Growing Size And Clout Of America’s Black Population Is Focus Of New Katz Report

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Story by Inside Radio

With their buying power forecast to reach a whopping $1.98 trillion by 2025, Black American consumers are a much sought-after population segment for marketers. This group accounts for 14.2% of the total U.S. population or approximately or 47.2 million people. That represents 19.2% growth from 2005 to 2021. The U.S. Census projects that by 2060, the non-ethnic White population will shrink by 10% while the Black American population will grow 35.7%. Data from the 2020 Census count by region found that over the past 10 years, the Black American population saw the biggest increase in the Mountain, New England, and West North Central divisions, while the White population is down across all regions.

“As our population grows, we’re becoming more racially diversified and engaging with the Black American consumer should be crucial to marketers,” Katz Multicultural says in a new report.

With 85% reach, AM//FM radio delivers more Black American consumers than any other medium. Broadcast radio’s reach among Black Americans has mostly held steady during the past seven years. Roughly 26.1 million tuned in during the Dec. 2020 – April 2022 timeframe compared to 26.5 million in the Feb. 2014 – March 2015 period. Meanwhile, streaming audio has grown from 11.9 million Black listeners in the 2014-2015 period to 18.3 million in the 2020-2022 timeframe. Importantly for radio, 38% of these listeners are accessing the online streams of AM/FM radio stations, which Katz says shows “the growth and demand for audio content continues among Black Americans.”

The report, entitled “The Importance of the Black American Consumer,” also uses MRI-Simmons Q4 2022 data to make the case that radio “is a valued and trusted medium within the Black American community.” For example, it shows that Black listeners are 22% more likely to say they enjoy the ads on radio, 19% more likely to agree that radio provides relaxation and inspiration, 24% more prone to say that advertising on radio “provides me with useful information about bargains,”: 26% more apt to say radio “keeps me up to date with the latest styles and trends” and 20% more likely to say radio “is a source I trust for financial or science news.”

Also included in the Katz Multicultural report is MRI-Simmons data showing that Black Americans who have strong engagement with radio are promising consumer targets, such as home buyers or people in the market for a home theater system or a hybrid vehicle. “The Black American Heavy-Radio Listening Consumer has a +38% better financial outlook than the average U.S. consumer,” according to Katz.

The report quotes from a report by McKinsey Global Institute that underscores the opportunity for brands to tap into this underserved market. “There’s a dual opportunity to add revenue for companies and growth for the economy, while addressing important gaps in neglected communities and creating value for consumers,” McKinsey says.

Download “The Importance of the Black American Consumer” HERE.

Battle Royale Is Back: NAB Rallies 119 House Members Against Royalty Bill.

 

Story by Inside RadioWritten by John Baggaley

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Four days after radio royalty supporters reintroduced the American Music Fairness or AMFM Act in Congress, the National Association of Broadcasters has rallied 119 members of the House of Representatives to sign a pledge that they do not support a royalty on over-the-air music use.

The Local Radio Freedom Act (LRFA), a nonbinding resolution that has been radio’s first line of defense against "any new performance fee, tax, royalty or other charge" on local broadcast radio stations, is out of the box in the 117th Congress signaling significant opposition to any potential broadcast radio royalty legislation.

"NAB applauds these 119 original cosponsors of the Local Radio Freedom Act for supporting local radio listeners and stations in their districts. Broadcast radio provides a unique and irreplaceable service to listeners free of charge,” NAB President and CEO Curtis LeGeyt said in a news release. “While foreign record labels seek to line their pockets at the expense of local radio, listeners and artists, we appreciate the lawmakers standing shoulder-to-shoulder with their local radio stations in firm opposition to a new performance fee."

Once again, Reps. Kathy Castor (D-FL) and Steve Womack (R-AR) are principal cosponsors of the resolution. The two lawmakers teed up a similar pledge in May 2021. It and similar resolutions introduced in previous Congresses have garnered widespread, bipartisan support, including more than 250 bipartisan members of the House of Representatives and Senate in the last Congress.

"As a former broadcaster, I understand the important role local radio plays in the lives of Arkansans and Americans,” said Rep. Womack. “From round-the-clock news to entertainment, listeners and communities rely on broadcasts for a variety of needs. But rising fees are making it increasingly impossible to afford operations. It’s essential Congress work to protect the viability of these small businesses. My introduction of the Local Radio Freedom Act is fundamentally about ensuring people have stations to tune into when they move their dial."

"I am proud to support our local radio stations that provide vital programming and essential services across the Tampa Bay area and the country, particularly during natural disasters and emergencies,” said Rep. Castor. “The Local Radio Freedom Act reaffirms Congress's support for local radio stations and opposes new fees or taxes on local, free, broadcast radio which could jeopardize those very services upon which so many rely. Many communities have suffered the loss of local newspapers and we cannot let that happen to local radio we depend on."

