Nielsen reports that video streaming services have grown their share of TV time from 26% to 40% over three years, highlighting their increasing dominance. Interestingly, video streamers share a demographic similarity with AM/FM radio and podcast listeners rather than traditional TV viewers, according to Screen Engine/ASI.
However, advertising dollars tell a different story: in the first three quarters of 2024, 92% of video streaming ad budgets went to TV, with only 8% directed toward audio platforms—6% to AM/FM radio and 2% to podcasts. This allocation appears misaligned with where the broadest audience reach lies, as shown by Nielsen’s research.
“At any spend level, AM/FM radio dramatically outreaches linear TV,” Cumulus Media/Westwood One Audio Active Group Chief Insights Officer Pierre Bouvard says in Westwood One’s weekly blog. “When examining monthly reach at various levels of GRP investment, AM/FM radio generates far more reach than television. Video streaming brands, and any advertiser for that matter, would be well served to introduce audio into their media plan.”
Screen Engine/ASI’s demographic breakdown also suggests that video streamers would be better served by ads on AM/FM radio and/or podcasts, vs. linear TV. “The age profile, presence of children, and employment levels of video streaming subscribers and viewers closely match the profile of heavy podcast and AM/FM radio listeners,” Bouvard says. “Linear TV viewers are much older, less likely to be employed and have children in the home.”
Additionally, according to Screen Engine/ASI, while 40% or more of the U.S. population say they recall seeing or hearing ads for streamers such as Disney+, Netflix, Hulu, Amazon Prime, Peacock, or Paramount+ in the past month, AM/FM and podcast listeners’ levels of recall match those of TV viewers.
“With the massive spending by video streaming services on linear TV, one would think the ad recall levels among heavy TV viewers would be massive. They are not,” Bouvard says. “The average streaming brand ad recall is 33% among heavy TV viewers, and 33% among heavy podcast and AM/FM radio listeners.”
For that comparatively miniscule 8% share of video streamer spend on AM/FM radio or podcasts during the first nine months of 2024, which services led the charge? According to Vivvix and Magellan, Apple, Hulu, Disney, and ViX were the top AM/FM spenders, while Hulu, DirecTV, Roku, and Amazon spent the most on podcasts.
When it comes to AM/FM radio buys, Screen Engine/ASI shows the most attractive formats for video streaming services — listened to frequently or occasionally among subscription video on demand subscribers — include classic rock, rock, oldies/classic hits, adult contemporary, top 40, and alternative.
Westwood One’s blog cites a Nielsen Media Impact case study where moving 20% of Hulu’s TV budget to AM/FM radio resulted in a 76% increase in reach, boosting its reach of adults 18+ from 33.7% to 59.3%, with the greatest impact on younger demos: 18-24 up 226% (12.8% to 41.8%), 25-34 up 171% (16.9% to 45.7%), and 35-44 up 122% (23.5% to 52.3%).
In addition, Bouvard notes, “Adding AM/FM radio to Hulu’s media plan generates massive reach growth among light and medium TV viewers. The 20% reallocation of the Hulu media plan to AM/FM radio results in significant incremental reach increases among light (+197%) and medium (+58%) TV viewers. Younger demographics are very light users of linear television, while older demographics are heavy users of TV.”
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