Sound Answers

TRACKING MEASURABLE LIFT IN WEB AND FOOT TRAFFIC

The insurance category certainly is no stranger to radio. Insurance brands often land high in Media Monitor rankings of top radio advertisers by spot count. 5 out of the top 10 most recognizable audio logos in Veritonic's 2020 Audio Logo Index are for insurance brands, and the category as a whole scores high on recall, brand ID, conveyance of brand attributes, and emotional triggers. Therefore it should be no surprise to find that radio is an instrumental and impactful medium for driving actual consumer action and engagement with auto insurance brands.

The Radio Advertising Bureau conducted an analysis of more than 35,000 auto insurance ads tracked by AnalyticOwl throughout 2020 to decipher radio's impact on online and offline consumer actions. What they found is that overall, radio led to 135,000 website visits, translating to a +12% lift in website traffic for those auto insurance brands that advertised on radio in 2020. The analysis also found that radio ads drove a +59% increase in new foot traffic to local insurance agent offices. On average, agents experienced an additional 16 new visits on days when radio ads aired.

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The RAB's analysis shows that radio is proving effective at driving engagement for the auto insurance category, both online and at brick-and-mortar locations. 

For more information from the RAB

The primary role of a radio station is to connect with listeners locally in the communities where they live. Throughout the pandemic, radio has proven to be a medium of choice for entertainment, companionship, and critical information in these communities. And according to recent survey data, radio has certainly earned people's trust.

A Katz analysis of the latest MRI-Simmons COVID-19 Consumer Insights Study data finds that radio is the most trusted medium, with 67% of adults deeming it trustworthy, or very trustworthy. Radio edges out newspapers (66%), and surpasses both computer internet and mobile internet by double-digit margins. More than twice as many adults consider radio trustworthy compared to social media. 

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Not only is radio a trusted medium for the average person, but also for super fans and super users of other media. Regardless of how much additional media people consume, radio consistently holds on to consumer trust. Heavy users of TV, the internet, and social media all consider radio to be more trustworthy than the respective media they consume heavily. 

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As brands pay closer attention to the safety and trust of various media platforms when they place their ad dollars, they should listen to users of all media - radio is the most trustworthy. 

CONSUMER PACKAGED GOODS PURCHASES UP +19% YoY

The COVID-19 pandemic, with its resulting stay-at-home mandates, store closures, and product availability issues, caused consumers to adopt new purchase behaviors. According to new data from CPG marketing performance experts NCSolutions, these changes culminated in an average +19% increase in CPG spend for 2020, with double-digit year-over-year gains in every month after January. 

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The study also found that purchase behavior changes impacted not only the amount spent, but also on what consumers bought. Nearly half (47%) of those polled said they tried new brands and categories since the pandemic began. Likely categories for exploring new brands included snack food (52%), beverages (44%), and cleaning products (43%). Of those consumers who tried new brands or categories, the majority of them haven't been in a rush to get back to their old ways, either because they've continued to change up their categories, or have simply stuck with the new brands they tried. That isn't to say that brand loyalty faded away 2020. 53% of consumers continued to buy the same categories and brands as always, and 18% of those who did make changes only did so temporarily. 

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Consumers' increased spend and willingness to change mark opportunities for brands. With brand loyalty up for grabs, it is more important than ever for advertisers to maintain a share of voice with consumers, old and new. Brands need to remain salient, stay top-of-mind among consumers, and address the drivers that are challenging old shopping habits. Local radio is a natural choice for brands to keep consumers informed on what's available, how they can access it conveniently, and how to get the best value for their dollar. 

For more information from NCSolutions.

February 10th - RAB - Defying The Gravity of 2020. Gordon Borrell will present highlights from the ninth annual Borrell-RAB Benchmarking Report covering how radio stations have been emphasizing their digital services to help grow revenue during a difficult and unusual year. RAB members register here. 

February 11th, 16th, 17th, or 22nd - NuvVoodoo - How to Get Your Ratings From Here to Vaccinated. Webinar covers NuVoodoo’s 17th Rating Prospect study and includes WFH and workplace listening trends, findings on podcasts, smart speakers, and streaming, and ways to boost listening and engagement. Study will highlight the difference between those who’d say “yes” to Nielsen and those who'd never participate in radio ratings. Register here. 

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. 

For more information on reopening status and regulations by state, from the New York Times

For more information on tracking America's recovery in terms of employment, finances, leisure, and travel, from CNN

For more information on retail restrictions, from the National Retail Federation

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.