No companion resolution has been introduced in the Senate although one is likely to follow.

The reintroduction of the LRFA came after the 2023 Grammy Awards returned to Los Angeles Sunday and before broadcasters from across the country are planning to descend upon Washington, DC later this month to meet with members of Congress to encourage support for local radio and the LRFA.

Last Thursday’s reintroduction of AMFM Act in the Congress was led by Senator Marsha Blackburn (R-TN) along with Senator Alex Padilla (D-CA), Tom Tillis (R-NC) and Dianne Feinstein (D-CA). A companion version was filed in the House sponsored by Reps. Darrell Issa (R-CA) and Jerry Nadler (D-NY).

See the list of the 119 House cosponsors of the Local Radio Freedom Act HERE.

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Ray (2004) - Stepping Into the Part: A Jam Session Between Jamie Foxx & the late Ray Charles

First Black Governor of Maryland's 2023 Inaugural Address

Closing The Gap, Black Listeners Now Outpace Population Overall For Podcast Listening

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Story by Inside Radio

The spectrum of podcast content continues to offer a wider variety and that is delivering the industry growth in what has been an underserved audience. A new report shows Black podcast listenership grew to 43% in 2022, an increase of seven points from a year earlier. “The Black Podcast Listener Report – based on data collected by Edison Research in partnership with SXM Media and Mindshare” – shows Black listeners have closed the gap and are now outpacing the total U.S. population in podcast consumption.

The gains among Blacks come at time when podcast listening levels overall dipped. Edison says the number of U.S. adults overall that say they had listened to a podcast in the past month slid two points to 38% in 2022 as the media habits of the pandemic continued to revert back to normal.

“We attribute the rise in podcast listeners to more Black podcast hosts entering the space,” says Nidia Serrano, VP of Sales Marketing at SXM Media. “For a long time, podcasting was an empty dance floor for Black creators, but once a few started dancing, just like at a party, others felt empowered to join in. With more options and content that speaks to them, Black listeners now have a reason to listen to podcasts.”

The gap was closed as diversified content appealed to not just the young or old, but to any group interested in a topic or genre. Yet the survey reveals a gender split. Young, highly educated women tend to lead Black monthly podcast listenership with the data showing 55% of Black monthly podcast listeners are women. But Black men represent the largest share of Black weekly podcast listeners – by a 52% to 48% margin – which shows they listen more frequently than women.

Podcasts have historically skewed toward men, which makes their findings all the more noteworthy. “Black women have a history of leading media trends, so it’s exciting to see that this is also the case for podcasts,” Serrano says. “The differences between men and women are a matter of behavior and listening preferences. Women may not listen as frequently, but they listen more intensely. That’s because the genres they gravitate towards, from True Crime to Religion and Spirituality, tend to require that level of engagement. In contrast, the content men over-index against, like Sports and Politics, tend to be more episodic and happens at a higher frequency.”

The Black Podcast Listener Report also shines light on the age group that is showing the biggest embrace. While younger listeners represent the largest share of Black podcast listeners, older monthly podcast listeners are growing at a faster pace. Edison says 22% of Black listeners aged 55 and older are monthly podcast listeners, which is up eight points from a year earlier.

Translating Listeners To Ad Sales

Black podcast listeners spend five hours a week on average listening to podcasts according to the latest report, as the medium is considered a source of information, entertainment, and a place for listeners to hear unique perspectives from people who look and sound like them. Half of Black listeners say most or all of the podcasts they listen to have Black hosts.

The race of the host helps most when it comes to sales. The report shows Black listeners who have listened to a podcast hosted by a Black host in the last month were more likely to take action after hearing a podcast ad than those who’ve never listened to a podcast hosted by Black talent. That includes 53% that bought a product or service or 51% who used a promo/discount code. Edison says Black-hosted podcasts also drive listners down the purchase funnel as Black monthly podcast listeners are more likely to consider, trust, recommend and purchase a brand if they heard an ad for a brand on a podcast with Black hosts.

“Buyers are starting to get the message,” Serrano says, explaining many marketers now realize the role podcasts play in Black listeners' lives. “The level of connection and engagement between these hosts and their listeners is one they cherish and can't find in any other medium,” she says.

The new report is a follow-up to 2021’s first-ever Black Podcast Listener Report. It is based on data from 2,500 online interviews conducted in September among Black adults aged 18 and older.

“Podcasting has long had a perception of being primarily a white space, and research like this shows that that’s not the case, especially as Black listenership outpaces total U.S. consumption of podcasts,” said Mindshare’s Jared Greene.

Read more findings from the Black Podcast Listener Report 2.0 HERE.