NuVoodoo by the Numbers – An Analysis of Urban Music Format Partisans Likely to Participate in Ratings: Part 1 – Contesting

Listeners who fit our model as likely ratings participants in both Hip Hop and Urban AC formats remain contest-active, with Hip Hop listeners demonstrating a particularly strong affinity for radio sweepstakes.

It’s remarkable that roughly 4 in 10 respondents in both formats report having participated in a radio contest within the past week.  And when we expand the timeframe to the past month, those numbers become even more compelling: a substantial two-thirds of Hip Hop ratings prospects and half of Urban AC ratings prospects have recently participated in a contest.

When it comes to attracting those all-important ratings-inclined listeners in Urban formats, contests with cash prizes are a powerful tool. But radio stations, always mindful of their budgets, need to make every dollar count. So, we asked study participants to imagine a contest on a website or a radio station they use every day. We instructed them to indicate the smallest cash prize that would motivate them to play. There’s an optimal cost-benefit for both Hip Hop and Urban AC formats, to consider for maximum impact.

Hip Hop:

• $250: A solid foundation, capturing the interest of 57% of potential ratings prospects. This prize level offers a good balance of reach and affordability.
• $500: A significant jump to 71%.
• $1000: Reaching 83% is tempting, but that additional 12% comes at a steep price at double the cost. Stations should weigh the value of reaching that extra incremental audience against the increased expense.
• More than $1000: While capturing nearly all potential prospects (97%) seems ideal, the cost might outweigh the benefit for most stations.

Urban AC:

• $250: A respectable 54% would participate in a cash contest, similar to Hip Hop at this prize level. This offers a good starting point for engaging potential ratings participants.
• $500: A 10-point increase to 64% shows a positive response, but less dramatic than with Hip Hop. 
• $1000: Reaching 71% with a 7-point increase raises questions about cost-effectiveness. Doubling the prize from $500 yields a relatively small gain.
• More than $1000: Climbing to 88% is notable, but consider if those resources could be better allocated to other engagement strategies.

Optimization Strategies:

• Tiered Prizes: Instead of always offering one large prize, consider a mix of smaller and larger prizes to appeal to a wider range of listeners and budgets.
• Prize Variety: Explore non-cash prizes or experiences that might resonate more strongly with Urban AC listeners, who seem less driven solely by dollar amounts.  80% of Hip Hop and 70% of Urban Adult ratings likely report cutting back on restaurants, concerts, vacations, and other discretionary spending this year.  High-perceived value items, especially the sponsor-liquidated kinds, can potentially fill the void.
• Targeted Promotions: Tailor contest promotions to the specific interests of each format’s audience to maximize engagement and participation.  Packaging cash to appeal to specific hot buttons, such as debt relief from a “Pay Your Bills” contest or splurging in a “Plastic Payoff” contest.
• Contest Mechanism: Hip-hop and Urban AC listeners favor most participation-mechanisms equally.  A majority favor online registration followed by listening for their name (83% and 76% respectively), but they also embrace app-based entries (75% and 74%), text-to-win (78% and 70%), and even the classic 10th caller contests (73% and 74%). Smart stations will leverage this multi-platform enthusiasm, offering a mix of entry methods to drive tune-in and extend engagement beyond the airwaves.  Mechanisms that allow for a contest incentive structure that spreads the budget across more listening occasions should be considered.

Of course, we know that ratings-driven radio station sweepstakes aren’t conducted in a bubble, and past studies have revealed the extent to which likely ratings participants shop around.  One prominent and proven way to stretch limited contest budgets while offering the promise of large, frequent payouts is through the mechanism of national contesting.  But how does the concept of radio stations participating in multi-city contests where stations across the country offer a prize that listeners in all the cities are competing to win land with Hip Hop and Urban AC ratings prospects?

National contests are a powerful tool for engaging Urban listeners, especially those likely to participate in ratings surveys. A solid majority of these listeners are aware of national contests (71% for Hip Hop, 62% for Urban AC), and most view them favorably (89% “good” for Hip Hop, 79% for Urban AC). However, when we square off $500 local prizes offered less frequently vs. $1,000 national prizes offered more frequently, the results are more mixed.  While 55% of Hip Hop listeners favor local contests with smaller prizes but higher odds of winning, Urban AC listeners buck this trend, with 57% preferring national contests with larger prizes and more competition.  This is most definitely an outlier group, considering just about every other RPS “Yes: format groups favor local contests with smaller prizes.

