As America settles into the new normal, Katz Radio Group will continue to update the marketplace regularly with new insights on America's perceptions and behaviors toward radio, communities and brands.
The Shifting Consumer Landscape
Radio is #1 Reach Medium in the Nielsen Total Audience Report
QUARTER AFTER QUARTER, YEAR AFTER YEAR, RADIO COMES OUT ON TOP
Nielsen recently released a new Total Audience Report covering Q2 2020, and once again, the radio industry has much to be proud of, including some impressive stats to have on hand as we wrap up 2020 and head into the New Year.
• As in previous Total Audience Reports, radio earns the title of #1 measured media in America, with over 223 million adults tuning in weekly.
• Radio reaches nearly 10 million more adults than its closest competitor, smartphone app/web.
• Perhaps eye opening for those telecommuting these days, over 80 million more Americans engage with radio each week than with internet on a computer .
Click upper-right corner of chart to enlarge.
The Total Audience Report serves as a quarterly reminder to marketers that there continues to be a place for AM/FM Radio in consumers’ lives. The media landscape certainly is evolving, and radio is maintaining a dominant place in it.
Local Ad Spend to Increase in 2021 - 3 Verticals to Watch
BIA FORECASTS $137.5B IN LOCAL SPEND, RADIO TO CLAIM 9.2%
BIA Advisory Services forecasts local ad revenue across all media will reach $137.5B in 2021, up +2.5% from 2020. Growth is expected to occur throughout 2021 as vaccines become widely available and businesses continue to rebound. Full return to pre-COVID (2019) levels is expected to occur in 2022. Local radio will maintain its place as a Top 5 Media for 2021, with an estimated spend of $12.6B, a 9.2% share of the total.
THREE VERTICALS TO LEAD THE WAY IN GROWTH
According to BIA estimates, three verticals are the clear front runners in year-over-year growth in ad spend.
• Leisure / Recreation: After a devastating 2020, BIA predicts +16.5% growth for the vertical in 2021, as well as double-digit growth for all sub-verticals, including Tourism and Travel Services, Motion Picture and Video Exhibition, and Airport, Cruises and Other Travel. The exact timing of this recovery is uncertain, dependent on vaccines, and when consumers can safely return to activities.
• Finance / Insurance: After a strong 2020, BIA predicts +10% growth for the vertical in 2021, including double-digit growth for the sub-verticals of Saving/Credit Institutions and Other Loan Services, Credit Cards, and Investment/Retirement Advice.
• Real Estate: BIA predicts +8.7% growth for the vertical in 2021, along with high single-digit growth for the sub-verticals of Realtors and Real Estate Developers. 2021 growth is driven by another strong housing market year - helped by high demand, low supply and low mortgage rates.
Read more from BIA Advisory Services here.
Borrell Local Ad Buyer Survey: What's in Store For Radio?
Borrell Associates presents a cautiously optimistic view of local ad buyers' plans for 2020, along with some advice on how media companies can positively impact those plans.
Based on a survey of over 2,000 local ad buyers, Borrell finds that the average annual budget will increase by +13.6% in 2021. Among those who spent in 2020, buyers plan to increase their radio spend by +6% next year - larger growth than other traditional media, including cable TV, broadcast TV and outdoor, as well as magazine and local newspapers, which show spend decreases for 2021.
OPPORTUNITIES TO POSITIVELY IMPACT 2021: KNOWLEDGE IS POWER
Borrell finds that 24% of local buyers are undecided about whether or what they will be spending in radio in 2021. They also find that 24% of buyers who cut radio in 2020 did so to move money elsewhere. The questions remain for 2021: how to protect and grow the business that landed itself in the "undecided" column, and how to win back what was lost in 2020?
An overwhelming theme to local ad buyers' advice for media companies: Knowledge is power. Buyers are looking for true partners who are armed with data, stats, and knowledge, and who are willing to educate them and earn their trust. In their own words:"You lose credibility when you do not have stats and you try a one size fits all approach."“Reporting is key, making sure campaigns align with KPIs""The Three R’s: Rate -Pricing is most important. Result - must be able to deliver what was promised … Relationship - Need to trust""Become more of a knowledge/teaching company and focus on sales as secondary. Have your salesforce go out to teach and guide and the sales will follow."
Katz strives to be a valuable resource for our clients, partners, and the industry as a whole, championing radio's strengths and abilities. We look forward to providing more case studies and analyses in 2021 to further prove the power of radio.
Read more from Borrell here.
Big Listening for the Big Game
The Super Bowl is arguably the most anticipated sporting event of the year, and radio is a tried-and-true source of Game Day action. Katz conducted a new in-depth analysis of Nielsen Audio and Scarborough data, looking at the strength of flagship station listening on Game Day and the consumer potential of Super Bowl listeners across the country.
WHAT CAN RADIO BRING TO THE FIELD?
• HUGE increases in listening on flagship stations
• It's not just men listening – HUGE growth with women listeners on Game Day
• Massive consumer potential among Super Bowl radio listeners
Get access Katz's entire deep dive here.
January 13th - RAB - MyPillow Sales Growth Using Personality Radio. Mike Lindell, Inventor and CEO of MyPillow joins Erica Farber for a live presentation where he will share the company’s story, how they go to market, the ingredients for successful partnerships with radio stations and how you can develop revenue for your station(s) and drive business for MyPillow. Register here.
January 26-28th - Adweek- Outlook 2021. Join Adweek to hear from top marketing, media and tech executives, forecasters and thought leaders on emerging platforms, tools and monetization strategies that will super-charge growth and revenue in uncertain times. Register here.
January 26th - Ipsos - Brand Purpose Through the Lens of Personal Values. Webinar will share recent insights addressing the relationship between personal values and brand perception, and dive into learning to help brands bridge intent with action. Register here.
The Evolving Landscape for Consumers & Brands
States have been taking steps to ease business restrictions to varying degrees, while some are reevaluating and pausing the process. 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
Click here for previous releases of Katz's Sound Answers.
Click here for Katz's summary of the latest Nielsen data on radio's recovery.
For more insights from Katz Radio Group, visit our Insights Hub.