As America cautiously moves from sheltering at home to re-opening, Local Broadcasters are on the front lines providing critical information to consumers. Katz Radio Group will be updating the marketplace regularly with new insights about how America's perceptions and behaviors are changing toward radio, communities and brands.
America is Re-Opening
Radio Delivers Prime Consumer Segment: Commuters
MORE PEOPLE ARE COMMUTING TO WORK - AND THEY'RE MUCH MORE LIKELY TO BE HEAVY RADIO LISTENERS
According to a recent Nielsen consumer survey, +56% more Americans are commuting to a job these days than during the height of the pandemic restrictions in April - bringing the percent of adults working out of home up to 25%. Looking at Heavy Radio Listeners in particular, the percent of those working outside the home is up to 37%, +48% higher than the average.
THOSE WORKING OUTSIDE OF THE HOME ARE KEY ECONOMIC PLAYERS
Nielsen finds that commuting workers are more engaged in consumer activities than the average American, making them important players in local economic recovery. They are more likely to visit and spend money at businesses, including getting their caffeine fix (+50%) and eating meals outside the home (+30% dining out, +18% take-out).
Chart is interactive; click to enlarge.
With +48% more Heavy Radio Listeners working outside the home than the total population, the best chance for brands to engage with these active consumers is on AM/FM radio.
On the Road Again: A Look at Mileage Recovery in Top DMAs
TOP 100 DMAs SEE DOUBLE AND TRIPLE-DIGIT MILEAGE RECOVERY IN JULY.
Recently released data from Geopath, the U.S. Outdoor Advertising audience measurement service, shows significant growth in daily miles traveled across all top DMAs during the week ending July 3rd, compared to April lows.
Not every DMA was impacted to the same level by pandemic restrictions, so smaller increases do not necessarily signify lack of recovery, but merely that less recovery was necessary. In fact, the majority of the top 25 DMAs are within or near 5 miles of their pre-COVID levels.
Chart is interactive; click to enlarge.
Mobility recovery sets the stage for more radio listening in each market. As consumers increase their time spent in cars, the added out-of-home listening will continue to drive radio listening back to more normalized levels.
A Back to School Season Like No Other
UNCERTAINTY ABOUNDS FOR BACK-TO-SCHOOL AND BACK-TO-COLLEGE CROWD.
The unsettled questions of when and how schools will open this fall loom over this back-to-school season. Newly released findings from Deloitte's Back-to-School and Back-to-College Surveys, conducted during the COVID-19 pandemic, give insight into the current anxieties and uncertainties parents face this season, and how purchase behavior will be affected.
- 66% of parents are anxious about health, finances and the form and quality of their child's schooling
- Overall spend is flat at $529 per student, but seeing shifts towards tech (+28%) and new health/hygiene category
- Digital shopping is increasingly popular this year (37% of budget) with the appeal of contactless transactions and BOPIS
- Mass merchants are still top destination, but losing some share to local stores as COVID has kept people closer to home
- 4 in 10 parents are likely to start shopping 4-6 weeks before school starts, but 25% remain uncertain on timing as they await news about reopening
- 62% of parents are anxious about health, finances and uncertainty over schools' safety measures
- Overall spending is flat at $1,345 per student, but middle/lower income families are cutting back on spend
- Digital shopping is increasingly popular this year (34% of budget) with the appeal of contactless transactions and BOPIS
- Uncertainty lingers about college re-opening plans, with the potential to have a drastic impact on the roughly 75% of BtC spend that is planned for late July-on
According to Rod Sides, vice chairman at Deloitte, "Retailers that can stay nimble and react quickly to changing needs for education amid the challenges of COVID-19, will likely be the ones that will have an opportunity to appeal to shoppers this season."
Local radio will prove to be a valuable asset for these retailers, needing the ability to tailor messaging and timing by market, and to respond quickly to evolving circumstances and consumer sentiment. Radio is an agile medium with high reach among parents, proven to drive results.
July 14th - BIA - U.S. Local Radio: State of the Industry Now and 2021. Webinar will examine the local marketplace for Radio, share new forecast updates and outline the best next steps for local Radio now and in 2021. Register here.
July 16th - Coresight Research - The COVID Recovery: A Retail Turning Point or Return to Status Quo. Webinar will discuss the future of retail and the impacts of the Covid-19 crisis, assessing long-term changes and recovery for a handful of key industries—including fast food, beauty, department stores, mass merchandise and the off-price sector. Register here.
July 23rd - Advertiser Perceptions - From Paralysis to Scenario Planning in the Coronavirus Economy. Webinar will explore some of the major factors advertisers must consider (e.g. where & how to spend) as they move forward in H2 2020 and beyond. Register here.
The Evolving Landscape for Consumers & Brands
Every state has now taken steps to lift stay-at-home regulations and ease business restrictions to varying degrees. Marketers need to carry on reassessing and adapting their actions in response to local regulations. Keep updated on state-by-state and category-specific actions with the links below.
More from Katz
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