34.0% of Sirius listeners and 33.4% of XM listeners, TV/broadcast was second 31.9% of Sirius listeners and 26.0% of XM listeners. Newspaper inserts were third with 28.1% of Sirius listeners and 25.5% of XM listeners. However, terrestrial radio had significantly more influence on Sirius or XM listeners than satellite radio for both car/truck and home improvement purchases. For car/truck purchase influence, 16.6% of Sirius listeners and 17.3% of XM listeners cited terrestrial radio versus satellite radio 9.1% of Sirius listeners and 8.1% of XM listeners. Home improvement purchase influence for satellite listeners also favored terrestrial radio 11.7% of Sirius listeners and 10.9% of XM listeners versus satellite radio 9.7% Sirius listeners and 5.8% of XM listeners. The findings demonstrate the buying power of the satellite radio listeners when you look at the planned purchases for the next 6 months, 17% of Sirius listeners, and 16.2% of XM listeners plan on making home improvement purchase, and 13.1% of Sirius listeners, and 10.9% of XM listeners plan on purchasing a new car or truck. Sirius and XM listeners planned purchase of big ticket items exceed the overall market place and generally exceed terrestrial radio. "The challenge for XM and Sirius will be to strike a balance between commercial and entertainment content that won't alienate their subscribers. As more commercial content is aired on satellite radio, listeners will have a greater potential to be influenced to make purchases", said Pilotta. "One of the big opportunities for satellite radio is to create a new commercial radio model such as 10 or 15 second commercials (rather than 30s or 60s), product placement opportunities and to take advantage of the power of word of mouth strategically which their listeners covet."
Percent Planning to Purchase Next 6 Months
|
Radio
|
|
Sirius |
XM |
(Terrestrial) |
All |
| Computer |
22.30% |
17.90% |
17.70% |
15.40% |
| Furniture |
21.00% |
17.50% |
17.80% |
14.50% |
| Home Appliances |
17.30% |
14.70% |
12.40% |
10.40% |
| House |
7.40% |
5.80% |
5.60% |
4.50% |
| RV/Boat |
2.80% |
2.30% |
1.50% |
1.10% |
| DVD/VCR |
10.30% |
10.60% |
11.40% |
9.10% |
| Vacation Travel |
25.50% |
29.10% |
23.10% |
20.00% |
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