Despite Pandemic, AM/FM Radio Delivers Results For Retailers This Holiday Season

November 16, 2020 By Lauren Vetrano

While the celebration of Thanksgiving and Black Friday marks the start of one of the biggest shopping seasons of the year, the ongoing pandemic will change how Americans celebrate and shop. Although the 2020 holiday season will be different from any other, spending will still occur.

National Retail Federation: $997.79 consumer spend will start early

According to the just-released annual survey released by the National Retail Federation and Prosper Insights & Analytics, “Consumers plan to spend $997.79 on gifts, holiday items such as decorations and food, and additional “non-gift” purchases for themselves and their families.” Shopping will start early. The NRF finds that 41% of consumers plan to start their holiday shopping this month. With money still on the table, both brick and mortar and e-commerce retailers need to capture consumer attention.

The economy will affect holiday shopping but AM/FM radio listeners will spend more than the average

Last month, Nielsen released the results of a national consumer study of 1,000 respondents that was conducted October 1-5. It was the fourth in a series of studies that have tracked the pandemic’s impact on consumer movement, spending, attitudes, and media usage. The prior studies were conducted in April, May, and June of this year.

The October results were in step with the NRF findings, revealing that consumer spending will still be healthy in 2020. According to Nielsen, 54% of consumers say their holiday spending will remain unchanged from last year. 36% say it will be less and 10% indicate they will spend more.

A greater proportion of heavy AM/FM radio listeners say they will spend more this holiday (14%) versus heavy TV viewers (10%) and the overall market (10%).

AM/FM radio is a holiday shopper reach machine

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. 90% of adults 25-54 are also 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 as Nielsen finds audiences recovering and an increase in time spent in the car

AM/FM radio is an on-the-go medium, reaching consumers close to the point of purchase. While the shelter-in-place mandates of earlier this year affected those in the car, Nielsen finds daily time spent in the car has grown +81% from 36 minutes in May to 65 minutes in October. Among heavy AM/FM radio listeners, daily time spent in the car has doubled from an hour and six minutes a day to two hours and eleven minutes.

When consumers are in their cars, 87% of ad-supported audio time spent goes to AM/FM radio, according to Edison Research’s latest Q3 2020 “Share of Ear” report, the second installment of the study since the pandemic began earlier this year. Shoppers hear AM/FM radio commercials that influence the stores they visit and brands they buy.

AM/FM radio drives store traffic

A 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 always a staple for holiday gift gatherers but 2020’s health concerns have made it an important option for consumers. The NRF annual retail survey finds 60% of holiday shoppers will shop online this year.

For e-commerce websites, AM/FM radio creates significant digital impact. Three digital case studies illustrate the effectiveness of AM/FM radio to drive site traffic and e-commerce 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 radio ad recall (3+ times) for 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:

  • The economy will affect holiday shopping but AM/FM radio listeners will spend more than the average: A greater proportion of heavy AM/FM radio listeners say they will spend more this holiday versus heavy TV viewers and the overall market
  • AM/FM radio is a holiday shopper reach machine: AM/FM radio reaches 90% of adults 25-54 during Thanksgiving week and during Christmas week
  • AM/FM radio reaches consumers on the path to purchase: AM/FM radio has an 87% 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 return on advertising spend: 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.

Contact the Insights team at CorpMarketing@westwoodone.com.