Our latest HD Radio research delivers more disturbing news than our May HD study did.

Then, we found a lack of familiarity with HD, even among those who said they had heard of it. But lack of familiarity is a “blank slate” — one that can be filled with an effective message.

Now, we find that 5% of all 18-64’s think they’re listening to HD, but they can’t be because they haven’t purchased an HD-capable radio!

Undoubtedly, they have this misconception because stations are saying they’re “Now broadcasting in crystal-clear high-definition radio” (or whatever) without explaining that listeners can’t hear that great sound on an ordinary FM radio.

Not surprisingly, these misinformed listeners are not impressed with what they think is HD Radio! Nearly half (46%) tell us it is “about the same” as regular FM.

I wonder why they think that???

Radio is poisoning the perception of HD even before it gets off the ground, by selling something that listeners are not receiving.

Now, 5% of the audience (while 5% more than we’d like) is still a small minority! And 46% of that 5% leaves us with a little more than 2% who both think they’re receiving HD and who think it is about the same as regular FM.

So, consider this research as an “early warning” about the pitfalls of promoting HD with liner cards. Certainly, this can be turned around with a comprehensive campaign that communicates WHAT HD RADIO IS, WHAT ITS BENEFITS ARE and WHAT IT TAKES TO RECEIVE IT.

Oh, and drop those liner cards.

Here’s the text of a news release we just sent out…more commentary to follow…

A new research study reveals that 5% of 18-64 year olds think they are receiving HD Radio from at least one of the FM stations they listen to, but have not actually purchased an HD-capable radio.

Among these listeners who say they are receiving HD but haven’t purchased an HD radio, 46% say it is “about the same” as regular FM radio, while 12% of them characterize HD as “a lot better” than regular FM.

One percent of listeners say they have purchased an HD-capable radio. While a small subcell, two-thirds of them say HD is “a lot better” than regular FM.

These findings are based on 752 telephone interviews completed from September 13-17 in the U.S.

Mark Kassof & Co. is a research and strategy firm specializing in radio. Mark Kassof, President, states: “Stations contribute to confusion when they say they are ‘broadcasting in HD’ without offering an explanation of what HD provides and what is required to receive it. As a result, some listeners wrongly think they are receiving HD.”

This survey was the second HD-related study conducted by Mark Kassof & Co. this year. A May survey revealed that only 1% of 18-64 year olds said HD Radio provides more stations or programming choices.

Last spring, I finally got my big screen HDTV. I had been lusting after one for a while and spent lots of time trolling Best Buy, Circuit City and other stores checking out the various brands and technologies.

HDTV is a knockout. The difference between HD broadcasts and the old technology is dramatic. Watching the White Sox on this thing, I can almost smell the hot dogs and peanuts.

But HD Radio? Not dramatic. Yes, it does sound better. FM sounds like CDs and AM sounds like FM. I buy that, but I don’t think many will buy HD radios merely for the improved sound…they can get that kind of sound from a number of other sources.

What could sell HD Radio is programming that is compelling and not available elsewhere. Look at how many people pay Sirius just for Howard Stern.

In the computer world, they call it a “killer application.” Wikipedia defines it as “a computer program that is so useful and desirable that it proves the value of some underlying technology, such as a gaming console, operating system or piece of computer hardware.”

Lotus 1-2-3 fueled the sales of the original IBM PC’s. Graphic design and desktop publishing software (like Adobe Pagemaker) was the Mac’s killer app.

Consumers bought Windows because they wanted to run programs like Microsoft Word and Excel, not because the liked the cute icons. Email was the internet’s killer app.

And so on.

Programming is radio’s software. Compelling programming is the killer app for HD radio. I’m talking about channels that have powerful appeal to at least some people and that can’t be duplicated by conventional or even satellite radio.

Maybe it’s an “All Games, All the Time” channel, targeted to the small percentage of radio listeners who are contest junkies (or, as we called them in my on-air days, “prize pigs”).

Maybe it’s a New Age channel. New age music hasn’t been on the air since NAC became Smooth Jazz.

Maybe it’s the “All Cubs Talk” channel for for hardcore North Side Chicago baseball fans. (That’s one channel I won’t be listening to!)

I’m sure you can come with other equally off-the-wall ideas. None of them would even come close to a 1.0 share on FM. But “super-niche” stations would have passionate appeal for some listeners…”early adopters” who would buy HD radios and get the HD ball rolling.

As our research last May revealed, only 1% of 18-64 year olds said HD Radio provides more stations or programming choices. Radio must get this message across for HD to succeed…it needs a “killer app”!