WWO: Nielsen Shows AM/FM Radio Improves Ad Campaign Reach
This week’s Cumulus Media | Westwood One Audio Active Group blog looks at a Nielsen analysis of the reach of media plans – specifically those that are rooted heavily in Linear TV with the addition of CTV (connected TV) and digital in the mix. No matter how much CTV and digital spend was added in place of dollars taken from Linear TV, reach did not increase. The blog post says, “Regardless of the size of your
media budget, adding AM/FM radio to a digital/TV plan sharply builds reach. Via Nielsen Commspoint, the media allocation planning tool, a wide range of monthly digital/TV media plans were examined. Very small, light, medium, and heavy campaigns were examined. The lightest digital/TV campaign reached 10% of the market. The heaviest reached 60%. Then a 20% allocation of AM/FM radio was introduced. The results were stunning. Across the seven monthly campaigns, from the lightest to the heaviest, the addition of AM/FM radio generated significant lifts in reach. Shifting 20% of the lightest TV/digital campaign to AM/FM radio caused reach to double. Introducing the 20% allocation of AM/FM radio to medium-sized campaigns causes reach to soar by 36% to 55%. Even the heaviest TV and digital campaign saw reach grow 20% with the addition of AM/FM radio to the plan.” Read the full blog post here.
It seems every hour Nielsen and Pierre Bouvard of Cumulus fame (formerly of Westwood One) put out a release stating that radio is just fine, thank you. Radio is more persuasive than TV, direct mail, streaming and print. Radio is a proven success for over 100 years. Most of the buildings housing Procter & Gamble were built on radio – not TV – advertising success. Happily, P&G realized radio’s clout and is now a dominant radio advertiser – again!
in population take place in the U.S. – with growth often seen in southern markets – the ratings giant adjusts its rankings. Among the notable changes are the Dallas-Fort Worth market leapfrogging San Francisco to the #4 market and San Francisco now at #5. Other markets moving up include Miami-Fort Lauderdale-Hollywood to #11 and San Diego to #18. 
1. Financial solvency laws. Consolidation is not the problem; it actually saved the radio industry. The problem is the 1986 rule change that dropped financial solvency requirements for station ownership. Prior to 1986, stations could not be purchased with debt. A potential owner had to prove that they could meet the expenses of a station through the duration of its license. Once the financial efficacy rule was dropped and stations could be purchased with debt, the industry was financially decimated. Prediction: Financial solvency laws will be re-instated.
reach 17% more voters.” The study references Pennsylvania Senator John Fetterman’s 2022 campaign, noting that it deployed radio to reach voters in Philadelphia and Pittsburgh. In doing so, it allocated 20% of media dollars to radio and generated a 10% lift from radio above the local TV campaign, amounting to 676,000 additional voters at no extra cost. Audacy SVP of strategy, partnerships and analytics Jon Blum says, “When campaigns activate a TV plan, they should activate a corresponding radio plan and incorporate it into the mix with TV. The portion of the population that isn’t reachable via TV could be the swing vote and what throws it over the top for a candidate.” Nielsen’s study noted that if a campaign moved 20% of ad spending to radio, the optimized media plan would connect with 15% more Democratic and Republican voters and 23% more unaffiliated voters. 
Let’s talk streaming because I don’t get what is happening. Maybe you do.
AM/FM radio listeners are 39% more likely to pay $301+ to have their taxes prepared and show greater familiarity, interest, consideration, and usage of tax category brands; 2) AM/FM radio ads drive site traffic for tax preparation brands: In the LeadsRx attribution study of a tax preparation service’s multi-wave campaign, AM/FM radio generated between a 43% to 47% increase in website traffic; 3) Branding early and often in tax preparation service ads drives more site traffic: LeadsRx found the top three creative executions that drove site traffic for a tax preparation service had the marketer’s brand name within the first five seconds of the ad; and 4) compared to other radio formats, a 2023 tax prep campaign on news/talk and sports stations realized a higher percentage share of interactions than the percentage share of their Nielsen ad impressions. 
2018, Nielsen’s Total Audience Report reveals the 18-49 weekly reach of live and time-shifted TV has dropped -26%. Over the same period, TV’s daily time spent is down -59%; 2) cord-cutting is a major driver of TV’s audience collapse: The MRI Simmons January 2023 “How Americans Watch TV” report reveals 51% have cut the cord; 3) While a huge number of Americans have abandoned traditional TV for streaming, AM/FM radio remains the dominant audio platform: According to Edison Research’s Q2 2023 “Share of Ear,” AM/FM radio has a massive 69% share of U.S. ad-supported audio. AM/FM radio audience shares are over 17 times larger than ad-supported Pandora and ad-supported Spotify. 
