AM/FM Radio Delivers Results For Retailers This Holiday Season

November 18, 2019 By Lauren Vetrano

The celebration of Thanksgiving and Black Friday next week marks the start of one of the biggest shopping seasons of the year.

2019’s holiday shopping push is set to be even bigger than 2018. According to the annual survey released by the National Retail Federation, consumers will spend $1,047.83 this season, up +4% from last year.

With money on the table, both brick and mortar and e-commerce retailers need to capture consumer attention.

AM/FM radio advertising drives retail results

AM/FM radio is highly effective at reaching these potential customers during the holidays with a massive 90% adult 25-54 average weekly reach regardless of the season, according to Nielsen.

In the week leading up to Thanksgiving, 90% of adults 25-54 are reached by AM/FM radio. 91% of adults 25-54 are reached the week of Christmas, making AM/FM radio the prime advertising vehicle for reaching shoppers trying to find last minute gifts.

AM/FM radio reaches consumers on the path to purchase

AM/FM radio is an on-the-go medium, reaching consumers close to the point of purchase. 68% of all AM/FM radio listening occurs away from home, according to Nielsen. Advertisers who invest in AM/FM radio are reaching consumers at a critical time when purchase decisions are made.

Americans travel to and from stores and are in their cars to visit loved ones during the holidays. This is good news for advertisers. A study from RealityMine’s USA TouchPoints shows on a weekly basis, 53% of Americans 18-64 have been in a store and their car in the same half-hour.

When consumers are in their cars, 88% of ad-supported audio time spent goes to AM/FM radio, according to Edison Research’s latest Q3 2019 Share of Ear. Shoppers hear AM/FM radio commercials that influence the stores they visit and brands they buy.

AM/FM radio drives store traffic

A recent study from the Radio Advertising Bureau and Dial Report shows that across categories, there was substantial store traffic lift among those who were exposed to AM/FM radio campaigns.

Home improvement retailers saw a 7% lift in store traffic. Quick service restaurants, lunchtime and dinner destinations for hungry shoppers needing to refuel, saw a 23% lift. Beauty retailers and car dealers saw the greatest lift of 32% each. AM/FM radio brings customers to the register.

AM/FM radio delivers digital impact for e-commerce retailers

Online shopping is still a staple for holiday gift gatherers. The NRF annual retail survey finds 56% of holiday shoppers will shop online.

For e-commerce websites, AM/FM radio creates significant digital impact. Three digital case studies illustrate the effectiveness of AM/FM radio to drive real results.

  • Increased site traffic: For auto dealer websites, AM/FM radio exposure boosted new website visitors +11%
  • Strong sales conversion: Compared to online ads and TV ads, AM/FM radio was most effective at converting awareness into purchases for Amazon Prime Day
  • Significant website visitation: Higher frequency (3+ times) of an AM/FM radio campaign drove 49% website visitation for a home improvement retailer

AM/FM radio has a proven track record for retail

According to multiple Nielsen return on advertising investment studies, AM/FM radio generates an average of $16 of retail sales for every $1 of radio advertising.

Key takeaways:

  • AM/FM radio advertising drives retail results: AM/FM radio reaches 90% of adults 25-54 during Thanksgiving week and 91% during Christmas week
  • AM/FM radio reaches consumers on the path to purchase: AM/FM radio has an 88% ad-supported in-car share of audio
  • AM/FM radio drives store traffic: AM/FM radio boosted store traffic for home improvement, quick service restaurants, beauty retailers, and car dealers all saw store traffic lift
  • AM/FM radio delivers digital impact for e-commerce retailers: AM/FM radio increases site traffic and has strong conversion from awareness to sales
  • AM/FM radio has a proven track record for retail: AM/FM radio generates $16 of retail sales for every $1 of radio advertising

Lauren Vetrano is Director of Content Marketing at CUMULUS MEDIA | Westwood One.

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