Contest Integrity While national contests are generally viewed positively by Urban listeners, concerns about local and national contest integrity overall exist, particularly among Hip Hop fans. Nearly half (47%) of Hip Hop listeners agree that contests are rigged, compared to 33% of Urban AC listeners. This perception gap underscores the importance of transparency and fairness in contest procedures. Building trust by clearly communicating contest rules, showcasing winners, and emphasizing the legitimacy of the process can help mitigate these concerns and maintain listener confidence.

Packaging of Local & National Contests.  Station sweepstakes are more than just fun and games for Urban listeners – just as the stipend for ratings participation counts more for why radio listeners agree to carry a meter or fill out a diary.  They’re a perceived lifeline in challenging economic times. Our data paints a clear picture of financial strain among these listeners, with a majority of Hip Hop listeners (55%) and nearly two-thirds (63%) of Urban AC listeners reporting higher credit card balances. Many are cutting back on non-essential spending (80% Hip Hop, 70% Urban AC) and switching to cheaper brands (75% Hip Hop, 59% Urban AC).

This economic reality underscores the need for contests that offer genuine relief. Prizes that alleviate financial burdens, such as paying off credit cards, covering mortgage or student loan payments, or providing groceries and gas, are likely to resonate deeply with these listeners. By offering tangible assistance, stations can demonstrate empathy and strengthen their connection with their audience.

Furthermore, the data reveals a reliance on savings strategies. Coupons, discount codes, and other savings incentives are frequently used by both Hip Hop and Urban AC listeners. This suggests a receptiveness to contests that offer not just immediate relief but also opportunities to save and manage finances more effectively.

Incorporating these insights into contest packaging can significantly enhance their appeal and impact. By aligning prizes with the economic realities and needs of Urban listeners, stations can create a powerful sense of goodwill and loyalty, ultimately driving engagement and ratings participation.

In Part 2 of our study of likely ratings participants among Hip Hop and Urban Adult format listeners, we’ll focus on getting the word out about contests and other station listening incentives.  Strategies for cultivating off-air organic touchpoints, deploying paid marketing, and activating listeners to increase listening consumption, especially in the dawning age of the 3-minute Average Quarter Hour minimum measuring stick will be the subject of next week’s article. 

 

Urban Format Insights: Unlocking the Power of Contests to Listening Among Ratings Participants

Get ready to dive deep into the preferences and behavior of Urban radio format partisans! In this multi-part series, we’re dissecting the latest findings from NuVoodoo Ratings Prospect Study 24, focusing on listeners who are most likely to participate in ratings surveys. We’ll uncover their preferences for contesting, programming, promotion, and marketing, providing insights for programmers and marketers ready to take action ahead of Nielsen’s planned transition to the new three-minute AQH measuring stick. In this first installment, we’ll tackle the world of radio station contests and sweepstakes, exploring how to maximize engagement and drive participation among Hip Hop and Urban AC ratings prospects.

Listeners who fit our model as likely ratings participants in both Hip Hop and Urban AC formats remain contest-active, with Hip Hop listeners demonstrating a particularly strong affinity for radio sweepstakes. It’s remarkable that roughly 4 in 10 respondents in both formats report having participated in a radio contest within only a week of the time this study was fielded in Q3, 2024. And when we expand the timeframe to the past month, those numbers become even more compelling: a substantial two-thirds of Hip Hop ratings prospects and half of Urban AC ratings prospects have recently participated in a radio contest.

When it comes to attracting those all-important ratings-inclined listeners in Urban formats, contests with cash prizes are a powerful tool. But radio stations, always mindful of their budgets, need to make every dollar count. So, we asked study participants to imagine a contest on a website or a radio station they use every day. We instructed them to indicate the smallest cash prize that would motivate them to play. There’s an optimal cost-benefit for both Hip Hop and Urban AC formats to consider for maximum impact.

Hip Hop:

• $250: A solid foundation, capturing the interest of 57% of potential ratings prospects. This prize level offers a good balance of reach and affordability.
• $500: A significant jump to 71%.
• $1000: Reaching 83% is tempting, but that additional 12% comes at a steep price at double the prizing cost. Stations should weigh the value of reaching that extra incremental audience against the increased expense.
• More than $1000: While capturing nearly all potential prospects (97%) seems ideal, the cost might outweigh the benefit for most stations.

Urban AC:

• $250: A respectable 54% would participate in a cash contest, similar to Hip Hop at this prize level. This offers a good starting point for engaging potential ratings participants.
• $500: A 10-point increase to 64% shows a positive response, but less dramatic than with Hip Hop.
• $1000: Reaching 71% with a 7-point increase raises questions about cost-effectiveness. Doubling the prize from $500 yields a relatively small gain.
• More than $1000: Climbing to 88% is notable, but consider if those resources could be better allocated to other engagement strategies.

