With TV audiences dwindling, marketers are turning to radio to amplify their message.
According to MoffettNathanson, since 2011, non-live cable audiences are down -49%. Broadcast network non-live audiences are down -44%. The research firm reports that pay TV penetration has dropped from 89% of U.S. homes in 2009 to 60% today.
“Even older demos of people 50+ years old, historically relatively stable consumers of television, are watching less cable TV,” MoffettNathanson says in its report. “Likewise, broadcast networks are seeing sinking results, now projected to be down 16% in total viewers in the second quarter. That’s an 18% drop in 18-49, and 15% lost in those 50 and older.”
In a blog post, Cumulus Media/Westwood One Chief Insights Officer Pierre Bouvard says while some advertisers are shifting ad dollars to digital and social media because of the TV audience erosion, it results in no increase in incremental reach. An 80% TV/20% digital media buy saw no benefit to shifting to 30% digital/social, according to Nielsen Media. Additionally, a Nielsen Media Impact analysis reveals that a 20% addition of CTV (connected TV) weight only results in an 8% lift.
According to the Nielsen Commspoint media planning tool, network radio generates greater reach versus the same investment in TV and digital.
A three-million-dollar investment in network radio generates a weekly national reach of 50%, +47% greater than the same investment in digital and TV (34%). Adding network radio into any media generates an outsized lift in incremental reach.
Radio’s largest advertiser P&G has been able to generate incremental reach using AM/FM radio. On average, network radio is generating a +38% lift in P&G’s TV reach across their brands. Network radio also drives significant incremental reach in younger demos. P&G network ads generates +57% in reach among Persons 35-54; +101% increase in Persons 25-34; and +138% lift in Persons 18-24 reach.