Wagoner writes, “Why is KFI so successful – isn’t conservative talk dead? Yes, it is… and it’s been decades since KFI was considered ‘conservative talk’ (even when it wasn’t). There have always been a balance of viewpoints on the station; as it moved away from politically centered topics to more general topics, it matched the mood of listeners who wanted to be entertained more than they wanted to be angry.” 
across all demographics, while heavy listening (listening more than 8 hours per week) increased year-over-year. Also from the study: 1) The number of Americans listening to podcasts has increased by 45% in the last five years, and more than doubled in the past decade; 2) the jump in listening while in the car (or on public transportation) is noticeable across all age groups. It is now the most popular location to listen to podcasts among consumers 18-34 and 35-49. 
Bulletin: “Linear TV” is no longer the winner.
Newsmax registered an impressive 88% percent jump in prime time, among all viewers, year over year. Nielsen also reported Newsmax witnessed 62% in total day and 56% in day-time ratings Monday through Friday.” Newsmax CEO Christopher Ruddy states, “It’s clear millions of Americans have made the switch to Newsmax, and they like what they see. They also like our powerhouse lineup starting with Greta Van Susteren every night at 6:00 pm Eastern.”
These DMA analyses are based on all radio stations in the U.S., not just Nielsen subscribers. The top DMA is Glendive, Montana with 72.1% of the population using AM radio. While the most AM radio listening tends to be done in Midwestern DMAs, there is still substantial AM listening done in Eastern markets. For example, Chicago is the #8 DMA for AM listening with 51.2%, but Seattle-Tacoma is not far behind at #14 with 42.8%, San Francisco-Oakland-San Jose is #20 with 41.3%, and the top two DMAs by population – New York and Los Angeles – show AM listenership is done by 31.8% of the population. 
Cooper 360” with 447,000. The new 9:00 pm ET show “Chris Plante The Right Squad” pulled an audience of 325,000 impressions, defeating CNN’s “Whole Story” with 293,000. And at 10:00 pm ET “Greg Kelly Reports” took first place with 278,000 viewers, compared to Chris Wallace giving CNN an audience of just 263,000. Newsmax CEO Christopher Ruddy says, “Newsmax has witnessed a consistent, positive trend for weeks and we are looking forward to enormous interest in the network as we draw closer to the GOP primaries and ’24 election.”
One out of three American AM/FM radio listeners are reached monthly by AM radio. From the Edison study: 1) AM/FM radio dominates listening in the car with an 88% share of ad-supported audio; 2) AM/FM radio’s near-90 share of in-car ad-supported audio has been steady as a rock for the last six years; 3) AM/FM radio’s ad-supported shares in the car are dominant across all demographics, even among 18-34s; and 4) ‘Perception’ vs. ‘reality’: Agencies and advertisers underestimate AM/FM radio shares and overestimate Pandora and Spotify audiences (‘Perception’ from Advertiser Perceptions data). MRI Simmons shows Ford owners represent 20% of all U.S. AM radio listeners and are more likely to listen to AM radio. Cumulus chief insights officer Pierre Bouvard comments, “AM stations serve very unique, targeted constituencies and represent many languages and voices. As automobile manufacturers consider eliminating AM radio, it’s important to underscore that the AM dial is one of the most diverse media platforms in the world. Why would we eliminate this variety from the car?” 
Oh, excuse me, hold on. Here it is! The hourly report from quasi research companies or real research companies like Nielsen declaring that radio is just fine, thank you! Massive surveys (choose one) reveal that radio works! Radio appeals to younger demos! Radio moves product! Radio has more listeners in AM drive than the “Tonight Show” has viewers! A landslide of data proves that after 100 years of success, radio is a viable medium.
January 2023 PPM Data – Information for the January 2023 ratings period has been released for New York; Los Angeles; Chicago; San Francisco; Dallas; Houston; Atlanta; Philadelphia; Nassau-Suffolk (Long Island); Riverside-San Bernardino-Ontario; San Jose; and Middlesex-Somerset-Union.
“while AM/FM radio represented only 16% of the media budgets, AM/FM radio generated 25% of site and search traffic.” Further, it discovered that “AM/FM radio delivered +58% greater site traffic than its share of spend. In contrast, TV delivered -11% less conversion lift than its share of the budget.” A Nielsen sales effect study of a campaign for a major retailer matched Portable People Meter panel data with credit card data to reveal how TV and AM/FM radio impacted sales. The AM/FM radio-only segment, those consumers only reached by the AM/FM radio campaign, had 3 times the sales lift of the consumers reached by the TV ads. Consumers only exposed to the TV ads generated a +4.6% sales increase. Those who saw both the TV ads and the AM/FM radio ads had a +4.8% sales lift. The segment only exposed to the AM/FM radio ads had an outsized +13.4% increase in sales.