Optimization Strategies:

• Tiered Prizes: Instead of always offering one large prize, consider a mix of smaller and larger prizes to appeal to a wider range of listeners and budgets.
• Prize Variety: Explore non-cash prizes or experiences that might resonate more strongly with Urban AC listeners, who seem less driven solely by dollar amounts. 80% of Hip Hop and 70% of Urban Adult ratings likelies report cutting back on restaurants, concerts, vacations, and other discretionary spending this year. High-perceived value items, especially the sponsor-liquidated kinds, can potentially fill the void.
• Targeted Promotions: Tailor contest promotions to the specific interests of each format’s audience to maximize engagement and participation. Packaging cash to trip specific hot buttons, such as debt relief from a “Pay Your Bills” contest or splurging in a “Plastic Payoff” contest.

Contest Mechanism: Hip-hop and Urban AC listeners favor most participation-mechanisms equally. A majority favor online registration followed by listening for their name (83% and 76% respectively), but they also embrace app-based entries (75% and 74%), text-to-win (78% and 70%), and even the classic 10th caller contests (73% and 74%). Smart stations will leverage this multi-platform enthusiasm, offering a mix of entry methods to drive tune-in and extend engagement beyond the airwaves. Mechanisms that allow for a contest incentive structure that spreads the budget across more listening occasions should be considered.  Apps in particular, given Nielsen’s recent switch to an app-based system for collecting in-tab, are integral when attempting to engage empaneled listeners.

Of course, we know that ratings-driven radio station sweepstakes aren’t conducted in a bubble, and past studies have revealed the extent to which likely ratings participants shop around for prizes. One prominent and proven way to stretch limited contest budgets while offering the promise of large, frequent payouts is through the mechanism of national contesting. But how does the concept of radio stations participating in multi-city contests where stations across the country offer a prize that listeners in all the cities are competing to win land with Hip Hop and Urban AC ratings prospects?  

National contests are a powerful tool for engaging Urban listeners, especially those likely to participate in ratings surveys. A solid majority of these listeners are aware of national contests (71% for Hip Hop, 62% for Urban AC), and most view them favorably (89% “good” for Hip Hop, 79% for Urban AC). However, when we square off $500 local prizes offered less frequently vs. $1,000 national prizes offered more frequently, the results are more mixed. While 55% of Hip Hop listeners favor local contests with smaller prizes but higher odds of winning, Urban AC listeners buck this trend, with 57% preferring national contests with larger prizes and more competition. This is most definitely an outlier group, considering just about every other RPS “Yes format groups favors local contests with smaller prizes.

Contest Integrity: While national contests are generally viewed positively by Urban listeners, concerns about local and national contest integrity overall exist, particularly among Hip Hop fans. Nearly half (47%) of Hip Hop listeners agree that contests are rigged, compared to 33% of Urban AC listeners. This perception gap underscores the importance of transparency and fairness in contest procedures. Building trust by clearly communicating contest rules, showcasing winners, and emphasizing the legitimacy of the process can help mitigate these concerns and maintain listener confidence.

Packaging of Local & National Contests: Station sweepstakes are more than just fun and games for Urban listeners – just as the stipend for ratings participation counts more for why radio listeners agree to carry a meter or fill out a diary. They’re perceived as a lifeline in challenging economic times. Our data paints a clear picture of financial strain among these listeners, with a majority of Hip Hop listeners (55%) and nearly two-thirds (63%) of Urban AC listeners reporting higher credit card balances. Many are cutting back on non-essential spending (80% Hip Hop, 70% Urban AC) and switching to cheaper brands (75% Hip Hop, 59% Urban AC).

The economic realities of today’s Urban listeners cannot be ignored when crafting a winning contest strategy. A significant portion of both Hip Hop (54%) and Urban AC (60%) ratings prospects earn less than $50,000 annually, with over a quarter of Hip Hop listeners (28%) and 20% of Urban AC listeners earning less than $25,000. These individuals are undoubtedly seeking ways to stretch their budgets and make ends meet.

With many facing financial hardship, contests that offer genuine relief – paying off debt, covering essential expenses, or providing necessities like groceries and gas – can resonate deeply. These listeners are actively seeking ways to save and manage their finances, making contests that offer tangible assistance and opportunities for greater financial flexibility, especially appealing. By aligning prizes with these needs, stations can cultivate goodwill, boost engagement, and ultimately drive ratings participation.

In Part 2 of our study of likely ratings participants among Hip Hop and Urban Adult format listeners, we’ll focus on getting the word out about contests and other station listening incentives. Strategies for cultivating off-air organic touchpoints, deploying paid marketing, activating listeners to increase listening consumption, especially in the age of the 3-minute Average Quarter-hour minimum measurement will be the subject of next week’s article.