As local economies start to move into their phased re-openings, consumers are increasing their rate of spending intentions for businesses in different categories. Understanding which verticals are on the upswing and how radio performs with these intenders is critical for radio as it looks to grow revenue in the re-opening phase of the pandemic.
New Nielsen consumer survey data reveals where consumers intend to spend more money within two months after restrictions are eased. A good strategy is to target categories where heavy radio listeners over-index.
Nielsen data indicates that in the auto parts sub-category, heavy radio listeners are 20% more likely to have the intention to spend more than the average consumer. “For auto parts dealers trying to find and target consumers most likely to have demand for their services, this is a great selling insight to help them prioritize their media buying,” BIA Advisory Services says in a post on its Local Media Watch blog.
BIA forecasts that the crucial auto category will spend $1.5 billion and the finance/insurance vertical will spend another $2.0 billion in radio in 2020. “For local sellers, this means that if accounts and prospects in these verticals paused spending due to the pandemic, now is the time to go back to these buyers to update their plans,” the post says.
Auto isn’t the only category where heavy radio listeners over index. The new Nielsen data shows heavy radio listeners are 27% more likely to have the intention to spend more on auto repair, 36% more likely to spend more on investment, 39% more likely on insurance and 40% more likely on accounting services.
BIA estimates U.S. local radio advertising will be $12.8 billion in 2020, comprised of $11.4 billion for over-the-air revenue and $1.4 billion for digital revenue. Although this estimate is lower than earlier expectations, there are bright spots for the industry and opportunities for a strong rebound from the effects of the pandemic.
BIA will host a webinar, “U.S. Local Radio: State of the Industry Now and 2021” on Tuesday, July 14 at 11am (ET). Managing Director, Rick Ducey and Chief Economist, Mark Fratrik will offer a state of the industry review to examine BIA’s forecast estimates, share of wallet estimates across media and radio’s unique opportunities. Guest speaker will be Mark Levy, President of Revenue Development Resources. View registration information HERE.