The good news about streaming audio is that it offers some advantages over traditional radio broadcasting.

Radio airwaves can take only a limited number of niche listening tastes, but Internet radio can provide as many channels as there are music genres.

Listeners can create their own channels and personalize their Internet radio. By pairing sophisticated Internet tracking tools and niche broadcasting, Web sites can deliver precise psychographics to Internet radio advertisers and brand marketers. In turn, they can provide more targeted messages.

Traditional radio is local; Internet radio is international. Big-name national and global advertisers enjoy greater reach on the Web. Traditional radio advertising typically offers 20 percent national and 80 percent local ads, according to Gerry Boehme of Katz Media Group.

Increasingly, listeners of online streaming music will be able to buy music when they hear it. Radio listeners, on the other hand, often aren't even told the name of the song on the air, fumble to find a pencil, and in the end can't find the music when they get to the retail store.

The workplace as a listening venue is opened up by Internet radio. More people are likely to listen to streaming music over headphones, rather than turn on a traditional radio receiver that could disturb other workers.

Additionally, in Atlanta, February 5, 1999, a study was released by The Arbitron Company and Edison Media Research. It  showed that Internet radio broadcasting continues to be a fast-growng medium. The survey of Arbitron diarykeepers also presented both the challenges and opportunities that the Internet presents for radio broadcasters, particularly in the much-talked about arena of e-commerce.

An update to the benchmark Internet radio listening study that Arbitron and Edison first conducted in July 1998, this Internet and E-commerce study was presented today at the Radio Advertising Bureau Marketing Leadership Conference in Atlanta. This latest edition of the Internet Listening Study examines how radio listeners utilize the Internet, who is listening online and what potential e-commerce represents for radio as an advertiser-supported medium. Some 1,350 Fall 1998 Arbitron diary keeper's were interviewed for the study.

"Radio and E-commerce" provides stations vath a clearer understanding of the impact Internet audio is having on radio listening levels, what radio stations vall need to do to enhance their Web presence and what categories represent the most profitable opportunities for radio station e- commerce. (Download the Powerpoint presentations and script at the New Studies and lnsiahts section of the Arbitron web site.)

The study found that both Internet access and listening to radio and other audio programming has grown rapidly over the past six months. Key findings:

- On-line access is burgeoning. Currently, 41% of all Americans has access to the Internet, either at home or at work. (An additional 9% of Americans access the Internet through schools and libraries.) This is up significantly from the 30% homehwork Internet access figure reported in the first Arbitron/Edison Internet Listening Study conducted in July 1998.

- Median time spent on-line is holding steady at 4 hours per week at-home, and 3.4 hours per week at work. This finding indicates that increased Internet traffic is almost entirely due to new users signing on in the last six months.

- On-line radio/audio listenership penetration has doubled in six months. Currently 13% of all Americans say they have listened to radio on the Internet. Six months ago, only 6% of the participants in our survey said that they listened to radio on the Internet.

-People used the Web for actual shopping. Of those who have shopped online, 20% have chopped frequently for music and CDs, 18% for computer equipment, 16% for software, 12% for books, travel items and banking services and I I % 1 1 % have purchased stocks and mutual funds.

- This past holiday season, 8% of all Americans purchased gifts online. The median household online expenditure for the holidays was $175. Nearly 60% of these online holiday shoppers fell into the 25-44

- For radio station websites, 23% of consumers say they would prefer to buy music for radio station web sites, a decided advantage for an industry that looks to music as its key programming element.

Arbitron is an international media and marketing research firm serving broadcasters, advertisers and advertising agencies in the United States and Europe. Arbitron measures local U.S. radio audiences, and develops qualitative measures of local U.S. consumers through RetailDirect and through Scarborough Research, a joint venture of Arbitron and VNU Marketing Information Services. In the United Kingdom and Europe, Continental Research, a unit of Arbitron, provides media, advertising, financial and telecommunications research. Arbitron Newmedia provides survey research, consulting and methodological services to the cable, direct broadcast satellite, telecommunications, on-line and new media industries.

Arbitron is a Ceridian (NYSE:CEN) company. Ceridian Corporation is a leading information services company that serves the human resources, transportation, and electronic media markets. Its businesses include Ceridian Employer Services, a leading provider of human resources management systems and payroll-and tax filing services; Comdata Corporation, a leader in transaction processing and information services for the transportation industry; and The Arbitron Company, a leading international media and marketing research company.

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